LVMH vs. GUCCI
Louis Vuitton is the biggest player in the market of luxury goods and also Gucci’s
The rivalry stems from a failed takeover attempt of Gucci by LVMH. When Gucciwas down on its luck Arnault, then on the board of LVMH, turned the prospectivedown as he did not consider it profitable enough. Then Gucci made a historicalcomeback from a $400 million reject to a highly viable $8 billion business inaround 2000, making Arnault regret the decision. By 2001, LVMH, under Arnault,
had spent $1,4 billion in trying to get 34% share in Gucci.
The rivalry between the two biggies is fierce, where competition ranges fromacquiring of stores to talent, brands and publicity.
The two firms sit astride the luxury goods industry like Montagues and Capulets,
proud and powerful houses forever trying to one-up each other, constantly vying
for the talents of some comely new prince or princess.