Luxury Group LVMH Plans To Acquire Light Luxury Brand Michael Kors

According to the disclosure, the world's largest Luxury goods group LVMH Is planning to buy light luxury brands in the US. Michael Kors However, the information did not disclose the amount and details of the merger.

This is not the first time that Michael Kors has been acquired. Last month, the InterEconomia website revealed that the bid price for Michael Kors was $10 billion, equivalent to the price of $55.50 per share, when Michael Kors's share price was $47.50.

The headquarters of Soci e t e G e n rale S.A., which revealed the news, is located in Paris, France, with the headquarters of LVMH group. Until now, LVMH group and Michael Kors declined to comment on the takeover news.

In fact, LVMH group and Michael Kors have many sources. As early as 1999, the LVMH Group invested in Michael Kors and later sold all its shares in January 2003. Michael Kors, the founder and designer of the brand, was also the creative director of LVMH's luxury brand Celine, and during the period from 1998 to 2004, he led Celine back to its former glory.

Some analysts pointed out that in the difficult period of the downturn of the luxury goods industry, mergers and acquisitions between brand groups will be brewing. Earlier, according to a report by financial blog Betaville, the us light luxury brand Coach will merge with the British luxury brand Burnerry, and they will jointly build a luxury giant worth 20 billion dollars.

In the context of slower industry growth, international luxury goods are also looking for change. Some analysts have pointed out that the acquisition may not be groundless. The luxury market is going to polarize. On the one hand, some top luxury goods will continue to have high prices. Some brands will go to popular fashion brands, and the main products will be cost-effective. In order to maintain its absolute dominance in the handbag market, LVMH group may need to make up for the short market of light luxury handbags.

In 2014, the news of the industry came out that LVMH was interested in acquiring the US luxury handbag brand Coach. The group's brand Marc Jacobs also publicly expressed its learning from the Michael Kors of the light luxury king, positioning it from 2016. It will mainly focus on less than $500, focusing on new leather products.

It is noteworthy that, compared with other light luxury brands, Michael Kors will enter the Chinese market ten years later, but the Michael Kors growth is strong. The number of stores in Greater China has exceeded 100, and has become one of the most important potential markets of Michael Kors. Its performance in the Chinese market has increased by at least 20% over the third quarter of last fiscal year. In order to prove its long-standing confidence in the Chinese market, in June of this year, Michael Kors Kors paid $500 million to recover the franchise in Greater China.

Up to now, the market value of Michael Kors is about $8 billion 100 million.