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Article

Open Access

An Analysis of Chinese Acquisitions of Made in Italy Firms in the Luxury Sector

Author(s)

Alessandra Vecchi, Louis Brennan

Full-Text PDF Download XML 6613 Views

DOI:10.17265/1537-1506/2014.03.005

Affiliation(s)

Alessandra Vecchi, Assistant Professor, Department of Management, University of Bologna.
Louis Brennan, Associate Professor, School of Business, Trinity College Dublin.

ABSTRACT

Outward Foreign Direct Investment (OFDI) from emerging economies has begun to increase significantly and has been growing at a faster pace than Foreign Direct Investment (FDI) from the developed world. This research seeks to assess the impact of Chinese acquisitions and their implications for the “Made in Italy” luxury sector and its firms. This paper presents a cross-case analysis of two Chinese acquisitions in order to provide some in-depth insights into the influences and the motives driving Chinese firms to invest in the luxury Made in Italy sector, the patterns and modes of the Chinese acquisitions as well as the competitive strategies and the distinctive challenges that both investors and acquired firms have to face. From the findings, it emerges that both the investor and the acquired firm need to overcome several key challenges to be mutual benefits from the acquisition.

KEYWORDS

Chinese acquisitions, Made in Italy, luxury sector

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