London April 11th 2018

RE Analytics has been selected for the second time in a row among the 30 vendors that will be present at the Alternative Data Showcase that will be held in London next week (please contact enquiries@eaglealpha.com for tickets and more details). This event follows our participation to the first edition, which was held in New York last December.

We will be presenting to asset managers and data buyers our proprietary intelligence proposition on Fashion & Luxury Goods which includes both raw-data feed and the web sector intelligence hub.

Our proposition for Asset Managers

Asset Class: Equity

Research Type: Fundamental/Quantamental

Data Set Overview: Web crawled data for most representative wholesale etailers and department stores in fashion & luxury worldwide (US, Europe, Middle East, Asia) for pricing, promotions, product mix, channel mix.

Companies covered: 30.000+ fashion brands, mostly private and 47 Fashion & Luxury Goods equities worldwide, from manufacturers, brands to retailers, listed in NYSE, NASDAQ, London, Paris, Frankfurt, Madrid, Milan, Hong Kong, Tokyo and Seoul.
Back-testing/Significance:

We have been working since 2015 with the #1 Luxury Goods Equity sector analysts of Exane BNP Paribas (source: Extel Pan European Survey) to select and analyze metrics and market relevance.

Our proprietary data-set has been included into and builds a material portion of the Exane “Brand Health Index”, which when correlated with the 12-month forward PE explains 76% of the valuation variance in the luxury sectorwhen we include both the European and the American names. Exane BNP Paribas used a weighted average “brand health index” to position the conglomerates in the correlation.

Illustrative AltData Use Case

An Italian manufacturer of luxury goods listed in Milan reported on March 8th earnings for 2017: Revenue declined by 4,1% and profits declined by 17% vs 2016. Alternative data on product pricing and markdown anticipated the difficulties the brand was having in 2017: low growth in product lines other than footwear, high level of promotions on products and brand value dilution due to vast presence in off-price channels.

In the brief snapshot reported here, we analyze how wholesalers set promotions to their products: Data confirms that when consumers find the right value for the price there is no need for discounts. In addition, if a manufacturer has a weak control over pricing and promotion discipline of its wholesalers, margins are at risk. Higher discounts on wholesalers make it more difficult to sustain full-price sales on their websites and on physical retail stores.