Ya Osim did well with TWG, at least TWG is related to "health"
But this one... luxury products... chocolate and watches really no link sia...
Whats next after chocolates? high-end restaurant?
AGM the hour glass confirm tio shoot, prepare pop corn for show haha
(07-02-2013, 09:07 PM)Salty Wrote: [ -> ]Buy Rolex free macaroons!
But seriously I feel we should give them a chance. It could be a new revenue line.
It is still luxury products. Consumable some more.
Don't think setting up would cause much capex, if it succeeds it's huge return compared to the capex.
Keep talking about ROE but what's roe if you company dont invest.
But if you look at their track record since 1990s, there does not seemed to be any great investment that succeed. I do have to admit that Laduree is quite different from previous venture.
It will be a good addition only if Laduree has very high inventory turnover and profit margin which will depend on how successful it is. High inventory turnover will help to reduce the high inventory hold of its watch retail business.
I guess i will have felt much at ease if they have just focused on their watches. Only consolation will be that they are not selling macaron in the watch retail shop.
I would also prefer that, but then again, watch retailing are becoming really competitive compare to previously.
Stepped into wisma that day and surprised to find so many watch retail shops.
Also, the usual worry of the brands own boutique.
Diversify could be a nice way to mitigate.
Maybe their daughter or daughter in law or step daughter needs a business to run. haha jk!
Hi everybody,
I'm french and i think it's a smart move, my humble opinion.
Vested.
Selling sweets (deserts, confectionary, etc.) and chocolates can be a profitable business with good growth potential. As an example, we can take a good look into the company behind "The Cocoa Trees" retail chain.....
http://www.thecocoatrees.com/index.php
Rich guys buy Chopard or Cartier for gf but they buy macaroons for their wife!
I personally think Singapore is ready for Laudree and it will take off as it has such a huge following especially among Asian girls, they opened in Sydney last year and there were long lines to buy macaroons (mostly asian customers).
However their past history of trying to diversify has been unsuccessful. eg, Porcelain, Milano Pizza.
IMO, I don't think the exclusive distributorship for Laudree macarons will be a significant game changer - neither for the better nor the worse. In Dec 2012, Laudree opened its first outlet in HK and a box of 15 assorted macarons cost around HK$345 or S$57.50 - which implies S$3.80 per macaron. I don't think there will be much price difference between HK and Singapore so it's safe to assume this selling price range.
Now, to see the "impact" of Laudree distributorship - assume the exclusive distribution aims to match the recent 7% sales decline in 3Q2012 which amounts to around S$11mln. To plug in this SS$11mln gap, the two new outlet has to sell around 2.9mln macarons or 190K boxes of 15 assorted macarons. In other words, these 2 outlets have to sell around 2000 boxes a day or 1000 boxes per outlet. Maybe in a blue sky scenario, the novelty effect can meet such target but to run it off consistently for 90 days/1 quarter will be doubtful.
No doubt, moving into Laudree may improve its CCC days - depending on their target mix. A/R days will be low given its CoD terms while I can't forsee selling macaron having a larger inventory days than selling watches. A/P days should be the norm or even better since it is an exclusive distributorship. Margins are likely to match what HG is earning so there is a high possibility it can be accretive though this depends on how much mix will macaron account for HG's total sales. But overall, my point is this, one sale of a cheap Patek Philippe watch at S$10K can cover the effort of selling Laudree macarons. So their impact won't be much.
Instead, I will take one step further and be cynical. I suspect the distributorship announcement was a way to divert attention from its declining watch retailing business. The Federation of the Swiss Watch Industry recently announced figures for its Swiss watch exports for 2012. Overall, 2012 was a good year but trend in December may suggest a peak of watch exports. Swiss watches exports to HK fell by 15%, China by 32% and Singapore by 28%. December tends to be a peak season for watch sales due to the festive mood but the recent data seem to be showing otherwise. Perhaps, the silver lining lies in the fact that luxury watches grew by 1.4%. That said, it is still little comfort given the seasonality peak.
Question now is to whether we should ride through this wave.
Those interested in the HK Laudree outlet -
http://www.thatfoodcray.com/2012/12/05/b...g-laduree/
I didn't study the company much but a premium watch seller selling macarons?
I have a bad feeling it is the beginning of the start of the declining of a company. But then i am not sure, just a feeling.
(08-02-2013, 01:33 PM)hongonn Wrote: [ -> ]I didn't study the company much but a premium watch seller selling macarons?
I have a bad feeling it is the beginning of the start of the declining of a company. But then i am not sure, just a feeling.
I''ll be watching and monitoring as well, just as a matter of interest as I am not vested.
