PPR, The World'S Third Largest Luxury Group, Wants To Buy Brioni

Brioni was in crisis and became the perfect buyer of PPR.

The latter is shrinking retail business.

The Italians are not very happy with France recently because there is a strong smell of Italy.

According to reports, the PPR quoted price is expected to be around 350 million euros (about 3 billion 60 million yuan).

PPR's takeover is an inevitable step in its recent strategic adjustment, and Brioni's commitment is not surprising.

In 2010, the Brioni income was about 190 million euros.

This brand is priced higher than many fashion houses at the top of the Pyramid custom.

However, in 2007, Brioni's internal views on the company's development routes diverge, and the subsequent economic crisis also caused the brand to suffer. The three families in charge of the company had to sacrifice their equity to repay their debts. In 2008, the sponsorship of the 007 Quantum crisis was also replaced by Tom Ford, after all, it needed tens of millions of dollars in marketing expenses.

In confusion, Brioni even launched a T-shirt in a dangerous way.

For a while, the news of LVMH and PPR wanted to buy Brioni was very loud. In September this year, Brioni closed its women's wear line. The company's president, Francesco Pesci, expressed the hope to "concentrate on developing men's wear market".

But in 2010, Brioni just hired a creative director of women's clothing.

This makes people believe that closing women's clothing is the preparation for Brioni to change hands.

PPR is looking for acquisitions to make up for the gap in its men's clothing brand.

The company has Gucci, YSL and other high-end fashion brands, but there is no decent men's wear brand to compete with LVMH.

A PPR spokesman once said the company wanted to find companies that could complement the existing brands, rather than looking for a self - killing brand.

As a result, Brioni has become a nearly perfect acquisition option.

Such a takeover is part of a reform that PPR is undergoing.

The focus of PPR is shifting from retail business to two directions of luxury, sports and lifestyle.

This is the only way to achieve globalization. Clothing and accessories in luxury and sports brands can help PPR become a global enterprise.

In recent years, PPR has been continuously selling its retail business.

In 2004, the income of luxury and retail accounted for 11% and 60% of the total revenue of PPR group respectively. By 2010, this group number had changed to 57% and 22%.

In the third quarter of 2010, PPR's luxury sales increased by 27%, more than 26% of rival LVMH.

Among them, the growth of every luxury brand in PPR is no less than 10%.

Beginning in March 2011, PPR's Gucci and other brands made up the luxury business department, which was directly led by Pinault, while the sports and lifestyle Department continued to operate Puma and other brands.

This is exactly the same as that of LVMH.

PPR also plans to abandon online retailer Redcats and electronic chain brand Fnac.

Because in the strong Asian market, people's demand for luxury goods and clothing stores is more vigorous.

Then in May, PPR announced that it would buy Volcom from the US for $607 million 500 thousand.

Pinault said PPR is also looking for a suitable Chinese brand to strengthen its jewelry business.

After all, China has surpassed the United States as the largest overseas market for PPR, and will make greater profits for a long time in the future.