PPR: From Department Stores To Clothing &Nbsp; Traditional Old Cards Are Renewed.

PPR group mergers and acquisitions in the capital war between listed companies.

PPR is a famous French retailing holding group that runs luxury goods.

Founded in 1963 by Francois Pinault, a timber trader, he entered the Paris stock exchange as a listed company.

In 1994, the company changed its name to Pinault-Printemp-Redoute group, and was abbreviated as PPR group in 2005.

PPR group is currently the third largest luxury group in the world. By 2009, its group includes Fnac (music and electronic retailer), Redcats Group (mail order and catalog sales), Conforama (furniture retail companies), Puma (Puma sporting goods), Gucci Group (luxury goods group).

Fashion characteristics

Scarcity, high price, high quality

PPR began to focus on luxury business from GUCCI and achieved great success.

GUCCI's entry has made PPR's fashion business move rapidly from department stores to first-line luxury businesses.

Luxury goods business has become its biggest profit point. Through the luxury brand acquired by GUCCI group, or the brand new brand that has a long history or potential, PPR believes that they have great market prospects.

Scarcity, high price, high quality and luxury features such as artistic and cultural value of brand become the biggest fashion feature of PPR.

Marketing strategy 1

Buying and selling spring stores in Paris

Paris Spring Department Store (Printemps) has been held by PPR group since 1992. After more than ten years of meticulous work, its merchandise involves high-end luxury goods and public clothing, beauty, entertainment, home and so on.

PPR group will invest about 30 million euros each year to conduct marketing in various ways to attract more young people. Paris spring department store has become a symbol of fashion industry to a certain extent. It is in Paris spring department store that PPR's commercial empire can only be established.

Despite the popularity of Paris spring department store and the support of many buyers, there are worries in the bustle.

In 2005, Paris spring group's total turnover of 17 billion 800 million euros, Paris Spring Department Store turnover accounted for only 752 million euros.

PPR group sells Paris spring department store to Italy Borletti group. Borletti group promises to invest in it and make it one of the leaders of European department store.

In addition, Borletti group also allows Paris spring department store to retain its French characteristics by using the original company name.

Marketing strategy two

Luxury goods

In 2005, sales of luxury goods in PPR group increased by 16% to $3 billion 600 million, and its profit growth rate rose to 30%.

In the face of this pattern, PPR group decisively adjusted the strategy to divest Paris spring department store and focus more on the high-end luxury goods industry with higher profits.

After switching to Paris spring department store, PPR group put its energy into two core areas: luxury and retail, including famous brands such as GUCCI and Eve Szentloran.

This ensures the unique positioning and development direction of PPR group.

It is a pity to abandon Paris spring department store, but he thinks that this will enable the group to maintain an above average growth rate and gain more profits in the market.

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Marketing strategy three

Old brand support for luxury goods

In 2008, PPR group's main business income, luxury goods GUCCI group's luxury goods occupy an absolute leading position.

PPR group is always concerned about the situation of first-line products and the quality of products.

When the product line of the enterprise is quite extensive, it still maintains the concern for the product, and even directly participates in the design of the product, so we must say that we have grasped the foundation and the key of the brand construction.

And good at using events, seize opportunities and establish a good image.

Marketing strategy four

Sports inject vitality into luxury

After successfully owning and operating a series of first-rate luxury brands, PPR acquired Puma, a famous German sporting goods company in 2007, and foreshadowed its expansion into sports and leisure market.

In the face of the gradual decline of traditional luxury goods and the rise of the consumer market for young people, leisure, comfort and healthy sports lifestyle have become a new fashion. Therefore, the cooperation between PPR and Puma will create and lead this trend with a strong asset background.

Although Puma is a sport leisure brand, it is very popular among young people in fashion, especially with the famous British luxury brand Alexander MacQueen. Its PPR, of course, will not miss such an opportunity, especially for the Alexander MacQueen brand.

In 2008, Puma's turnover was 252 million 400 thousand euros, an increase of 35 million euros over the previous year.

PPR group sells Paris spring department store, which makes the second P abbreviated in group abbreviation. For Puma's acquisition, some people jokingly call it "P" regression, and the name "Pinault-Puma-Redoute", which represents the new meaning of PPR group, is about to emerge.

From department stores to luxury goods to sporting goods, PPR group has made a success through asset acquisition.

classic case

PPR's strategic acquisition of GUCCI

In 1998, GUCCI was held by rival Prada (Prada), and sold it to LVMH group in 1999. This led to a contest between PPR group, LVMH group and GUCCI, and eventually PPR won.

Since then, PPR has established fruitful strategic cooperative relations with GUCCI.

GUCCI operates through PPR's excellent assets. PPR takes advantage of GUCCI's position in the luxury industry, helps each other and makes progress together, and finally achieves the third largest luxury group in the world.

In the same year, GUCCI Group acquired Yves Saint Laurent Rive Gauche and Yves Saint Laurent cosmetics company (Yves Saint Laurent Beaut, later YSL Beaut Laurent).

Yves Saint Laurent cosmetics is not only famous for its famous perfume and cosmetics, including Opium and Paris flavor, Roger&Gallet, but also has a series of perfume brand franchise, such as Van Cleef & Arpels (Van Cleef&Arpels), Oscar della tower and Fendi.

Then GUCCI group bought the 70% controlling power of Sergio Rossi, a precious Italy leather shoe company.

GUCCI continues to expand its business through acquisitions, acquiring jewellery, clocks and fragrances brand Boucheron (Boucheron), British fashion brand Alexander MacQueen, Switzerland's B dat&CO, Italy leather goods company treasure Jia and Stella Macartney, and has a 91% stake in the French parischia fashion brand.

In 2004, PPR was finally completed after several twists and turns of mergers and acquisitions, and GUCCI was completely under its banner.

PPR did not give GUCCI absolute autonomy in the management of the group. In this case, creative director Tom Ford and CEO Domenico Diso were forced to leave.

Strategy analysis

Coercive means to reverse traditional marketing attitude

PPR can buy GUCCI, and then acquire other luxury brands through GUCCI, and win the competition with LVMH.

PPR did not adopt the same coercive means as LVMH in the early stage of acquisition, giving GUCCI a degree of freedom. GUCCI can also use PPR's powerful capital to attract and acquire more brands.

After the completion of the brand acquisition, PPR, from the interests of the group, resolutely adjusted its relationship with GUCCI, from partners to managers, and participated in the adjustment of GUCCI's internal structure, and even temporarily gave up the immediate interests, replacing designers and CEO.

Facts have proved that nowadays, both PPR and GUCCI are developing towards the business they think is more advantageous.

When dealing with opportunities and challenges, PPR group pays attention to diversified brand aggregation and multi-level brand structure to adapt to the changing market demand, and coordinates the relationship between designer and brand, brand lines and the brands within the group.

We should be cautious when buying brands and creating new brands to ensure the healthy operation of capital.

Reduce supply chain cost and increase profit growth point.

Set up a good designer and brand image, inject fresh blood into capital operation, and reverse the conservative attitude of traditional brand marketing to meet the challenge of new market.