LVMH'S Fund From Design To Channel Deep Involvement

"P >" according to L Capital Asia, the beauty is the most high-end in China's local brands, and the scale of the brand, plus product innovation ability and annual growth rate of 30%, cause the interest of L Capital Asia.

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< p > recently, LVMH group's private equity fund L Capital Asia finally entered China's mass market.

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< p > after nearly 3 years of contact, L Capital Asia has reached a strategic cooperation agreement with the local cosmetics company, Guangdong beauty beauty biotechnology Limited by Share Ltd (hereinafter referred to as "pill beauty"), and the two sides will cooperate in eight aspects of product development, investment and acquisition.

Many industry insiders speculated that the investment of L Capital Asia was $100 million, which accounted for 49% of the US equity stake.

In this regard, Sun Qinghuai, CEO, said that the amount of L Capital Asia investment is 9 digits, and is the second largest shareholder of pill beauty.

It is understood that at present, there are 3 shareholders in pill beauty.

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Zeng Chun Chun, head of the marketing department of the P, also told the first Financial Daily reporters that L Capital Asia is the second largest shareholder of Future Ltd.

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< p > pill beauty said that this cooperation with L Capital Asia is not entirely for financial needs.

The L Capital Asia brings money mainly to R & D and brand building.

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< p > L Capital Asia's investment logic < /p >

< p > L Capital Asia entered the Chinese market in 2010. In the past 3 years, L Capital Asia has invested in Xiamen Xin he a target= "_blank" href= "target=" > Clothing Co., Ltd., Ming, Feng Ming jewelry and royal jewelry, the main investment in apparel, jewelry and other industries.

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< p > as early as 2011, L Capital Asia showed a strong interest in the mass market of daily chemical, and had rumored to buy Shanghai Jahwa.

L Capital Asia finally realized its long cherished wish to enter the China daily chemical market.

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< p > according to Huang Hanji, managing director of the Greater China region of L Capital Asia fund, she is L Capital Asia in China, and is also the first Asian chemical industry to invest in Asia.

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< p > Huang Han said that the L Capital Asia investment is mainly familiar with the original business with a certain degree of complementarity of the industry, basically concentrated in clothing, jewelry, watches, liquor, cosmetics and other fields.

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< p > from the perspective of L Capital Asia's past investment trajectory, the long term of L Capital Asia lies in its role as a bridge within LVMH group, which is conducive to the integration of all kinds of high-quality resources of LV and helps enterprises to grow further.

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Ravi Thakran, President of P, LVMH, South Asia, Southeast Asia and the Middle East, said that China will become the world's largest consumer country in the future. The future investment of LVMH in China will be more focused on the mass brand with larger consumption potential.

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< p > there is speculation in the industry that because LVMH group's funds are relatively strong, holding is probably only the first step, and the overall takeover may be the ultimate goal.

However, Sun Qinghuai said he would not give up his controlling stake in the company.

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< p > from design to channel depth intervention < /p >

< p > according to L Capital Asia, pill beauty is the most high-end brand in China's local brands, and the scale of the brand, coupled with product innovation capability and annual growth rate of 30%, has attracted the interest of L Capital Asia.

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< p > the data of pill beauty show that in 2012, the sales volume of pill beauty was over 3 billion yuan, and the sales volume of pill beauty brand accounted for nearly 80% of the total sales.

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< p > according to industry insiders, from the sales level, the pill is now ranked third in domestic brands.

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< p > Zeng Chun Chun said that the future L Capital Asia will act as a guide in the sales channel and brand building of the company.

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< p > it is understood that after the strategic cooperation agreement has been reached, she will organize a number of marketing and R & D executives to study and study in Dior, France, while the new product design of Wan Mei will be delivered to France, which may employ Dior's < a target= "_blank" href= "http://www.91se91.com/" > designer /a.

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< p > in terms of channels, it may start marketing abroad, led by L Capital Asia to introduce Southeast Asian agents.

LVMH's channel has reached the right of first entry when it meets the requirements.

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< p > Sun Qinghuai introduces that the beauty of eye care is a great opportunity to enter the sales channels of the market. "In that channel, there is no international brand focusing on eye care."

It is understood that at present, the sales of eye cream of pill beauty is 30% of the total sales, and the annual sales volume is about 900 million yuan.

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In the future, P will focus on the brand structure of Pyramid, with the brand of Chun Ji as the tower brand facing the mass market, and the pill brand as the mid-range brand.

Sun Qinghuai revealed that the top brand gap may be achieved through the acquisition of international brands.

Led by LVMH, it is possible to buy a top cosmetics brand in Europe.

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Huang P also said that the two sides may move in some capital markets in the future.

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