Kering is reportedly in negotiations with Burberry. A return to grace in the house of Stella McCartney, which has just bought its shares from LVMH. Kering seems to want to relaunch the purchase of brands and the competition with its historic rival. Kering is looking to strengthen its presence in different luxury segments. Burberry, with its British heritage, its expertise in ready-to-wear and trench coats, could complement Kering’s current offering, which is already strong in fashion brands (Gucci, Saint-Laurent, Balenciaga, Creed, Alexander McQueen), and thus complete its presence in British luxury.

Although smaller, Stella McCartney’s brand embodies modern and minimalist luxury, with strong growth potential, particularly in the women’s fashion and accessories segment. Kering could see in it an opportunity to rejuvenate its portfolio and reach younger clients.

LVMH dominates the luxury market with an extremely diversified portfolio (Louis Vuitton, Dior, Tiffany & Co., etc.). Kering could seek to compete by acquiring iconic or fast-growing brands to strengthen its position, but especially knowing that running a group with so many brands is a risk of traveling with too much baggage and being less flexible.

Burberry has a large market capitalization (around €8 to €10 billion), which makes it an expensive target. A takeover would require considerable financial resources, even for a group like Kering. Burberry is a British national pride, and any acquisition by a foreign group could provoke negative reactions, both from consumers and the authorities. If Kering manages to overcome the financial and cultural obstacles, Burberry could become a major asset in its portfolio, strengthening its presence in British luxury and high-end ready-to-wear.

In any case, these strategic moves show that the luxury sector remains an intensely competitive field, where groups must constantly innovate and reinvent themselves to stay ahead. And as Rockefeller said, it is in times of crisis that we make the best deals.”