Also wanting to control the eyewear business, LVMH invested in an Italian eyewear manufacturer
Also wanting to control the eyewear business, LVMH invested in an Italian eyewear manufacturer
Luxury conglomerates are gradually recovering their lucrative eyewear business.
This week, LVMH announced the formation of a joint venture with Italian eyewear manufacturer Marcolin.
LVMH holds 51% of the shares, while Marcolin holds 49% of the shares.
LVMH also bought a 10% stake in Marcolin.
From 2018, the joint venture will be responsible for the production and sale of eyewear under the Céline and Louis Vuitton brands of the LVMH Group.
Marcolin was founded in 1961 by Giovanni Marcolin Coffen.
In 2015, Marcolin sold approximately 15 million pairs of optical glasses and sunglasses worldwide.
Sales exceed 434 million euros.
Similar to Luxottica, the world's largest eyewear manufacturer,
Marcolin is responsible for the production and sale of eyewear for brands such as Swarovski, Balenciaga, Diesel, Dsquared2, Emilio Pucci, Moncler, Tod's, Tom Ford, Robert Cavalli and Ermenegildo Zegna
It also operates its own brand, Marcolin.
Marcolin said in a statement that this time LVMH will take a stake in the group and establish a joint venture.
In order to become a preferred partner of the LVMH Group.
Recently, there have been frequent mergers and acquisitions in the global eyewear market.
Just on January 16, Essilor, the world's largest optical lens company, announced the acquisition of Luxottica, the world's largest eyewear manufacturer, for about 22.8 billion euros (about 24 billion US dollars).
and the establishment of a new company, Essilor Luxottica.
The combined giant will be a leader in the global eyewear industry,
Master all aspects of the eyewear industry chain, including lens technology, lens supply, glasses design, glasses production and sales channels.
Since 2014, Kering, which owns 11 brands including Gucci, Bottega Veneta and Balenciaga, has planned to take over its eyewear production lines.
Last year, Kering spent 90 million euros to terminate the contract with Safilo early,
Gucci's eyewear production was completed by his own eyewear company, Kering Eyewear.
Next, eyewear from Yves Saint Laurent, Alexander McQueen and Stella McCartney will be produced by Kering Eyewear.
Kering does this for a similar purpose to Essilor Luxottica.
All in order to fully control the eyewear production line from design, production, supply chain, branding, marketing to sales.
This time, LVMH invests in Marcolin and establishes a joint venture.
It is also to enhance the control of its brands and increase profits.
It seems that one of the most hurtful of these changes is Safilo, Italy's second-largest manufacturer and marketer of eyewear.
Previously, Kering had lost a fortune in order to recoup Gucci's eyewear business.
Céline, which LVMH is going to put into the joint venture this time, is also the brand that it has previously "outsourced" to produce and sell.
At the end of 2017, Céline will finally terminate her contract with Safilo.
However, LVMH still puts Safilo in charge of the production and sales of Dior eyewear.
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