PPR, the luxury conglomerate that owns a total of nine brands in the Gucci group was rumoured to be staging a bid to take over Burberry. But the PPR spokeswoman Charlotte Judet put an end to the market speculation by clarifying that they do not intend buying Burberry. They do agree that Burberry is a beautiful brand but it does not match the selection criteria for their luxury portfolio.
After clearing the suspense over the possible takeover of Burberry head of PPR, François-Henri Pinault admitted the group is looking to buy another brand, perhaps early next year. Some market analysts have speculated thatBurberry 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 in their portfolio.
The British consumers are particularly happy about Burberry retaining its independence. Burberry, over the years has become synonymous with British luxury and represents something as British as eating Marmite on toast with cups of tea. Some others feel that since the Burberry share prices are very high at the moment PPR couldn’t really afford it.
Via: graziadaily
