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The big business with cheap Klunker

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DUSSELDORF. The walls are hung with chains, earrings, bracelets and rings in glass shelves are located on racks dangling scarves, handbags and other accessories. Most of the items in the shops of Bijou Brigitte cost five to ten euros. But Klunker does seem expensive. As customers also take time to be spontaneous. A piece of jewelry for the new dress or as a reward when it may finally be mostly younger clientele back often.

"The desire of our customers, adorn themselves with fashionable accessories that continues unabated even in the crisis," says Bijou Brigitte, CEO Roland Werner. The family business sells jewelery for the young and young at heart and is one of the stock market stars of the previous decade, which represents the IHT in a row. Is its price increase of 1 357 percent since 2000 Bijou Brigitte behind SolarWorld to place two of the most successful German shares.

Friedrich-Wilhelm Werner, Roland Werner’s father, founded in Hamburg in 1963, the company Friedrich Werner import and export. He sold plastic rings, gold jewelry and imitations from Hong Kong at drugstores – from the trunk of his Ford 17M. In 1966, the company itself began with the production of a favorable fashion jewelry and named in 1971 in French, at Bijou (for jewelry) Brigitte (after Werner’s wife). 1988 followed the IPO in Hamburg.

Shifted in 1993 Bijou Brigitte its production to Asia. In 1999, Spain began to expand abroad. Since his father Friedrich Wilhelm admitted 2008, the executive chair, Roland Werner is the Lord of the plastic rings. Has completely withdrawn the senior did not. He now directs the purchase, advises the Bureau to the side and holds the majority stake.

Since 1997, makes Bijou Brigitte with cheap jewelry from year to year, more profit. 2009, the result could, however, slightly below last year’s level. The impressive success still lies in cost-conscious business model. Shopping channels travel around the world to meet with fashion labels on creations worthy of imitation. They must meet the tastes of Europeans and Americans, for Bijou Brigitte now has 1 125 stores in 17 countries.

The production in large quantities allows the low prices. Thus both the German and the Portuguese client to one or another impulse purchase will be tempted to have more than 9 000 items in inventory. And even when the rental shop saves the company: In contrast to fine jewelry stores, where few products are large scale presented, the Bijou Brigitte-stores small – between 40 and 100 square meters.

By Item Number Six competitors and Claire’s store or clothing stores and drugstores that offer Fashion Jewelry also can not keep up. Nevertheless, the price has recently increased pressure. Cooperates in response Bijou Brigitte with Karstadt and Kaufhof. Through concession stores within the stores will sell a selection of articles.

In 2007, sales still grew only by expansion. "At that time the terror among investors was large, Bijou Brigitte lost his winning image, "says Klaus Kränzle, Research Analyst at GES. The total could be publicized since then continued to increase annually, but the business on the same area is still decreasing.

Kränzle analyst believes that the major growth periods of the jewelry manufacturer’s are over: "The competition is too great. Bijou Brigitte distinctive brand does not sell. "Nonetheless, he praised the strength dividend of 6.50 euro, which has been carved out of stone age was. He has a target price of 130 euros and recommends investors hold the shares".

Frank is more optimistic, however laser, an analyst at SES Research. He praised the wide range and the high number of self-designed products: "This is the limited comparability with competitors and price transparency for customers low." After declining for-like sales drop of 2009, he renewed his buy rating on the stock and raised its target price to 135 euros.

No admittance to the major indices

Although investors happy with the share of the distribution process and are, there are occasional complaints that Bijou Brigitte reveals too little capital market information. When the expansion went to America is difficult, there were few reactions regarding. Annual reports are published only once in six months. For this reason and because of the majority stake in Friedrich-Wilhelm Werner of the jewelry vendors access to the major indices is denied. He is only listed in the Hamburg HASPAX. But perhaps the thin flow of information is because that Bijou Brigitte the capital market is not so much need. Thanks to an equity ratio of over 82 percent of it is independent of investment. The Roland Werner wants to continue working in the coming years: "But Europe has an estimated potential for a total of 1 800 to 2 000 locations," he says.

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