LVMH, the popular conglomerate is allegedly planning to buy over Richemont, which has prominent shares in many luxury brands. Richemont is a Swiss conglomerate similar to LVMH and Kering. They currently have ownerships in Cartier, Chloé, Dunhill, IWC Schaffhausen, Giampiero Bodino, Jaeger-LeCoultre, Montblanc, just to name a few.
According to Seeking Alpha, LVMH CEO Bernard Arnault has expressed interest in acquiring the luxury jewellery and watch brand, Cartier. Sources suggest that the acquisition could be a strategic move to complement the Tiffany brand and bolster the jewellery segment of LVMH.
This move could potentially help the French conglomerate match the same level of success in the jewellery industry that it has achieved in the leather goods market through its renowned Christian Dior and Louis Vuitton brands.
Fashion lovers react to LVMH buying over Richemont
I fear lmvh owning both Tiffanys and Cartier
— char 🦢 (@poshgirl42069) February 21, 2023
The initial reaction from fashion lovers is not a positive one. They have a reputation of prioritising turning over profits, which may hurt the companies under them. Fashion TikTokers have discussed the downfall of Tiffanys as they appear to have a brand identity issue and their quality has declined.
https://twitter.com/kbbyra/status/1628313359643979776?s=20
Some are stating that this move might be illegal. For them to own Tiffanys, Bvlgari, Cartier and Van Cleef would make them dominate the luxury fine jewellery market. Corporate wise, it would be a good decision, and a netizen stated that this move is not illegal.
whyd you think everyone learned how to pronounce Loewe in the last 2 years
— Social Media Account (@twitacc64542591) February 14, 2023
Other Twitter users claim that LVMH is “desperate.” This is probably due to their strong marketing strategy in order to drive more sales.
Furthermore, they have been cracking down on personal shoppers. The conglomerate refuses having their products selling unauthorized in another country as the items are not meant for certain markets.
It is common sense for a large corporation like LVMH to be adamant on profits and fashion lovers are unhappy about it, but they are relatively powerless in this. There are those who are satisfied with how they are running these other brands. For those who are unsatisfied can seek out other luxury brands that are under Kering or those that are independently owned.