Louis Vuitton, Volvo tapping Thai social commerce via Line chat app

BANGKOK - Luxury fashion and auto brands in Thailand have turned to selling their products on Japanese chat app Line during the coronavirus pandemic, tapping the country's growing appetite for social commerce, a top executive said on Thursday.

Brands like Louis Vuitton, Chanel and Volvo were among those that opened official accounts on the messaging app, which outranks Facebook's WhatsApp and Rakuten's Viber in Thailand, aiming to connect with users during a coronavirus lockdown.

"The luxury category was forced to adapt because their stores were closed," Line Thailand chief commercial officer, Norasit Sitivechvichit, told Reuters.

Thailand earlier this year imposed a nationwide curfew and closed malls for nearly two months to contain infections.

"During the pandemic, sellers became very active," Norasit said, adding that others sold cosmetics and fast-moving consumer goods.

Line, which charges sellers for sending messages and live streaming, said its monthly active users in Thailand grew from 44 million to 47 million this year, its second largest market after Japan.

Volvo successfully sold cars on the platform after launching in May and studying customer data, its Thailand head of marketing and digitalization, Jean-David Harel, said.

"We have an understanding of which models they own today, which interest they have and when they plan to change their existing car," he said.

Social commerce is widely popular in Thailand, where merchants sell directly to customers through social media like Line and Facebook's Instagram.

Line last year introduced a feature for merchants to organize inventory and online store fronts, which now has over 50,000 users.

Another tool to support sellers with customer relationship and data management is slated to launch next year.

E-commerce platform, JD Central would also launch services for sellers.

Line will soon introduce "MyRestaurant" with its food delivery app, Line Man Wongai, to support restaurants, Norasit said. The company also has video-on-demand products.

-reuters-

Louis Vuitton's clash of styles wraps up Paris Fashion Week

Louis Vuitton wrapped up Paris Fashion week on Tuesday with a mix-up of retro-chic, sporty and futuristic looks set to a baroque soundtrack sung by a choir in costume.

Plunged into darkness, the audience inside the Louvre's Court Carree gasped as the curtain rose to reveal a terraced backdrop with hundreds of singers dressed in period costumes from the 15th century to the 1950s.

The first models strutted down the catwalk in buffed-up petticoats and voluminous, multicolored jackets, in a collection designer Nicolas Ghesquiere called "Collisions of Time."

In front of an audience that included the A-list actresses Léa Seydoux, Alicia Vikander and Florence Pugh, models also wore sport-inspired outfits styled on bomber jackets, mechanic overalls and embroidered bullfighter's boleros.

"This collection is the anti-total-look," Gesquiere said in the show notes. "Functional clothing can be ceremonial dress and vice versa. I want it to be open, energetic and spontaneous."

Louis Vuitton, the flagship brand of the world's biggest luxury group LVMH, closed the Paris Fashion Week. This catwalk season has been disrupted by the fast-spreading coronavirus outbreak which kept Chinese buyers, journalists and socialites from European fashion events.

French labels Agnes b. and A.P.C had to cancel their presentation in Paris while in Milan, Giorgio Armani held its show behind closed doors.

Prada and Gucci have already postponed their upcoming cruise 2021 show, initially planned in May, due to the coronavirus outbreak. 

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Taiwanese-Canadian model Godfrey Gao dies while filming in China

BEIJING, China - Taiwanese-Canadian actor and supermodel Godfrey Gao, the first Asian to be the face of Louis Vuitton, died while filming a TV show in China on Wednesday.

The 35-year-old Gao collapsed in the eastern city of Ningbo while on the set of "Chase Me", a competitive sports reality show in China's Zhejiang Television.

A statement from the network said Gao had slowed and fallen to the ground while running during filming, and that the hospital had confirmed it was a sudden cardiac death.

His management company Jetstar Entertainment said in a statement posted on the Twitter-like Weibo platform that Gao had fainted and was declared dead after nearly three hours of medical care.

The statement thanked "every fan who loves Godfrey" and said his death was "extremely painful."

In 2011, Gao became the first Asian model to be signed by Louis Vuitton, and he played the role of Magnus Bane in 2013 Hollywood action film "The Mortal Instruments: City of Bones."

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Louis Vuitton group buys Tiffany in $16.2-billion deal

PARIS - LVMH and US jewelers Tiffany announced Monday a $16.2 billion tie-up that is the French luxury group's biggest-ever acquisition and will bolster its presence in the United States.

The companies said in a statement they "have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately 14.7 billion euros or $16.2 billion."

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French luxury giant LVMH nears deal to buy Tiffany

LVMH Moët Hennessy Louis Vuitton will be having a lot of breakfasts at Tiffany’s — as well as lunches, dinners and board meetings.

The world’s largest luxury goods company is close to completing a deal to buy Tiffany & Co., according to people briefed on the acquisition. The combination, worth $16.7 billion, would be the largest ever in the luxury sector.

The companies were putting the finishing touches on the transaction Sunday afternoon, with the boards of both companies meeting to approve the deal, these people said. They hope to announce it Monday morning.

LVMH is dominant in the fashion, leather goods and wines and spirits sectors with brands like Dior, Givenchy, Fendi, Château d’Yquem and Dom Pérignon. The acquisition of Tiffany would make it a major player in the so-called hard luxury sector (things like watches and jewelry), adding to its purchase of Bulgari in 2011. It also gives the French group its most significant beachhead in the American market. The Tiffany brand is recognizable around the world thanks to its signature blue boxes, but it also occupies a singular, romantic place in the American landscape: Its Fifth Avenue flagship is as much a landmark in the myth of aspiration and the gleaming promise of sparkling baubles as Rockefeller Center or the Plaza hotel.

At the same time, the deal would end Tiffany’s 182-year history as a stand-alone brand, and it reflects the difficulty of remaining independent in an age of increasing consolidation.

LVMH, controlled by Europe’s richest man, Bernard Arnault, will pay $135 per share in cash for the jeweler, these people said. The terms of the final bid, which were first reported by the Financial Times on Sunday, value Tiffany shares at $16.3 billion. The company has about $350 million in debt.

The agreement comes after weeks of tense discussions between the two companies. Last month, the Tiffany board rejected an all-cash offer of $120 a share. LVMH then increased its offer to $130 last week and was granted access to Tiffany’s books to conduct due diligence, prompting a jump in the jeweler’s share price amid increased speculation that a deal was forthcoming.

LVMH’s takeover of Tiffany signifies the company’s increasing interest in areas beyond traditional soft luxury goods like clothing and leather goods. It follows its acquisition of Belmond hospitality group last December for $2.6 billion and a majority stake in German luggage brand Rimowa in 2016 for $719 million. It also marks LVMH’s second major investment in an American brand this year, following its creation of a new luxury house, Fenty, with Rihanna. (The group also inaugurated a factory for Louis Vuitton in Texas last month with great fanfare, specifically to make handbags for the American market. President Donald Trump cut the symbolic ribbon during the official ceremony.)

The deal potentially doubles the size and profitability of its hard luxury portfolio, which beyond Bulgari also includes Chaumet, Fred, Hublot and Tag Heuer and accounts for 9 percent of total LVMH sales. A Tiffany takeover would probably make LVMH more competitive with Richemont, the Swiss luxury group that owns Cartier. Jewelry was among the top growth luxury categories last year, up 7 percent, according to a report by global consulting company Bain & Co.

And it solidifies the reputation of Arnault, 70, as the most aggressive, and acquisitive deal-maker in luxury.

Tiffany, after a rocky period in which it appeared to lose sight of its core consumers, prompting stagnant sales and the departure of its chief executive, has staged a comeback in recent years under a new chief executive, Alessandro Bogliolo. He cut back on lower-priced gifting options, revamped marketing to target younger shoppers and pursued greater expansion in China.

Reed Krakoff, the designer who transformed Coach from a dusty handbag brand into a driver of the contemporary market, joined as artistic director in 2017, and has also been instrumental in recasting the brand’s offerings to appeal to the social media set, with such collections as “everyday objects” like tin cans, balls of yarn, and protractors in sterling silver, a new “paper flowers”collection in rare gems and an ad campaign with Lady Gaga (who wore the 128.54-carat Tiffany Diamond on the Oscars red carpet in February).

Bogliolo also happened to be the chief executive of Bulgari during the LVMH takeover of that brand, so he has some expertise in managing the transition into the group. Though LVMH has struggled with its American brands in the past, buying Donna Karan in 2001 only to ultimately close the designer’s main line and sell the brand name to G-III Apparel in 2016, and never going through with a planned public offering for Marc Jacobs, Tiffany may prove a more comfortable fit.

For both companies, the tie-up also represents an important opportunity to grow in China, the world’s second-largest economy and an engine of global spending on high-end shoes, bags, fashion, jewelry and watches despite recent concerns over a trade war and the standoff in Hong Kong.

Tiffany began targeting the emerging Chinese bridal and engagement ring market more than a decade ago, and today has a strong following and brand awareness among the country’s upper and middle class consumers. It operates around 35 stores in mainland China and a further 10 in Hong Kong. The yuan depreciation, the U.S.-China trade war and the Hong Kong protests have hit Chinese tourist spending hard, however, prompting Tiffany to increase its mainland investments and bring high-value items to Chinese shoppers closer to home, a strategy that will probably be fueled further by LVMH after the deal is completed.

“Tiffany finds a very comfortable new home and LVMH finds one of the most promising brands available,” said Luca Solca, luxury analyst at Bernstein.

Not to mention an early end to their holiday shopping.


2019 The New York Times Company

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Louis Vuitton group raises Tiffany bid to $16 billion: sources

NEW YORK -- French luxury group LVMH has raised its bid to acquire US jewelers Tiffany by over $1 billion, two sources close to the matter told AFP Wednesday.

LVMH, the owner of Louis Vuitton, Dior and Moet & Chandon increased its bid for the storied New York-based company to around $130 per share from $120 per share, the sources said.

The move lifts the overall value for Tiffany to around $16 billion from $14.5 billion.

Neither LVMH nor Tiffany immediately responded to a request for comment.

LVMH, which is led by billionaire Bernard Arnault, has sought to acquire Tiffany as a means to boost its presence in the US market.

The transaction has also been seen as way forward for Tiffany, which has not matched some rivals in terms of sales growth in recent years.

Some analysts have predicted a price hike would seal the transaction.

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French luxury group LVMH offers to buy US jeweler Tiffany: sources

NEW YORK/PARIS - Louis Vuitton owner LVMH has approached Tiffany & Co with a $14.5 billion acquisition offer, people familiar with the matter said, at a time when the US luxury jeweler grapples with the impact of tariffs on its exports to China.

LVMH, which has for years been looking for ways to expand in the US market, submitted a preliminary, non-binding offer to Tiffany earlier this month, one of the sources said.

LVMH's offer valued Tiffany at about $120 per share, another of the sources added. Tiffany shares ended trading on Friday at $98.55.

Tiffany has hired advisers to review LVMH's offer but has not yet responded to it, and there is no certainty that it will negotiate a deal, according to the sources.

The sources asked not to be identified because the matter is confidential. LVMH and Tiffany declined to comment. Bloomberg News reported earlier on Saturday that LVMH was holding talks with Tiffany.

LVMH, which is behind brands such as Fendi, Christian Dior and Givenchy, as well as Veuve Cliquot champagne, has stood out for several years as one of the top performers in the upscale retail sector, where not all labels are benefiting to the same degree from booming Chinese appetite for branded goods.

Tiffany, on the other hand, has not been as resilient. Beyond the tariffs that have been triggered by the trade war between the United States and China, a lower Chinese domestic sales tax has also contributed to double-digit decreases in its sales to Chinese tourists in the United States and in other destinations.

High-end brands have also long relied on Hong Kong as a major shopping hub drawing visitors from mainland China in particular, and four months of pro-democracy demonstrations are starting to take their toll.

However, earlier this month LVMH, which has a market capitalization of 194 billion euros ($215 billion), beat sales forecasts for the third quarter despite the unrest in Hong Kong. In August, Tiffany reported quarterly earnings that also beat analysts' expectations, thanks to a drop in marketing costs.

Tiffany has been refreshing its offerings with more affordable items such as pendants and earrings, to appeal to millennials who have been gravitating to lower-priced competitors such as Denmark's Pandora A/S and Signet Jewelers.

Paris-headquartered LVMH is controlled by the Arnault family and is led by Bernard Arnault, France's richest man. Based in New York and best known for its diamond engagement rings, Tiffany operates more than 300 retail stores globally.

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Louis Vuitton drop Michael Jackson clothes from new collection

PARIS - Louis Vuitton said Thursday they were pulling Michael Jackson-themed clothes from a new collection in the wake of the "Leaving Neverland" documentary which revived claims that the singer sexually abused children.

The brand's men's autumn winter collection, designed by the label's American designer Virgil Abloh, was designed as a homage to Jackson's "prodigious talent".

It was shown at Paris fashion week in January on a spectacular set inspired by his "Billie Jean" video.

Abloh -- one of fashion's brightest new stars -- penned a long tribute to Jackson in his notes for the show and posted a poem he wrote about him to his 3.4 million Instagram followers.

He called the singer a "universally relatable marvel. Every person on Earth could mirror themselves in him".

But the world's richest brand said Thursday that it would not now make any piece from the collection "that directly features Michael Jackson elements".

"I am aware that in light of this documentary the show has caused emotional reactions," Abloh told the Women's Wear Daily (WWD), the fashion industry's house journal. 

"I strictly condemn any form of child abuse, violence or infringement against any human rights," he added. 

'Troubling and disturbing'

The collection, only Abloh's second for Vuitton, featured a black T-shirt printed with Jackson's trademark shoes and white socks as well as takes on the legendary 3-zip red jacket worn by the late singer in the video for his megahit "Beat It".

The invitation to the show was a sparkly Michael Jackson white glove, several variations of which also made the catwalk.

The collection also included a string of looks inspired by "The Wiz", the 1978 all-black musical version of "The Wizard of Oz" in which Jackson starred.

The flag of the singer's home state, Indiana, was also emblazoned on one of Abloh's coats.

The clothes were not meant to go on sale until later this year.

The label said that "Leaving Neverland", which features 2 men who claimed Jackson sexually abused them for years, had caused the French fashion house "the greatest pain".

"We find the allegations in the documentary deeply troubling and disturbing," it added in a statement issued to WWD but which it refused to release to AFP.

"Leaving Neverland" has broken streaming records in Britain and prompted radio stations from Australia to Canada to drop Jackson's music from their playlists.

The creators of "The Simpsons" also shelved one of the animated series' classic episodes because it features Michael Jackson's voice.

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US varsity players released by China apologize for shoplifting, thank Trump

Three US college basketball players detained in China for shoplifting publicly apologized Wednesday and thanked President Donald Trump for helping secure their release.

Trump had personally asked Chinese leader Xi Jinping to intervene to free UCLA's LiAngelo Ball -- the younger brother of Los Angeles Lakers rookie star Lonzo Ball -- and teammates Cody Riley and Jalen Hill, who were arrested last Tuesday in Hangzhou.

The trio were held on suspicion of stealing from a Louis Vuitton store and later freed on bail but ordered to remain in the picturesque Chinese city.

Shoplifting can bring jail time in China depending on the value of the goods.

On Wednesday, all three admitted their guilt at a news conference in Los Angeles, one day after returning home.

"I take full responsibilities for the mistake that I made, shoplifting. I know that this goes beyond me letting my school down but I let the entire country down," said Riley.

"Before I thank everybody who worked so incredibly hard helping us returning home safely, I want to thank the Chinese government and the police for taking care of us. And to President Trump and the United States government, thank you for taking the time to intervene on our behalf."

Ball told reporters he had not exercised his "best judgment" and vowed never to repeat the "stupid decision" to steal, also thanking Trump, as well as the Chinese police and UCLA.

"This does not define who I am. My family raised me better than that and I am going to make myself a better person from here on out," he added.

Hill told reporters he wanted to be known for his love of basketball rather than "this dumb mistake."

"This incident has changed me in a way that I cannot describe. I have so much more respect from the people around me from coaches and staff and the fans of UCLA," he said.

UCLA head coach Steve Alford said the trio had been suspended indefinitely and would not travel with the team or suit up for home games.

Alford thanked "President Trump and his administration for their nonstop efforts" in resolving the case.

Earlier Wednesday, Trump tweeted about his role in urging Xi to secure the trio's release.

"Do you think the three UCLA Basketball Players will say thank you President Trump? They were headed for 10 years in jail!" Trump mused.

The case drew attention in the United States due to the involvement of Ball, one of three high-profile basketball-playing sons of LaVar Ball.

The elder Ball has become a media personality by aggressively promoting his sons as future NBA superstars and had travelled to China on the trip to promote his Big Baller Brand shoe and apparel line.

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Marc Jacobs to leave Louis Vuitton: report

PARIS -- Designer Marc Jacobs is to leave Louis Vuitton to concentrate on his own brand and a future stock exchange flotation, a report said on Wednesday.

The US designer and the chairman of Louis Vuitton parent company LVMH, Bernard Arnault, confirmed the end of his 16-year tenure at the French luxury brand to industry journal Women's Wear Daily.

The news coincided with Jacobs' Louis Vuitton show on the last day of Paris fashion week.

It follows contract negotiations between Jacobs, 50, whose contract had been due to expire at the end of the year, and Louis Vuitton and LVMH.

It is understood that the initial public offering, expected within the next three years, will require Jacobs to be fully focused on his own brand in order to ensure the highest possible valuation.

A successor has not been named but Louis Vuitton is understood to have held talks with former Balenciaga designer Nicolas Ghesquiere about succeeding Jacobs as artistic director, sources told WWD earlier.

It credited Jacobs with transforming Louis Vuitton from a "stodgy luggage house to a global fashion presence."

Frenchman Ghesquiere parted company with Balenciaga in November 2012 following a 15-year tenure.

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