Loss of LV will be sold off

Looking at the luxury goods industry this year, "M&A" and "Sale" become the key words. The old rivals Kering Group and Richemont Group of LVMH Group are selling brands continuously. "Now is the best time to sell a brand, and the LV brand value is rapidly falling." Zhou Ting is amazing. According to Zhou Ting, president of the Fortune Quality Institute, LVMH seems to be extracting the last remaining value that LV brings to the group.

All along, LV hold up half the sky of the LVMH Group, LVMH Group also seems to rely too much on LV's performance growth to maintain the financial performance of the beautiful performance. In terms of promotion, LV is mainly played excessively, resulting in the popularity of the entire brand value brought about by the popularization of the market.

Zhou Ting believes that Arnault's strategy for manipulating DIOR and LV is obviously different, and the gap in performance is also obvious. DIOR is more "pretentious" and the starting point of promotion is to maintain the brand reputation, and the stores are not blindly expanding.

“Now is the best time to sell a brand, and the value of the LV brand is rapidly declining. Now that the sale is still at a high point, in a year or two, the brand will become worthless, and it will not be able to sell.” Zhou Ting is amazing.

Looking at the luxury goods industry this year, "M&A" and "Sale" become the key words. The old rivals Kering Group and Richemont Group of LVMH Group are selling brands continuously.

The Kering Group earlier this year sold the directory mail order business of children's clothing and homeware divisions Cyrillus and Vertbaudet under the directory mail order group Redcats, as well as Swedish home textile and apparel brands Ellos and Jotex. In October, the Italian mid-term bank was commissioned to handle the sale of its Italian footwear luxury brand Sergio Rossi. On the 22nd, Reuters again reported that in order to get rid of the last retail package (La Redoute), Kering Group had to promise to reinvest 300 million euros in this loss-making catalog and online retail company to attract the acquirer.

Similarly, Richemont Group has also been busy selling its underperforming brands. In October, Lancel, its French leather goods brand, finally welcomed buyers. Private equity developers Change Capital Partners and Hong Kong Swire Group have expressed interest in Lancel. According to Reuters quoted insiders, Richemont will sell Chloé next.

This year only LVMH Group has no brand plan for sale. However, from the perspective of capital market performance, the LVMH Group's stock price also appears to be gloomy, only slightly up 5% this year, far below the price increase of major competitors: Richemont 27%, Swatch 26%, both Hermes and Kering 18%.