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PARIS,  (Reuters) – Michael Kors’ dive on Versace leaves a shrinking cosmos of appearance brands bent to go it abandoned and bulwark off affluence authority builders, adopting the burden on those disturbing financially to lift sales or advertise out.

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The Italian red carpeting favourite is the latest characterization to be best off by a amassed afterwards years of amplification by European groups like Louis Vuitton buyer LVMH, which now has a abiding of 70 brands from albino to watchmakers.

But growing banknote bags at LVMH and its Paris battling Kering , the actualization of ambitious conglomerates like U.S.-based Kors or China’s Shandong Ruyi and a addition abysm amidst assuming brands and those abrupt to t up could actuate added deals, some industry watchers said.

“Compared to the bigger brands, standalone groups abridgement the bare oxygen. Consolidation is inevitable,” said Giuliano Noci, assistant of action and business at Milan’s Politecnico School of Management.

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The industry still boasts some big name, absolute successes, like France’s Hermes or privately-owned Chanel. The latter, continued lusted afterwards by rivals, appear this year it was almost close with Louis Vuitton as one of the better affluence labels by sales.

In Italy, affluence puffer anorak maker Moncler is benumbed aerial acknowledgment to a action of consistently alteration designs and investments in e-commerce.

But in a arbitrary industry area trends appear and go, and appeal can booty a abrupt hit as tourists flows bead for instance, conglomerates accept been amidst the stronger performers afresh amidst booming appeal from Chinese consumers.

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Revenues at Kering and LVMH accept thrived acknowledgment to their corresponding Gucci and Vuitton labels, allowance them to account blips at others like Bottega Veneta or Marc Jacobs.

By contrast, Britain’s Burberry, Italy’s Salvatore Ferragamo or U.S. jeweller Tiffany were added abundantly apparent back their sales drive faltered.

These three are alive through turnaround plans, but are generally cited by analysts as abeyant accretion targets, alike admitting Ferragamo is one of a scattering of Italian family-controlled firms like Prada area the owners accept continued resisted ceding control.

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“For family-owned groups it is added aching to ability these types of decisions. But if you accept a aeon of abiding underperformance, and this continues, eventually you’ve got to do something,” said Flavio Cereda, an analyst at Jefferies, abacus that he accepted added deals in the advancing years.

Versace joins Bulgari as an archetype of family-run businesses that eventually sold. LVMH bought the Italian jeweller in 2011.

One admonition is that Kering and LVMH are absurd to appetite to booty on brands that charge too abundant fixing, advance bankers said. Kering is amidst groups that anesthetized on Versace, area advantage has faltered, sources accustomed with the amount said on Monday.

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The two French groups, which additionally battling Switzerland’s Richemont, buyer of Cartier, accept generally said they are accessible to opportunities, admitting LVMH said afresh that asset prices were high. They had no animadversion on Tuesday on their accretion plans.

Other contenders are emerging, however. China’s Shandong brought Swiss shoe cast Bally this year, and battling Fosun airtight up French couture abode Lanvin, with the two analogue ambitions to breach into luxury.

In the United States, Michael Kors, to be renamed Capri Holdings, is a battling of Tapestry, the buyer of Coach that bought backpack maker Kate Spade aftermost year.

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For conglomerates, accumulating brands can accompany accumulation and advantages.

“Of advance there are synergies, and the bigger the accumulation the added acceding ability with suppliers and landlords for example,” said Ludovic Grandchamp of Savigny Partners, an advising close focused on the retail sector.

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