Louis Vuitton Moët Hennessy (LVMH) in Asia

Résumé du document

Louis Vuitton Moët Hennessy- is the world leader in the market of luxury products. Its net revenue in 2005 reached €14 billions and it employs 59 000 peole. As for its retail network, all over the world, more than 1700 shops have been opened. Indeed, the Group is present in 12 countries in Asia (excluding Japan). Thanks to its strong brand identity, the company has developed an international expansion. Bernard Arnault is the Chairman of LVMH. Although it was established in 1987 and enjoys an exceptional reputation as a world leader in luxury goods, the Group has realized a very quick growth thanks to its brand development strategy and the expansion of its international retail network. In Asia, it is Christian Dior which shows the greatest performance and its success has grown since the synergy with Christian Dior Couture. It has benefited from many innovations, new launches and the strength of its major classic products. For example, on the skincare segment the launch of the new Capture has been a real success. On the make-up lines, Diorskin, Collection and Backstage product lines have especially contributed to enhance the growth.

Extraits

[...] It should develop its brands through fashion parade such as Louis Vuitton's, and increase its sales by putting in place a website where women can buy on line and where they can find also advice and services. And to entice sales, the Group should keep on creating limited collection and products in order to generate the exclusivity of the clients . Moreover, LVMH managed to spread its identity and culture all around the world, by patterning a lot of projects. [...]

[...] Moreover, the efforts made by the Group to assure a coherent strategy within the different department and sectors have delivered excellent operationnal and financial results. Indeed, profit from recurring operations strongly increased thanks to a better productivity, an increase in revenue due to constant innovation across all the activities and finally an improvement in profitability in the Watches & Jewelry and Selective Retailing businesses. LVMH's growth model still proves its efficiency. The international development of all its businesses is one of its key strenght. The Group is pursuing its expansion in Asia but also in Central and Eastern Europe. [...]

[...] What strategy did the group set up to penetrate into the Asian market and which were the consequences of these options? What were the key factors of its phenomenal success in Asia? Furthermore, did LVMH apply the same strategy for all its companies and for all the sectors or he knew how to adapt its strategies according to the various brands? Does LVMH adopt a particular strategy for the Asian market? What was the role of Japan and China in the success of LVMH in Asia? Finally, did LVMH win its Asian challenge? [...]

[...] Revenue at June by geographic region delivery (source: LVMH First Halff 2006 Interim Report) Sephora for example achieved remarkable results in the first half o the year. It has boosted its revenue growth and has gained market shares. DFS continues strengthen the presence of luxury brands, and quality of the environment and services offered in its Gallerias. It is currently working on establishing its presence in Macao, at the site of the Four Seasons Hotel in order to meet its objective of increasing its Chinese clientele. [...]

[...] Internal analysis of LVMH Strenghts Brand recognition: LVMH and especially Louis Vuitton is the more famous and popular luxury brand in Asia. So there is a high brand awareness and a good image. Leading position : LVMH is the leader of luxury goods in Asia. It is the world's largest luxury-goods maker. High quality products: LVMH focused strongly on the quality of thier products. They have a high level of autocontrol, they have high quality materials and most of their products are hand made and are produced in France or Europe. [...]