Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Gucci

Gucci

Ratings: (0)|Views: 20|Likes:
Published by Shruti Ladia
gucci details
gucci details

More info:

Published by: Shruti Ladia on Jan 21, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPTX, PDF, TXT or read online from Scribd
See more
See less

07/08/2013

pdf

text

original

 
LVMH vs. GUCCI
Louis Vuitton is the biggest player in the market of luxury goods and also Gucci’s
major competitor.
The rivalry stems from a failed takeover attempt of Gucci by LVMH. When Gucciwas down on its luck Arnault, then on the board of LVMH, turned the prospectivedown as he did not consider it profitable enough. Then Gucci made a historicalcomeback from a $400 million reject to a highly viable $8 billion business inaround 2000, making Arnault regret the decision. By 2001, LVMH, under Arnault,
had spent $1,4 billion in trying to get 34% share in Gucci.
The rivalry between the two biggies is fierce, where competition ranges fromacquiring of stores to talent, brands and publicity.
The two firms sit astride the luxury goods industry like Montagues and Capulets,
proud and powerful houses forever trying to one-up each other, constantly vying
for the talents of some comely new prince or princess.
 
LVMH vs. GUCCI
919,800
SHARES
 
IN
NYSE47,000
IN
ASE3.55
MIL
 
SHARES
 
FROM
U.S.I
NVESTMENT
F
UND
 C
APITAL
R
ESEARCH
 
AND
 M
ANAGEMENT
 C
O
.A
MASSED
34.4%
OF
 
STAKE
 
IN
 G
UCCI
 
 
LVMH vs. GUCCI
Also the acquisition of Yves Saint Laurent by Gucci, back in 2000, was acase where LVMH protested saying it was an unfair deal for the minorityshareholders in Gucci, which was LVMH at that time. This acquisition hadmade Gucci a multi million brand and was responsible for its comeback.
Also Gucci announced publicly that if LVMH tries to buy a larger stake inthe company then they will issue more shares, forcing LVMH to stop tryingto weasel its way into owning Gucci.
Another example of the competition’s ferocity is that of Christopher Kane
famous Scottish designer, shifting to LVMH from Gucci on 16
th
Novemberlast month. LVMH promised him his own label which convinced him toleave Gucci.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->