LVMH
Getty Images / Bertrand Rindoff Petroff
WHAT DOES LVMH STAND FOR?
LVMH stands for Louis Vuitton Moët Hennessy. It is a French multinational luxury goods conglomerate that was formed in 1987 through the merger of fashion house Louis Vuitton, champagne and spirits company Moët et Chandon, and cognac manufacturer Hennessy.
ESTABLISHED
1989
HEADQUARTERS
Paris, France
FOUNDER
Bernard Arnault & Alain Chevalier
CEO
Bernard Arnault
LVMH BRANDS
LVMH (Louis Vuitton Moët Hennessy) owns a diverse portfolio of over 75 luxury brands (2021) in various sectors such as fashion and leather goods, perfumes and cosmetics, watches and jewelry, wines and spirits, and selective retailing. Some of the most notable brands under LVMH include:
Fashion and Leather Goods: Louis Vuitton, Christian Dior, Fendi, Celine, Loewe, Kenzo, Marc Jacobs, Emilio Pucci, Givenchy, and Berluti.
Perfumes and Cosmetics: Guerlain, Parfums Christian Dior, Benefit Cosmetics, Fresh, and Givenchy Beauty.
Watches and Jewelry: Bulgari, Tag Heuer, Hublot, Zenith, Fred, Chaumet, and Tiffany & Co. (acquired in 2021)
Wines and Spirits: Moët & Chandon, Veuve Clicquot, Dom Pérignon, Hennessy, Glenmorangie, Ardbeg, and Belvedere Vodka.
Selective Retailing: Sephora, Le Bon Marché, La Samaritaine, DFS, and Starboard Cruise Services.
LVMH’s portfolio of brands is constantly evolving, and the company has a history of acquiring new brands and integrating them into its business model.
LVMH ACQUISITION HISTORY
LVMH (Louis Vuitton Moët Hennessy) has a long history of strategic acquisitions that have helped to grow and diversify its portfolio of luxury brands. Here are some notable examples of LVMH’s acquisition history:
1987: LVMH was formed through the merger of fashion house Louis Vuitton, champagne and spirits company Moët et Chandon, and cognac manufacturer Hennessy.
1996: LVMH acquired fashion house Marc Jacobs.
1999: LVMH acquired fashion house Givenchy.
2001: LVMH acquired fashion house Emilio Pucci.
2006: LVMH acquired watchmaker Hublot.
2011: LVMH acquired Italian jeweler Bulgari.
2012: LVMH acquired Italian cashmere brand Loro Piana.
2013: LVMH acquired French luggage maker Rimowa.
2017: LVMH acquired French perfume house Maison Francis Kurkdjian.
2018: LVMH acquired luxury hotel chain Belmond.
2020: LVMH announced plans to acquire American jewelry company Tiffany & Co., which was completed in 2021.
LVMH’s acquisition history demonstrates the company’s strategic focus on expanding its portfolio of luxury brands in various sectors, as well as its willingness to invest in well-established and iconic brands.
IS LVMH A CONGLOMERATE?
Yes, LVMH (Louis Vuitton Moët Hennessy) is a conglomerate, meaning it is a corporation that consists of multiple distinct businesses operating in different industries. LVMH’s businesses span across the luxury goods sectors of fashion and leather goods, perfumes and cosmetics, watches and jewelry, wines and spirits, and selective retailing. By owning and managing multiple luxury brands, LVMH is able to leverage synergies between its businesses and benefit from economies of scale in areas such as marketing, distribution, and procurement. LVMH’s status as a conglomerate has also allowed it to weather economic downturns and changes in consumer trends by having a diversified portfolio of brands.
WHAT ARE THE KEY PRINCIPLES OF LUXURY LVMH?
LVMH (Louis Vuitton Moët Hennessy) has several key principles that underpin its approach to luxury.
These principles include:
Creativity and innovation: LVMH places a strong emphasis on creativity and innovation in its products, designs, and marketing. The company strives to develop unique and innovative luxury products that stand out in the market.
Quality and craftsmanship: LVMH is committed to producing high-quality luxury goods that are crafted using traditional techniques and the finest materials. The company has a strong focus on attention to detail and artisanal craftsmanship.
Exclusivity and rarity: LVMH seeks to create luxury products that are exclusive and rare, with limited production runs and unique designs that are not widely available.
Timelessness and longevity: LVMH’s luxury products are designed to be timeless and enduring, with classic designs that are not subject to trends or fads. The company seeks to create products that can be enjoyed for generations to come.
Exceptional customer experience: LVMH places a high priority on providing exceptional customer experiences, both in its physical retail stores and online. The company strives to create a luxury shopping experience that is memorable and personalized for each customer.
Overall, LVMH’s key principles of luxury are focused on creativity, quality, exclusivity, timelessness, and exceptional customer experience. These principles have helped the company to build some of the world’s most valuable and iconic luxury brands.
WHO IS THE COMPETITOR OF LVMH?
LVMH (Louis Vuitton Moët Hennessy) competes with several other luxury goods conglomerates, as well as individual luxury brands. Some of its main competitors include:
Kering: Kering is another French luxury goods conglomerate that owns and manages brands such as Gucci, Bottega Veneta, Saint Laurent, and Balenciaga, among others.
Richemont: Richemont is a Swiss luxury goods conglomerate that owns and manages brands such as Cartier, Montblanc, Jaeger-LeCoultre, and Piaget, among others.
Chanel: Chanel is a privately-owned French luxury fashion and beauty brand that competes with LVMH in the fashion and fragrance sectors.
Hermès: Hermès is a French luxury fashion and accessories brand that competes with LVMH in the fashion and leather goods sectors.
Prada Group: Prada Group is an Italian luxury fashion and accessories conglomerate that owns and manages brands such as Prada, Miu Miu, and Church’s, among others.
Overall, LVMH competes with other major luxury goods conglomerates and individual luxury brands across various sectors of the luxury goods market.
1593
King Henry IV grants letters patent of nobility to the family of Jean Dieudonné Martell. This marks the start of an ongoing lineage that would go on to establish the Martell Cognac brand.
1743
Moët et Chandon is established by wine trader Claude Moët. The company quickly gains recognition for its exceptional Champagne.
1765
Richard Hennessy sets up his own business and founded the House of Hennessy. Born into an aristocratic family in the County of Cork, Ireland, he emigrated to France to serve in the armies of Louis XV before becoming a successful trader.
1787
Veuve Clicquot, one of the world's most prestigious Champagne houses, is founded by Philippe Clicquot.
1827
James Hennessy, Richard's son, and his cousin create the company J. Hennessy & Co.
1854
Louis Vuitton, a trunk-maker in Paris, establishes his own company after gaining recognition for his designs.
1876
Thomas Burberry, a 21-year-old draper's apprentice, opens his first store in Basingstoke, Hampshire, England.
1906
Guerlain invents the "cold cream" or "Crème à la Froid" to cater to the needs of customers who required makeup removal and skincare.
1930
Marc Jacobs, the iconic American designer, is born.
1971
Kenzo, the Japanese-French luxury house, is founded by Kenzo Takada.
1987
Moët Hennessy and Louis Vuitton merge to form LVMH, a multinational conglomerate specializing in luxury goods.
1999
Emilio Pucci, Fendi, and Marc Jacobs join the LVMH Group.
2000
The start of the new millennium sees Thomas Pink, Donna Karan, and Tag Heuer joining LVMH.
2001
Emilio Pucci becomes a part of LVMH.
2011
Bulgari joins the LVMH Group, adding its rich heritage and superior craftsmanship to the conglomerate's portfolio.
2013
Loro Piana becomes part of the LVMH Group, renowned for its sublime quality of cashmere and wool products.
2018
The luxury hotel group, Belmond, is added to the LVMH portfolio.
2019
Iconic jeweler Tiffany & Co. becomes part of the LVMH Group.
2021
Celebrating its 20th year, the LVMH Young Fashion Designer Prize continues to promote the emerging talents of the fashion world.
LVMH completed the purchase of Tiffany in January 2021. In 2021, with a valuation of $329 billion, LVMH became the most valuable company in Europe
2022
In January 2022, LVMH acquired a minority stake in the New York-based label Aimé Leon Dore for an undisclosed sum. The investment was made through the conglomerate's LVMH Luxury Ventures arm. March 2022, LVMH announced the closure of its 120+ stores in Russia, "given the current circumstances in the region",due to the Russo-Ukrainian War. An LVMH spokesperson stated the company would continue to pay salary and benefits to its 3,500 employees in Russia. In November 2022, it was announced LVMH had acquired the Piedmont-based jewellery maker Pedemonte Group.
2023
On 24 April 2023, LVMH became the first European company to reach a $500 billion valuation.
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