Italy Luxury Industry Giant Cooperation Is Difficult

His intention is to push the merger of the two luxury goods giants in Italy to create a strong group that can compete with global leader LVMH, Kering, PPR and Richemont.

But the dealmaker said: "we can't even let them into the same room. The competition between Armani and Prada is so fierce that no one wants to let the other side think that they agree to negotiate."

The French Open Cloud group now owns Italy brand Gucci (Gucci) and Bottega Veneta, and last week acquired Milan jewelry brand Pomellato. That raises the question again: why can't Italy build its own luxury magnate?

Italy entrepreneurs have made unparalleled achievements in the creation of luxury brands that have been extended for generations. From the 20s Salvatore (Salvatore Ferragamo), to Giorgio Armani in 20s, to Prada in 90s, and to the owners of Diego Dellaalle (Diego Della Valle) and Diego Dellaalle (Brunello Cucinelli), the owner of Tod s today, there are many examples of Todd.

But that does not mean that they can get together to create a large conglomerate.

Andrea Morant, chief executive of Andrea, believes that this is a matter of character. (Morante) After being bought by Kai Yun group, Morant will remain in the post of chief executive of Bowman landi.

He pointed out: "the skills required to become an industry integrator are different from those of luxury brand owners."

As a niche brand, Bowman Lando is famous for its Nudo and M 'AMA non M' AMA stacking rings. Foreign brands have acquired a number of Italian company.

On the day before the acquisition of Bowman Lando, Kai Yun group announced the acquisition of Saun Richard Ginori, a 300 year old Tuscany porcelain, (Richard Ginori). Francois-Henri Pinault, chief executive of Kai Yun group, went to central Italy last year to ensure that Francois, a Italy suit manufacturer favored by James Bond, was successfully acquired (Brioni) in Italy.

French Road, Italy, Fendi brand (Fendi) and Pucci, and in 2010, the Rome jewelry manufacturer Bvlgari (Bulgari). Valentino (Valentino), a prestigious fashion brand, is now owned by the royal family of Qatar.

Morant is an experienced manager of luxury goods enterprises. He pointed out that Italy entrepreneurs are too fond of their brands, so it is difficult for them to consider joining other brands.

Italy generally believes that Prada is an ideal candidate to integrate Italy's luxury industry, whether from scale or achievement. The Milan based luxury group was once one of the potential buyers of Portland.

But we can see from Bertelli's attitude that the entrepreneurs in Italy's luxury goods industry are proud of their brand.

Standing behind Miuccia Prada (Miuccia Prada), he is very business savvy. Designer It was interviewed in the financial times shortly before the launch of Prada in Hongkong in 2010. In that interview, Bertelli said that an unrestraining desire to beat his competitors (to him is the Ferragamo family, who later was also on the market in Milan), was one of the factors that stimulated his creative impulse.

Italy entrepreneurs have made unparalleled achievements in the creation of luxury brands that have been extended for generations. But that does not mean that they can get together to create a large conglomerate.

Analysis: Italy luxury brand cooperation is difficult

Andrea Illy, head of Italy coffee family business, admits that Italy's prestigious luxury industry entrepreneurs have difficulties in cooperation. IRI will soon become the Altagamma chairman of the Italy luxury goods industry association.

However, as the spending of European consumers on luxury traditional buyers has slowed sharply, the scale of business has become the most important factor supporting the high cost of distribution and marketing in remote markets such as Asia, the United States and Latin America.

Industry executives generally believe that single brands like Prada and Armani need to earn at least 1 billion to 2 billion euros to compete in international competition.

But few brands in Italy have such a scale. In 2012, bowandando earned only 146 million euros. Altagamma said that it is trying to improve cooperation among small and medium luxury companies to work together to deal with shopping centres and shopping malls in Chinese shopping centers and department stores. In these respects, the single brand is totally at the disadvantage of Lu Wei Ming Xuan or Kai Yun group's strong purchasing power.

However, Morant remains optimistic about the prospects for the development of luxury brands in Italy. Morant took over the leadership of the company in the hands of Pino Rabolini, the low-key founder of Pino Rabolini.

Rabolini founded Bao Man landi in 1967, which happened to be the rising stage of Milan's senior garment industry. Bowman landi is mainly for Milan women who want to have trendy, day and night trinkets.

Morant believes that Italy will continue to burst out design sparks and spawn new brands that consumers all over the world love.