LVMH, the renowned French luxury conglomerate, is set to acquire a significant 60% stake in Off-White, the popular streetwear label founded by designer Virgil Abloh. This move is part of a larger trend in which designers aim to maintain control over their brands. Interestingly, Abloh will continue to hold a 40% stake in Off-White, ensuring his ongoing involvement and creative input.
In addition to this acquisition, Abloh will also take on a broader role within LVMH, going beyond his current position as creative chief at Louis Vuitton menswear. While the financial specifics of the agreement were not disclosed, the deal is expected to be finalized within the next 60 days. Post-completion, LVMH plans to prioritize the expansion of the Off-White store chain, further emphasizing the conglomerate’s commitment to the brand.
A notable aspect is that Off-White will continue its licensing agreement with New Guards Group, which is owned by Farfetch. This partnership has proven beneficial for Off-White in the past, and the brand plans to build upon this collaboration going forward.
Abloh has expressed his ambition to transform Off-White into a “truly multi-line luxury brand.” With a stronger connection to LVMH, he aims to expand into sectors beyond fashion, including hotels, wines & spirits, and upscale jewelry. This strategic move aligns with the evolving preferences of luxury consumers, who seek well-designed and marketed luxury concepts for various aspects of their lifestyles.
Moreover, Abloh hopes that this partnership will contribute to promoting diversity within the fashion industry. He has spoken out about the lack of representation and intends to foster new talent in order to initiate positive change.
For LVMH, this development represents a significant focus on the streetwear market. As luxury consumers increasingly gravitate towards street fashion, investing in this sector is a valuable opportunity for the conglomerate. It is evident that LVMH sees the future of luxury extending beyond traditional couture ateliers.
The luxury sector has seen notable activity this year as companies navigate the post-pandemic world. LVMH, in particular, has made several strategic moves, such as acquiring majority stakes in Etro and listing shares of Ermenegildo Zegna. These actions showcase the conglomerate’s dedication to expanding its portfolio and staying ahead of evolving consumer trends.
With Abloh’s involvement, LVMH gains a guaranteed source of publicity. Abloh’s collaborations with brands like Rimowa, Nike, and Ikea have garnered significant attention, underscoring the immense potential of this partnership between LVMH and Off-White for both parties.
Overall, LVMH’s majority stake acquisition solidifies the conglomerate’s commitment to the streetwear market, while also highlighting Abloh’s influence and vision for transforming Off-White into a multi-line luxury brand. As the luxury industry continues to evolve, partnerships like this will shape the future of fashion and design.
Useful links:
– \Business of Fashion: Why Virgil Abloh Sold the Majority of Off-White to LVMH\
– \Vogue Business: LVMH to buy majority stake in Off-White, Abloh to expand role\
