The War On Luxury Brands Began To Spread To The Supply Chain.

In recent years, the continuous downturn of the luxury goods market is weakening, making the luxury brands have to adjust their strategies. The competition among brands has extended from the brand and sales to the upstream supply chain, so as to ensure product supply and business expansion and get high profits.

In this regard, there will be a recent strategy for luxury vendors to reach suppliers.

With the increasingly fierce competition in the fashion and luxury market and the development of the supply chain, the market competition of the fashion and luxury goods industry has developed from the competition in the brand and sales to the competition among the supply chains. It has become the consensus of the companies in the circle to find and control the manufacturing factories and the scarce raw material bases with exquisite workmanship and faster reaction.

And luxury companies control the entire supply chain, which means they can make the biggest profit, just as chairman of LVMH BernardArnault said: "if you control your factory, you control the quality. If you control your retail, you control the image."

According to Italy industry media, Chanel has acquired a majority stake in Italy shoe manufacturer Gensi Group.

Chanel Gensi Group, which was founded in the 80s of last century, can produce 1500 pairs a day.

The category includes male, female and child shoes.

It is learnt that Chanel's acquisition of Gensi will not affect Gensi's cooperation with other luxury brands.

Prior to that, Chanel bought a 3 million square foot French leather sheepskin factory Bodin-Joyeux and a French tweed and fabric manufacturer in 2013 and 2014 respectively.

The high Maori leather goods and harness are the largest source of income for Hermes group, which achieved 17.4% revenue growth in the last three quarters and contributed 47% of revenue to Hermes international.

In order to get more lucrative profits, Hermes recently announced that it had bought the French leather du Tanneries Puy through its tanning department.

It is reported that

The company supplies to "global luxury footwear and leather brand companies", and more than 50% of its sales are exported to foreign markets.

In addition, it is also a long-term partner of Hermes, specializing in the supply of calf skin, especially the Hermes brand logo material "box" skin.

The group said that the acquisition of Tanneries du Puy carried out the strategy of preserving unique professional skills and ensuring the supply and quality of raw materials, while retaining over 100 posts for the French Auvergne-Rh ne Alps.

It is worth mentioning that in 2013 Hermes bought the leather factory of Annonay in the province of Al herdry.

Besides, Chanel and Hermes are the third largest in the world.

In 2013, group Kering opened the world's third largest crocodile leather producer FranceCroco, one of the suppliers of Hermes international. Its HengLongInternationalLtd, Singapore's crocodile skin maker, is considered the most important supplier of luxury goods in the industry.

Previously, Kai Yun group also owns CaravelPelliPregiate, a leather manufacturer in Italy.

LVMH Group acquired Masure tannery, Singapore crocodile leather factory, Xing lung international and Roux tannery between 2009 and 2013.