LVMH Vs Hermes Of Hermes

LVMH has many of the world's top brands, and LV is one of them.

"No Dior perfume?

Then come to my name together. "

LVMH what is the result of this arrogant encounter with stubborn Hermes?

At the beginning of the new year, the French magazine Le Figaro published a piece of news: the war between the Hermes (Hermes) and the LVMH (Louis Mohn) has gained a new turning point.

At the end of October 2010, LVMH group, the world's leading luxury goods industry, issued a statement announcing the successful purchase of a total of 17.1% of Hermes's total value of 1 billion 450 million euros with the help of financial derivatives tools.

This incident shocked France and shook the world.

Immediately after that, LVMH issued a statement announcing that the company had more than 20% shares of Hermes.

This is another "blockbuster" after LVMH suddenly announced that it already owns 17.1% of Hermes.

On the LVMH side, Arnold thought it was a "friendly" stake, but the Hermes family received notice before the announcement of the LVMH group. Therefore, the Hermes family thought Arnold had launched a financial war.

The two leaders of Hermes, Bertrand Puech and Patrick Thomas, interviewed in the November 3, 2010 Figaro newspaper, said, "Mr. Arnold, if you are not friendly, please quit on your own."

In order to prevent the LVMH group from going further, the Hermes group decided to set up a holding company to prevent the hostile takeover of LVMH group.

According to Bertrand Puech and Patrick Thomas, the whole family is "in agreement" in this regard.

Bertrand Puech is the fifth generation of the founder of the brand. He is the president of the Emily s family company, and Patrick Thomas is responsible for managing the group.

Bertrand Puech and Patrick Thomas also indicated that they had met with Arnold after the announcement of LVMH.

Bertrand Puech thought that the meeting was polite and honest.

Patrick Thomas also said, "we told him that he did not think this move was friendly."

In January 6, 2011, the French financial market authority (AMF) examined the request for a full exemption from Hermes.

The 16 board members of the French financial market authority approved the decision of the Hermes shareholders to purchase a full exemption.

The approval of the full exemption requirement enables Hermes to set up a family holding company to maintain the group and its "culture".

This decision has satisfied the family of the Hermes family.

This is a duel.

An enterprise gene that uses capital to expand in a high profile and streamline production, and a brand war that allows consumers to wait for six years, pursues manual production, is a Birkin package. It is called war of money and poetry.

The Hermes group won the first round.

In the end, the winner is still unknown.

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"No Dior perfume?

Then come to my name together. "

In 1987, when LVMH CEO CEO integrated Dior brand into its name, the LVMH emperor began his big acquisition in the luxury subdivision industry.

From France's Givenchy, SEF, to Loewe of Spain, to the Heuer Watch of Switzerland, to the Donna Karan, Marc Jacobs and BeneFit of the United States, to Fendi and Emilio Pucci of Italy, all of them are under the command of LVMH income.

According to Alacrastore, a consultancy, Louis has made 62 acquisitions since 1987, and also has 74 companies.

Quoted from the media in Paris, France, "everyone wants to know who Arnott is targeting this time." Arnott's regular job is to streamline and restructure complex company structures and strip off useless brands.

The elegant and luxurious image of Hermes is very appetites to Arnott, and Hermes is still one of the few brands still growing.

Such performance is very attractive.

LVMH has really coveted Hermes for a long time.

Arnott explained that as early as the 80s of last century, some of Hermes's shareholders had sold about 10% of the LVMH group's shares, which were sold in early 90s at the request of the former chairman of Hermes.

According to his subsequent explanation, Louis mohin has acquired about 5% of Hermes's shares in recent years.

Analysts say this shows that Louis has been premeditated for a long time and began reorganizing acquisitions over several years.

Although Arnott has been telling the media several times,

Now, the French local newspapers are widely reported that the Hermes family is dissatisfied with LVMH Group Holdings. Bernard Arnott said he did not care about these negative voices. "I don't think a private partnership has the right to order investors to give up their shares.

Our investment in Hermes is long, and it is neither against the community nor from its family. "

How to inherit the brand gene?

"To be or not to be?"

This is the survival choice that the enterprises in the luxury Empire still insist on independent brands but fail to maintain good business conditions.

The experiences of Hermes in 2010 were ups and downs.

In May 1, 2010, the death of his former executive director, Jean-Louis Dumas, was followed by the Jean-Louis Duma, who was recruited to the command and set up the classic style design director Jean Paul Gaultier for Hermes. He announced her resignation. The successor was the Christophe director of the crocodile design director of France.

But the stock price of Hermes has not been affected, and has gone all the way, even doubled.

At present, the French financial market regulator is investigating the LVMH group's purchase of the Hermes group equity event to confirm whether the paction complies with the relevant rules for financial pactions.

In recent years, LVMH, PPR and the three major luxury goods groups have become more and more popular.

To compete in the competition of international capital operation, the brand is only large enough to withstand the costs of development, design, supply and so on, and the easiest way to expand is acquisition.

Liu Wei, a senior partner in brand consulting and senior manager of brand strategy management, thinks that LVMH is the most important brand gene in its acquisition of Hermes. First, it does not consider itself a luxury, but claims to be a creative craftsman. Second, it does not outsource, and 85% works by itself. Third, it does not flow, and is only sewed by a craftsman. Fourth, no fear, etc. consumers are willing to Birkin handbags for 6 years; fifth, do not sell concession, prefer to spend 20 years to master the top skills of the industry; sixth, do not do the first, always say that they do not care about numbers, only care about value; seventh, do not lead any market, but do late.

At present, people are most concerned about the success of the acquisition.

Whether the traditional handmade products of Hermes will become pipelined production because of coping with expansion.

Traditional handmade products are always the core values of Hermes.

The British book "luxuries - how luxury is lost" has mentioned that LVMH leather has not been produced manually and reduced to mass production lines. Burberry has many products in China.

Hermes only insisted on being hand-made in France.

Liu Wei believes that the luxury brand strategy must ensure a principle, that is, passing on the past, respecting the brand heritage, such as family history, unique skills and vivid brand story, and brand identity comes from tradition.

Now, in the increasingly convergent world, Hermes has undoubtedly maintained his own style.

But in the 2001 marketing strategy, Anault Vaisman, the world's managing gurus, advised: "competition for survival is the dominant principle in nature. Maybe we should suggest that most entrepreneurs go to biologists instead of economists."