There are two families and companies that own almost every major fashion brand. The Arnaults and LVMH Moët Hennessy Louis Vuitton and the Pinaults and Kering own just about all of them. LVMH, however, wants to own all of them.
The Arnaults are the family who owns LVMH which owns Louis Vuitton, Céline, Loewe, Fendi, Sephora, Dior, and more. The company also owns quite a few wines and spirits companies as well as fragrance, cosmetics, watch, jewelry, and retail companies.
The Pinaults are the family who owns Kering which owns Gucci, Saint Laurent, Bottega Vaneta, and more.
Louis Vuitton is the only brand of the major three brands, Hermès, Chanel, and Louis Vuitton, that is owned by one of these companies. Hermès is family owned and Chanel is owned by Alain Wertheimer and Gérard Wertheimer, grandsons of Pierre Wertheimer who was a business partner of Gabrielle Chanel.
LVMH does own about 10% of Hermès shares, however, it seems the company wants to own the brand as well as Gucci, who recently became one of the biggest, most popular, and sought after brand. The company is going after fashions best selling, and most established brand and who wouldn’t?
Hermès is the top brand of the major three brands in quality and is the most expensive as well. The Birkin, the brand’s best handbag, is the most expensive and sought after handbag line in the world. It starts at around $10,000 and can cost up to over $100,000 depending of the leather, size, demand, and more. It’s also the best quality handbag you can get.
Hermès only uses about 10% of the leather it sees. It is said it takes about two weeks to make one bag. The leather is cut by hand, it’s thinned by hand, smoothed by hand, and sewn by hand. Seamstresses have their own tools that they have been using for years. Seamstresses are also trained for years before they can even touch the leather and when they do make bags, they can tell which bag they made just by looking at it.
Gucci has become one of the most popular, trendy brands lately. Last year, sales increased by 48.3% to £1.35 billion, or $1.44 billion, for the first fiscal quarter 2017. Revenue increased by 31.2% at Kering because of the brand. The brand is also selling more products online than Louis Vuitton, one of the major three fashion brands.
LVMH already owns Dior, which it acquired for $13 billion last year and is the most popular and sought after brand in haute couture.
The company has tried for a while to own Hermès. The Fashion Law has even outlined the company’s attempts to acquire the brand, or at least a majority stake in the brand, since it purchased shares about 18 years ago. The brand first purchased 4.9% shares and owned almost 24% of shares. The company, however, distributed those shares to its shareholders and now owns less than 10%.
The company has also tried to acquire Gucci. The company owned 34.4% Gucci shares and even bid $5 billion to acquire the brand.
LVMH CEO Bernard Arnault says LVMH is not trying to acquire these brands but it’s obvious that it is. Companies don’t buy shares or make bids for companies they don’t want to own.
So, what do you think? Does LVMH want to own every major fashion brand? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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