LVMH, the renowned French luxury conglomerate, is making waves in the industry with its latest move to acquire a majority 60% stake in Off-White, the popular streetwear label founded by designer Virgil Abloh. This strategic partnership is part of a broader trend where designers are increasingly seeking to maintain control over their brands, even when entering into collaborations with larger corporations.

Though Abloh will be selling the majority stake, he will still retain a 40% ownership in Off-White, ensuring that his voice and creative vision remain integral to the brand’s direction. Furthermore, the label will continue its licensing agreement with Farfetch-owned New Guards Group, which adds stability and continuity to the business.

The finalization of this transaction is expected within the next 60 days, and one of the immediate priorities will be expanding the Off-White store chain. However, the specific financial details of the deal have not been disclosed at this time.

What sets this collaboration apart is its scope beyond the realm of fashion. Abloh plans to leverage his partnership with LVMH to not only launch new brands but also to partner with existing ones in various sectors outside of fashion, such as hotels, wines & spirits, and upscale jewelry. This move demonstrates LVMH’s understanding that luxury consumers are interested in well-designed and marketed luxury concepts that encompass multiple aspects of their lifestyles, not just clothing.

Furthermore, Abloh hopes that this collaboration will foster diversity within the industry, a cause he has been passionately advocating for. With the backing of LVMH, he believes he can create opportunities for new talent and promote greater inclusivity. This aligns with LVMH’s commitment to diversity and social responsibility, as they recognize the need for change within the fashion industry.

Abloh’s previous collaborations with renowned brands like Rimowa, Nike, and Ikea have garnered significant attention due to his involvement. His reputation as both a designer and entrepreneur makes him an invaluable asset for LVMH in terms of generating publicity and driving brand awareness.

This deal is part of a larger trend in the luxury sector, which has seen a surge in activity this year as companies navigate the post-pandemic landscape. In addition to the Off-White acquisition, LVMH also announced a deal to acquire a majority stake in the esteemed fashion brand Etro. They also backed Phoebe Philo’s highly anticipated return to the fashion industry with a new eponymous label. Ermenegildo Zegna, another prominent luxury brand, recently revealed plans to list its shares in a deal with Investindustrial Acquisition Corp.

In overall terms, LVMH’s decision to strengthen its partnership with Off-White and expand Abloh’s role signifies the conglomerate’s recognition of the evolving dynamics in the luxury market. The acquisition underscores the increasing significance of streetwear and the growing desire for well-designed luxury concepts that transcend the confines of fashion. By collaborating with Abloh, LVMH aims to tap into his creative vision and entrepreneurial abilities, consolidating its position as a leader in the luxury sector.

Useful Links:
– LVMH Official Website: https://www.lvmh.com
– Off-White Official Website: https://www.off—white.com