Sankyo Seiko’s unexpected acquisition of Leonard Paris has sent shockwaves through the luxury fashion industry. However, upon closer examination, it becomes apparent that this purchase is the best strategic move for the long-term success and growth of the brand. Sankyo Seiko intends to leverage Leonard Paris’ rich heritage and maintain its strong ties to the fashion capital of Paris in order to accelerate expansion in Asia, particularly in China and Korea. Additionally, the acquisition aims to enhance Leonard Paris’ accessories category.
Nathalie Tribouillard Chassaing, who has served as the head of Leonard Paris since 2017, believes that Sankyo Seiko is the ideal buyer for the brand due to their longstanding partnership. While she acknowledges the significant role Japan has played in the label’s global growth, she also recognizes the need to reduce reliance on the Japanese market, which currently accounts for over 60% of sales. The COVID-19 pandemic has further impacted Leonard Paris by diminishing its critical mass and presence in Europe and other parts of the world. Rising prices and limited availability of raw materials have also posed challenges for the brand. In light of these factors, the decision to sell Leonard Paris was made to ensure its continued operation and future growth.
The exact value of the acquisition deal has not been disclosed, but it was finalized on July 19 following several months of negotiations. Sankyo Seiko now owns the brand along with its extensive archives, which consist of 10,000 designs, nearly 5,000 of which remain unused. The Parisian studio, style and textile design teams, prototyping atelier in Paris, and Milanese production site are also part of the acquisition. Since 1969, Sankyo Seiko has been developing, producing, and distributing two ready-to-wear lines, Leonard Fashion and Leonard Sport, specifically tailored for the Japanese and Taiwanese markets. The group also sells the Parisian collection through its network of 60 stores.
In recent years, Sankyo Seiko had downsized the number of its Leonard stores. However, with the acquisition of Leonard Paris, the group now plans to invest in the brand and eliminate the need for paying royalties. This move not only strengthens Sankyo Seiko’s presence in the luxury fashion market but also grants ownership of the esteemed British luxury label, Daks. The group aims to replicate the success it has had with Daks and expand Leonard Paris’ footprint in the Chinese market, where the brand is already highly regarded. Akira Inoue, the CEO of Sankyo Seiko, stated that the goal is to “expand the label’s presence notably in China, Korea, and Thailand.” Inoue, an expert in the Chinese market, is determined to establish stronger connections with LG Fashion Corporation, a subsidiary of the LG group, which currently distributes Leonard and Daks in South Korea.
Sankyo Seiko is committed to maintaining Leonard Paris’ Parisian headquarters and its entire staff of 41 employees. The preservation of the brand’s expertise and connection to Paris is crucial for upholding its brand image and positioning. The design and development of the collection and printed fabrics will continue to take place in Paris, while the ready-to-wear production will occur at the Milan subsidiary. This blend of elegant Parisian style and Italian manufacturing excellence will guarantee that Leonard Paris maintains its rightful place in the luxury fashion market.
Additionally, Sankyo Seiko plans to address Leonard Paris’ weakness in the accessories category. While the brand currently offers a fine collection of scarves, there is a lack of diversity in this area. The group intends to expand the leather goods category, particularly in the Japanese market, to broaden Leonard Paris’ range of products.
Georg Lux, the brand’s esteemed German creative director, has the full support and admiration of Leonard Paris’ new owner. Inoue eagerly anticipates working with Lux and has extended an invitation for him to visit Japan in order to gain a better understanding of the market. This collaboration promises to bring fresh perspectives to Leonard Paris and contribute to its future success.
All in all, Sankyo Seiko’s acquisition of Leonard Paris symbolizes a new chapter of growth and expansion for the brand. With a strategic focus on Asia, specifically China and Korea, and a strong commitment to preserving the brand’s connection with Paris, Sankyo Seiko is determined to elevate Leonard Paris to new heights in the luxury fashion industry.
Useful links:
1. Official Leonard Paris Website
2. Sankyo Seiko Official Website
