Case Study: The LVMH Moet Hennessy-Louis Vuitton
The LVMH Moet Hennessy-Louis Vuitton group was founded in 1987 due to the merge between Moet Hennessy and Louis Vuitton. This merge made the company the largest marketer of luxury products and brands globally consisting of more than 60 brands and sales totaling $28 billion (€20.3 billion). The company owns many stable brands across a wide variety of categories that ensures their strong position in luxury goods. Proof of their success is presented through their sales and financial breakdown, analysis of the product portfolio, and a geographical outline of their global position.
Sales and Financial Data:
LVMH recorded revenue of 29.1 million euro in 2013, which is a 4% increase from 2012. LVMH maintained their sales in the US and Asia, all while …show more content…
It is the most sought after in luxury goods and it acts as an ambassador for LVMH at whole. In 2013, Louis Vuitton expanded and renovated its boutiques worldwide and continued to add more stores, notably to the Hong Kong “Times Square” location. Louis Vuitton still remains the ultimate status symbol for many. Since there is an ongoing phenomenon for luxury goods in the United States, Louis Vuitton has an advantage because of its reputation. In 2012, LVMH acquired Arnys, a menswear tailoring business, which they combined with their own Berluti brand. Berluti, which had a focus on footwear previously, is now switching focus onto a “ready-to-wear” menswear brand. Berluti has profited from a 20-store global expansion plan in 2013 that added two Shanghai locations to its current Chinese presence. Berluti’s ready-to-wear products have been included in all the Chinese locations. LVMH has shown little interest into expanding Berluti to the US, due to the fact that Chinese men will outspend American men when buying designer