Short unfinished thought: Fila fad or value?

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.

4 thoughts on “Short unfinished thought: Fila fad or value?

  1. Hello, the recent weeks I was screening for interesting companies outside the beaten tracks, I found poland, japan, hk and korea particualary interesting – mostly mid and small caps. However, I found no reasonable markt access to korea for me, so I skipped this part.

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    • Hmm, I have Lynx, which covers HK and Japan but no Korea in Asia. Thinking opening IB account. Also lot of Swedes seem to use Degiro, but I’m not sure if it’s legit operator? Currently have two broker accounts so administration already with these gets a bit weary…

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      • Ins’t Lynx just a reseller of IB? IB is fine. I have an account since 2007 there and I am using the APIs.There are only two things I miss at IB: Oslo and Korea. For Oslo I might use my second/German account (Smartbroker / DAB Munich). For Korea I found no valid solution.

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      • Yeah Lynx is related to to IB, I think it’s also their terminal. I blindly assumed IB=you can get everywhere, but then it’s not the solution for Korea…thanks for the info, got to figure something else then, or forget the idea.

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