Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French Conglomerate and the largest producer of luxury goods in the world. It is the Parent company with over 50 daughter concerns that are mostly autonomous. Each daughter company in turn manages a number of world renowned brands. The LVMH was formed when Moët et Chandon, one of the world’s largest champagne manufacturers, merged with Hennessy, a leading cognac manufacturer. A further merger with the Louis Vuitton fashion house in 1987 resulted in the LVMH group in its present form.
The LVMH group is owned partially by the Christian Dior fashion house, which controls 42% of the assets of the group. The Chairman and CEO of both the LVMH group and the Christian Dior fashion house is Bernard Arnault, who has successfully integrated various unrelated brands into the group. The oldest brand of the LVMH group is Château d'Yquem, the premium vintage wine producer, whose origins date back to 1593. The group figures on the CAC 40 index. According to 2007 estimates, the LVMH group earned revenue of 16.5 billion euros. There are over 2000 stores worldwide that are operated by the LVMH group. In 2001, a joint venture was launched between De Beers diamond group with the LVMH group for the establishment of the De Beers retail brand.
The LVMH group’s luxury plan strives to exercise strict control over the brands managed by it to accentuate the perception of exclusivity and luxury associated with the LVMH brands. For example, products belonging to the Louis Vuitton label can be acquired through Louis Vuitton boutiques situated in upmarket localities of wealthy cities, or through exclusive luxury goods stores. This practice brings out the contrast between the brands owned by the LVMH group and other brands, which are less exclusive, and can be acquired from shopping malls worldwide. The activity of the LVMH group is spanned over five key sectors: Wine & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective retailing.
LVMH has grown steadily over the past few years to become a global leader in luxury items. It has an impressive portfolio of some of the most trusted names in the sector. The company is also actively involved in community projects and has taken several initiatives to contribute towards human development. It has community projects such as LVMH-ESSEC Chair, LVMH House and also makes available LVMH Asia Scholarships. It also understands its responsibility towards the environment and has taken steps accordingly. In 2003, the LVMH group enforced the environmental charter by joining the United Nations’ Global Compact, an initiative launched by Kofi Annan, the then Secretary General of the UN.
· The LVMH group headquarters are situated in Paris, France.
· The group employs 71,885 people according to 2007 figures.
· 74% of the employees of the company are employed outside France.
http://en.wikipedia.org/wiki/LVMH - accessed on July 15, 2008
http://www.lvmh.com- accessed on July 15, 2008
http://uk.reuters.com/article/internetNews/idUKL2910194320080701-accessed on July 15, 2008
LVMH, Louis Vuitton, stores, luxury, brands