Kai Yun Group Wants To Build A New Luxury Market Leader.

PPR, the world's third largest luxury group, behind P and LVMH, changed its name to Kering (PPR) at the shareholders' meeting, and officially entered the luxury and lifestyle and sports brand group.

In recent years, the group has been selling its retail business to focus on more potential luxury and sports brands.

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< p > > the predecessor of Kai Yun group, PPR, is known as Pinault-Printemps-Redoute, that is, the 1963 spring and thunder group. It was founded in 1963. It was first engaged in sales of timber and building materials, and then developed into a retail giant and successfully listed. After 1998, it proceeded to acquire luxury brands such as Gucci (Yves), Yves Saint Laurent, Bottega (Veneta), and Paris (Balenciaga).

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Since P > 2005, PPR has gradually stripped the wood processing industry and retailing industry, focusing more on luxury goods and sporting goods.

In spring, department stores and Lei Du retail businesses have been sold. Only Pinault, the founder of the company and his son and the name of the current CEO, are in touch with the group.

At present, the Group operates in 120 countries, with sales amounting to 9 billion 700 million euros (US $12 billion 500 million) in 2012.

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< p > although the sales of clocks and watches are the main driving force of the hard a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > in the past more than 10 years, the jewelry industry is the fastest growing area.

Two years ago, Luca Solca, Bernstein's chief analyst at Bernstein Research, predicted in a far-reaching industry report that "a wave of strong demand" and a shift from non branded jewelry to brand jewelry will break the market. "(Research)

The report estimates that the most extensive jewelry industry (including all prices) is worth 136 billion euros ($184 billion).

Compared with other industries, the brand penetration of jewelry industry is relatively low. Brand jewelry occupies only 12% of the total market, far below the 50% of the clock market.

Moreover, Cartire, Bvlgari (Bulgari), Van Cleef & Arpels and Graff (Graff) and other major brands occupy only 5% (7 billion euros) market share.

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The trend of "P" has also aroused the attention of Kai Yun group.

The luxury department of Kai Yun (Kering) group was originally dominated by fashion leather products. In the field of hard and luxury goods, there was little layout except for a small number of jewelry brands such as Boucheron.

However, if we want to compete with the super giant of the clocks and jewellery circles of the group, the cost of innovative brand is too high and it may not be profitable, so acquiring the mature brand is the only choice for Kai Yun group.

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Less than P, in May of this year, about 350 million euros was bought for Milan's fashion jeweler Malando (Pomellato), and last year's acquisition of China's jewellery brand Qeelin and its original Boucheron (Boucheron) already had a certain scale in jewelry business.

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< p > despite the poor performance of the watch business in the past two years, the group has acquired some wrist watch brands in recent two years for the group's industrial layout in the luxury industry. In the middle of 2011, Kai Yun group controlled the Swiss watch group Sowind through the capital increase and share expansion, and won the two middle and low end brands of PERREGAUX watch and Shang Wei Sha.

Earlier this year, Kai Yun was also acquiring a majority stake in high-end Richard Mille watches.

For Open Cloud group, the acquisition of Swiss Richard Mille is an important move for its multi business and multi brand operation, which will make the watch industry layout more complete and also an important performance of its new growth point in search of company performance.

At present, the fast developing high-end watch market will play a supporting role in the long-term development of Kering group.

Of course, the acquisition of high-end watch business is also beneficial to the valuation of the company and the attraction of the market.

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< p > of course, in the expansion of < a href= "http://www.91se91.com/news/index_c.asp" > Jewelry > /a > watch business, the opening of the cloud in the traditional fashion industry has not stopped. Just in the past September, Kai Yun group announced that it was a brand designer of New York fashion designer Zara (Altuzarra), which is the second fashion clothing trade of the world's third largest luxury goods group this year.

In January of this year, the a href= "http://www.91se91.com/news/index_c.asp" > Kai Yun group "/a" acquired the 51% equity interest of the Scotland designer Christopher Kane brand, and the paction amount and terms were not disclosed.

This is the third London designer brand bought by Kai Yun group after Stella McCartney and Alexander McQueen, and implements its strategy of enriching its luxury brand portfolio.

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At the end of March this year, the world's third largest crocodile leather manufacturer France Croco, France Croco, is a supplier of Kai Yun group and Hermes group. In order to protect the supply of rare luxury raw materials, Kai Yun group, meanwhile, followed the pace of other luxury groups. At the end of this year, the world's largest Croco manufacturer of crocodile leather was bought.

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In the meantime, P also hopes to get rid of its poor brands as soon as possible.

Italy Financial Daily reported in early August, the group has commissioned the Italy interim bank to deal with the sale of its Italy shoe luxury brand Sergio Rossi.

At present, the main books and video retail businesses and mail order businesses have also been released this year, focusing more on the potential luxury market.

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