LVMH could be about to add some “high street buzz” with a new acquisition
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

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 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

graph 23 lvmh

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.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.