Bvlgari Family Sells LVMH Shares

After the sale of 558 million euros by shareholders like Bvlgari, Paul Bulgari, Nicola Bulgari and Francisco Trapani, LVMH group is the world's largest luxury product. Manufacture Trading shares fell 3.5%.

The stake was part of a Bvlgari family's Paul, Nicola brothers and their nephew, Trapani, which was accumulated in a transaction in March last year. In this transaction, Rome jewelers sold Bvlgari to LVMH group at a price of 3 billion 700 million euros, which is also the largest transaction in the luxury industry in the past 10 years. Trapani has also joined LVMH as the head of the watch and jewelry department.

According to some people who are very close to the deal, last year shares After a strong rise and a series of strong interests in the world's largest luxury group LVMH, the Bvlgari family has decided to reduce their stake.

The Bvlgari family received the advice of Credit Suisse Group. When the jeweler of Rome sold it to LVMH group at a premium of 60% a year ago, the company also offered advice to Bvlgari family.

Due to the acquisition of Bvlgari, the watch and jewellery Department of LVMH group has announced that it has become the fastest growing sector in all sectors of LVMH in 2011, an increase of 98% compared with the same period last year. If not Bvlgari, an increase of 41% over the same period.

Bernard Arno, chairman and CEO of LVMH group, said shortly before: "the agreement with Bvlgari family is one of the most important achievements of last year."

In 2011, in all sales areas and product lines, LVMH group Sales of jewellery and watches amounted to 1 billion 950 million euros. Mr. Trapani said the group is also looking for more acquisitions in the field of jewellery and watches.

LVMH's move to expand its watch and jewellery business has been "luxurious luxury", and analysts predict that watches and jewellery departments will achieve huge growth in the next 10 years.

In a report released last year, analysts at Bernstein Research Institute predicted that the wave of demand for affordable and luxury consumers, and the cultural transformation from non brand jewellery to brand jewellery, will open the market for LVMH group in recent years.

The report estimates that from the most general point of view, the total value of the jewelry market is 136 billion euros at all price points, including the mass market, consumers who want luxury goods and high-end market, including brand and non brand retailing.

Compared to other sectors, the jewelry department's brand penetration is insufficient. Whole The market share is 12%, while the market share of the watch department and perfume department is 50% and 80% respectively.

It is estimated that only 5% of the world's jewelry share, or 7 billion euros, is in the hands of big brands such as Cartier, Bvlgari and Van Cleef & Arpels.