VF Sells Supreme, Can the eyewear giant's new venture continue to write a street legend?

Recently, a news in the financial circle and the fashion circle stirred up no small waves. VF Corp., The owner of Converse and The North Face, announced that it will sell Supreme, its American fashion brand, to the EssilorLuxottica Group for $1.5 billion, the Wall Street Journal reported. The deal has attracted a lot of attention, not only because it involves an exchange of interests between the two giants, but also because it could have a profound impact on global fashion trends.

First, let's explore the background to the acquisition. Since its inception, Supreme has accumulated a large number of loyal fans around the world with its unique street culture and limited-release marketing strategy. VF acquired Supreme for $2.1 billion in 2020, hoping to use its influence among younger consumers to diversify the company's business. However, just a few years later, VF Corporation chose to sell Supreme, what is behind this calculation?

From VF Corp. 's perspective, the sale of Supreme may be a strategic adjustment. In recent years, with fluctuations in the global economy and changes in consumer demand, the fashion industry has faced great challenges. VF may believe that selling Supreme to the more powerful EssilorLuxottica Group will give it more room to grow and more stable earnings. In addition, VF may also want to devote more resources and energy to other brands with growth potential through this transaction.

However, for EssilorLuxottica Group, the acquisition of Supreme is undoubtedly a bold attempt. As a company that manufactures and sells eyewear, EssilorLuxottica Group has never been involved in fashion before. This acquisition means that they will face a new market and consumer group, which is undoubtedly a big challenge. EssilorLuxottica Group said that it hopes to further expand its business beyond eyewear and reach new customer groups through this acquisition. However, it will take time to see if this strategy of cross-border development can be effectively implemented.

So what impact will this acquisition have on Supreme itself? On the surface, Supreme founder James Jebbia will still be involved in the development of the brand, which guarantees the stability and continuity of the brand to a certain extent. However, with the change of brand ownership, Supreme's future development direction and marketing strategy may also change. As an eyewear manufacturer, EssilorLuxottica Group may not have a complete understanding of how the fashion apparel industry works and what consumers want. Therefore, whether they can successfully push the Supreme brand to new heights still needs to be explored and adjusted in practice.

In addition, the acquisition also triggered people to think about the future development trend of the fashion industry. With the acceleration of globalization and digitalization, the fashion industry is facing unprecedented changes. Traditional brand positioning and marketing strategies have been difficult to meet the needs of consumers, fashion brands need to continue to innovate and break through, in order to remain invincible in the fierce market competition. As a brand with unique culture and influence, Supreme's future development path will be full of challenges and opportunities.

To sum up, VF Corporation's sale of Supreme to EssilorLuxottica Group is a transaction with far-reaching impact. It not only involves the exchange of interests between the two giants, but also may trigger changes in the global fashion industry. However, whether this acquisition can be successfully implemented and achieve the desired results still needs to be continuously verified and adjusted in practice. For the fashion industry, innovation and development are the eternal themes. Only by constantly adapting to changes in the market and consumer demand can we be invincible in the fierce competition.