Author(s)

Zixuan Yuan

Corresponding Author

Zixuan Yuan

ABSTRACT

LVMH announced a $15.8 billion acquisition of Tiffany, which attracted wide attention around the world. As the biggest one in the luxury industry so far, it invokes debates and analyses not only from professionals but also from luxury amateurs. There are fans of each side that doubts whether the other side deserves LVMH (or Tiffany) to spend so much money (or to be acquired). Also, many are skeptical about the price tag and questioned whether LVMH, a French luxury-goods group, can manage Tiffany of America. This paper will analyze the brand status quo and business models of LVMH and Tiffany in detail and the trend of this huge acquisition. As two giant groups, LVMH has the BATNA to turn its focus on its already got brands and Tiffany has the BATNA to cooperate with other groups. Though the luxury industry is facing the challenge of the effect brought by Covid-19, as the analysis keeps going on, it can be concluded that the development prospect of this acquisition is promising and hopeful.

KEYWORDS

BATNA, Brand Image, Financial, Market