LVMH takes control of Rimowa
#1
Original Poster
Join Date: Sep 2016
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Posts: 18
LVMH takes control of Rimowa
BBC News : http://www.bbc.com/news/business-37549157
"LVMH bags German luggage firm Rimowa"
I wonder what the future holds now? Price increases? Style at the expense of design and reliability?
"LVMH bags German luggage firm Rimowa"
I wonder what the future holds now? Price increases? Style at the expense of design and reliability?
#2
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Join Date: Jul 2001
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Posts: 102,095
BBC News : http://www.bbc.com/news/business-37549157
"LVMH bags German luggage firm Rimowa"
I wonder what the future holds now? Price increases? Style at the expense of design and reliability?
"LVMH bags German luggage firm Rimowa"
I wonder what the future holds now? Price increases? Style at the expense of design and reliability?
#4
Join Date: Oct 2016
Posts: 6
I'm a fan of this deal.
There may be some price increases but LVMH's approach is generally not to interfere too much with the brands they buy. They also do not like to dilute quality, preferring instead to raise prices if they really need to push margins.
I think their likely approach will be to:
It's unlikely that they will dilute Rimowa's brand identity by compromising on German quality or getting rid of the signature groove design, etc. LVMH are very sensitive to managing brand integrity and preserving the cult community around their brands...they are looking to build generational businesses so they don't like thinking short-term just to make a quick buck.
There may be some price increases but LVMH's approach is generally not to interfere too much with the brands they buy. They also do not like to dilute quality, preferring instead to raise prices if they really need to push margins.
I think their likely approach will be to:
- Increase the breadth of the product line. Rimowa are slow to come out with models historically, but the company has reached the scale today where it can accelerate releases. This helps broaden the appeal of the brand, and also helps re-engage existing owners around repurchases.
- Increase distribution through investments in marketing and channels.
- Push the top-end of the line. Look for designer/artist collaborations (like the existing Rimowa-Moncler) and more stylized options (like the Bossa Nova).
It's unlikely that they will dilute Rimowa's brand identity by compromising on German quality or getting rid of the signature groove design, etc. LVMH are very sensitive to managing brand integrity and preserving the cult community around their brands...they are looking to build generational businesses so they don't like thinking short-term just to make a quick buck.
#5
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I'm not a fan of this type of consolidation, but I'm not too worried that LVMH is going to interfere with the core of the Rimowa brand. I just hope they keep the service levels the same.