Investment option in brand-name products

By Nipapun Poonsateansup, CFP® Dependent Financial Planner

In the condition that the stock market fluctuates causing investors to have to diversify their investments into various types of assets. One of the interesting investment options is investing in brand-name products which are classified as an alternative investment. However, it does not mean that you can invest in all brand name products. Because some brand-name products may not be needed by the market or can sell easily. Investors need to know and understand what features of brand-name products that can be invested.

Features of brand-name products that can be invested

  • It is a product that is in demand because they have supporting markets such as handbags, wrist watches, etc.

  • It is a durable product that not torn or damaged because of use or by time, such as bags, watches, etc.

  • Products that are limited (Limited Edition) or produced less than market demand. Making people ready to pay at a higher price to acquire that product, such as vintage cars, vintage cameras, artworks, luggage and watches, limited edition models, etc.

  • It is a product that can be accumulated into collections such as bags, wrist watches, etc.

  • It is a valuable product in itself or has additional value, such as precious metals or gems, such as diamonds, gold, platinum, etc.

Investment options in brand-name products are divided into 3 options as follows:

1.  Buy brand-name products for investment

To buy products of famous and popular brands to keep. In the hope that in the future, the products that they bought will have more prices, such as wristwatches with complex mechanisms, expensive, decorated with diamonds or have a unique design and brand name handbags

For brand-name bags, must choose to invest in High-End bags that have never been promoted with discounted prices like Louis Vuitton, Hermes, and Chanel. By do not reduce the price of these brands is the way to maintain the value of the bag. And by the policies of these brands to not having a discount will also increase the price of new products as well. Which has resulted in bags that have already been purchased for sale at a higher price (If the bag still has the good condition), the model that we should start investing is the classic model and limited-edition model.

However, before investing by buying brand-name products, investors must first consider their own needs whether to invest for returns or want to use it.

Because if it is an investment, means we expect to receive returns in the form of profit.
Therefore, we need to study and analyze the same as other forms of investment. But if we want to use and have benefit later that can be resold at a reasonable price, may also choose the one that we like.

In addition, things to be aware of before making this investment decision are that brand-name products may have low liquidity and the real price is hard to find. Therefore, if the investment is already purchased, it may not be able to be sold out immediately or not at the desired price.

2. Invest in stocks that produce brand-name products. 

If we do not want to buy brand-name products to invest Another option, we can do is to invest directly in stocks that produce brand-name products such as

  • HERMES INTERNATIONAL SCA or HERMES is listed on the French stock market. The abbreviation used for trading is called "HRMS".

  • LVMH Moet Hennessy Louis Vuitton SE or LVMH, the parent company of the famous World-class brands such as Louis Vuitton, Christian Dior, Sephora, Kenzo, Fendi, Celine, Givenchy, Marc Jacobs, and TAG Heuer watches. Traded in other markets with the initials LVMH

  • If investors are interested in investing in this group of shares and want to know what other stocks are you can learn more from the index of these products, called the S&P Global Luxury Index, which consists of stocks of 80 leading brands or visiting
  • Caution in this type of investment is that the stocks in this group will be easily affected by the economy. If the economy is not good brand name products will be the first thing that people will stop buying. And have difficulty in trading because they are securities that are registered in foreign countries.

3.   Invest through Thai mutual funds that invest in brand-name products. 

If you don't want to worry about investing with stocks traded outside of the country Investors can invest through Thai mutual funds that invest in manufacturing and selling brand-name products. Which is considered a foreign investment fund (Foreign Investment Fund). Which you can find more information at www.morningstarthailand.comand must not forget to read the prospectus carefully before investing in addition, don't forget to consider investment risks. In addition to the risks according to the type of financial products that are invested and risks from the economic situation in the country. There are still additional risks from the exchange rate, risks from the economic and political conditions of the countries that invest. Including the risk of prosecution and enforcing laws in the case that companies that invest in mutual funds have problems

Note: This is
 only the presentation of information in order to know that there are various types of investments and the investment is risky. Investors please always study the information before making an investment decision.