European Luxury Players Try To Gain Market Share

European luxury giants are looking to increase their market share of watches and jewelry through a series of acquisitions to ensure they beat the competition.

On June 30 French luxury goods group has received approval for the acquisition of Italian luxury goods group Bulgari by the relevant competition authorities and in particular the European Commission to obtain a stake of 76.12% in society. It will now launch a mandatory tender offer for remaining shares. As part of the agreement previously Bulgari CEO Francesco Trapani will assume control of LVMH watches and jewelry and activities was also appointed to the board, while Philippe Pascal, who led the watches of the company and activities jewelry since 2001, became an adviser to LVMH Chairman and CEO Bernard Arnault.

The move means that LVMH, which owns brands such as TAG Heuer, Dior Watches, Zenith, Hublot, Chaumet, Fred and De Beers, is now significantly increase its presence in European and international market for watches and jewelry.

French rival LVMH luxury goods group Richemont, which owns brands such as Piaget, Cartier, Van Cleef & Arpels, Montblanc, the luxury and etail site Net-A-Porter, who was acquired last year, has been reported between treated. However, it is unlikely that society is too worried. Richemont has actually enjoys watching the recording and sale of jewelry. The turnover of the fiscal year ending March 31, 2011 increased by 33% at constant exchange rates, while sales of its hit € 3,479 m jewelry Maisons Cartier and Van Cleef & Arpels properly. He also made a record turnover of its skilled watchmakers, where sales grew by 31% and up to € 1774 for the period.

It now seems to be a wave of acquisitions and capital increases in the market, with luxury groups seeking to increase their presence in watches and jewelry on the market.

Last week the luxury group PPR, which represents brands such as Gucci, Bottega Veneta, Yves Saint Laurent, Balenciaga, Boucheron, Sergio Rossi, Alexander McQueen and Stella McCartney was the main shareholder of Sowind Group, in a move that will that it will assume control of the Girard-Perregaux and Jean Richard watch brands.

PPR CEO François-Henri Pinault, has confirmed it has its sights on increasing slice of PPR on the market. He said: "This transaction strengthens the Group PPR luxury watch segment with high-end potential of a brand like Girard-Perregaux. The operation will support the international growth of the group Sowind product development and distribution world. This agreement is part of a defined business long Macaluso family, with whom we share an ambitious vision on the prospects for long-term growth of high-end watch. "

U.S. jeweler Tiffany was mentioned as a potential acquisition or to Richemont and PPR, but in any case, there is obviously a lot of movement among the players of European luxury. It will be interesting to see which company jewelry is intercepted by one of these giant neighbor, and outside companies to consider investing in the region should keep a watchful eye on their movements.