Chinese Holdings Successfully Revived Private Equity Fund Keen On Luxury Goods

European luxury brands have been gradually acquired by the rapidly rising luxury market countries such as the Middle East oil and China. According to analysis, the reason why these consortia are generous in luxury brands is to value the luxury effect of these brands in the local market. If they can create success, the future will be immeasurable.

In the late 80s and early 90s, the Paris clothing interface was facing a great change in the reshuffle, and the high women's clothes were in the thin West Mountain, and Lanvin was confronted with an unprecedented dilemma.

In 1989, Jeanne Lanvin S.A was jointly purchased by Orcofi (Henry Vuitton's Louis Vuitton management company) and L Oreal group. In 1993, Lanvin should be in the trend. The high fashion house, which was originally only served by the nobility, stopped the production of advanced customization, and headed towards the increasingly popular clothing route for men and women.

In September 2001, the Lanvin of the end of the battle was sold by the L'Oreal group to become an independent company. The new shareholders wanted to revive the reputation of the famous French shop. The new shareholder is Wang Xiaolan, the eldest daughter of Wang Fu Wu, founder of Taiwan United Daily. In addition to managing newspaper industry, she became the operator of Lanvin. At that time, Lanvin was in a predicament of losing money for years. In order to revive the brand, Wang Xiaolan invited the Israeli genius designer Alber Elbaz, who once worked for Yves Saint Laurent, which made Lanvin Lang Wen one of the hottest luxury brands with excellent French romantic style, and its sales volume has been doubled by ten times.

In 2007, Wang Xiaolan sold the Lanvin perfume and cosmetics business to the perfume giant Inter Parfums SA at the price of 22 million euros, putting all the money into the clothing and accessories business.

According to market sources, Wang Xiaolan has been reluctant to invest large sums of money in developing brand retail networks and enhancing brand awareness in recent years, making it difficult for them to face the fierce competition of luxury brands such as Saint Laurent, Givenchy and Chanel brands such as strong capital and privately held Chanel. According to people familiar with the matter, Wang Xiaolan has a more conservative attitude towards increasing investment in the construction of Lanvin retail network and brand promotion.

However, at present, Wang Xiaolan has not formally commissioned any side to sell Lanvin, nor has the buyer made due diligence on the Old French fashion house, and Wang Xiaolan's overestimation of Lanvin and the picky choice of potential buyers may be an obstacle to its sale.

It is estimated that Lanvin Annual sales should be close to 250 million euros.

According to Ipsos data, many Europeans are right. Luxury goods and Europe The economic crisis is disappointing. Consumers in Spain, Italy and Portugal are no longer buying luxury goods from Germany and the United Kingdom. European luxury goods have largely shifted to emerging market countries, pushing local brands and customers to start selling Arabic, Chinese and so on.

The success of European luxury goods in emerging markets has also been the buy-out boom of these emerging markets.

After investing in the Lanvin rumors, some investment banks submitted informal cooperation proposals to several potential acquirers, including the Qatar fund Mayhoola for Investments SPC. It is reported that the fund company was controlled by Qatar royal family. The most famous takeover case was the Valentino Fashion Group (Italy Valentino fashion group), which was purchased in 2012 for 700 million euros. Valentino, founded in 1960, sells a range of high-end luxury goods including garments, accessories and expensive customized garments. The iconic bright red chiffon dress has laid a high reputation in the royal family and the Hollywood star circle.

The Qatari royal family has been very keen on luxury investment in recent years. Besides the acquisition, it also invested in LVMH, Harrods, Tiffany&Co and other companies.

Data show that Valentino has been well developed after the acquisition. In the overall downturn of the industry in 2014, its profits rose by 57%, and sales revenue increased by 36% over the same period last year.