Burberry is being wooed for its chequered past and bright future
Subscribe to enjoy similar stories. The days are getting colder in Europe. Perhaps a black, white, tan and red down jacket will keep Burberry investors warm.
Moncler, best known for its padded coats, is considering a bid for the British company famous for its distinctive chequered pattern, according Miss Tweed. Bernard Arnault, founder and CEO of Louis Vuitton Moet Hennessy (LVMH), is keen on a deal, it reported. It’s easy to see what’s in it for Arnault, after LVMH agreed to invest in Moncler.
A deal would take a competitor out of the market and stop LVMH’s archrival Kering , the natural owner of Burberry, from getting its hands on it. As for Moncler’s chief Remo Ruffini, he has a lot on his plate. Then again, if he wants to build a new Italian house of luxury, he may not get a better opportunity than adding Burberry to Moncler’s stable.
Burberry’s iconic product, the trench coat, would benefit from Moncler’s expertise in outerwear but also diversify its suitor away from padded jackets, which tend to sell best at colder times of the year. The trench, and variations, including capes, jackets and dresses, could generate sales in warmer temperatures too. Burberry has also expanded its leather-goods ranges.
Although this strategy has had mixed results, they would add further diversification for Ruffini. While Burberry’s products stepped up under former CEO Jonathan Akeroyd and designer Daniel Lee, who remains creative director, the brand never seemed to achieve the same buzz as Kering’s Gucci in the early days of its turnaround under former creative director Alessandro Michele or which Prada’s Miu Miu is enjoying right now. Moncler, which works with a roster of outside designers and hosts events in different locations
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