Chinese Emerging Powerhouse Acquires Belgian Luxury Retailer Delvaux
The East’s buying power remains more dominant than ever with the acquisition of Belgian luxury retailer Delvaux. Fung Brands Limited, the private luxury investment division of Fung Capital Europe, announced this most recent acquisition following its April purchase of renowned French shoemaker, Robert Clergerie.
The firm, headed by Jean-Marc Loubier, aims to make an impactful dent in the fashion industry, an area very familiar to the leader. Having spent ten years at Louis Vuitton, six years as CEO of Céline and most recently serving as CEO of Escada, Mr. Loubier possesses a certain skill for sensing just which designers are at the cusp of obscurity yet retain a genuine inimitability and appeal—and then scooping them up at the most opportune time. The particular choice of Delvaux is significant because it underscores the prophesy of western luxury moving east. Combined with the reach of the Fung arm, the team is tentatively unstoppable.
As the state of America and Europe’s economies remains precarious, wealth is at a premium—not borrowed monies or debt, but actually cash. And as independent retailers and small companies face no choice but to shut their doors or sell, the buying power of the east is more significant than ever. Moving forward, the future remains uncertain for the fate of these companies but keeping experienced leaders in powerful positions will likely keep them afloat, if not flourishing. I think expansion in the East is not ideal, but a solid solution to a time-sensitive issue.
by Natalia Ignaczak