Dior Or Full Privatization Is Ushering In A New Round Of Innovation.

To increase the attractiveness of French business, incumbent President Ma Long has proposed to lower the standard of privatization of listed companies, so long as large shareholders hold 90% to 95% stake, they can force the acquisition of remaining shares and withdraw from the market, after which the standard exceeds 95%.

According to Reuters's latest news, some analysts expect that in view of the slow growth of the luxury fashion industry, the Dior group, which was acquired by LVMH Bernard Arnault family business in 2017, will be privatized, which means that the group can reduce the disclosure of financial data. Reuters also implied that Bernard Arnault did not have to wait for new financial terms to pass Dior to privatize Dior, because he had long held a 96.5% stake in the Dior group through family companies.

In 2017, the Bernard Arnault family business bought the remaining shares of Dior group for $13 billion, and subsequently sold the Dior fashion department to 6 billion 500 million euros for LVMH.

Insiders say that Dior is the favorite brand in Bernard Arnault's heart, even more than Louis Vuitton. At present, LVMH also owns Dior perfume, cosmetics and fashion department. It is estimated that the sales volume of the Department is expected to expand to 3 billion euros in 2020. In addition, Dior group no longer operates any real business and becomes a pure holding group, holding LVMH 41% stake and 56% voting rights.

In 1984, the 35 year old Bernard Arnault returned to France from the United States. In the wave of privatization in France, it bought the owner of Christian Dior Willot Group (later renamed Bernard Arnault Financiere Agache). Bernard Arnault subsequently reorganized the Financiere Agache holding company. In 1985, Bernard Arnault began to serve as chairman of the board of Dior group.

Under the leadership of Maria Grazia Chiuri, the first female creative director in history, Dior fashion has become the most rapidly developing luxury brand apart from Gucci, and their common ground is to strive to conquer millennial consumers.

According to the data, Dior recorded an organic growth of 12% in the first three quarters of 2017. Dior has made outstanding achievements in its youth spanformation. Although LVMH has never disclosed its brand specific performance data in the earnings report, the group revealed in its first three quarters of last year's earnings report that Dior has made a great contribution to the growth of sales. During the period, the fashion leather Department of the group increased its growth rate by 14%, contributing 4 billion 458 million euros to the group, which has been a double-digit growth for 8 consecutive quarters. In the first half of last year, the sector recorded a 25% increase to 8 billion 594 million euros.

Now, under the control of the Arnault family, Dior is ushering in a new round of innovation. In addition to the creative director of women's wear, Dior's original CEO Sidney Toledano has been promoted to the chief executive of LVMH fashion leather Department, and Fendi original CEO Pietro Beccari has joined the campaign. In just two quarters, Kim Jones, the new creative director of Dior MEN, has opened up an unprecedented new situation for this high fashion house. (depth |DIOR found a new magic weapon for men's wear).

Thanks to the sustained rise in performance, Dior is the first time in the 2018 global brand 500 report, released by the British brand value consultancy Brand Finance, ranking the first time in 446 place, ranking twenty-third in the major apparel and fashion industry.

As of Tuesday's close, LVMH (LVMH.PA) shares rose 1.99% to 264.5 euros, with a market capitalization of about 132 billion 600 million euros.