Why did they buy this expensive(?)business which illfits the model- its like a last minute decision to buy Auntie Dot a Christmas present - last minute and illconsidered. It seems to me to show a lack of understanding of the business they are in. Why didn't they bin their rubbish luggage label instead?
There are some big busssiness minds running this company. I might admit being part of an online bussiness takes away some of the glitter though, if that is what you mean. My money would easily go into online selling businesses especially if it is part of the Richemont group.
Yes, but the questions remain. A luxury goods business is primarily a shopping experience based business. experience, taste, see, feel stuff. And I don't care how bright these guys are an asset is worth what someone is willing to pay for it and the value of an asset is what it will generate in income over its life - that I don't see..especially as this appears not to be a new distribution model.Do you remember Webvan - No? Well neither does the market and they were going to take over tesco's and even Walmart - and that was an internet based grocery delivery business - not a luxury goods firm...Its a humbug buy.
Interesting that you mention online groceries and yes I havent seen very much success in that bussiness at all - dont know why. Online buying to me is almost the internet version of a newspaper. You can buy almost anything on Amazone.com - though not all luxury. You can buy brand new luxury items on E.Bay (not all genuine) I can only see the man there in China buying lots of luxury fountain pens online - hopefully a higher div to me from Richemont