Massive luxury conglomerate PPR which owns the nine fashion brands in the Gucci group (Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Bédat & Co.,Boucheron, Sergio Rossi and Stella McCartney), has been followed around by rumours that it's planning to buy up Burberry. So today PPR put an end to the speculation by stating; 'Burberry is a very beautiful brand, but it does not match the selection criteria for our luxury portfolio...' Ah, now that’s cleared that one up, PPR spokeswoman Charlotte Judet.
Head of PPR, François-Henri Pinault has admitted the group is looking to buy another brand, perhaps early next year. We are, of course, relieved about Burberry keeping its independence because it represents something as British as eating Marmite on toast with cups of tea.
Some market analysts have speculated that Burberry isn’t an ideal choice for the group as another fashion brand would "cannibalise" customers from the Gucci group's existing brands which appeal to exactly the same consumers. Experts claim that a luxury watch brand or the ski/surf label Quiksilver would be less of a clash with the other brands.
Other analysts have *miaouw* pointed out that in the current market (i.e. Burberry is doing really really well and its share price is astronomical) PPR wouldn’t necessarily be able to afford Burberry anyway.
We often have the same problem ourselves.
- Naomi Attwood