The announcement, today, of Loro Piana‘s acquisition by luxury giant LVMH for 2 billion euros, marks the end of one the very few remaining family-owned luxury companies in the world. Without the founding family, Loro Piana will never be the same, no matter how much LVMH will invest in the company and no matter how Italian the company will stay.
LVMH’s failure to take over Hermes and now its acquisition of Loro Piana’s demonstrate the group’s ‘strategic vision’ is purely driven by EGO. Loro Piana, today, joins LVMH’s ‘collection’ of 12 luxury fashion brands such as Givenchy, Kenzo or Emilio Pucci – which have not only remained dormant under LVMH but have never even made a fraction of Loro Piana’s turnover, even all three companies combined. In 2012, Loro Piana’s turnover was 630 million euro (growth of 13.1% compared to 2012).
As early as last week Loro Piana’s press office turned down CPP-LUXURY.COM’s request for an interview with CEO Pier Luigi Loro Piana, motivating he is on holiday, which is totally understandable and proves that the negotiations had long been taking place. To compensate, they offered to send us their latest book which is ‘the best tool to fully understand the very fascinating story of Loro Piana and the Vicuna’ (quote).
Then, while passing by Via Montenapoleone, over this past weekend, I noticed signs of a new Loro Piana store (announced for Fall 2013) less than 100 meters away from the existing one. However, the new Loro Piana store is three times the size of the existing one… Welcome to LVMH!