Ralph Lauren and LVMH: The Acquisition That Could Foreshadow a French Revolution in American Fashion
In 2021, LVMH closed on the acquisition of Tiffany’s for $15.8 bn; now they have their sights set on a deal with American designer Ralph Lauren. Like Tiffany’s, it is likely that LVMH would attempt to turn Ralph Lauren into a more upscale version of its former self, compromising its brand identity. However, this will do more harm than good, not only for the brand of Ralph Lauren itself, but for the idea that America can be an influential player in upscale operations and carving out their own unique space in the old guard of high fashion. Such acquisitions serve as incriminating evidence toward the claims of shallowness in the minds of the American consumer.
The group, Louis Vuitton Moet Hennesy, otherwise known globally as LVMH is a luxury holdings group for the biggest names in luxury goods, specifically fashion. With names like Christian Dior, Fendi, Givenchy and Rimowa, they are arguably the most influential force in high fashion. In 2021, the finally closed on the acquisition of Tiffany’s, the iconic American jeweler. Now, there have been reports of talks to acquire the next American household name, Ralph Lauren.
Ralph Lauren was founded in 1967 by its namesake. Since then, the brand has grown to something of a legend. With graphics such as the iconic Polo Pony and Polo Bear permeating the closets across generations, you know Ralph Lauren even if you think you don’t. It is a brand at a cornerstone of American culture- they famously have designed the opening and closing ceremony outfits for the U.S Olympians since 2008 and were even the long-time employer of the fictional character Rachel Green in the hit sitcom, Friends. Their famous polo shirt is even on display as an important piece at the Museum of Modern Art. Just like Tiffany’s, who earned their place as a landmark in American culture with the Audrey Hepburn flick, Breakfast at Tiffany’s, Ralph Lauren has a large place in America’s past.
Ralph Lauren, at 82, has yet to impose a succession plan, and perhaps LMH hopes to be a part of it. To see another cornerstone of American fashion sold off to an overseas conglomerate though, would be a grave injustice. Yes, LVMH has the revenue and size to support such a large acquisition and invest in new ad campaigns as they have with Tiffany’s making it an attractive potential deal. However, it opens a door for more American names in fashion like it to be snatched up by the various conglomerates that have gained a grip on nearly every corner in the European Market.
Many luxury fashion brands are defined by the person who began them- Marc Jacobs, Michael Kors, Tory Burch, Tommy Hilfiger, to name a few. While LVMH does not seek to absolutely change the direction of the brand and the unique factors that set it apart to begin with, it casts a shadow upon the creative integrity. Somewhere, perhaps in a European atelier there is an artist making creative decisions about designs and their presentation, but in that same building, there is an additional outside voice speaking louder and changing creative directions. In the case of Tiffany’s, this voice was the CEO, Anthony Ledru, newly appointed by LVMH chief in command, Bernard Arnault. With him, there came culture clashes of the French and American outlooks on luxury, a complete change of direction in their flagship store, and the ousting of many employees from the room in which the decisions are made. Fashion is an industry where creative license is the commodity. When groups like LVMH or its competitors Richemont, and Kering come in and acquire fashion powerhouses and subsequently impose their own C-Suite, it is hard to imagine that this commodity will be diverse enough to continue to create robust competition and innovation for long, let alone new, smaller creators carve out a future for themselves in the space.
In closing
The potential for LVMH to acquire American brand Ralph Lauren is still very much speculation. However, the move for big groups like it to continue to absorb brands under their ever-growing umbrella is one that is dangerous for both American fashion, and the greater luxury industry as a whole. If anything, it is an industry that would benefit from more diversity of thought and background instead of having the same handful of inner circles at the forefront of all of its business decisions.