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Lvmh Report

4140 words - 17 pages

LVMH Moet Hennessy Louis Vuitton is an international group of companies engaged in production and sale of luxury goods. The group is active in a number of global markets including wines and spirits, fashion and leather goods, fragrances and cosmetics, jewelry and selective retailing sectors. LVMH operates about 1,859 stores worldwide. LVMH Moet Hennessy Louis Vuitton possesses a portfolio of over 60 premium brands such as Louis Vuitton, Christian Dior and TAG Heuer, which provide it with a competitive advantage.

LVMH is organised into six divisions, each division functions as an SBU (Strategic Business Unit) with its own General Manager and management team.

Wines and Spirits

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Fragrances and Cosmetics

This division manages brands such as Christian Dior, Guerlain, Kenzo, and Givenchy. The company also acquired popular American brands such as Bliss, Hard Candy, Urban Decay, and Fresh that are geared toward a younger audience. Europe holds the largest market for fragrances.

Watches and Jewellery

In watches, the company own prestigious brands that included Tag Heuer, Hublot, and Zenith, and Fred and Chaumet in jewellery. Unlike its other divisions, it is thought that the company has not quite the same kudos with regard to watches and jewellery. Competitors such as Cartier, Hermés, and Bulgari seemed to have more recognisable brands and more upscale products in this category.

Selective Retailing

The vertical integration strategy of LVMH came to fruition when the selective retailing division was established. This division managed LVMH investments in Sephora, DFS, Le Bon Marché, Samaritaine and Miami Cruiseline Services.

Other Activities

Another facet to the LVMH empire is that of their investment into Groupe Les Echos, the media group offering several business, arts, finance and cultural publications. Another acquisition is that of the Royal Van Lent Shipyard, the Dutch ‘super-yacht’ yard, building luxury yachts with first class facilities.


Political development in the country
Taxtion, noise and pollution regulation

Economy is booming in emerging market.
LMVH has great potential in these countries particularly the developing 
ones , as the rich are getting richer and getting more confident in 
flaunting their wealth . and the rest of the world is recovering form krises which also incearse LVMH sales. Other important fator are : Exchange rates, Financial situation each particular buyer

The aconomy is booming again . The rich are getting richer . The women are 
at good positions and earning money . even in the developed contries they are getting independent and 
want to flaunt their wealth Firstly the culture that prevails in Asia is very different from LMVH 
home country-France . out of first world countries , most of the regions still have a 
conservative mentality and collectivism is over individualism .
This also means that luxury goods are purchased which appeal not only to 
one self esteem but also the approval of other groups in the society are 
of particular importance . This is especially true in the societies of 
China and India , Russia and Latin America.
Those changes in socioeconomis structure palys a very important role..

Technology is on a boom particularly in development of new materials, new technologies , new production ways. People are 
adapting the new ways of technology very rapidly . This means that 
this factor favors LMVH as such advancement makes communication even to the new 
potential target market much easier and the task of selecting 
communication medium more efficient . For example , through...

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