L'Oréal Acquires Aesop for $2.5bn
L’Oréal is acquiring Aesop, the upscale Australian clean beauty cosmetics brand known for its hand soaps, body care products and amber packaging. The deal has been valued at $2.5 billion, making this the largest ever acquisition for L’Oréal. L’Oréal will help accelerate its growth potential by focusing on travel retail and its global expansion, mainly in China. Thanks to its vegan formulas and natural ingredients, the brand resonates with many new consumer uptrends, especially sustainability. Aesop is currently being sold in 400 retail outlets and has established partnerships with luxury hotels and beauty centers.
Dolce & Gabbana Entering Real Estate and Hospitality
Dolce & Gabbana is partnering with real estate developers to build branded residential apartments in Miami, Marbella, and a hotel in the Maldives. Since the pandemic, luxury brands like Roberto Cavalli and Diesel have embarked on branded luxury condo projects in Dubai and the US, as they pursue new growth channels and diversification through real estate. Bulgari, Armani and Fila are also expanding their networks in the hospitality space.
Ralph Lauren's New Miami Store Focused on Web3
The new Ralph Lauren store in the Miami Design District will be the first to accept crypto currency payments through Bitpay. The launch will take place in partnership with Web3 community Poolsuite, through which Ralph Lauren will be gifting NFTs to its 3,000 users. By owning the Ralph Lauren x Poolsuite NFT, holders are granted access to a three-day launch event. The company views Web3 as an opportunity to improve brand image and storytelling, while targeting millennials and Gen Z customers.
Galeries Lafayette Strengthens China Presence
Galeries Lafayette is opening 10 new stores in China by 2025, through a joint venture with Chinese property firm Hopson Group. Three concept stores will open this year. Galeries Lafayette launched in Beijing in 2013 with a flagship store, followed by a Shanghai store in 2019. The joint venture allows the company to leverage the property firm’s portfolio and their expertise in high-end shopping centers. It also allows Galeries Lafayette to target various generations of customers more efficiently. The company is also eyeing India for further expansion.
Hermès Reaches €200 Billion Market Cap
Hermès International soared past €200 billion in market value. The luxury industry has been capable of withstanding economic downturn and continued to grow significantly during the pandemic. As China’s post-Covid recovery revives demand for luxury goods, the value of luxury groups including Hermès is rising. Hermès International is now the second most valuable company in the luxury space, based on its public valuation, right behind LVMH.
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