Chanel Acquired Colomer, A 200 Year Old Spanish Manufacturer, To Further Enhance Leather Production.

In the past five years, Chanel has not stopped the pace of strategic acquisitions.

In June, Chanel Ltd., the French luxury company, released its first public annual performance report for 108 years.

The report shows that the total sales volume of Chanel 2017 was US $9 billion 620 million, an increase of 11% over the same period and a profit of 2 billion 690 million US dollars.

Perhaps the impact of good growth has recently brought new trends to the brand.

According to Fashionunited, Chanel has just completed Spain.

The acquisition price of the manufacturer Colomer Leather Group (hereinafter referred to as Colomer) 100% has not yet been announced.

After the acquisition is completed, Chanel will further strengthen leather.

And Colomer is responsible for the production of the high quality leather goods of the brand.

In addition, the organizational structure of Colomer will change. It will be the chairman of Colomer's board of directors, Bruno Pavlosky, Chanel group's fashion business.

As one of the most mature leather suppliers in the Iberian Peninsula, Colomer was founded in 1792, formerly known as leather manufacturer Colomer Munmany.

Before Chanel was bought, the controlling shareholder of Colomer was Pmerschdra, a company under the Olabarr a family. The company owns shares of Colomer 67.76%, while the other 19.32% shares are owned by Sumarroca family Bardesana Inversiones, which owns 19.32%.

Due to the influence of low-cost competitors from other countries, in the past few years, Colomer has experienced difficulties such as layoffs and factory closures, and has carried out internal reorganization.

At present, Colomer owns a tannery in Tarragona, Spain, and has five subsidiaries in its local market, and a branch in Japan.

According to El espaniol, a consultancy.

Expert analysis shows that Colomer's high quality finishing is the main competitive advantage of the company. As a result, the Barcelona based Vick company has been leading Spain's leather tanning Market for many years.

Last year, the company reported a total sales of 38 million 500 thousand euros, down 5% from the previous year, of which the Spanish market accounted for 31% of the total sales, while the European Union and other regions accounted for 64%.

However, in 1997, the company's revenue reached 113 million euros, far exceeding its current performance.

It can be said that Colomer is still facing the dilemma of continuing pformation, and for Chanel, the timing of acquisition of Colomer is just right now.

In the past five years, Chanel has been trying to grasp more resources in the leather supply chain. Therefore, as early as 2013, Chanel bought the first French tanning factory named Bodin-Joyeaux, and then acquired a majority stake in Megisserie Richard in 2016.

According to Bruno Pavlovsky, this series of investments has strengthened Chanel's brand control over the entire leather supply chain and deepened its brand positioning in the international luxury market.

In an interview with New York Times in January of this year, Ph ilippe Blondiaux, chief financial officer of Chanel, explained why he stepped up the supply chain policy and announced the company's business data: "we realize that it is time to put the facts on the table. These actions can tell consumers that we are a company with financial strength of $10 billion, and that we have the ability to maintain the independent operation of the brand."