Luxury Markets and Strategies презентация

Anna Sophia Viola

creativity and excellence.

Foundation in Paris in 1987
Merger of Moët Hennessy & Louis Vuitton
Global Player in Luxury Goods Industry with 70 houses in 5 major sectors
CEO Bernard Arnault

1. Company Profile (1/2)

Picture 1

[Sources: LVMH Annual Report (2016); LVMH Corporate Website (2017);
Picture 1: LVMH Annual Report (2016)]

“Our business model is anchored in a long term vision that builds on the heritage of our Houses
and stimulates creativity and excellence.
This model drives the success of our Group and ensures its promising future.”

- Bernard Arnault

and Louis Vuitton in 1987.

1743 – Foundation of Moët
1832 – Moët & Chandon #1 Champagne provider in Europe
1854 – Louis Vuitton opens his own packing and trunkmaking business in Paris
1885 – Louis Vuitton expands internationally
1969 – Louis Vuitton enters the Asian market
1971 – Merger Moët & Chandon and Jas. Hennessy & Company
1984 – Louis Vuitton goes public
1987 – Louis Vuitton and Moët-Hennessy merge in a $4 billion deal

[Sources: James Press (2000): LVMH Moët Hennessy Louis Vuitton SA History;
Picture 1: LVMH Corporate Website (2017)]

Picture 1

1. Company Profile (2/2)

into the five major BUs Fashion & Leather Goods, Wines & Spirits, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing.

2. Corporate Structure

BE CREATIVE AND INNOVATIVE


CULTIVATE AN ENTREPRENEURIAL SPIRIT


DELIVER EXCELLENCE

«The mission of the LVMH group is to represent the most refined qualities of Western "Art de Vivre" around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy».

[Sources: LVMH Annual Report (2016); LVMH Corporate Website (2017); James Press (2000): LVMH Moët Hennessy Louis Vuitton SA History]

LVMH sets the taste of qualities and the art of luxury living.

3. Company Values

means to draw target customers´ attention.

x. Marketing Approach

Picture 1

[Sources: LVMH Annual Report (2016); LVMH Corporate Website (2017); Hudson, M. (2017): https://www.thebalance.com/the-5-most-important-elements-of-visual-merchandising-2890501;
Picture 1: http://www.itsliquid.com/polka-dots-for-louis-vuitton-by-yayoi-kusama.html; Picture 2: http://cdn.pursuitist.com/wp-content/uploads/2015/01/cara-delevingne-tag_heuer_2-e1422279010295.jpg;
Picture 3: LVMH Corporate Website (2017); Picture 4: http://www.vogue.com.au/celebrity/events/fendi+great+wall+of+china+show,1283; Picture 5: http://de.louisvuitton.com/deu-de/lv-for-unicef/lv-for-unicef#/home]

Picture 2

Visual Merchandising

Celebrity Ambassador

Impressive
Staging of Events

Special Editions

Sponsorship

Picture 4

Picture 5

Picture 3

the overall goal of sustainable growth.

The elements of the LVMH strategy.

x. Strategic Approach – Sustainable Growth

Merger & Acquisition

[Sources: LVMH Annual Report (2016); LVMH Corporate Website (2017); Author unknown (2015): https://www.ukessays.com/essays/marketing/international-strategic-management-of-lvmh-marketing-essay.php]

the total revenue, achieving 37.6 bn € in 2016.

Revenue: 37.6 bn € 74% female employees 492 stores in France

x. Facts and Figures – Overview 2016

[Source: LVMH Annual Report, (2016)]

Fashion & Leather Goods
Revenue: 12.78 bn €
Top Market: Asia (40%)
Stores: 1,508

Wines & Spirits
Revenue: 4.84 bn €
Top Market: US (31%)
Top Seller: Cognac

Selective Retailing
Revenue: 11.97 bn €
Top Market: US (41%)
Top Store: Sephora

Watches & Jewelry
Revenue: 3.47 bn €
Top Market: Asia (42%)
Stores: 397

Perfumes & Cosmetics
Revenue: 4.95 bn €
Top Market: Europe (37%)
Top Seller: Makeup (44%)

1

of stores
Profit from recurring operations

Non-financial KPIs - LVMH Initiatives For the Environment (“LIFE”):
Cut energy-related emissions by 25% between 2013 and 2020
Environmental Performance Index (EPI) of its products
Best practice applied in 70% of the supply chains, to reach 100% in 2025
Environmental improvement of 10% between 2013 and 2020, valid for all Maisons, at each of their production sites and stores
By 2020, all LVMH sites must be ISO 14001-certified and must have implemented a system to ensure continuous performance improvement in their operations

x. Key Performance Indicators

[Source: LVMH Annual Report, (2016)]

environmental footprint as well as compliance of suppliers and raw materials.

7. Non-financial KPIs - LVMH Initiatives For the Environment (“LIFE”) (2/3)

LIFE 2020
lays out the goals in four strategic areas, a roadmap for LVMH’s progress and sets respective KPIs:

Sustainable product design
improving the environmental performance of all their products
sustainable design principles, which seek to reduce the environmental footprint of products over their entire life cycle
over 80% of a product’s environmental impact can be attributed to choices made in the design phase
Improve the environmental performance of all products
KPI: Environmental Performance Index (EPI) of its products

Suppliers and raw materials
pursuing a sustainable supply chain strategy by working closely with suppliers and subcontractors
purchase and produce all of their strategic raw materials in compliance with the highest environmental standards for materials and production sites alike
compliance of materials and substances used to manufacture
KPI: Best practice applied in 70% of the supply chains, to reach 100% in 2025

[Source: LVMH Annual Report, (2016)]