LVMH could be about to add some “high street buzz” with a new acquisition
According to reports from Women’s Wear Daily (WWD), the world’s largest luxury company, LVMH, is looking to add a new name to its roster of brands: New Guards Group (NGG). NGG is the brain child of DJ-slash-designer Marcelo Burlon, multi-brand boutique antonioli.eu head honcho Claudio Antonioli, and fashion production and distribution expert David de Giglio. The company is known as a “niche” name, and (according to The Fashion Law) has a stake in many of the high street’s “buzziest” brands.
LVMH’s share price has appreciated by 4% over the last five days
Source: Yahoo Finance
NGG could be a part of LVMH’s strategy to tap into millennial-centric touch points, as the group part-owns a number of edgy brands like Off-White, County of Milan, Palm Angels, White Heron, and more. Indeed, NGG refers to itself (from LinkedIn) as “an accelerator of innovative fashion brands” and adds that “while each brand’s creative process and identity is fiercely preserved, the group leverages synergies and productivities of its shared services.”
The “shared services” mean all these brands work under one massive roof. And the synergies, according to Marcelo Burlon (in an interview with Business of Fashion) goes beyond the obvious: “it’s not just clothes. We all know each other and there’s support for each other. It’s like a new movement” that has “music behind it… a party scene. And we all kind of related one to each other. We kind of talk the same language. We’re not part of the system.”
Of course, from a fashion perspective, LVMH is “the system” – but the luxury giant wouldn’t choose to buy a group like NGG unless it planned to let it keep its autonomy intact. Could this be LVMH’s next big move towards millennial consumers? We’ll keep you updated as more news appears.
Dominion holds LVMH in its Global Trends Luxury Fund.
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