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    LVMH And Rihanna Set Up A Joint Venture To Take The Road Of Radical Youth.

    2019/3/4 16:02:00 16

    LVMH

    Rihanna's Fenty Beauty debuted at the end of 2017 with the support of Kendo, the beauty incubator of LVMH, and became a commercial hot spot in a short period of time. Revenue grew from zero to 500 million euros. According to the latest survey, the brand earned nearly $500 million in revenue for the road in 2018. So it is not surprising that the group is believed to be exploring a new fashion joint venture with the Barbados superstar. At the same time, she also worked with TechStyle Group, based in California, in the field of underwear.

    "She is an excellent singer, isn't she? I like her works. She has achieved great success in the makeup of Christopher de Lapuente and Sephora. " "So we can pursue the idea of developing business with her," said Bernard Aernault, chairman of Lu Wei Mun Xuan. "But there is no certainty in the present situation."

    Now it seems that the project called Project Loud France has gone farther than it looks. This is a tribute to Rihanna's fifth studio album, Loud. According to the newly acquired document signed by Ledouble, a French accounting firm, Rihanna held a Project Loud France 49.99% share through its Denim UK Holdings company, which was registered in the United Kingdom 5 months ago, Rihanna. (her lawyer Ed Shapiro and her music brand Roc Nation CEO Brown Jay are Denim UK Holdings directors.)

    According to the filing document, Rihanna has contributed $29 million 988 thousand in kind donations to the joint venture (its rights are held by the Louis bright project Co., Ltd.), while the major shareholder of Lu Wei Ming Xuan holdings, France, has injected $30 million in cash into the joint venture. The new capital injected in December 20, 2018 was $29 million 960 thousand, after which the initial share capital of the entity was $40 thousand since June 29, 2017.

    A recently injected file was signed by Antoine Arnault, the son of Bernard Arnault, representing a company called LV Group. As previously reported, the headquarters of Project Loud is located at 24-32 of Jean Grand Street, which is the same as the address of LVMH Fashion Group, managed by Sidney Toledano. The group owns smaller fashion brands such as Celine, Givenchy, Loewe and Marc Jacobs.

    The president of Project Loud is the chief strategist Jean-Baptiste Voisin of Lu Wei Mo Xuan. According to this brief introduction, Project Loud is aimed at the wide range of products of concept, manufacturing, distribution, commerce, import and export, including clothing for men and women, children's clothing, footwear, glasses, leather products, sportswear, lifestyle related goods, high-tech products, office supplies, home decoration and gardening products. The time is not immediately known. One of his representatives refused to comment.

    There is no doubt that if all this becomes a reality, the deep cooperation with Rihanna will bring significant results to LVMH. The core of this strategy is undoubtedly her attraction to the millennial generation. According to Bain's data, the Y Generation and the Z generation have become the main engine of growth in the luxury market, pushing up the 85% expansion of the luxury goods market in 2017. By 2025, they are expected to account for 45% of the total consumption of luxury goods. But that underestimates their influence. "Millennial mentality" is playing a leading role in the entire luxury market, changing the buying habits of generations of consumers.

    Lu Wei Hun Xuan certainly saw the power of Kering to cater for the millennial thinking mode. In Kai Yun group, Marco Bizzarri and Alessandro Michele reinvent Gucci to attract young consumers. Louis Vuitton also established partnership with Virgil Abloh. Moncler's "genius" program also succeeded in targeting the millennial generation. Luca Solca, a luxury goods analyst, said: "millennials are proving to be very important. I find that there is a direct correlation between the penetration of the millennial generation and organic growth. Kai Yun group, Lu Wei Ming Xuan and Moncler are in the leading position. "

    At present, Rihanna has 67 million 800 thousand fans on Instagram, and is the super influx of the Millennials. "It turns out that the influencers are a very effective way to penetrate the millennial market, and the millennials are more exposed to social media and mobile shopping," Solca added.

    Lu Wei Ming Xuan knows what they are doing, of course. That's why they bet. But whether or not it will succeed will depend on the implementation.

    But perhaps equally important is her information about diversity and inclusiveness. Fenty Beauty made its debut with 40 colors of Foundation (now expanded to 50), attracting a multiracial consumer group that has not been fully served for a long time. Facts have proved that creating a wave of emotions that resonates with young consumers of various backgrounds is the decisive factor for the brand's immediate success, and has created $100 million in sales in the first 40 days. But Gucci has undoubtedly diversified as a key component of its design and communication strategy. Despite some mistakes, it has worked.

    "Lu Wei Ming Xuan certainly knows what he is doing." Luxury analyst Mario Ortelli said, "in terms of design, marketing, distribution and supply chain, they have one of the best platforms in the world. That's why they bet. But whether or not it will succeed will depend on execution. "

    Doing business with celebrities can be risky. It is always a challenge to keep in touch with the new generation after the peak of celebrity's career. There is also the risk that personal scandals bring damage to the brand. But there are ways to solve this problem.

    "Look at Yeezy (Kanye West and Adidas's cooperative brand) and Fenty Beauty. Because the name is separate from the designer who created it, it is easier to live longer. The brand with the same name, such as Victoria Beckham, is closely related to this person. What is the final name of the joint venture between Lu Wei Mo Xuan and Rihanna? Will it be Fenty? Rihanna 's Fenty? Only Rihanna? Or something else? This will be an interesting thing. "

    Source: Gorgeous writer: Laure Guilbault

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