Luxury Brands Burst Into Takeover Wars. Biography Gucci Parent Company Will Acquire Moncler

As LVMH, the world's largest luxury goods group, and the US luxury jewelry brand Tiffany successfully married at a price of $16 billion 200 million, the takeover battle between the luxury oligarchs again started.

According to Bloomberg quoted sources, Gucci's parent company Kai Yun group is making exploratory negotiations with the luxury feather brand Moncler on the takeover transaction, but has not disclosed details of the offer. Some analysts say that as one of the most popular brands in the field of luxury goods, Moncler will undoubtedly be a shot in the arm if it can join the camp of Kai Yun group.

Despite the impact of the deterioration of Hongkong's retail environment, Moncler's third quarter earnings grew by 10% at fixed exchange rates, and sales increased by 12% to 959 million euros in the first 9 months. During the reporting period, sales of Moncler in Asia and the rest of the world, including the mainland of China, increased by 15%.

Some people pointed out that the stable growth of Moncler performance for 4 consecutive years is related to the operation mode of non family businesses. Founded in 1952, Moncler started its business with outdoor mountaineering products such as tents and sleeping bags. At that time, it had nothing to do with extravagance, and became fashionable and formally entered the luxury industry in 2003 after being acquired by RemoRuffuni.

In order to cater for young consumers' pursuit of novelty, the MonclerGenius project launched by Moncler at the end of 2017 further created imagination for the long-term development of the brand, and even provided an inspiration for the whole fashion industry. This not only enhances the diversity of the brand product, but also indirectly strengthens the brand's fashion discourse power, and controls the risk of down category to a certain extent.

The new model shows that every brand has more than one creative director, and there is more than one creative direction. With the help of many designers' energy for brand empowerment, MonclerGenius can break the potential problems of aesthetic fatigue, ultra fast rhythm, and brand design quality which may arise from a single creative director, and provide consumers with fresh feelings.

Overall, Moncler as a pioneer in luxury feather products has taken the lead in achieving a balance of weather factors. The problems it faces are more of the economic environment and geopolitical uncertainties faced by luxury brands. The label of feather and down category provides an identification and special feeling for the role of Moncler in the market.

In March this year, private equity fund Eurazeo sold its remaining 4.8% stake in Euro 445 million after selling its luxury feather brand Moncler8. Its total investment in Moncler is 1 billion 400 million euros, 4.8 times the initial investment. In an analysis this year, Reuters wrote that RemoRuffini is expected to become the "Italy version of BernardArnault" and will make Moncler a luxury Empire like the next LVMH.

Up to now, Moncler and Kai Yun group have not responded to the news. The market value of the two is 10 billion and 68 billion euros respectively.