Luxury and Tourism : LVMH
France’s LVMH (Louis Vuitton Moët Hennessy), the world’s largest luxury group is going from strength to strength. In the first half of 2016, despite geopolitical upheavals and economic uncertainties, it bucked the trend, increasing its sales to more than €17 billion. LVMH has outperformed its closest rivals and been more profitable than many other luxury groups. The market value of the company is €78 billion and total sales for 2016 are expected to reach €37 billion.
Under the leadership of Bernard Arnault its Chairman and Chief Executive, the French conglomerate has earned a reputation for buying tottering brands and turning them into runaway successes. LVMH revived firms like Christian Dior and the Italian jeweler Bulgari etc.
LVMH’s most well-known brands and subsidiaries include, in Fashion and Leather goods : Louis Vuitton, Givenchy, Marc Jacobs, Kenzo, Fendi … ; in Wines and Spirits : Château d’Yquem, Dom Pérignon, Hennessy, Moët & Chandon, Veuve Clicquot … ; in Perfumes and Cosmetics : Guerlain, Parfums Christian Dior, Parfums Givenchy, Marc Jacobs Beauty … ; in Specialist Retailing : Sephora (Cosmetics), DFS (Duty-free shop), Le Bon Marché … ; in Watches and Jewelry : TAG Heuer, Zenith, Hublot, Bulgari, Chaumet, De Beers Diamnond Jewellers …
The watches business group is constantly gaining world market share with the connected watch of TAG Heuer a remarkable success. TAG Heuer is based in Chaux-de-Fonds (Switzerland) in the mainly French speaking canton of Neuchâtel. It has recently opened a production plant in Switzerland near the French border, employing mostly qualified French people.
LVMH has managed to maintain global leadership for decades, with a reputation for unparalleled craftsmanship, creativity and quality that people are happy to pay an extra amount for.
Sources: nytimes.com, barrons.com, ft.com, lesechos.fr
Video source : https://www.youtube.com/watch?v=l4qO91ITy3I
Online publishing, August 27th, 2016