As we mentioned in our previous post, “Market Volume, Growth and Drivers of Brand Acquisition in Europe“, brand acquisitions in Europe have played a pivotal role in shaping the business landscape, enabling companies to expand their market presence, diversify portfolios, and achieve strategic growth. As the European market continues to evolve, brand acquisitions are expected to remain a critical component of corporate growth strategies.
Here are two specific examples of success stories in brand acquisition:
HYATT AND ME AND ALL HOTELS
In 2024, the American Hospitality company, Hyatt Hotels Corporation, acquired the “Me and All Hotels” brand, aiming to expand its presence across Europe and other regions.
This strategic move enhances Hyatt’s portfolio with a conversion-friendly lifestyle Brand, aligning with the company’s growth plans.
The acquisition enables Hyatt to offer more diverse and unique experiences to its guests, leveraging the distinctive appeal of the Me and All Hotels brand.
RICHEMOND, ALIBABA AND FARFETCH
In 2023, significant merger occurred involving Swiss luxury group Richemont, Chinese e-commerce giant Alibaba, and fashion retail platform Farfetch.
This $1.15 billion deal aimed to enhance luxury brands’ access to the Chinese market, reflecting a strategic collaboration between European and Asian companies in the fashion industry.
Companies are increasingly engaging in acquisitions to refine and optimize their portfolios, focusing on core competencies and divesting non-core assets. This strategy enables firms to enhance operational efficiency and concentrate resources on areas with high growth potential. Market consolidation through acquisitions enables companies to achieve economies of scale, reduce competition and expand customer base and operational footprint efficiently.