SPADE & COACH, SNAPDEAL A BIG DEAL, LVMH GET, SET, GO DIGITAL
SPADE & COACH
American Luxury fashion company, Coach Inc, buys Kate Spade for USD 2.4 Billion, to target the millennial customer. Kate Spade is popular with the Europe and the Asia customers. Almost 15 percent of their sale comes from the International market.
Meanwhile, back in India, a major consolidation happened in the e.Commerce sector with Flipkart all set to buyout Snapdeal, It makes an informal offer of USD 950 to USD 1 Billion. Masayoshi Son owned SoftBank group bought out early investors in Snapdeal (Kalaari Capital and Nexus Venture Partners). Flipkart's early investor, Tiger Global will benefit from this buyout as this deal may see SoftBank buy some of Tiger's holdings in Flipkart and put additional cash into the company. Tiger's MD, Fixel needs some returns after having pumped more than $2 Billion into Indian start-ups since 2010. It is however a double-edged sword for Flipkart.
SNAPDEAL - A BIG DEAL
Absorbing Snapdeal will be very, very challenging and will likely turn out to be a big distraction for Flipkart's management team. But then, Flipkart would also be getting SoftBank as an investor which may prove to be significant over the long term.
LVMH GET, SET, GO DIGITAL
LVMH will launch its multi-brand e.Commerce website this June spearheaded by the group's chief digital officer who joined from Apple Inc in 2015. The new website will be named 24Sevres.com, and will ship from France to more than 75 countries. Its initial focus will be on womenswear and 68 luxury brands will start selling in the launch phase. Yoox Net-a-Porter and Farfetch already have a significant share of the digital side of the luxury industry which competes with the department store business and the brands own online flagships and digital stores.
Curated and Edited by Simrita Dhillon.
Sources: Business of Fashion, Pambianco News and Economic Times.