How does LVMH become the luxury empire of today?

The formation of luxury goods groups has been around for the past 30 or 40 years. It has developed from family businesses or handicraft workshops, but almost all have a long history of more than 100 years. It is generally believed that there are three major luxury goods groups in the world: LVMH Group, Richemont Group and Kaiyun Group. Each company has a "soul" brand, which basically contributes about half of the sales of the group. Richemont Rosewholesale Coupon Code Group is Cartier, and Kaiyun Group is Gucci, LVMH Group is naturally LV.

In the brief history of pushing luxury goods, we used Louis Vuitton as a case to introduce the well-known brand history of luxury goods. With the breakdown of different business areas, today's luxury brands are dazzling, but how is the relationship between them? This is still easy to confuse. We hope to see a clearer logic by seeing business stories.

First, look at the composition of the LVMH Group today.

LVMH full name Louis Vuitton Mo?t Hennessy, is the abbreviation of three European luxury old, LV is Louis Vuitton (M) represents the nearly 300-year history of the Royal Champagne brand Moet & Chandon H is the abbreviation for Hennessy, the world's most famous brandy.

LVMH's full name Louis Vuitton Mo?t Hennessy's main business includes the following six areas: wine and spirits, fashion and leather products, perfumes and cosmetics, watches and jewelry, and boutique retail , other cultural and arts category activities, a total of 70 brands. We are more familiar with the fashion and leather products, perfumes and cosmetics and boutique retail areas. The following is a list of brands.

Fashion and Leather Products

Perfume and cosmetics

Boutique retail

LV, Moody and Hennessy

Coyote and Hennessy were founded a hundred years earlier than LV.

In 1743, Claude Moet, who was a wine merchant, established the Champagne business and went to the family's third-generation Jane-Remy Moet operation, making the Cognac brand famous all over the world. One of the most important marketing is its friendship with Napoleon, Napoleon's influence makes this Champagne brand has the reputation of "Royal Champagne".

Irish Richard Hennessy founded his own winery in Cognac in France in 1765. His business acumen was very sensitive and he extended his brand to the United States, Australia, Southeast Asia, South America, even Japan and China, making Hennessy a top wine brand.

In 1896, Louis Vuitton's son, George Vuitton, designed a totem with the LV acronym and a four-petal pattern, which became the eternal symbol and symbol of LV, and also marked the official birth of the brand. In 1898, LV extended the brand to the American market, and in 1914, it opened the first LV large-scale specialty store on the Champs-Elysees Avenue in France, and became the vanguard of the world's largest leather goods stores.

Dior appeared

The emergence of Dior is actually an important reason for the influence of the French fashion culture on the world. It is inextricably linked with the establishment of LVMH.

In October 1946, 41-year-old Christian Dior founded his own brand boutique in Paris Montaigne with the support of textile giant Marcel Boussac.

Since then, Dior's design has broken the wave of the old era, creating new French fashion women's fashion, redefining the charm of women in that era. In August 1947, Dior introduced the historically famous "New Look" autumn and winter collection, which was adorned with complicated laces to arouse people's long-deserted desire in wartime. By 1949, New Look brought the company 12.75 million francs in revenue. Only the brand Dior occupies 75% of the French government’s total clothing exports, making him a national hero in France.
New Look

At the time, refreshing elegance and a new era of clothing made Christian Dior's name known worldwide and laid the foundation for the later development of the French fashion culture. This influence has remained until today, which is an important milestone in fashion history. After the fashion, Dior launched the perfume and lipstick products, it is a pioneering move in the field of luxury brand development. However, in 1968, its perfume business was sold to Hennessy. Afterwards, the Dior brand experienced a change of owner, and both parent companies declared bankruptcy.

Arnott is waiting in the wings

The career of Bernard Arnault, known as the "father of the world's luxury goods," and also the founder of the LVMH Group, has actually Coupon Code for Shein had nothing to do with luxury goods. After completing his studies, he entered the construction company founded by his father and he worked hard to ascend until 1978. Later, due to work reasons, he went to live in the United States. During the United States, he was proud to be able to feel his hometown style. Dior was placed in the department store counter.

During the period, the two major wine merchants of Haoyue and Hennessy formally merged in 1971 to form the Moët Hennessy Wine Group.

After the 1970s, the economies of Western countries were in trouble and entered the privatization reform. France is one of them. Perhaps due to Dior's affection in mind, when Arnold returned to his hometown of France in 1984, under the privatization wave, he bought Dior's then-owned company, the Willot Group, and later renamed it Financiere Agache to the holding company. Reorganized.

At that time, as the third-generation successor of LV, LV's then-president Rakha Miyah found that merely relying on the high-end route could not achieve a re-expansion of profit, he decided to merge with Moët Hennessy Wine Group, which was selling champagne at that time. . However, after the merger, the operations of the two companies were independent and did not achieve business integration and collaboration. LVMH caught up in the equity fight and it was the stock market crash that gave Arnott a good opportunity.

In October 1987, the sudden collapse of the French stock market caused LVMH shares to fall. Arnault bought a 43% share of the group at a low price with a purse company, becoming the company’s largest shareholder and gaining absolute control of the group. Arnott officially merged the world-famous Louis Vuitton with the liquor group Moët Hennessy to form the LVMH Luxury Goods Group. Subsequently, Arnott began to reform LVMH, and the structure of the alcoholic drinks and perfumery sector was reorganized.

Father of the world luxury goods and LVMH

Someone commented on Arnott: "As long as you see a beautiful brand, he wants to put it in the bag."

After Arnault took charge of LVMH, he began to lead LVMH as an industry leader in global luxury goods. In particular, he has a high enthusiasm for the acquisition of the brand, so he began to add to the LVMH building. At the time, for example, the purchase of luxury brands, including shirt makers Thomas Pink, Chaumet jewelry, Fendi leather goods, Pucci and Donna Karan fashion, Krug champagne, and TAG Heuer.

People summed up his method in three steps: the time of purchase was concentrated in the period of economic recession; after the acquisition, “receiving and releasing freely”, selling in a Yoins Coupon Code timely manner, and re-integrating through “sell and sell”, its sub-brands remained high. Yield; he had a unique vision when choosing a designer for a brand. For example, after LV became synonymous with “Lao Qi Street Pack”, he resolutely appointed the cutting-edge designer Mark Jacob as the company's creative director, and took LV’s ancient history. Noble into modern life.

The most recent acquisition was in April last year. The Arnault family (ie, the Arnault family), the controlling shareholder of LVMH Group, purchased the remaining public shares of listed company Christian Dior SA for a total purchase price of 12.1 billion euros. Prior to this, many people misunderstood that Chirsitian Dior is one of the LVMH group brands, but in fact they have always been two independent listed companies, holding Dior Fashion and Dior Perfume Beauty respectively, and the controlling parties are Arnault family. This also means that Dior Fashion and Dior Perfume Beauty have reintegrated after half a century of separation.

Arnault once talked about the secrets of driving a brand: "The establishment of a luxury brand is much more difficult than other businesses. It needs to create a consumer demand that does not exist at all. The fashion luxury brand must follow a formula: by tapping the brand history. And use appropriate designers to interpret it to define the brand identity; strictly control the quality of the brand and sales; ingeniously create momentum and attract attention."

Recently, we also saw the first quarter of 2018 financial reports issued by major luxury goods groups. In the first quarter, LVMH's sales rose by 10% year-on-year to 10.85 billion euros. Dior's fashion business, which was acquired in June last year at a cost of 6.5 billion euros, contributed significantly to sales growth. Looking at the scale of development, LVMH is still unable to shake the world's top luxury goods group.

Business is an industry that involves a wide range of industries. Philosophy is its foundation stone. Sociology is its living background. Architecture is its container. Art is its outer garment. Psychology is its driving force for consumption. Communication is its Expand weapons.

If the value of the product comes Tomtop Promo Code from creativity, then the fundamental driving force of business development is innovation. When we expect to accelerate growth, we must persist in absorbing and accumulating innovation.