LVMH Group Invests In British Designer Brand Stella Mccartney

French luxury goods giant LVMH group has announced an investment cooperation agreement with the British designer brand Stella McCartney (Stella Macartney).

The two sides have not yet announced the specific terms of the transaction. LVMH group only said that Stella McCartney owns a majority stake in the brand and will continue to be the creative director.

Stella McCartney revealed that it had received several investors' cooperation and investment invitation. "Although the proposals of these investors are very interesting, they are not as good as my Bernard Arnault and their childe Antoine. They want to accelerate the potential of the brand." It is reported that LVMH group will promote the global expansion of the brand. The two sides will announce more details after the completion of the transaction in September this year.

As more young people pay more attention to brand in the aspect of "sustainable development" and "animal fur", LVMH group is striving to shape and consolidate its image of environmental protection. Bernard Arnault, chairman of the board of directors of LVMH group, said: "the decisive factor for this cooperation is that Stella McCartney is a fashion pioneer concerned with sustainable development and moral standards." In the future, Stella McCartney will also provide recommendations for LVMH's Executive Committee on sustainable development and ethics as a special adviser.

Bernard Arnault said he was very optimistic about the long-term potential of the brand, and this cooperation "emphasized the commitment of LVMH group to sustainable development." He pointed out that the LVMH group is the first large French company to establish sustainable development departments, and "Stella McCartney will help us further strengthen our awareness of these important issues."

Stella McCartney has been an advocate and practitioner in the field of fashion and environmental protection for many years. The brand bags only use artificial leather. The latest high-end sports shoes series Loop has been developed for 18 months, and the material can be recovered by 100%. The new series of Stan Smith launched by the German sports giant Adidas is also the first time that the series of sports shoes is made of pure raw materials. The two brands also announced that they will jointly launch two new sustainable concept Costumes: 100% recycled fabrics, Hoodie Infinite Hoodie and biological fiber tennis skirt Biofabric Tennis Dress.

In the interview with the British edition of Wired, Stella McCartney said: "90% of the environmental problems mentioned in the fashion industry are launched around marketing. They don't really care about and attach importance to environmental protection."

Besides, Stella McCartney's environmental protection measures include:

Become the first partner of Google (Google) cloud technology data analysis technology Google Cloud service, which can help fashion brands to have a better understanding of the impact of the supply chain on the environment.

Cooperate with The RealReal, a second-hand luxury goods consignment website in the US, so that the second-hand products of the brand can be reborn in the consignment sale, thus avoiding entering the landfill and reducing the pollution caused by the waste of clothing.

Set up a Stella McCartney Cares Green dedicated to sustainable development.

Cooperate with Holland fashion innovation platform Fashion for Good to "inspire and expand the next generation of sustainable technology together and help change the fashion industry".

Just a few months ago, Stella McCartney just completed its work from another luxury giant, Kering. According to the agreement signed by Stella McCartney and Kai Yun group, the joint venture between the two sides will be officially concluded in 2020. But in fact, Stella McCartney officially became independent in March 28, 2019 and extended to 2020 because it provided an additional 12 months of cooperation.

Stella McCartney did not explain the closing cooperation with Kai Yun group. It only indicated that it is very important to have control of the company. Since its establishment, the Stella McCartney brand has never released a complete financial situation. Previously disclosed part of the business data showed that: in the 2017 fiscal year ended December 31, 2017, the sales of Stella McCartney UK company increased by 2.1% to 42 million 500 thousand pounds compared with the same period last year, and net profit increased 1.5% to 7 million 100 thousand pounds compared with the same period.

According to Citibank analyst Thomas Chauvet, sales of Stella McCartney brand are about 260 million euros in fiscal year 2017.

This transaction has little impact on the performance of LVMH group in the current fiscal year, but a new brand led by women designers and advocating environmental protection can further demonstrate the attitude of LVMH group in the two major fields of "gender equality" and "sustainable development".