Shares of US online luxury reseller The RealReal Inc jumped 40% in their debut on Friday, giving it a market capitalization of $2.32 billion and signalling increased investor appetite for listings of consumer companies.
Watches of Switzerland, the British retail group behind luxury chains including Mappin & Webb and Goldsmiths, made its debut on the London Stock Exchange on Thursday with shares rising by 15% during the morning.
The YNAP buy lit a rocket under Richemont sales last year, but it dented profitability. Yet the group remains strong with jewellery and watches buoyant while Chloé and Dunhill have seen good reactions to new products.
According to a McKinsey study, China’s luxury expenditure is expected to be worth €159 billion and have a 40% share of the global market by 2025, driven by rising middle class expenditure and consumers born in the '90s.
Hanneli Rupert, daughter of Johann Rupert, chairman of Cartier and Richemont, has emerged as a countercurrent voice defending the use of exotic leather while the rest of the industry has been moving away from it.