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LVMH Moët Hennessy • Louis Vuitton S.A. (LVMH), is a French holding company and one of the world's largest luxury goods conglomerates. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group. The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies.
To represent the most refined qualities of Western "Art de Vivre" around the world. In view of this mission, five priorities reflect the fundamental values shared by all Group stakeholders: - Be creative and innovate - Aim for product excellence - Bolster the image of their brands with passionate determination - Act as entrepreneurs - Strive to be the best in all they do
In 1743, one of the descendants of the nobles Moët brothers, Claude Moët, founded the Maison Moët. His grandson, Jean Rémy Moët, transformed this trading company into the world's leading luxury brand which, has been the veritable embodiment, around the world, of the genius of champagne. Moët & Chandon is still, and more than ever before, the symbol of pleasure, grandeur and pure celebration. LVMH held 40% of the cognac market and 20% to 25% the overall champagne market.
Louis Vuitton, a trunk-maker in Paris since 1854, became a legend in the art of travel by creating luggage, bags and accessories as innovative as they were elegant and practical. A century and a half later, the legend is embodied by the Monogram canvas, and played a starring role in the development of modern luxury. Louis Vuitton is now active in other creative spheres like: ready-to-wear, shoes, watches, jewellery. Under the artistic direction of Marc Jacobs, the new collections met with immediate success and renown. 60% of sales in this division are concentrated in the Asia-pacific region.
Innovation – The House Christian Dior's designs dresses, creates perfumes and invents make-up looks for women. Sexy – Make-Up Dior created the "Looks", complete ranges of products evolving as seasons go by. Each year, new collections offer daring creative and vibrant shades. Beauty – Skincare Dior set up its own research laboratory: Dior Science. At the Innovation Centre, 200 experts work each day to create and develop more and more efficient products. Dream – Fragrance There is a Dior fragrance to suit each woman, whether she is sophisticated, sensual, natural or elegant… Daring as well as floral, Dior fragrances all express a state of mind, a way of life.
From a small workshop in the Swiss Jura mountains, TAG Heuer has transformed into a watch making legend. Recognized throughout the world for its luxury sports watches and pioneering work in chronographs . TAG Heuer watches epitomize prestige and performance and brilliantly fuse technology with design.
DFS Group Limited is the world's leading luxury retailer catering to the travelling public. Its strength lies in its strategic brand partnerships, groundbreaking store and product development, superior assortments, and targeted marketing programs. DFS covers the world, employing more than 6000 people in its offices, DFS Gallerias, airport shops, and other stores.
•Groupe Les Echos has several business, finance, arts, culture publications: Les Echos Investir Investir Magazine Investir.fr Capital Finance Radio Classique Connaissance des Arts CLASSICA Le Salon des Entrepreneurs Les Echos Conférences Les Echos Formations Les Echos Editions Les Echos Institut
LVMH draws an estimated 80% of its profits from Vuitton, thus propping up less-successful units, from the DFS duty-free retail chain to couturiers Christian Lacroix and Givenchy. Their wine/spirits unit possessed the number one champagne/cognac, and even more importantly, the unit shows signs of a growing market. Their fashion/leather goods outpaced many of their key rivals. The perfume/cosmetic unit witnessed an increase in growth rate, and led to an opportunity for LVMH but they were only ranked #7 in the industry, giving them something to work to improve. Parfums Christian Dior, demonstrating its exceptional image and its roots in the world of couture, once again outperformed its competitors.
Fendi had continued the growth curve experienced in 2007 and that the Marc Jacobs, Donna Karan, Kenzo, Pucci and Loewe labels had all performed strongly. Chaumet, the prestige jeweler on Place Vendôme in Paris, continues its targeted global expansion. Fred enhances its identity as a contemporary jewelry designer and De Beers affirms its positioning as a diamond jeweler.
The famous luxury brands LVMH controls: Champagne, Wine, Cognac, And Brandy Moet & Chandon Fashion
Dom Perignon Hennessey
Berluti Christian Lacroix Givenchy Louis Vuitton Donna Karan
Christian Dior Givenchy Hard Candy Fresh Urban Decay Ebel Tag Heuer
LVMH Chairman Bernard Arnault, it has already quintupled sales and increased margins sixfold since he bought the company in 1989. LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €7.8 billion in the first half of 2009, reflecting a slight increase over the same period in 2008 despite the crisis and a high comparable. Profit from recurring operations came to €1,363 million. It increased tangibly in the brands that control their distribution, like, for example, Louis Vuitton. But the real winner of the quarter was the watches and jewelry group , which posted 12% revenue gains over the year-earlier period. Strength came from brands including TAG Heuer, Zenith and the Christal collection from Dior. The company added that Chaumet and De Beers also continued their retail expansion plans and increased revenues.
Their products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. What makes Vuitton unique, in fact, what makes the most profitable luxury brand on the planet is the relentless focus on quality. There's the rigidly controlled distribution network. Jacobs' fresh, unfussy aesthetic was a perfect fit, and the new ready-to-wear and shoe lines that he has introduced draw younger customers in the door. Jacobs teamed up with Japanese artist Takashi Murakami on a multicolored line of bags, incorporating images like cherry blossoms and eyes into the traditional LV monogram and adding shiny metal trim. They have some elements that are striking, while retain the history. LVMH produced products that nobody needed, but that were desired by millions across the world.
In order to achieve long-term success, LVMH decided it would best be achieved through artistic creativity, technological innovation, and attention to detail. Image meant priceless and irreplaceable. There are five main aspects to the strategy of LVMH, they are product quality, innovation, image, craftsmanship/production process, and risk tolerance. Louis Vuitton is also selling a certain idea of France… a brand that represents a mythical France, one of which neither the French nor the outside world can get enough. The theme of the last Louis Vuitton fashion show —"Girl with the Monogram handbag"—has the colors and textures inspired by Vermeer and the golden age of Dutch painting.
Vuitton must build sales in the U.S. while tapping into rising affluence in China and India. Vuitton tried to outpace its rivals as it carefully opened boutiques around the world. Arnault is especially pleased that the U.S. stores, which once posted 75% of their sales to Japanese tourists, now are thronged with local shoppers who account for 85% of sales. That's helping Vuitton reduce its risky dependence on Japanese customers. Vuitton's sales in Japan grew 12% last year -- respectable, but lower than companywide sales growth. LVMH recently launched its watch & jewellery division in India. TAG Heuer and Christian Dior, two of the group's star brands, will herald their entry into the country, said to be an extremely important and promising market for them.
China has become the biggest market for Hennessy cognac and is the second largest customer base for Louis Vuitton worldwide. The Group’s more recent moves are also very promising. Glenmorangie and Benefit have been hugely successful in Asia, Sephora in Eastern Europe, Marc Jacobs in Europe, Hennessy in Vietnam etc.
Japan: Must win market.(Triad) They are big buyers of luxury brands. Japan accounts for 33% of fashion and leather category. 20% of Christian Diors sale is from Japan The brand image is everything in Japan were there is little difference between the rich and the poor. Large percentage of single, working women. China: Has a huge population. Growth rate of 8% and negative inflation rate. Policies of the govt are favourable for luxury brands. Annual growth rate of premium cosmetic market was a significant 30%.
Yes , if the purchasing power of the new middle class increases then it is good for LVMH as the customers who can afford it increases .
But LVMH should reach this market segment without tarnishing its brand. They should not decrease the price of their products. Maintain only exclusive shore rooms.
With their other business acquisitions, LVMH was able to pick up print publications, newsletters, a radio network, an advertising company, press agency, and Internet sites. Think Louis Vuitton, and what comes to mind is most likely, it's those glossy ads -- the ones with supermodels draping their lithe frames over Vuitton luggage against a striking gold-andturquoise desert landscape. Or the crowd of Hollywood celebs, fashionistas, and even Rudy Giuliani, partying at a champagne-soaked 150th birthday party for Vuitton in a tent next to Lincoln Center in New York. Or the sleek new Vuitton retail temples, from Fifth Avenue to Tokyo's fashionable Omotesando district, where shoppers plunk down $1,000 and up for a handbag in the new Murakami line. Vuitton trades brilliantly in the stuff of desire and ego.
LVMH has all advertising done by the design team, as opposed to the marketing team. This is in effort to keep proximity between the product and its message. Craftsmanship and the production process are carefully planned out each step of the way. Louis Vuitton does an excellent job in advertising, public relations and celebrity events to create their luxurious and exclusive image, and the actual experience with store outlook and interior decoration, product and prestige feeling are synchronized with customer expectations and echoed through Louis Vuitton’s brand values. Louis Vuitton has come with a new advertising strategy & is the first fashion company to found its own architecture group, which the label hopes will spread a "glowing image" throughout the world. Vuitton is not prepared to reveal the exact costs of its architecture project, but the Wall Street Journal estimates that each building will cost about ten million euros.
The Louis Vuitton Moët Hennessy (LVMH ) Watch and Jewellery account has finally found its media house in India, Starcom MediaVest. LVMH has named a small New York interactive advertising shop, Morpheus Media, as its agency of record for all of its United States online marketing strategy and execution across its brands. LVMH consolidated Middle East media brief to Dubaibased OMD Strategies, a dedicated unit created by OMD and its Paris-based strategic partner, Strategies International. LVMH has awarded the public relations and strategy planning accounts for flagship cognac brand Hennessy VSOP and champagne Moët et Chandon to be handled jointly by the two agencies, while Proximity Live will manage Moët et Chandon and fellow champagne Dom Perignon. FleishmanHillard is set to look after several of the wine brands.
Louis Vuitton Moet Hennessy is talking to advertising networks about the global creative account for its Hennessy Cognac brand. Advertising for the brand has been sporadic in the past but LVMH is said to want to increase activity. Hennessy's advertising, which is currently confined to press work, is produced in-house. LVMH's agencies include Rainey Kelley Campbell Roalfe/Y&R, which handles creative for Moet & Chandon Champagne, and Euro RSCG Wnek Gosper, which produces work for Louis Vuitton accessories. Carat handles LVMH's pounds 60 million pan-European media account.
Louis Vuitton, which received its own TV commercial this quarter, in addition to recently inking a deal to have Rolling Stones' guitarist Keith Richards star in its current print campaign. Internationally-renowned actress and director Sophie Marceau is the star of the new Chaumet advertising campaign, the story of an encounter with love entitled "L'Empire des sentiments". A magical perfume, an exceptional casting: Charlize Theron, one of Hollywood's most famous stars is the face of the perfume J’adore. TAG Heuer once again explores exciting creative territory with a skillful staging of the core values for the new season: force and beauty. Everything resides in the inimitable looks of this singular team of ambassadors… Tiger Woods and the mythic Link series, Maria Sharapova and the TAG Heuer Formula 1 Diamonds, or Kimi Räikkönen and the the Carrera models.
DKNY Jeans taps street style pioneer for new ad campaign by calling on photographer Scott Schuman, aka The Sartorialist, to shoot the Spring/Summer 2009 ad campaign for DKNY Jeans. The new Louis Vuitton Fall/Winter 2007-2008 ad campaign is all about feminine sensuality, infused with 1950’s Hollywood glamour. Gorgeously shot by photographers Mert Alas and Marcus Piggott, Scarlett Johansson incarnates the ultimate femme fatale with her platinum blond hair and languorous poses. Luxury watch brand Tag Heuer is looking at qualitative development than a quantitative one. To achieve that, LVMH Watch & Jewellery International plans to allocate a key part of its investment to focus on advertising and building the brand in India.
The unstoppable Kate Moss is more gorgeous than ever in her latest ad campaign, for Fred Joaillier, the Parisian jeweler established in 1936 and now part of LVMH. The ad shot in beautiful black and white by famed photographer Patrick Demarchelier, shows Kate at her most classic sporting a small fortune in diamonds. Vuitton's upcoming spring Louis advertising campaign features a bronzed Gisele Bundchen lounging poolside at a private home called Palacio de Salomon in Ibiza, Spain.
As an encore to this past spring, LVMH has brilliantly combined three powerful iconic visionaries of our time to create this wonderfully artistic new series for the Persian fashion house. The Queen herself, Madonna, photographer extraordinaire, Steven Meisel, and design luminary, Marc Jacobs have mixed beyond beautifully to create fashion porn in this exquisite ad campaign.
While Marc Jacobs’ ad campaign collaborations with Juergen Teller have inspired cult fans to look beyond the typical product-placements and see the Marc Jacobs world from the indie perspective he lives within, the Dolce & Gabbana ad campaigns create the very concept of provocation that the designers take inspiration from.
While most luxury groups cut their ad budgets in 2003 Vuitton boosted spending an estimated 20%, including a global campaign featuring Jennifer Lopez. In 2004’s campaign, shot in the Dubai desert, featured supermodels including Naomi Campbell and Kate Moss. Vuitton's advertising strategy used to be modest, too modest. Now they've taken it to a new level. Even so, Vuitton is so big that analysts reckon it spends only about 5% of revenues on advertising, half the industry average. Advertising Age estimated global measured advertising expenditure of $584m in 2007, making LVMH the world's #61 advertiser.
Brazilian Supermodel Gisele Bundchen Becomes New Face For Louis Vuitton as Luxury Brand Expands in China. First there was Jennifer Lopez, Scarlett Johansson, Diane Kruger, Christina Ricci and Chloe Sevigny. For the past two years, actress Uma Thurman was it. NBA Star Yao Ming, Superstar Sushmita Sen, Priyanka Chopra, Shahrukh Khan & Tiger Woods joins TAG Heuer as Global Brand Ambassador.
As Vuitton expands, other hazards appear. Counterfeiting has risen sharply in the past five years, largely because of China. Interestingly, Chinese spurn the fake bags, which are mainly exported to Europe and the U.S. or sold to tourists. Pressed by Vuitton, Chinese authorities closed one factory last July in Guangzhou. Another menace would be the departure of key personnel. Early in 2004, there was speculation that Jacobs might leave unless LVMH gave more backing to his clothing line. But his contract ran until 2008, and Arnault has been singling out Jacobs' label as a rising star in LVMH's portfolio. For Vuitton, the biggest challenge may be to keep this powerful machine under control. The company opened 18 stores last year, about twice the rate of store openings a decade ago. Vuitton markets itself as an arbiter of style, it needs to keep convincing customers that they're members of an exclusive club.
Well entrenched player in Europe and North America. Gucci originally started as a reseller of luggage imported from Germany. As of 2003, Gucci Group had 348 directly operated stores. It was the second-largest luxury goods company in the world. Major player in Jewellery and Watches. Sales of watches and Jewellery accounted for 70% of total luxury products sales in 2000.
Relied on single-branded strategy. Products mainly clothing , fragrance and leather accessories. Japan accounted for 25% of its sales in 2000.
It operated in seven luxury segments including watches, perfumes, jewellery etc. Substantial part of its revenue was from watches and jewellery Customers were mostly first time buyers. Asia pacific accounted for 36% of its sales.
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