What Happened: Luxury conglomerate LVMH has acquired a 60 percent stake in Off-White, the streetwear label founded by American designer Virgil Abloh. The move should bolster Mr. Abloh’s standing inside the luxury group and further enhance his global visibility.
According to a press release, Mr. Abloh will remain in his role as artistic director of Louis Vuitton’s menswear collection while also working with the luxury conglomerate to launch new brands and partner with existing ones outside the fashion sector.
“For nearly a decade, we’ve been building Off-White to be a brand designed to empower our generation and challenge the status quo,” said Virgil Abloh. “LVMH brings to the table the additional firepower and scale to accelerate our momentum and evolve Off-White into a truly multi-line luxury brand.”
The Jing Take: The acquisition is a brilliant move by LVMH and proves that it knows how to stay ahead of the competition.
Many luxury customers today are teenagers and young adults who favor digitization and the radical democratization of luxury. Therefore, investing in a streetwear brand with global resonance is a strategic move. Moreover, the acquisition could expand the Group’s influence in the Asia Pacific — a market that, in recent years, has surpassed all expectations by generating strong sales for the French conglomerate.
In China, Gen Zers have pushed gender-neutral streetwear labels like Off-White and Supreme into the spotlight. Against this backdrop, LVMH has decided to improve its cultural credibility with the burgeoning streetwear-loving crowd by taking a bigger space in the inclusive world of streetwear fashion.
At the same time, Off-White could gain access to LVMH’s resources and profit from its global positioning and reputation. We expect Off-White’s association with the French conglomerate to boost its market recognition, increase its market share, and generate higher sales and profits.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.