Who Is The Real Winner Of Luxury Goods In France Versus Italy

Italy France Who is the Real luxury goods winner? PPR Group has jumped from its initial focus on retail business to the third largest luxury goods group. Complete the first strategic leap.

2012, Italy Prada When talking about the competition between Italy and France in the luxury industry, the joint owner of the group, Mia Prada, said regretfully: "Made in Italy" has become a lonely aristocrat in the international market, and the scenery is difficult to reappear. The dazzling fashion industry is getting farther and farther away from Milan, and Paris is the favorite of the fashion industry ". At this time, looking at the two major luxury goods groups in France, LVMH's turnover continued to grow under the impact of the European debt crisis, and PPR was planning their acquisition plans with great ambition. So who is the real winner in the luxury goods war between Italy and France? MSN will tell you.

In an accidental interview, the co owner of Prada Group, Mia Prada, talked about the competition between Italy and France in the luxury industry. She said regretfully: "Made in Italy" has become a lonely aristocrat in the international market, and it is difficult to reproduce the scenery. She said: "The glamorous fashion industry is getting away from Milan, and Paris is the favorite of the fashion industry.".

"In today's fashion world, designer The success is inseparable from his cultural and artistic connotation, and whether there is a social environment as a support. " Mia Prada said: "In Italy, we have a very long cultural heritage, but it has not been carried forward internationally.". When asked about the changes in society, Lucia Prada said that she felt that the splendor of today is due to the power of money and commerce. "When investing in art collection for our Prada Foundation, I will not consider the impact of the global financial crisis. I understand, but I will not feel guilty, because this is the only way for social development and progress.

When talking about Italy's advantageous leather industry, she stressed that the more Italian companies are bought by foreign investors, the greater the risk that Italy will become a third-party producer in the global market. There is a growing trend that artistic talents, especially designers, migrate from Italy to France. For example, how Raf Simmons left Gil Sander in Italy to go to Dior in France was widely recognized by the world. She expressed her opinion that Italian fashion industry does not enjoy enough respect and attention like other industries, and to a certain extent, Italian media should be responsible for this. "In Italy, the media did not really take fashion seriously... Instead, it was described as frivolous, flashy, nude and pornographic, and the media had not yet thoroughly analyzed the subtle and creative links."

"Fashion shows and competitions are very grand. Unfortunately, in the past, only large luxury brands had the strength to hold fashion shows. It is very important to give opportunities and creation platforms to young and less famous designers." When asked whether Italy has returned to its former fashion leadership, Mia Prada responded: "People with money and people without money don't know that fashion can't exist in isolation, but can only be a part of the creative system. It should also include philosophers, artists, curators, sociologists, etc. into this system to generate creativity.".

In order to carry forward Italy's long cultural heritage and generate value, Lucia Prada suggested that cultural relics and historic sites such as Sforza Castle near Milan, as well as other Italian heritage sites, could be developed into tourist attractions. "It is not the type of Disneyland", she said: "I know many Italian scholars try to protect the conservative methods of the relics, but resistance to modernization is also destroying. The system also needs new ideas and re creation."

According to previous media data, the European Commission agreed with the French luxury group LVMH to acquire Italian jewelry and watch brand Bulgari, and believed that this transaction would not cause competition problems in Europe. Brussels said in a statement that "this acquisition will not significantly change the competitive structure of the relevant markets, because Bulgari's market share is limited, and LVMH still faces strong competition from many other luxury companies".

Bernard Arnault, the boss of LVMH Group, proposed to Bulgari shareholders to exchange 3.5% shares of LVMH Group for 51% shares of the company. LVMH Group then made a public purchase of the shares held by the minority shareholders of Bulgari at a price of 12.25 euros per share. LVMH Group contributed a total of 4.3 billion euros for this purpose.

According to French Le Monde, on July 26, 2012, the world luxury giant LVMH announced that its net profit in the first half of 2012 had increased by 28%, and its sales had increased by 26%. The group will welcome the second half of 2012 with confidence. Moet Hennessy Louis Vuitton includes the famous French luxury brand Louis Vuitton, the famous Italian fashion brand Bulgari and the French luxury brand C é line. During this period, the Group's net profit reached 1.68 billion euros and sales reached 12.9 billion euros, slightly higher than the estimated value of Dow Jones Newswires. Daily operating income increased by 20% to 2.66 billion euros.

　　 French luxury goods And retail giant Pinot Spring Redo Group (PPR, also known as Paris Spring Department Store Group) announced the performance of its luxury goods business on Thursday (July 26, 2012). Although worried that the slowdown of China's economy would lead to a decline in transaction volume, its performance still maintained the development trend of the second quarter. Paris Spring Department Store Group brand Including Gucci, Bottega Veneta, Yves Saint Laurent, Fnac and Redcats. The Group announced that its daily operating revenue increased by 20% year on year to 815.3 million euros. The rapid growth of luxury goods performance (up 30%) made up for the negative growth (down 11%) of Puma, the sports equipment manufacturer, and the loss of Fnac to the Group.

The performance of the luxury goods business grew by 17.4% organically in the second quarter, maintaining the growth rate of 17.6% in the first quarter. However, analysts once thought that its growth rate would be about 15.7%. The performance growth rate of Gucci, the leading brand in the luxury industry, slowed down (organic growth of 10% in the second quarter, compared with 11.6% in the first quarter), but it was still higher than the analyst's estimate (9%).

After the equity fight with LVMH in 1999, Gucci was successfully taken over by PPR Group. PPR Group has jumped from its initial focus on retail business to the third largest luxury goods group. Complete the first strategic leap.

In 1963, PPR Group was founded, starting with wood. In 1988, it sought to be listed, followed by the 1990s, and began to expand rapidly. From 1991 to 1994, it gradually acquired furniture companies, Paris Spring Department Store and French local retail enterprises. The transformation period came from 1999. The Gucci equity acquisition war in 1999 made PPR rapidly transform and start to enter the luxury field on a large scale, and also made LVMH's previously dominant luxury field have a new territory.