Luxury Goods: Investment Strategy, Improving Brand Matrix

In recent years, local groups have frequently acquired foreign brands, but no matter how successful they are from the process or even after success.

How to keep up with the development of the industry, expand its business and maintain the advantages of the group, and maintain the balance of the basic tonal are the urgent problems for the local group.

Luxury, as an industry that carries too much value added, is simply not enough to provide financial support in mergers and acquisitions. How to continue the brand culture recognized by consumers is the core. This is also a relatively weak part of the local group at this stage.

Recently, according to public information, in 2012, NOKIA was forced to streamline its business, and the high-end brand Vertu, which was sold, was once again in a low profile. The new owner is Hongkong's Klc Holdings Ltd.

As the only professional luxury mobile phone brand, Vertu has joined the intelligent operation in recent two years, but its performance is still deteriorating due to its low output and small audience. At this time, local funds are not long enough to enter the luxury sector, and market expectations are inevitably questioned.

The group often has different preconditions for the acquisition of luxury brands, or the brand profitability, or the patent technology and the special technology that can be realized by the brand, or for the sake of competing with the competitors, which has been deduced many times between LVMH and Li Feng and Kai Yun.

Make up for short strategy.

For example, in 2014, Kai Yun group's "wrist watch headlines", the lightning purchase of nearly 170 years of Swiss watches brand Athens table, Kai Yun's acquisition is for the group's structural development, and strengthen its high-end watch business.

And during the 2013 Basel World, the watch group bought the Kunlun watch.

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However, the acquisition of Vertu by local enterprises has no obvious advantages in all aspects.

In fact, there are also cases of successful acquisition by local groups.

Since 2011, Fosun Group has been very active in investing in the acquisition of European and American clothing brands: after buying the Greek Folli Follie9.5% brand, it has acquired Caruso, St. John (Sheng Qiang) and Tom Tailor three high-end brands in Europe and the United States. In November 26th, the first new concept store in China was unveiled in Meilong, Shanghai.

In the process of M & A, the smooth operation is due to its closer operation to the family of European luxury management, that is, the private contacts with the founders' families, reaching a consensus on brand continuity and industrial integration.

Zhong Lei, general manager of the International Development Department of Fosun Group, said in an interview with us WWD magazine: "the group does not intend to invest in overseas brands to win" spoils ", but rather sees the growing demand of the Chinese consumer market for the brand and the enhancement of the strength of the brand to the overseas market of Fosun.