Is It Really Hard To Surpass LVMH?

Soldiers who do not want to be general are not good soldiers.

Everyone wants to be

The next LVMH in the group is even the only one.

But this goal seems far away than we think.

According to the world clothing shoes and hats net, in December 17th,

Buying luxury travel at $2 billion 600 million

Belmond.

Its action in tourism is not surprising. After LVMH has launched luxury hotels many times, the first Cheval Blanc Randheli Hotel unveiled in Maldives and the rapidly expanding Bvlgari hotel in the world prove that the world's largest luxury group is trying to popularize its expensive lifestyle to every corner of life.

But unlike in the past, it launched its hotel brand inside its own home. This time LVMH spent $2 billion 600 million to buy an outside hotel group.

This is enough to arouse much discussion in the luxury industry, which is popular in the trend of mergers and acquisitions.

In particular, luxury groups now like to develop in the direction of "high purity".

Kai Yun group has split up with Puma, even though it is one of the best performing sports brands in recent years; Stella McCartney and Christopher Kane are also far away, the former has to withdraw control, and the latter comes from its worrying market performance.

"We want to focus on those brands that can be fully controlled and help them develop more potential," said Jean-Fran oisPalus, managing director of Kai Yun group.

Capri Michael Kors recently wants to be a new name for the luxury goods group. Its intention is also like opening the cloud: being an enterprise focusing on high-end luxury goods consumption.

By the way, there are also Tapestry developed from Coach.

It seems that everyone wants to make themselves closer to LVMH through continuous acquisitions and upgrading of luxury brands in the group.

But to be LVMH, even if it's just chasing it, it's more difficult today than it used to be.

There is already a big gap between them.

The commercial success of Gucci and Off-White makes the industry see the gigantic consumption of millennials, and also tells brands that the young people need not a single product, but a story and a way of life.

What is interesting is that although the media often emphasize that the marketing methods that emphasize fabric and price have long been deserted, luxury itself is a representative of the refined lifestyle of the upper class, and it is externalized by price.

As the times change, the story of luxury goods is different, but like LVMH, the luxury group is rarely.

You can see the rebellious spirit of young people on Vetements, and set up a former Soviet Union story related to Demna Gvasalia, but it is very difficult to feel it in travel. Unless this is a trip to Eastern Europe, can those who buy a Vetements sweater in five digit yuan really experience the biochemistry of the former Soviet Union? This is a question worth pondering.

But when it comes to LVMH, it's all different. You can spend tens of thousands of dollars to buy a Louis Vuitton Christopher bag and then take it to London or Bvlgari hotel in Milan for vacation. Of course, if it's a honeymoon trip, it's also a good choice to open a dozen Moet and Chandon.

LVMH is taking the most extensive business scope, cross industry and cross regional to harvest high-end consumers.

In 2018, LVMH frequently crossed cross-border acquisitions to add its own bets.

In November, LVMH's fund L Catterton Asia bought Welsh fitness, initially acquiring less than 50% stake.

In December, LVMH's fund L Catterton announced a deal with Mexico's chili sauce maker Cholula.

In July, the well-known luxury goods business Temple library announced cooperation with LVMH's private equity fund L Catterton Asia and Jingdong.

In May, the fashion business Lyst received the latest round of LVMH financing, estimated at $60 million.

In February, Stadium Goods, a shoe trading platform, was invested in LVMH luxury venture capital fund.

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"The future of luxury goods will not only be luxury, but luxury experience," LVMH's CFO Jean-Jacques Guiony said in an interview with WWD. "We have to have high quality assets like Belmond".

For Capri, Tapestry and even the cloud, they may be able to have high quality luxury goods, but they have to hand over to consumers because of the lack of other high-end product categories.

As mentioned above, luxury brands that tell stories can be more easily favored by customers.

A touching story is a link between brands and consumers, but such stories are often highly exclusive. Once consumers turn their attention, the cost of re dreaming will be higher and more difficult than that of the first time.

LVMH's internal coordination also makes the whole group better at storytelling.

From the beginning of this year, frequent creative director personnel mobilization, we can see that Kim Jones went to Dior, Kris Van Assche to Berluti, and former "old friend" Hedi Slimane went to CELINE.

"They extract knowledge from each brand's business and apply it to other businesses," said Jonathan Low, partner of Predictive, a consultancy. "They can do a lot of communication between executives and craftsmen, not just simple outsiders."

This can be seen from the Institut des M e tiers d Excellence training project one or two.

As a pioneer in the training of craftsmen and craftsmen in the industry, LVMH undoubtedly realized that good management and talent flow mechanism are the key factors to decide whether the brand can continue to take the lead.

Although Gucci is also keeping pace with its own craftsmen college, it still takes a lot of time to start from the integration of brand resources within Kai Yun.

And the rest of the luxury group may have to solve the problem of unstable sales, so that we can get the time to think about whether to enter the upstream industry chain.

The wave of collectivization has swept every brand in the fashion industry today.

Whether it's a lone independent designer or a 100 year old brand that is committed to a large group in mergers and acquisitions, it can not escape the impact of this wave.

But the scale is not the final goal. Takeover is only a means. The group must understand its position and upper limit in the industry.

A group of clouds knows which way to go, but it seems that there is no thought of what will be at the end of the road. Capri and Tapestry know that it is time to start walking, but have not yet figured out how to choose these forks.

As for LVMH, it knows very well what the direction to go is and what it will face at the end, and is still working hard to dig new roads for itself.

It looks far too far from its peers and looks outward.

Back to the acquisition of Belmond.

According to the annual luxury report released by Bain consulting recently, the personal luxury market will reach 260 billion euros in 2018, while another report indicates that luxury hotels will earn 190 billion euros in 2018.

It seems that LVMH has another banknote printing machine.

More interesting reports, please pay attention to the world clothing shoes and hats net.