French luxury group PPR Group is reportedly in talks to buy a Chinese luxury brand in a bid to further grow its presence in China.
PPR CEO Francois-Henri Pinault said the company is in an advanced stage of talks with the Chinese brand and the acquisition is expected to be finalised this year. He declined to name the brand.
Pinault said last September that PPR is interested in acquiring a Chinese brand with own identity and which doesn’t follow the European concept of luxury goods.
Sales at PPR-owned brands Bottega Veneta, Gucci and Yves Saint Laurent rose 20 per cent in this year’s first quarter in its emerging markets including China, boosting Pinault’s optimism towards China.
As part of its narrowing focus on luxury goods, PPR sold furniture retailer Conforama last year. This year, the group plans to divest online retailer Redcats and electronics and media chain Fnac. Part of the proceeds are to be used to acquire luxury brands and sports-lifestyle brands.
Another French luxury group, Hermes, has already owned Chinese luxury label Shang Xia.
GB
