Editor’s Note
This analysis examines how major luxury conglomerates are restructuring their brand portfolios to enhance agility and synergy in a rapidly evolving market. The strategic reshuffling reflects broader industry trends as companies adapt to 2025’s competitive landscape.
The resetting of capital portfolios within major conglomerates is becoming a true reflection of the luxury market landscape in 2025. Maintaining agility is one of the essential capabilities for fashion and luxury enterprises to establish themselves in the current market environment. Especially for large conglomerates with vast scale and diverse businesses, how to maximize the complementary and synergistic effects of their brand and business matrices through strategic asset adjustments, and gain a commanding voice in key markets, has become crucial for these giants to consolidate their market position and navigate crises.
Just last month, Saks completed its acquisition of Neiman Marcus Group, creating a luxury retail empire in the United States. This transaction, with a total enterprise value of $2.7 billion, merged the two companies into Saks Global, which owns Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks Off 5th, with a total value of approximately $10 billion.
However, given the current environment of sluggish luxury consumption, whether this deal will create a stronger company remains an open question. Notably, Amazon also participated in this transaction. Beyond helping to advance Saks Global’s digitalization, this investment signifies that the e-commerce giant is gaining increasing influence in the luxury fashion sector.
Consolidation in the retail industry also occurred in the e-commerce space. Mytheresa acquired 100% of Yoox Net-a-Porter Group from Richemont, aiming to build an online luxury giant valued at €4 billion. Following Coupang’s acquisition of Farfetch and the bankruptcy of Matches, the turbulence in luxury e-commerce has temporarily come to a halt.
Looking across the entire luxury industry, the phenomenon of “the strong getting stronger” continues to play out. With its luxury down jackets, Moncler has risen in recent years to become a competitor that cannot be ignored in the luxury industry. Last September, Moncler Chairman and CEO Remo Ruffini partnered with LVMH to reach an acquisition agreement. LVMH acquired a 10% stake in Double R, an investment vehicle controlled by Remo Ruffini, which holds a 15.8% stake in Moncler. Over the next 18 months, Double R will continue to purchase Moncler shares, increasing its stake to a maximum of 18.5%. LVMH will fund these acquisitions and, in the process, increase its investment in Double R to a maximum of approximately 22%.
L Catterton’s acquisition of the Tod’s Group is also viewed by many industry insiders as a precursor to LVMH’s acquisition of this Italian footwear group. In May last year, the voluntary public tender offer for Tod’s shares initiated by L Catterton subsidiary Crown Bidco Srl reached over 90% of the total share capital, leading to Tod’s delisting from the Milan Stock Exchange. The Tod’s Group is expected to retain a 54% stake, L Catterton will indirectly hold 36%, and LVMH’s wholly-owned subsidiary Delphine SAS will hold 10%.
Of course, under existing regulatory environments, mergers and acquisitions between large conglomerates are not always smooth. Last November, Tapestry’s acquisition of Capri was terminated, marking the failure of the merger between the two major accessible luxury giants. This was the first time in decades that the U.S. Federal Trade Commission intervened in a fashion industry transaction, blocking the acquisition on the grounds that it would give Tapestry control over more than 58% of the accessible luxury handbag market.
For luxury giants, to gain a commanding voice in multiple fields, especially emerging sectors, and to seize first-mover advantages and cope with market volatility, external investment and acquisition may be a more efficient strategy than internal incubation. Leveraging their resource advantages, these large conglomerates can lock in the most promising brands to expand their own growth space.
Notably, compared to the scale-oriented investments during the high-growth period, the investment strategies of several major groups also showed significant differentiation in 2024. This means that, facing a rational and cautious market environment, the major conglomerates accelerating their capital strategies are not just making comprehensive bets on lucrative sectors but are moving towards creating unshakable, differentiated group value.
Over the past year, LVMH has been active in acquisitions. The group’s Luxury Ventures acquired a minority stake in the Swedish brand Our Legacy. This low-key brand with a unique aesthetic philosophy has shown high growth rates and strong community loyalty in recent years, with pricing significantly lower than luxury brands. As younger consumers begin to turn away from frequently price-hiked luxury goods, LVMH’s interest in Our Legacy may also signal increased investment in lower price segments.
Furthermore, LVMH strengthened its eyewear and travel goods businesses by acquiring a minority stake in the German brand Mykita through its eyewear manufacturer Thélios, and a minority stake in the Norwegian high-end luggage brand Db through Luxury Ventures, comprehensively entering the path of premiumization in diverse experience economies like outdoor living.
Simultaneously, LVMH significantly increased its investment in lifestyle and experience economies, establishing a “strategic partnership” with French hotel giant Accor, investing in the Orient Express brand to position itself in luxury experiences, and also investing in the French boutique hotel group Les Domaines de Fontenille, targeting the comprehensive high-end experience needs of high-net-worth individuals.
Richemont continued to consolidate its hard luxury brand matrix by acquiring the Italian jewelry brand Vhernier. This “younger” brand with more contemporary and personalized designs will become a fresh force in Richemont’s jewelry business with its differentiated positioning.
Kering went full throttle for its newly established beauty division, investing in the niche perfume brand Matière Première after Creed, doubling down on the high-end niche beauty track.
EssilorLuxottica chose to extend its reach into streetwear, acquiring Supreme for $1.5 billion. However, for this eyewear giant, expanding into the apparel market might not be the ultimate goal; the value of Supreme as a fashion brand is what it values most.
To cope with market headwinds, luxury companies have unanimously begun to strengthen the vertical integration of their supply chains to control quality and costs and mitigate risks. Especially for hard luxury brands, ensuring the inheritance of scarce craftsmanship and artisanal spirit is also a key reason for their investment in supply chain enterprises.
In June last year, LVMH acquired watch manufacturer L’Épée 1839 and its parent company Swiza. This watch manufacturer located in the Swiss Jura region is known for its futuristic, poetic, and sometimes quirky creations, specializing in developing complex functions like perpetual calendars, retrograde hands, and technical expertise in power reserves lasting up to 8760 hours (a full year).
In August, Chanel also announced the acquisition of a 25% stake in independent watchmaker MB&F. Chanel’s President of Watches and Fine Jewelry, Frédéric Grangié, described this move as part of the brand’s “long-term strategy to continue to preserve, develop, and invest in expertise and know-how, reaffirming its position in the field of high-end watchmaking.”
Additionally, Kering’s jewelry brand Pomellato acquired the renowned gem-setting laboratory Valenza Setting Lab in Italy to strengthen Pomellato’s production capabilities in areas like diamond and gem setting.
In the apparel field, Chanel acquired the French high-end tailoring group JY BH, with all four of its ateliers incorporated under Chanel. The OTB Group acquired a majority stake in its long-term footwear supplier Calzaturificio Stephen.