Italy's Top Fashion Brand Valentino 700 Million Euros To Change The Main Qatar Royal Family

Valentino (Valentino) has been bought, which is the most important news in the fashion industry in the past six months.

According to US media reports, the Qatar royal family, known as the oil giant, has successfully bought the top fashion brand in Italy by 700 million euros. This is the latest case of European luxury brands being bought by emerging market investors. It is easy to see that the oil giant coveted the luxury industry.

The valuation of Euro 700 million is much higher than that of LVMH, which last year purchased Bvlgari jewellery at a price of 28.2 times the expected price, compared with the current European luxury brand 10~11, which is more than the expected price in 2012, which is a huge premium.

"Valentino's acquisition by Mayhoola, an investment group supported by the Qatari royal family, is a symbol of the trend of fashion finance."

This comment from the British media is enough to illustrate that compared with the big designer, the designer has changed his mind and the new season.

A popular gimmick, the acquisition of a top garment brand with decades of reputation is clearly driving the trend of fashion.

Italy fashion brand Valentino was founded by Valentino Garavani in 1960, and its brand stores are all over the world. Valentino Garavani

A series of high-end luxury goods sold by Valentino include garments, accessories and expensive custom clothes. The iconic bright red chiffon dress has laid a high reputation in the royal family and the Hollywood star circle.

In recent years, although the fashion industry has been hit by the economic downturn, some rich customers' interest in high-end luxury goods has increased the expected value of the brand in 2011 by 300% over the same period, and it is expected that more will be done in 2012.

Just a few months ago, Valentino also vowed that the Permira fund, the largest shareholder of the company, was trying to build Italy fashion kingdom and had no intention of selling the company.

Obviously, the acquisition denied this statement.

The acquisition of Valentino is undoubtedly another move of Qatar, a big oil country, into the luxury sector.

Previously, Qatar has been using global profits from the lucrative profits from the oil and gas industry, from the German sports car brand Porsche to the British bank Barclays shares.

In recent years, they have been very keen on luxury investment. In addition to the acquisition, they had spent 2 billion 200 million dollars on the acquisition of luxury department store Harold (Harrods) and several luxury hotels in France.

The latest acquisition of luxury goods is the Qatar Investment Authority's 1.03% stake in the French luxury goods giant LVMH.

There are also claims that the acquisition of the Qatar royal family is a private purchase by the royal family and is not part of the global investment strategy of the Qatar Royal fund.

It is said that Sheikha Mozah, the princess of Qatar, has made great contributions to the acquisition. Ska Mirza usually wears only high quality custom clothes and is famous for Valentino clothing.

Mozar owns Qatar Luxury Group, which also owns Le Tanneur &Cie, a French leather product manufacturer.

It is not the first time that European fashion brands have been bought by foreign consortia.

Valentino's acquisition is closely related to the recent rumour that Russian billionaire Mikhail Friedman bought the British fashion brand Doctor Martens.

In 2011, Paris Group, a Dubai retailer, bought the fashion brand Gianfranco Ferre, which is on the verge of bankruptcy.

The Qatar royal family even started buying its Harrods in 2010.

Further, in December 2010, China's high-end men's clothing brand Li Bang holdings purchased Italy's clothing brand Cerruti 1881 for 70 million US dollars. The 100 year old suit brand Gieves & Hawkes was acquired by Hongkong Li Feng Group, and other European fashion and luxury brands acquired by Chinese enterprises include Pringle, Hardy Amies and Sonia Rykiel.

European luxury brands have been gradually acquired by the rapidly rising luxury market countries such as the Middle East oil and China.

According to analysis, the reason why these consortia are generous in luxury brands is to value the luxury effect of these brands in the local market. If they can create success, the future will be immeasurable.

Although the acquisition is huge, waiting for this huge acquisition may not be a smooth market prospect.

Luxury goods industry has gradually entered the hot selling period, but from the luxury companies that have already released their sales performance, the hot market seems to be slowing down.

A number of luxury brands such as British fashion brand Burberry have released their earnings reports. Data show that demand for luxury goods is slowing down in the mainland since the first quarter.

Burberry reported its sales growth in the Asia Pacific region (mainly in China) in the first quarter, down from 67% in the same period last year to 16%.

China's largest watch retailer Hendry Holdings Limited has also recently indicated that the growth rate of demand for high-end watches has slowed to single digits in the past few months.

The reason why European private investors or private funds are not keen on investing in fashion industry is not only difficult to grasp the market, but more importantly, it is necessary to consider too many irrational factors to manage a luxury brand.

Among them, finding a successful designer for the brand is especially difficult, even for experienced fashion entrepreneurs.

In the Valentino brand, since the retirement of Mr. Valentino Garavani (Valentino Garavani) in 2007, the fund has been worried about finding a suitable designer for the brand. Although it is still a popular choice for the star to go to the red carpet, it has never been able to recreate the glory that it once gained internationally.

Valentino's designer's road is not smooth.

After retiring, Mr. Alexandra Fachinetti, the former Allessandra Facchinetti, was fired after less than a year's work.

In 2008, the brand chose the designer Maria Grazia Chiuri and Pichilo (Pier Paolo Picciolo) from the original designer team to take the lead.

Qiu Li and Pichilo worked for years at the side of the old gentleman.

While developing brands, they also maintain a balance with the traditions left behind and extend them to new consumer groups.

Since then, the brand has improved.

The relatively conservative and low-key two people have never been able to generate hot topics in the fashion circle. Although the brand status is still recognized, the situation that has not been voiced for many years has made the brand lose a lot of discourse power and influence.

Nowadays, such a Italy fashion brand has changed the name of Valentino to the cusp of the Middle East. It also brings more variables and opportunities.