Someone mentioned Fila during COVID mayhem. I found time to look at it last weekend. It’s pretty interesting.
They have their own business in Korea and US, but RoW is lisenced. They get percentage of all worldwide revenues without putting in capital.
The lisencees seem to have quite a lot of freedom how to market and what are the designs, a bit weird as there’s no consistency, but who cares if it’s working? I doubt it’s another Nike with this strategy though.
Never the less, the brand has had good run recently on back of celebrity endorsement, improved marketing and 90s retro being trendy. The brand is gangbusters in China with JV with Anta.
There’s some articles in internet about the India lisencee wanting to do the same. That’s another China worth of profit without incremental capital. Question is, is this Fila trend a fad or longer trend? Multiple is pretty low so market has voted.
But it’s global brand that wont blow up on leases, and doesn’t require capital for growth. I feel little bit intriguied but it’s quite far away from home in South-Korea, and I would need to setup new broker account to trade it.
Anyone has more insight on this/trading in Korea? Seems to be in many value managers’ Asia portfolio, going nowhere (e.g. Templeton, Skagen).
Don’t have position but just felt like writing this unfinished thought to free up some space in my brains.