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De Familial: It'S Just A Way To Empty Your Wallet.

2015/11/11 21:12:00 27

De FamilialLuxuryBrand Strategy

If you want to seduce a beautiful woman, you can't rape her first.

If this is a financial war, we may fail, but this is a cultural struggle! "Herm s CEO CEO made such a statement when she bought the takeover.

However, not every luxury brand has such a strength to fight against "alien invasion". When dreams come true, they will eventually embark on the "collectivization" of collectivization.

What is more sad is that often a genius designer can replace the family's devotion for hundreds of years.

From eighteenth Century to early twentieth Century, the luxury market was dominated by family workshops, and consumer groups concentrated on dignitaries.

After World War II, with the increase of demand, some enterprises took the initiative to go family and buy other brands.

Entrepreneurs and financiers join hands to grab the old family business from the founder or poor successor of the experience, and then raise funds to the public in order to get a smile on the shareholders' meeting.

Judging from the current reality, it is not known whether the introduction of investment to "familial" moves has really made Versace a good deal.

The birth of luxury brands can not be separated from the early investment of family members, and the withdrawal of families is a historical rule. Is it not the pursuit of maximizing the interests of family businesses themselves?

In fact, for a long time, Versace failed to shake off the shadow of its founder's performance after being shot.

In 1997, Versace founder and genius designer Gianni Versace was shot and killed. After that, the family brand sold nearly 1 billion 100 million dollars from its most brilliant 1996 sales to a long-term loss of up to 26 million 500 thousand euros.

In 2009, affected by the financial crisis, Versace also closed all retail outlets in Japan and withdrew from the market, and carried out a global downsizing plan for the entire company.

However, under the leadership of Ferraris, the chief executive in 2009, Versace turned into a deficit in 2011.

Recently, Ferraris also predicted that Versace's turnover in 2015 would exceed 630 million euros, up from 549 million in 2014.

However,

Versace

At present, it is entering commercial real estate, residential real estate, hotel industry and so on. It hopes to stimulate the experience of importing brands and products into real estate, and with the expansion of stores, there is a large demand for cash flow. On the other hand, family member control has limitations on brand development, while the control of large luxury groups is more likely to be out of control in strategic development.

In any case, the M & A activities in the luxury industry are becoming more and more intense. More and more top niche brands have entered the large luxury group, and the trend of luxury brands to become familial is becoming more and more popular.

Some people say that art has retired from the bottom line of the luxury industry, and profits have become the sole criterion of measurement. Louis Weedon's brand history displayed by LVMH in Shanghai is just another way to empty your wallet.

In the background of such a sluggish international luxury market, the latest financial year performance of Italy's famous luxury brand Versace (Versace), which invested in Blackstone Group last year, is exhilarating. In order to ensure long-term prospects and reduce dependence on Versace family, it is preparing for public listing.

A luxury industry insider said that compared to the natural growth of the family and the holding of the large luxury group, seeking a listing is a better path for Versace.


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