Luxury Group "To Embrace Heating" To Do Business Challenges

The global growth of luxury goods has slowed down, and competitors have begun calling for warmth.

Last week, just released the first time in five years, the Swiss luxury group, Li Feng, first reported a sharp decline in net profit. Recently, its strong rival French luxury group LVMH and Kai Yun group participated in the former electronic business platform.

Chairman of the world's second largest luxury group

Publicly speaking in the industry forum, LVMH group and Kai Yun group have been invited to jointly invest in Yoox/Net-a-Porter, a luxury electric business company.

The company is merged by Net-a-Porter, a supplier of Li Feng's electricity supplier, and Italy luxury electric business group Yoox. It will officially complete the merger in September this year.

At present, Yoox/Net-a-Porter plans to increase its capital by 200 million euros, which is why Johann Rupert invites her opponent to inject capital.

In fact, backed by luxury group giants.

The electricity supplier companies are not really short of money, and the support of product resources is a more important goal.

Because of the joint venture between Yoox and Kai Yun group, the Bottega Veneta and Balenciaga have been sold on the Yoox website, but the core brand Gucci (Gucci) has not been included.

According to the analysis of the wealth Quality Institute, once the three big groups have formed a conspiracy platform for e-commerce, they will quickly accumulate customers through brand influence, especially high-end customers, until they become the mainstream of the industry. This will make other luxury electronic business platforms lose their development opportunities.

Zhou Ting, President of the Institute of wealth and quality, said luxury brands did not want to face the grim fact of consumers' "de branding" and had to find ways to delay their life cycle and brand decline. One of the most effective strategies was to integrate information flow and logistics through integration and cooperation, and to find new ways in controllable rhythm.

However, Sun Yafei, founder and CEO of the luxury goods network of Fifth Avenue, believes that the three luxury groups can not really achieve "alliance" because of their respective interests and differences of ideas.

It has announced that it will own 50% of Yoox/Net-a-Porter shares and 25% of the voting rights.

Therefore, even if LVMH group and Kai Yun group inject capital, the two will have no advantage over the company's shareholding ratio and voting rights.

As a large group with rich luxury resources, it is impossible to accept high-quality brand resources while competing in the "secondary" position.

In addition, Li Feng Group as the backing of the e-commerce platform, but its core brands such as Cartire, Vacheron Constantin, Jaeger Le Coulter and other brands are not on the line.

The move may also keep competition from holding hands.