With the huge news that a “Core” brand like Volcom being acquired by French Luxury group PPR what do you think the future of the brand looks like? Will we see Cobra/Volcom golf clubs or Puma/Volcom boots or even Gucci/Electric goggles? Loungers weigh in, share your thoughts on the thread title “VolGucci”
The acquisition comes in the midst of a major shift for PPR from a low-margin group of retail chains to a constellation of high-profile international brands, including Gucci and Puma. PPR has sold off retail networks such as the Conforama furniture stores to invest in profitable brands. Volcom, one of those brands, sells skateboarding, snowboarding and surfing apparel and goes by the motto “youth against establishment.”
“Our aim is to be a worldwide actor in sports and lifestyle,” PPR Chief Executive François-Henri Pinault said. “We will ensure Volcom reaches the next stages in its development.”
The potential for synergies between PPR’s Puma and Volcom is high. The majority of Puma’s business is shoes, and Volcom only has a small footwear business. PPR plans on amping up Volcom’s distribution, in part by opening stores. In addition, PPR expects Volcom to tap into Puma’s Asian manufacturing.
“Given the runaway ascent in production costs, anytime a brand portfolio such as PPR could combine two business units to gain scale, it’s good,” Wall Street Strategies analyst Brian Sozzi wrote in a research note.
YOUTH AGAINST ESTABLISHMENT!
smart move by PPR; they’ll lose a small number of “core” customers and gain a huge number of customers in the casual/mainstream market, as the vast majority of people don’t give a flying fuck about who owns what brand
i’ll be watching out for volcom and electric coming to the airport duty frees very soon
I don’t care how “core” a company is, if they make good prodcut I’ll buy it.
Since they are buying this as a revenue source and for diversification, I would like to think they will leave people in place who will keep the brand on track and successful.
On the flip side they could easily try to suck as much profit as possible by diluting the brand with something like lines for Target, while loosing site of everything the brand was about prior to the acquisition.
Probably good that it was bought by a higher end company. Hopefully more likely to compete with Burton AK than start making crap for Wal Mart.
i was considering looking into volcom outerwear as they are one of the few companies making Goretex products that appeal to me, but this turns me off. if someone can show me their products are “superior” to another that i’m considering then cool. if not, oh well.
hopefully we don’t see Volcom inspired by Puma footwear