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LVMH'S Fund Intends To Increase Investment In China'S Market

2012/3/28 17:44:00 14

Together with partnership investment projects, the fund has invested more than 1 billion US dollars, mainly in China.

RaviThakran, a fund management partner, points out that China is interested in department stores, liquor brands and large apparel manufacturers.

Ravi Thakran said: "we believe that China has more opportunities. The main focus of the fund is on China.

With our existing funds and mutual investment projects reaching US $1 billion, our next fund is at least the same size.

He says there are more and more large companies in contact with the fund, which is also a bigger reason for the company to think about it.

Last year, the LCapital Asia was set up as a major investment target in emerging markets such as China and India. The scale of the fund is about US $650 million.

The fund bought an unlisted China at about $200 million earlier.

Clothing retailer

Heji International's 10% stake, the two sides will cooperate on brand management.

Hkei international owns Ochirly, Five Plus, Trendiano and Love Ysabe and other L4 brands. Currently, there are 1800 sales outlets in China.

Its previous investments include Hongkong Ming Fung Jewellery, accessories distributor of watches and accessories, Royal watches and jewellery, and Singapore brand Charles&Keith.

Under the steady and rapid economic growth, the speed of China's wealth accumulation has attracted Europe.

Luxury goods

Brand vision.

Ravi Thakran pointed out that in recent years, the European and American economies are stagnant, and more international brands regard the Chinese market as a source of growth motivation and intend to increase investment in this area.

"Big cities are already fiercely competitive, and more foreign brands are willing to go to two or three tier cities and shopping centres where local brands are gathered to rent bigger areas and adopt better decorations."

He said.

Ravi Thakran predicts that this will create greater pressure on local brands, but it also provides L Capital Asia with more opportunities to cooperate with local businesses.

Taking Heji international as an example, Ravi Thakran said that the fund will integrate the distribution pipeline of the company in the first stage, provide experience in marketing and management, and will also gradually push the company to develop overseas. It will first expand to Hongkong, Taiwan, Macao and other places near China, and is expected to expand to Southeast Asia in 3 years.

He also said that

fund

At present, negotiations with a beauty service industry are expected and results will be expected soon.

At the same time, the fund is also paying attention to large apparel manufacturers, retail department stores and liquor brands for international brands.

He did not elaborate on the investment objectives, but said that the scale of each investment was roughly $100 million.

Earlier this year, the fund announced its annual profit ahead of expectations, and looked ahead to the excellent growth momentum in 2012, partly due to the rapid growth of business in the Asian region.

Because of sustained and rapid economic growth and increased income, the Chinese market has become a must for international luxury brands.

A number of reports, including the Chinese Academy of Social Sciences and McKinsey, show that China will become the world's largest luxury market by 2015.