What Big Events Happened In LVMH In 2016?

According to the world clothing and shoe net, the global market has been changing in recent years.

Brand differentiation is obvious, personalization and diversification will become the mainstream trend of consumption. Internet accession will also bring about structural changes in the whole industry.

When the economy is depressed, female consumers will reduce luxury purchases and shift the focus of consumption to "cheap non essential things".

In the past year, the "lipstick effect" in cosmetics has been highlighted.

We collate representative events of major groups in order to provide reference for trend forecasting in 2017.

1, LVMH set up a fund company to invest in all directions.

The investment company LCatterton is jointly invested by LVMHSE group and Groupe LVMHSE, the controlling shareholder of LVMHSE group.

LCatterton will manage $12 billion of funds, managed by Catterton's management partnership MichaelChu and Scott A.Dahnke.

Due to the establishment of a new fund, the LCapital established in 2001 and the LCapitalAsia in 2009 will also be abolished and merged into LCatterton. LCapital management partner Daniel Piette will have another appointment in the LVMHSE group.

In July 27, 2016, LVMH group released half yearly results, showing fashion and

Sales in the first half of the year fell from 5 billion 933 million euros in the same period last year to 5 billion 885 million euros, operating profit fell from 1 billion 661 million euros to 1 billion 630 million euros, and operating margins also fell 60 basis points to 27.7%.

Fashion leather sector revenue accounted for 35.5% of LVMHSE group, but the sector's operating profit accounted for 55%. Therefore, the decline in profits of leather fashion department is undoubtedly a major blow to the group.

3. LVMH's department store will be opened at the end of 2018.

70000 flat La Samaritaine Sa Mary Dan department store has an area of only 21000 square meters. The project will also include 72 guest rooms in the Cheval Blanc luxury hotel, 96 apartments and 72 seat kindergartens.

4. The involvement of executives and senior officials in the acquisition of Hermes

Herm e s International SCA Hermes International Group initiated a lawsuit against the former Secretary of the French national security agency, Bernard Squarcini, who may monitor the Herm and sSCA Louis family members of LVMHMo, tHennessyLouisVuittonSE (MC.PA) MOET & CHANDON Hennessy Vuitton group, and provide intelligence for the terrorists to help the acquisition of the Hermes Hermes group.

5. The LVMH group refused to cooperate with Amazon due to the flooding of counterfeit goods.

Although Amazon is already selling light luxury brands such as Michael Kors, Calvin Klein and Kate Spade, and is eager to attract more high-end luxury brands, its group owns Louis Vuitton, Givenchy, Celine and Marc Marc, and believes that Amazon is not a suitable luxury sales platform.

6, Guerlain enters Tmall LVMH group to intervene online platform

In September 6th, the French brand Guerlain, the main beauty and perfume company of LVMH group, was stationed in Tmall.

The Guerlain brand will be operated by the well-known online operator, beauty beauty makeup.

In addition, in August, the company managed to enter Tmall, but not on Guerlain's products. We can see that LVMH group has already deployed the differentiated operation of two Tmall stores.

{page_break}

7, LVMH announced 300 million euro stock repurchase program

LVMHMo? THennessy Louis VuittonSE MOET & CHANDON? Hennessy - Louis & Vuitton group announced the 300 million euro stock buyback plan in November 17, 2017, and it was implemented on November 17th, 30, November 17th.

However, LVMHSE said that the price of its daily repurchase stock should not exceed 300 euros, and the LVMHSE stock price opened up more than 1% by the above plan.

8, LVMH group $650 million to sell DKNY two executives leaving

In December 1st, american apparel manufacturer and distributor G-IIIApparelGroupLtd. completed the acquisition of Donna Karan International Inc. of LVMH group's DKNY brand operation company (hereinafter referred to as DKI).

The $650 million acquisition of DKI consists of $400 million in cash, 2 million 600 thousand shares in total value of $75 million and $125 million in lien notes.

Due to the change of DKI sovereignty, Caroline Brown, the chief executive of DKI in January 2015, also announced her resignation, and the young creative director of the company, Dao-YiChow and MaxwellOsborne, could not be spared.

9, Groupe Logo bankruptcy unemployed employees to LVMH group to compensate

In 2015, LVMH group authorized its brand tieguya Tag Heuer and Fred glasses products to Groupe Logo company, which accounted for 97% of Groupe Logo's total business and its turnover was about 40 million euros.

At that time, the authorized contract signed between TagHeuer and the company was valid until December 31, 2017.

In November 2016, tieghouse Tag Heuer announced an early end to cooperation with the spectacle products authorized by the French eyeglass manufacturer Groupe Logo, which meant that the glasses manufacturers lost their most major customers and caused a large number of employees to be unemployed.

Those employees who lost their jobs formally sued TagHeuer and LVMH for financial compensation.

In 2016, the LVMH group grew by 5% in the first three quarters of 1-9 and 26 billion 326 million euros in actual sales, an increase of 4.1% over the same period last year, 25 billion 288 million euros.

More interesting reports, please pay attention to the world clothing shoes and hats net.