Rihanna & LVMH: it’s official, and it’s coming soon
Earlier reports have been confirmed and it’s now official: the world’s largest luxury conglomerate, LVMH, and Barbadian pop-fashion sensation Rihanna, are joining forces to create a new fashion house. The joint venture will be launched under Rihanna’s Fenty brand (Fenty, incidentally, being the singer’s surname) to sell ready-to-wear clothing, shoes, and accessories. And it’s coming sooner than you might think, with products going on sale in spring. This isn’t the first time LVMH and Rihanna have collaborated, launching a successful makeup line in 2017.
LVMH’s share price has appreciated by 32%, year to date
Source: Yahoo Finance
It’s unusual for LVMH to dip its toe into the brand-building pool nowadays. Partly, that’s a reflection of its dominance (and the dominance of its peers, like Kering and Richemont). There just aren’t that many viable acquisition targets left on the market… and the most prestigious names that might come up (Chanel, Hermes) have been resolute in avoiding acquisition talk. That doesn’t leave big players like LVMH all that much choice but to strike out and create something new.
LVMH is also not alone in working with a musical star. In the Instagram age, the boundaries between music and fashion are thinner than they have ever been – Rihanna is as famous for her signature style as she is for her music (maybe more so). A wide range of companies, from high-end competitors like Kering to athleisure giants like Nike and Adidas have adopted similar strategies, working with musicians like Kanye West and Beyonce. It’s a winning formula.
With Rihanna, LVMH could well have a breakout sensation on its hands. Unlike a lot of people in the pop music world, Rihanna doesn’t just wear nice things – she is a legitimate fashionista, regular attendee at fashion weeks around the globe, and an experienced designer and businesswoman. Recently, she told reporters that LVMH CEO Bernard Arnault had “given me a unique opportunity to develop a fashion house in the luxury sector, with no artistic limits.” For his part, Arnault is equally enthusiastic, praising Rihanna as “a true entrepreneur, a real CEO and a terrific leader.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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