LVMH Reaches Agreement with Tiffany and acquires it for $16.2 billion
LVMH Moët Hennessy Louis Vuitton SE (“LVMH”), the world’s leading luxury group and Tiffany & Co. (NYSE: TIF) (“Tiffany”), the global luxury jeweler, today announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion. The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.
Read the complete article by Staff at LVMH.
Hong Kong loses luster for luxury brands as mainland China shines: Bain
Luxury brands are likely to retreat from Hong Kong as the city is wracked by protests at a time when wealthy Chinese shoppers are staying on the mainland, consultancy Bain said on Thursday, highlighting a shift that is reshaping the global industry. Sales growth for companies making goods like jewelry, high-end fashion or handbags would come in at the low end of its expectations in 2019 due to the Hong Kong turmoil, according to Bain, which produces closely-followed forecasts for the sector. Global luxury goods sales were on course to expand to 281 billion euros ($310 billion) in 2019, its study showed, growing 4% at constant currencies, at the bottom end of its previous 4% to 6% forecast and down from 6% growth last year.
Read the complete article by Sarah White at Reuters.
Gucci forms partnership Chinese digital conglomerate Tencent
Gucci and Tencent will reveal today that they have partnered “to establish a framework that will stimulate innovation and leadership in digital strategies spanning the Internet of Things, Artificial Intelligence, Data Science, Smart Retail, Content Generation and Digital Thought Leadership,” the companies said in a joint statement.
The initiative born from the new partnership is the first native content project produced by Tencent for a luxury brand.
This includes a four-part co-created short film series called “Gucci Inspiration Map.”
Read the complete article by staff at OpenPaper.
Sorry, China: From Nike to Versace, all the global fashion players and their slights and oversights in China
Since Dolce & Gabbana’s chopsticks ad debacle, a string of fashion and luxury players have apologised, and pulled products, after angering web users in China. Most were accused of not respecting China’s territorial integrity for selling clothing or running websites that suggested Hong Kong and Taiwan were countries. Here are eight of those who committed such fashion faux pas, including Nike, Versace, Coach, Calvin Klein and more.
Read the complete article by Gigi Choy at South China Morning Post.
Nike launches a new app in China, bringing together all official benefits
Nike has finally launched an app in China that everyone can place an order for-Nike App. Compared with other specialized applications, this brand’s app of the same name is relatively more comprehensive in function, and it is officially called “one-stop personalized member center”. After registering for free as a Nike Plus member, in addition to buying and buying directly in the app, users can also enjoy preferential purchase rights for some new products. In the “Personal Center” section, members can also check “Exclusive Benefits”, get app red envelopes, birthday discounts and opportunities to participate in special city events. In addition, the Nike By You service, which was previously only available on the official website, is now also available on the mobile phone with the Nike App. Users can more conveniently choose shoes such as Air Force 1, PG 3, and Air Max 90. Customized designs in colors and materials.
Read the complete article by Staff at Domeet Webmaster.
The Live-Stream “Incident” that Rocked China’s KOL Market
Since this year’s presale Singles’ Day launch, Li has gone viral online over the past few weeks. Li’s success is a good example of how luxury brands are increasingly turning to collaborations with popular internet celebrities in China for results. However, a recent video of Li advertising for a non-stick pan, which is now being called the “rollover incident,” is making consumers question his credibility. In the video, Li called on viewers to purchase the pan, produced by Cooker King, by emphasizing how eggs would not stick to the pan and having his assistant demonstrate. But, sadly, the pan failed the test miserably, as eggs stuck to the pan’s entire surface. The incident, which seems to have weakened Li’s credibility, has sparked questions among Chinese netizens about the nature of KOLs and the live-stream medium.
Read the complete article by Qiong Yang at Jing Daily.
What’s Next for Capri Holdings Limited in 2020?
According to Vogue Business, the global fashion luxury group, Capri Holdings Limited (formerly Michael Kors Limited), has had a rough year, with shares dropping more than 16 percent to date. And despite Michael Kors’ ambitions of creating an American luxury conglomerate, missteps such as the Versace T-Shirt scandal that, the continuing protests in Hong Kong, which have increased expenses and lowered profit margins, and various other miscalculations have wreak havoc inside company. To begin with, management for the Michael Kors brand has decided upon a rather ambitious strategy that sees the business expanding beyond its core handbag business, and instead transforming into a full on lifestyle brand overnight. For the majority of Michael Kors customers that identify it as an entry-level luxury brand that heavily discounts products and sells its accessories collection at outlets and off-price department stores, the rebranding of the company into an authentic luxury player has not been an easy switch.
Read the complete article by Adina-Laura Achim at Jing Daily.