Luxury Magnates Join Forces Or Fire?

Johann Rupert, chairman of the world's second largest luxury group, said publicly at the industry forum last week that it has invited LVMH and Kai Yun's two luxury goods groups to invest in Yoox/Net-a-Porter, a luxury electronics company. The electricity supplier company will be completed in September of this year by the merger of Net-a-Porter, the electricity supplier of the group of Italy, and the Yoox of the luxury Electronics Group.

On the surface, Yoox/Net-a-Porter plans to increase its capital by 200 million euros, which has become the reason why Johann Rupert invites competitors to inject capital.

But in fact, the Yoox/Net-a-Porter electricity supplier backed by luxury group giant is not really short of money, and the support of product resources is the important goal of the company. LVMH has many luxury brands, including its brand name LV and Dior, Givenchy, Celine, Fendi, Bvlgari and so on. Kai Yun group owns Gucci (Gucci), Saint Laurent (YSL), Balenciaga, Bottega Veneta, Alexander McCune and other brands. If these brands can enter the Yoox/Net-a-Porter of the company through strategic cooperation between the group, the company will become a giant in the global luxury electric business.

Because Yoox Cooperation with Kai Yun group was established. Joint venture company , Kai Yun group Its brands such as BottegaVeneta and Paris are already on sale at Yoox website, but the core brand Gucci is not included. It is reported that Italy luxury brand Armani has sold products on the Yoox platform, and will also fund the merged new e-commerce platform Yoox/Net-a-Porter in the future.

The analysis of wealth and quality research institute indicates that once the three luxury conglomerates form a conspiracy platform, they will be able to compete against any electronic business platform, and quickly accumulate customers through their brand influence, especially high-end customers. Until the end of this luxury business platform, other e-commerce platforms will become the mainstream and main body of the future e-commerce. This is also the largest product and service customization platform.

In the past two years, with the rapid maturity and development of consumers, luxury consumption has changed rapidly from brand personality to consumer personality. The speed of luxury consumer "de LOGO" process is accelerating, and the trend of "de brand" will appear in the future, that is, the influence of brand in consumer purchasing behavior will become smaller and disappear.

The unfavorable market environment has become one of the important reasons for the luxury package. The Institute of wealth and quality believes that the new platform based social business model based on big data and Internet and Internet of things will replace all old models. The two luxury groups will never refuse to invite luxury brands to face the biggest crisis and final trial. Luxury brands do not want to face the fact that the industry is declining. They will definitely try to delay their life cycle. One of the most effective strategies is integration and cooperation, which uses the overall strength of the camp to control information flow and logistics, and find a new way out of controllable rhythm.