How Far Is The Distance Between China'S LVMH And International Real Big Brands?

In recent years, Chinese consumers have become luxury goods.

With the growth of consumption power of the Chinese middle class, more and more luxury brands are falling into the hands of Chinese enterprises.

In these Chinese enterprises, the most noteworthy and high-profile is "

"Shandong Ruyi group".

As a Chinese local enterprise, how does Shandong Ruyi get the same reputation as LVMH, a leading global luxury enterprise?

Bloomberg has released "watch out for the upcoming LVMH group in China", pointing out that the rapid expansion of Shandong Ruyi group follows the Chinese M & a mode. Frequent acquisition of luxury fashion brands in the past few years shows its strategy of winning through capital operation.

According to DDT's list of the top 100 luxury goods in 2017,

In 2011 and 2017, the French light luxury group SMCP and the Japanese apparel company Renown ranked 51 and 58 respectively. According to statistics, in 2016, two combined business volume of more than 9 billion 235 million yuan.

Looking back at the strategic layout of these years, Ruyi group of Shandong is a dark horse rising in China's fashion market. Ruyi group, founded in 2001, was formerly the Shandong Jining wool textile mill.

With the upgrading of consumption, Ruyi group has constantly adjusted its strategy to make a pformation, aiming at the strong purchasing power of the Chinese middle class people, and buying many foreign high-end brands that Chinese consumers are fond of through "buy and sell". At present, the traditional enterprises are turning around not only to become the world's largest wool industry group, but also the top 20 fashion and luxury group in the world.

So what did Shandong do?

Since 2010,

Continue to bring in fresh blood and reserve more brand resources for the group.

In May 24, 2010, Ruyi invested about 4 billion yen (US $44 million).

The shares become the largest shareholder of Renown company.

To get 23 famous clothing brands under Renown.

In 2016, Shandong made the purchase.

SMCP's Sandro, Maje and Claudie Perlot three clothing brands are in the bag.

In March 2017, Shandong Ruyi bought the Aquascutum, YGMTRADING, which is also known as Burberry, Barbour and so on, from the Hong Kong listed companies's YGMTRADING.

In February 9, 2018, Shandong Ruyi group announced that it has successfully acquired the brand history of Swiss luxury brands for more than 160 years, and is a unique BALLY brand among many famous brand families, and has achieved steady growth in its performance.

Obviously, Ruyi group is following the international luxury giant LVMH's acquisition form to build its own brand matrix.

Shandong Ruyi group will not stop buying Bally.

With the development of new retail, luxury magnates are expanding their brands while deepening their brand. Luxury groups are testing the water business platform.

In July 16th, Shandong signed a strategic cooperation agreement with the largest high-end consumer service platform monastery in Asia.

Ruyi group has the fashion industry chain from brand to terminal, while Temple library has online, offline channels, data and application system.

The strategic cooperation with the temple library provides a wider sales channel and innovative marketing drive for Ruyi group's brand.

Prior to that, in July 9th, LVMH's private equity fund L Catterton Asia and Jingdong just announced a strategic cooperation with the Temple Bank to inject $179 million into the fund.

We see Chinese luxury goods.

The pattern is changing.

According to McKinsey's report, between 2008 and 2016, the proportion of luxury goods consumed outside China accounted for 3/4 of the total consumption expenditure. By 2025, China's luxury consumption will account for 44% of the global market.

The positive signals conveyed by the industry outlook provide confidence for Chinese enterprises to develop from China's luxury products.

In terms of development, Ruyi group has the potential to become a luxury magnate and become the "China Ruyi" in the ranks of the global luxury goods group.