LVMH acquiring Tiffany could represent one of the great shake-ups to the luxury market, according to Elliott Jacobs, EMEA commerce consulting director at LiveArea.
“While it’s in keeping with LVMH’s strategy, the move is a major risk. In the world of digitally agile commerce brands, LVMH is seeking to break the mould. Being large is unfashionable, but LVMH is buying established brands in an effort to overpower the rest of the market.
“The reasons to buy Tiffany are many. It has an unparalleled digital presence for a luxury brand – almost ten times that of LVMH’s last acquisition, Bulgari. The acquisition would also help combat their biggest competitor, Richemont, the owner of Cartier.
“The primary reason, however, lies in Tiffany’s location and history. Since its namesake film, the business has been a household name in the US, and today is the country’s last great global luxury brand. It represents an opportunity for LVMH to conquer the largest commercial market in the world.”