Louis Vuitton Möet Hennessy (LVMH) is the largest multi-brand conglomerate in the luxury industry. During recession, when consumers were hesitating before splurging on a luxury item, LVMH constantly beat industry estimates. To geographically diversify much before its competitors, it strategized to tap into new markets in Asia. Since then, its growth rate has always been in double digits, irrespective of the market conditions. However, its chief revenue generators, Louis Vuitton and China, are seeing a churn in their environments. The buying behavior of millennials is entirely different than their parents. Macroeconomic conditions such as currency appreciation or depreciation, crisis in the Middle East, Russia, Africa, falling oil prices and falling demand in the commodity market have started disturbing the group’s growth rate. At the same time, the Chairman and CEO, Bernard Arnault is getting closer to his retirement date. The case discusses about the changing times, the changing luxury environment, the new image, new generation and probable new ways of managing a multi-brand conglomerate.
SOM, A. (2016). LVMH: New Generation New Image. ESSEC Business School.