LVMH Group'S Fund Intends To Increase Investment In The Chinese Market.

LCapital Asia, the world's largest luxury group and France's LVMH fund, said recently that it believes there are many opportunities in the Chinese market and that future investment priorities are still in China and plans to raise new funds at least 1 billion dollars by the end of this year.

Together with partnership investment projects, the fund is currently in existence. Investment The amount has exceeded US $1 billion, mainly in China. Ravi Thakran, managing partner of the fund, points out that it is interested in Chinese department stores, liquor brands and large apparel manufacturers.

Ravi Thakran said: "we believe that China has more opportunities. The main focus of the fund is on China. With our existing funds and mutual investment projects reaching US $1 billion, our next fund is at least the same size. "

He said that more and more large companies are in contact with the fund, which is why companies are thinking more widely.

Last year, LCapitalAsia was set up as a major investment target in emerging markets such as China and India. The scale of the fund is about US $650 million.

The fund acquired a 10% stake in Heji international, an unlisted Chinese clothing retailer, for about $200 million, and the two sides will cooperate on brand management. HKEE international owns Ochirly, FivePlus, Trendiano and LoveYsabe L4 brand names, and now has 1800 sales outlets in China.

Its previous investments include Hongkong Ming Fung Jewellery, accessories distributor of watches and accessories, Royal watches and jewellery, and Singapore brand Charles&Keith.

With the rapid growth of economic stability, the speed of accumulation of wealth in China has attracted the eyes of European luxury brands. Ravi Thakran pointed out that in recent years, the European and American economies are stagnant, and more international brands regard the Chinese market as a source of growth motivation and intend to increase investment in this area.

"Big cities are already fiercely competitive, and more foreign brands are willing to go to two or three tier cities and shopping centres where local brands are gathered to rent bigger areas and adopt better decorations." He said.

Ravi Thakran predicts that this will create greater pressure on local brands, but it also provides LCapital Asia with more opportunities to cooperate with local businesses.

Taking Heji international as an example, Ravi Thakran said that the fund will integrate the distribution channels of the company in the first stage and provide experience in marketing and management. In the future, it will gradually push the company to develop overseas, first of all, Hongkong, near China. Taiwan Macao and other places are expected to expand to the Southeast Asian market in 3 years.

He also said that the fund is currently negotiating with a beauty service industry and is expected to have results soon. At the same time, the fund is also paying attention to international brand Large garment manufacturers, retail department stores and liquor brands.

He did not elaborate on the investment objectives, but said that the scale of each investment was roughly $100 million.

Earlier this year, the fund announced its annual profit ahead of expectations, and looked ahead to the excellent growth momentum in 2012, partly due to the rapid growth of business in the Asian region.

China's market has become an international luxury product due to sustained and rapid economic growth and increased income. famous brand The battleground. A number of reports, including the Chinese Academy of Social Sciences and McKinsey, show that China will become the world's largest luxury market by 2015.