Prosperity Expansion, Chaos, Mergers And Acquisitions Of Luxury Industry Are Moving Forward

Compared with Kaiyun Group's continuous sales of its department stores and other businesses in recent years and its focus on luxury brand management, LVMH Group, as the leader of luxury goods, has the opposite strategy. In addition to the original luxury business, LVMH has acquired luxury hotels, cafes and other lifestyle brands in recent years, creating a 360 degree panoramic luxury consumption portfolio.

The luxury industry seems to be moving along this path of "expansion in prosperous times and merger and acquisition in troubled times".

In the past ten years, although the luxury industry has been developing at a high speed on the whole, it has encountered two lows: one is the global SARS outbreak after the "911 incident" in 2011, and the other is the global economic crisis in 2008.

The consumption downturn under the influence of the economic crisis since 2008 has just slowed down, and China's political anti-corruption has made the Chinese market, a treasure trove of luxury goods, more complex.

In the first quarter, when the performance fell back, the luxury giants began to hibernate, postpone expansion, and recuperate through mergers and acquisitions.

Recently, it is rumored that LVMH Group intends to acquire Italian tableware lifestyle brand Lorenzi. Lorenzi currently has a shop called G Lorenzi's shop sells products, including razors, walking sticks, etc. Lorenzi also produces shoes Class II products. This is also the latest action of LVMH Group to create a new concept of luxury consumption covering food, drink, housing and clothing.

Traditional luxury goods group, whose portfolio includes watches, jewelry Clothes & Accessories , accessories and even home furnishing brands, including men's and women's ready to wear clothes, handbags and accessories, are rare across industries. Kaiyun Group, which started its timber business, has also sold its businesses unrelated to luxury goods in recent years, focusing on the operation of luxury brands. However, for Bernard Arnott, the president of LVMH Group, who started from real estate and is famous for his sagacity, his ambition is far beyond the luxury industry. Since 2008, LVMH Group has broken through the scope of luxury goods business, bought Royal Van Lent, a Dutch shipbuilding company, and entered the yacht industry.

Then in 2009, LVMH Hotel Management, a branch of the hotel industry of the Group, was established. Now its White Horse Manor Hotel has obtained the top rating of palace level. In just a few years, the White Horse Manor Hotel has expanded at an astonishing speed.

In June 2012, LVMH Group opened le White 1921 in int Tropez, a coastal city in the south of France, with eight rooms renovated from the old high-rise building "White House".

In August this year, LVMH Hotel Management announced the acquisition of St. Barthelemy Hotel, a luxury hotel on St. Barthele Island. The hotel has 39 rooms, suites and villas, a spa and two restaurants. The hotel was acquired by LVMH from private equity fund AJ Capital Partners and other shareholders, and the specific amount was not disclosed.