07 Oct '11, 9pm

Luxury fashion houses set sights on Asia

SINGAPORE - As mega luxury fashion houses target Asian consumers to tap into the region's growing wealth, analysts say the industry can expect to see more consolidation. Just yesterday, French luxury giant LVMH Moet Hennessy Louis Vuitton said its unit had made an initial S$160.8 million offer to buy a controlling stake in Singapore-listed crocodile leather supplier Heng Long International. This comes after LVMH took control of previously family-run Bulgari in September, and Chinese luxury menswear company Trinity acquired fashion house Cerruti last year. Ms Nathalie Longuet, senior vice-president of Swiss private bank Lombard Odier, said: "We are seeing a bifurcation in terms of profitability between small brands and the mega brands. And this difference is likely to accelerate because of the financial resources needed to expand in some of the Asian markets. This would lea...

Full article: http://www.todayonline.com/Business/EDC111008-0000069/Lux...

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