LVMH Group Has Changed Its Strategy In China

LVMH group marches into the ole group

It is understood that the sand boat, with Oteri J as its core business, is a commercial complex integrating shopping, leisure, entertainment and catering.

Headquartered in Shanghai, it was invested by the Huaping investment group in 2011 and began large-scale construction of the ole project.

At present, several outlets for life shopping plaza have been launched in Chongqing, Hangzhou, Bishan and Nanjing.

In 2015, Hefei, Guiyang and Kunming will continue to expand the new commercial real estate project.

Last Friday, on the 25th anniversary group of sand boat group, L Capital Asia announced its equity investment in the sand boat and became its third largest shareholder.

It is understood that one of the original shareholders of the sand boat, the world's leading private equity investment group, Huaping investment group, has also taken part in this round of investment.

This is the second round investment made by the sand boat group in the past three years. The first round of equity investment was carried out in 2011 by the Huaping investment group of the United States.

L Capital Asia, the investment boat, is the first investment in China's fast developing orbits industry and the first investment of its second fund in China.

The Fund said investment in the sand ship has further enriched L Capital Asia's portfolio in China.

Mr. Xu Rongcan, chairman of the board of directors, is looking forward to the cooperation with L Capital Asia. "This is the first time that L Capital has invested in the Chinese outlets project," he said. It is obvious that both sides have noticed that besides the material demand, the cultural and spiritual products demand of China's high-end consumers is being released. The 25 year's art and business exploration of the sand boat is trying to satisfy their demand.

Mr. Xu Rongcan believes that L Capital Asia's investment in the consumer goods industry and business experience from investment sponsors will add to the commercial operation of the sand boat.

At the same time, this will help to get better management services for the brand merchants on the sand boat platform, enabling consumers to get a better shopping experience in the sand boats all over the country.

As for the cooperation, Ravi Thakran, managing partner of L Capital Asia, believes that there are great opportunities for the industry in China.

"We have a ship for the sand

The strong executive management and the ability to build China's best orlies are fully affirmed.

At the same time, the art commercial gene of the sand boat also laid the foundation for the company to stand out in the competition.

Mr. Li Hui, President of Huaping Asia Pacific region, said: "the sand boat has made great progress since it accepted Huaping investment in 2011.

We are delighted to welcome L Capital Asia as the new shareholder of the company.

The orter chain store is a new business mode of China's retail industry. It has developed rapidly in recent years and has great room for growth in the future.

As the forerunner of the industry, the sand boat has demonstrated its strong strength in the development, design, rental and operation of the outlets.

We will continue to play Huaping's resources and influence in the global industry to help companies continue to develop rapidly and expand in the Chinese market. "

The LVMH group, the world's largest luxury group, had few brands in Florence, except for a small number of its brands in Tianjin's small town.

In 2014, the consumption environment of the whole domestic luxury market dropped to the lowest point in history. The luxury industry experienced the first negative annual sales growth since entering China, and the luxury group and brands including LVMH group have been exposed to ultra-low single digit growth or different level of performance decline.

At the end of 2014, the LVMH group sold the 50% equity interest of the luxury shopping center Chai Jia center, which was previously built by itself and has nearly 20 brands, and sold itself to build its own channels.

At the moment, orter is still a new form of shopping and entertainment in China, which is generally favored by the industry.

Wang Yongping, vice-president and Secretary General of the China commercial real estate association, believes that the commercial real estate projects that are truly called ortlesia format in China are only Yansha, Chait, Florence Town, Shanghai Qingpu and the Western ole project of the sand boat. From the perspective of market demand, Ortles has much room to excavate in China.

"LVMH group is also looking at the change of consumer habits in China, which has changed in the channel."

Wang Yongping said.

At present, there are many commercial partners in the sand boat business, mainly based on two or three line fashion brands and leisure brands, such as Max Mara, Coach, Folli Follie, ECCO and so on.

Backed by LVMH group's strong brand resources, it can make up for the shortage of luxury brands in Oteri J's format and no longer face difficulties in attracting investment.