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Louis Vuitton Moët Hennessy is rumored to take over Amanresorts
While there are reports that Amanresorts is said to be sold for a whopping $400 million, there is a very good chance that it will soon belong to LVMH (Louis Vuitton Mo«t Hennessy). Up for sale for most part of last year, the Vogue photos shoot depicting LV products may have sparked off the rumors. With brands like Fendi, Marc Jacobs, Guerlain and Bulgarion their side, another 20, including the Turkey one to open in December, LVMH seems to be on a roll.
Louis Vuitton Moet Hennessy to take up Amanresorts
According to reports Amanresorts is said to fetch a lavishing amount of $400 million, there is a very good chance that it will be acquired by LVMH. Though the resort was up for sale for more than an year from now, but the Vogue photoshoot depicting LVMH products have added sparks to the fire. With names like Fendi, Marc Jacobs, Guerlain and Bulgarion their side, another 20, including the Turkey one to open in December.
Prada IPO Hits Bargain
Prada SpA raised US$2.14 billion in its initial public offering in Hong Kong, by pricing its shares at the bottom of its guidance, two people familiar with the situation said Friday, in a reflection of deteriorating stock market conditions and concerns about the Italian luxury retailer’s valuation and a potential tax charge.
The Prada deal, which was initially targeted to raise as much as $3 billion, found few fans among retail investors”"the 10% retail tranche was just half covered, prompting only 5% of the IPO to be set aside for Hong Kong public investors, a person familiar with the deal said Friday. The institutional tranche, initially accounting for 90% of the 423.3 million shares sold, was two times oversubscribed and will account for 95% of the offer.
The IPO price was set at 39.50 Hong Kong dollars US$5.06 each, at the bottom of the guidance of HK39.50-HK42.25 a share bankers gave investors Thursday. Prada’s IPO is the largest IPO in Hong Kong far this year, if excluding Glencore International PLC’s US$10 billion Hong Kong-London listing in May, according to data provider Dealogic.
Hong Kong’s benchmark Hang Seng Index, which fell for a fourth consecutive session Friday, is down 4.5% over the past month, while the Dow Jones Industrial Average is down more than 4% during the same period.
Prada’s IPO is a test of how much investors are willing to pay to tap into the booming demand for consumer goods in Asia. Like many luxury-goods companies, Prada’s strongest growth comes from countries such as China, where millions of newly-rich purchase branded bags, clothes and jewelry
Prada’s PE is on par with Hong Kong-listed French cosmetics group L’Occitane International SA, which trades at 22 times forecast earnings, but at a significant premium to European-listed luxury goods groups, which trade on an average 20 times forecast earnings. The world’s largest luxury-goods group, LVMH Moet Hennessy Louis Vuitton trades at 19 times.
Margareth Henriquez, CEO, Krug
Margareth Henriquez, CEO of Krug, discusses how the house will move forward in the modern market by leveraging its historical points of difference
In a luxury world full of discussions about market share, brand expansion, and even matters of the stock market, it is refreshing to rediscover a luxury brand driven by the principle of rarity. Leading Krug into a new phase of growth is Margareth Henriquez, a woman passionate about sharing the heritage of the house and educating discerning drinkers as to Krug Champagne’s uniqueness.
To begin with, the brand has only five product lines without any form of hierarchy – pricing is dictated by quality and rarity on an individual basis. Their products are re-imagined each year, depending on the quality of the vintages, to ensure the most premium product for the time. And despite the obvious opportunities for capitalisation, Krug only produces approximately 600,000 of the 300 million bottles of Champagne made in the region per year, just 0.2% of total production in the region.
LVMH plans behind-the-scenes
Louis Vuitton Mo«t Hennessy has announced open days at their European artisan workshops, ateliers, and vineyards for two days in October.
Bernard Arnault told the paper: “Products are one thing, but how they’re made, who makes them, and where is also of interest to the public.”
LVMH is not the first luxury house to come up with this strategy to attract publicity and justify its sky-high prices to its customers: just last year, for instance, Gucci toured the world with its Artisan project, showcasing its production methods.
Most of the events will naturally take place in France, but some workshops are planned for locations in Italy, Spain, Scotland, and Poland. More information will be released later this month when bookings will go live online.
Louis Vuitton, world’s most valuable luxury brand
Herm¨s, Brioni and Versace take the top positions in reputation and prestige, a new study by brand analysts Millward Brown Optimor has named Louis Vuitton the world’s most valuable luxury brand for the sixth consecutive year. Millward Brown Optimor’s 2011 BrandZ study revealed that the famous French brand, owned by Paris-based LVMH Moet Hennessy Louis Vuitton, has a value of US $24.3 billion, marking an increase of 23 percent from 2010.
This is almost as much as the combined values of Hermes, Gucci and Chanel, which grabbed the second, third and fourth position in this year’s top luxury brands list.
De Beers Unveils Arpeggia Collection
A joint venture between De Beers and Moet Hennessy Louis Vuitton (LVMH) in 2001, De Beers Diamond Jewellers is reputed for its selective sourcing and artisanal craftsmanship. Their latest Arpeggia collection pays tribute to the broken musical chords of the same name. 
Fastidiously selected by a team of experts, each diamond is carefully placed into a micropave setting where the distance between the jewels are carefully curated. Decked out in white gold, pink gold and yellow gold, the exquisite line features a range of bracelets, necklaces and earrings.
Exclusive Hennessy X.O
Cognac brand Hennessy has now unveiled the XO Exclusive Edition cognac festooned with 422 Swarovski crystals. The rich character of the Hennessy XO is enhanced by a unique decanter designed back in 1947, which is adorned for evening festivities. Hennessy X.O blends the spicy aromas of oak and leather with the essences of flowers and ripe fruit. The new Hennessy XO exclusive edition preserves the Eaux-de-Vie with their elegant aromas. The cognac is delivered in a glittering metallic box that is decorated with diamonds in trompe-loeil. Add some ice cubes to the masculine Hennessy XO Exclusive Edition cognac and you will get to know what subtle flavors and aromas mean.
Bulgari Joins LVMH, Is Hermes next?
Sometimes it seems like LVMH owns everything. Everything important, that is. I mean, the full name of the company, Louis Vuitton Moet Hennessy, says it all, doesn’t it. Well, now they’ve gone out and added Bulgari to their list of holdings. Yes, that’s right, luxury jeweler Bulgari is now an LMVH operation.
Analysts aren’t really sure what the acquisition means for either company. LVMH has come to be called, in recent years, the “Wal-Mart of luxury goods”. But, unlike Wal-mart, LVMH seems to be doing a great job of managing its many companies and keeping their quality up to par. Purportedly next on LVMH’s wish list is Hermes, the French luxury leather goods retailer. Hermes has, apparently, been quite stalwart in their resistance to LVMH. The CEO of Hermes recently said:
Hermes is not managed on financial principles .. it is managed on the principle of the artifact in the best possible finish with the finest raw materials, with creativity as strong as possible that make people come into our stores … If you give economic control to financiers, they will kill the economy because they want short-term results.
LVMH To Buy Up Bulgari
The luxury mega-conglomerate LVMH Mo«t Hennessy Louis Vuitton has recently been making news on its moving on French luxury brand Hermes that we didn’t even see them sneaking up on Bulgari. The NY Times reports that LVMH is set to announce on Monday that it is taking control of the luxurious Italian jeweler. According to the NY Times DealBook, Bulgari’s founding family is exchange its 51 percent stake in the jeweler to LVMH for stock in LVMH and it will also have seats on LVMH’s board. With those shares in place, it’s said that LVMH is planning to make offers to acquire the rest of the shares.
LVMH is proving to be an unstoppable luxury juggernaut with over 60 of the world’s most prestigious brands in tow including the ones in its name as well as Christian Dior, Fendi and Cline. Other luxury mega-groups include PPR and Richemont. The 127-year-old Bulgari brand is one of the most prestigious names in the jewelry and watches arena and is particularly popular in European and Asian markets.
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