External Analysis

External Analysis
LVMH – Fashion & Leather Goods
External Analysis
Faurum Doshi
LVMH Summary
LVMH, known as Moët Hennessy Louis Vuitton, is a French conglomerate and the largest producer
of luxury goods in the world. LVMH was formed in 1987 with the merger of Moet et Chandon a
champagne manufacturer, Hennessy a cognac manufacturer, and Louis Vuitton a fashion house.
The LVMH group is comprised over five sectors: Fashion & Leather Goods, Wine &
Spirits, Perfumes & Cosmetics, Watches & Jewelry, and Selective retailing. This external
analysis will focus on the fashion and leather goods sector, which accounts for 30% of the
company's total revenue. Analytical Tools
To grasp a better understanding of the fashion and leather ... Show more content on Helpwriting.net
...
Nearly 25% of Louis Vuitton sales come from Asia.
Sociocultural Factor
LVMH has a wide range of consumers from different backgrounds. It is imperative that they are
aware of religion, race, culture, and buying habits in every country. For instance, worldwide people
are more dependent on the Internet, signifying that the methods of how people purchase goods are
changing.
With high rates of travel within US and abroad, there is a greater demand for luggage and leather
accessories.
Technological Factor
Technological advances in machinery and management software can assist in forecasting demand,
managing inventory, and speed up production. There are many tools that industry participant's use: *
Management information systems (MIS) and electronic data processing (EDP) * Consist of full
range of retail, financial, and merchandising systems * PC–based point–of–sale (POS) * Equipped
with barcode readers * Electronic barcode scanning systems
Ecological Factor
With an increase awareness of animal cruelty and environmental issues, the luxury goods industry
should be familiar with the ecological concerns. Ecological trends could influence consumers
purchase decisions as well as the perception of the brand.
Legal Factor
All fashion and leather goods industry will have to comply with rules and regulations. LVMH
should be

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Corporate Social Responsibility Components Of The Company
Corporate Social Responsibility components
Corporate social responsibility of the company manifests itself not only to customers but also
employees and environment. In the brand's core there are based principles of respect and
understanding for the normal functioning of all processes starting from the development and
production to marketing and sales of finished products. The LVMH values in people their interests,
needs and values (Social Responsibility, n.d.). This policy is ideally focused on developing new
ways of production and using raw materials and resources in innovations according to environment
changes. That is why, one of the most important parts in production of product plays The LVMH
Environmental Department. The main objectives of the Department are aimed at designing of
products by using new innovations and controlling environmental risks (Environment, n.d.). The
brand has different initiatives for all Houses. For example, there is an initiative for the Perfumes &
Cosmetics Houses and Sephora which is aimed on using recycling materials which can be used in
future manufacture and packaging products. The main idea of this initiative is to reduce
environmental solution and provide an opportunity to use raw and recycling materials not only for
the development but also for selling them to a network of specialist recyclers. With absolute
certainty it can be made a conclusion that corporate social responsibility of the LVMH is a strength
of the brand which gives an

Company Analysis Of LVMH: A Star Brand
Company Analysis
Strengths
LVMH's brand portfolio is a catalogue of the finest things money can buy. Arnault said, "A Star
brand is timeless, modern, fast growing and highly profitable."[iii] LVMH has positioned its brands
strongly in the luxury segment offering more than 50 different brands under their five core
competencies. LVMH has been successful through all of their various brands in their portfolio
giving them each their independence and creativity. "LVMH is well known for leaving much
operational and marketing freedom to the various brands it owns."[iv] "LVMH has done an excellent
job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has
succeeded in securing the particularly enviable position of gaining a following among the top
percentage of China's wealthy. As the financial crisis stretches on, LVMH customers in China still
have money to spend.[v] "LVMH's brand imaging, which relies heavily on pushing its European
heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the
founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends.
"Everyone hangs on the coattails of Louis Vuitton's brand imaging in China."[vi] ... Show more
content on Helpwriting.net ...
LVMH has a diversified source of revenues from all of its different product lines. "Due to its high
brand value perception, the company will be able to cross sell its products to increase revenues,
primarily because all its products have high end positioning and the customer segment it caters to is
uniform across the product

Market Analysis: Fragrance
A) Market analysis: Fragrance 1) The fragrance market
The fragrance market is the major part of the care market. During the 90's, this market has known a
considerable growth. Currently, it might be entering a maturity phase. The perfume market is highly
competitive and there are a lot of fragrance houses which are competing for sales. The total global
market is over 25 billion Dollars.
Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves
Saint‐Laurent, Balenciaga ...). After that, the speakers of the cosmetic market launched their own
perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the
market (L'Oreal, Procter & Gamble, Unilever...). These ... Show more content on
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c. Givenchy
In 2009 Givenchy has known an 18% growth of its activity to 319 million of euros.
Chiffre d'affaires 2009 Givenchy : 319 000 000 €
d. Kenzo
2) Outside the LVMH group: e. Chanel f. Armani g. Gucci h. Versace i. Prada 5) Consumer behavior
2.2. The consumers.
The Cosmopolitan fragrance study 2006 gave us some statistics about fragrance female consumers.
2.2.1. Age:
On average, a woman starts wearing perfume at the age of 12. We can identify two big age
categories of women:
– Women under 25: These women become more sophisticated in their taste in personal care and
want a fragrance that makes them feel attractive and is noticed by others. They are the heaviest
fragrances users and are using them more frequently than any other group. They are also more likely
to feel stylish, sophisticated, fun or unique while wearing a fragrance. Moreover, they explore
different scents and brands. Finally, citrus scented fragrances appeal more to women under 18 years
old while flowery or fruity scented fragrances appeal more to women under 25 years old. However,
even if these women are using fragrances, they are buying less of it than the other age groups.
– Women between 25 and 49: These women are more likely to wear a perfume to feel "sexy" and to
switch fragrances within their collection once a week or more. They know

Marketing Is All About Creating Value.
MARKETING IS ALL ABOUT CREATING VALUE. USING BOTH CRITICAL ANALYSIS AND
PRACTICAL EXAMPLES, EXAMINE THE EXTENT TO WHICH CREATING VALUE TO
CUSTOMERS AND TO THE FIRM ARE AN INTRINSIC PART OF MARKETING TODAY.
Different people have defined marketing differently. On the face of it, it may be thought of as the
process by which an organisation reaches out to the consumers with the products or services that it
has to offer in order to make profits. If we dwell deeper, it 's worth mentioning that marketing
strategies have evolved immensely over decades. The organisations in the present day care as much
for creating value for customers as they do for increasing their profits. In fact, it has been largely
accepted that both these things are ... Show more content on Helpwriting.net ...
Looking at it as a company and the products they offer, it is evident that Virgin Media cater to
households and businesses with multiple users at one time which requires extremely high speed
broadband services with unlimited downloads. Hence, knowing their consumers and being focused
on them is how the company is creating value for itself in the first place.
Virgin Media creating value for customers:
In March 2011, Virgin Media announced the release of it 's TiVo Box which would revolutionize the
TV viewing experience. This box has the ability to store 500 hours of standard TV recordings along
with allowing customers to record 3 shows together at any point of time. (Virgin Media UK 2012)
Thus, creating value for customers by innovation.
According to the Office of National Statistics, "In 2012, 21 million households in Great Britain (80
per cent) had internet access, compared with 19 million (77 per cent) in 2011." A growth of 7.1
million has been seen since 2006 in which year only 60 per cent of the households had some form of
internet access. (ONS. 2012) With this exponentially growing need for internet access with greater
demand for speed, in April 2012 Virgin Media announced in a marketing campaign that it 's 4
million broadband customers would soon receive double the existing speed. Keeping in mind that
Virgin Media are the only optic fiber network in the UK already of providing 4 times the average
broadband speed in the UK at 30 mbps. (

Louis Vuitton MÃ¶et Hennesey (Lvmh)
ABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to
Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL
(External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM
IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2
Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0
APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands
Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14
Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry
Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness–
Competitive ... Show more content on Helpwriting.net ...
Key managers that can run each business independently but with a group vision are also part of the
equation. Additionally the luxury industry is strongly dependent on tourism which is influenced by
economy trends. The 9–11 events and the global economy slowdown have had a great impact on the
industry. Finally huge investments were done to win strategic position, having an important impact
on revenues. Appendix 5 is an example of the proportion of cost and impact on revenues and the
stock performance.
New entrants The risk coming from new entrants is low, except perhaps, for the development of
niche brands that can slowly earn a position. The strong financial resources and the "story" of the
brand that is needed to succeed are two elements that create a barrier. Bernard Arnault explained that
a brand needs a heritage; you can not cross cut and succeed (Thompson, Strickland & Gamble
2005 and Antoni 2003). Furthermore financial resources are very expensive since lenders perceive
that the expected margins are difficult to get; thus it is hard for smaller companies to access financial
markets (Colonna 2003). The "entrepreneur / designer" will need to look for a "godfather"the
support from one of the big groups. As Muriel Zingraff, Harrods' director, observed, "We may have
more patience with smaller brands if they are owned by a parent company, such as LVMH or the
Gucci Group."(Sherwood 2001,

Essay about Louis Vuitton Moet Hennessy Case
Table of contents
Executive Summary 3
Introduction to LVMH 4
Challenges 5
SWOT Analysis 7
Company Analysis 8
Porter 5 Forces Model 13
Industry Analysis 14
Alternatives 17
Recommendations 23
Endnotes 27
Executive Summary Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand
their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that
may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal
with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of
products in Asia compared to France.
LVMH should use ... Show more content on Helpwriting.net ...
In Japan, the costs of LVMH handbags cost approximately 40% more than in France. This started a
growing market to distribute bags from France to Japan for resale at a cheaper price. Arnault
believes that the producers of LVMH's goods need to be unrestrained by financial matters in order to
produce extremely high quality products. To keep the brand management of highly priced and high
quality goods, LVMH needs to expand to the younger new money of the Asian market. The high
quality is also a result of the mentality that "Made in France" is perceived as high western quality.
LVMH does not want to lower the labor costs because there would be a similar direction of the
quality. Finally, LVMH must protect its brand against counterfeit and dilution. With the recent
expansion of the internet and globalization, availability of products has grown to new heights. In
order to keep the brand management that LVMH desires, it must tightly control the availability so
not to dilute the market and lower the perception of their brand. Also with the increased knowledge
and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the
goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution
of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods
originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

Internal Analysis: Watches And Jowelry Industry Of LVMH
Internal analysis: Watches and Jowelry sector
Among the most dynamic and performing brands on the market, the Houses in the Watches &
Jewelry sector of LVMH operate in two segments:
High–quality watchmaking on the one hand and;
Jewelry and high jewelry on the other.
The perpetual research of excellence, creativity and innovation guide the Houses in this area every
day.
The watchmaking side capitalizes on the complementary positioning of its Houses: TAG Heuer's
international stature, Hublot's strong dynamic of innovation, Zenith's age–old savoir–faire and
Dior's creativity. In jewelry and high jewelry, the Houses of Bulgari, Chaumet and Fred employ their
bold creativity and perfectly mastered savoir–faire to constantly surprise their customers and offer
them the objects they desire. ... Show more content on Helpwriting.net ...
Dependence to Swatch for the delivery of mechanisms and watch–making spiral springs
Customer services operational and of quality Delay on the market of the watch in comparison to its
competitors
Big complementarity between the brands of jewellery and watchmaker's shops of the group.
Vulnerability in front of currency fluctuations (Yen and Dollar).
Strengths
Tag Heuer 8th world of the classification ranking of luxury watches
This brand represents the biggest of the figure of resulting coming business of the watchmaker's
shop of the group LVMH. They maintain symbolic links with the universes of the motor racing, the
sport generally, the music and the arts. It is the brand which serves as reference in the sector
watchmaker's shop of LVMH. Tag Heuer occupies the segment of the accessible luxury, around
2.900 euros the watch. LVMH is not the leader in term of watchmaker's shop because of the strong
competition in this sector, but the presence of 2 of its brands in the top 20 of the most important
watches luxury brands shows that LVMH possesses a real impact on the luxury watch–making

Huburt Watches Case Study
Course Name: Market Management Student Number: 2014104 Purpose of the paper This paper will
highlight how Hublot watches use the elements of the marketing mix to target its position and to
achieve its competitive force. The essay is composed of two main parts. The first part includes the
analysis of the segmentation and target of Hublot watches and its major competitors. The second
part is adopting marketing mix (4P) to illustrate how the company differentiate itself from
competitors to satisfy costumers, then to enhance its market share percent and sales. Background
Currently, luxury product can be found everywhere and the demand of them is high (Kapferer and
Bastien, 2008: 311). Each company wants its products to be ... Show more content on
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Hublot segment its target market by demographics which illustrate different customers' attitudes.
According to Dubois et al. (2001: 35), there are three types of customers. The first is "Elitist's
Group", customers in this group state that luxury product must be small educated, sophisticated and
refined. And it should differentiate itself from others. It is indeed expensive and cannot be mass–
distributed (ibid). The second type is "Democratic group" that customers in this section consider the
luxury should be mass–distributed and accessible to consumers. To appreciate luxury goods no
special education is required, this section do not consider luxury should be reserved to refined
people. Additionally, they think that it is not the word of good taste or differentiation, it is also not
necessary to be expensive. The customers in this section has being positive to luxury (ibid). While
the last section should be the "Distant group", which means customers do not have a negative
attitude towards luxury, they consider luxury is another world where they do not belong to. In fact,
luxury does not attract them, also they cannot find out any value, attribute or relevance, especially
useless and too expensive. They report that more taxes should be paid from luxury (ibid). Thus,
based on the customers' attitudes, Hublot mainly focuses on the "Democratic group" which can be
shown in Appendix 1 (Gautschi, 2005: 9) and Appendix 2 (ibid). Hublot's products are

The Louis Vuitton Speedy Bag Essay
1. The Louis Vuitton Speedy Bag is constructed by its famous Monogram Canvas. The monogram
canvas contains the famous LV design. An often misconception about the Speedy bag is that the bag
itself is derived from cotton and is not actually leather, it is just manufactured to feel as though it is.
However, the handles, stamp on the front, and pulls anywhere else on the bag are in fact leather. The
bags are water resistant, durable and easy to clean. They come in four different sizes; 25, 30, 35, 40.
The speedy bag is an iconic piece from all Louis Vuitton Collections. The bag originated from Paris
as that is where Louis Vuitton himself is from. The size 25 Speedy bag is priced at $950, the 30 at
$970, the 35 at $990 and the 40 at $1,010 (Louis Vuitton). The Speedy itself comes in three different
colors, the original LV Monogram Canvas, the Damier Ebene Canvas, and the Damier Azur Canvas.
This item can be bought in any Louis Vuitton retailer including online. The Speedy bag can also be
bought in the following department stores, Nordstrom, Neiman Marcus, Saks Fifth Avenue,
Barney's, Bloomingdales, and many other high end department retailers.
2. A. The demographics for Louis Vuitton are older customers in a wealthier working class. They
target both men and women with a high disposable income, and are well professionals in their
everyday life (the retailer). What is interesting about the demographics for Louis Vuitton, is that
there was a case study done that

Capstone Project
CAPSTONE FINAL PROJECT Capstone Final Project: Louis Vuitton Analysis KeiyaHood student,
Dean March – Prof, Ph.D., Strayer University, Bus., 499 March 8, 2012 Introduction Capstone
Project: Select a publicly traded company by researching the Strayer Databases or the Internet.
Download the annual report for the most recent year reported for the use in this assignment. Based
on your review and analysis of the annual report, prepare a 6 – 8 paper in which you answer the
following questions: Q1. Identify the company's mission, vision and primary stakeholders. Q2.
Identify the five (5) forces of competition and how it impacts the company. Q3. Create a SWOT
analysis for the company identifying the major strengths, ... Show more content on Helpwriting.net
...
A2.4. Force in Industry: Supplier Power Biggest competitors: Much of the company's brand
recognition and growth is attributed to perceived scarcity and elusiveness therefore it is not subject
to consumer supply demands. Impact on Louis Vuitton: Scarcity actually benefits the company as its
customers are more likely to spend based on fear of loss. Potential detriments could be the result of
trade laws but the company is well positioned due to its diverse portfolio. A2.5. Force in Industry:
Barriers or Threat to Entry Biggest competitors: Economies of Scale Impact on Louis Vuitton: As
consumers rebound from poor economic conditions LMVH becomes highly reliant upon the 20% of
the elite in the world to purchase luxury goods making mass produce goods more appealing to the
remain 80% of the base. Evaluation The Louis Vuitton Brand – LMVH is world renowned and is
easily identifiable although care and attention has been taken to maintain the integrity of the brand
of each of its subsidiaries transparently. LMVH has consistently outperformed earnings forecasts
each year in the last two earning quarters with the United States being the largest consumer of
luxury goods at 22%, just behind the rest of Europe at 27% (www.Mornigstar.com, 2012). The 2011
biggest revenue group was leather goods and fashion at 27% and 37% attributed to selective

Lvmh : The Flagship Brand
Miguel Cellabos
BUS270
Dr. Francis
November 13th 2014
LVMH; The Prestigious Brand.
Luxury brands are becoming more a more popular everyday. More people are spending more just os
they can have the name brand look. Except, not many people really know what they are paying for.
They don't know where their two thousand dollar purse came from or who was the manager in
charge of the person who designed the thousand dollar bottle of Champagne they just popped open
on new years. Most people really don't know who or what it takes to give them the finer things in
life. The answer to these questions though is one company that has been striving in the light as the
luxury company is LVMH. Moet Hennessy Louis Vuitton SA was founded in 1987 and now owns
over 60 brands like Dom Perignon champagne and Bulgari jewelry. That is all people seem to know
though, the luxury brands and not the organization behind it. The internal environment of Moet
Hennessy Louis Vuitton isn't one that is talk about often. More people are concerned with the
products then it is with the producers. LVMH lives and breathes by a very simple but successful
organization culture quote; "Strive to be the best in all that we do". LVMH wants everyone who
works for them to be creative and innovate. They want fresh thinkers and thoughts coming into the
company at all times. Lack of creativity and no motivation are two things that Moet Hennessy Louis
Vuitton will not stand for, it a sure fire way to end up as a former

Lv Case Analysis
.4.2 Weakness
First, like other luxury goods, the target customers were the first class in society, which could only
serve a little part of people. Its market was much smaller than the ordinary products. Second, LV had
many competitors in luxury industry. These famous brands all had centuries–old history and good
quality of goods and focused on the first class in society. The competition became more and more
fierce in this field.
5.4.3 Opportunity
First, as a famous brand in the world, LV always chose the new market for luxury goods. For
example, now China was its new and important market. Before it opened its shops in China, many
Chinese customers had already bought LV product when they were in western countries, which
provided a good foundation for Chinese market. Now, LV also entered into the Indian and Russian
market. Second, shift in consumption concept and rapid global economic development provided a
better development platform for luxury goods.
5.4.4 Threat
First, the price of raw material increases, which cost much in the produce process.
Second, policy pressures on export countries and the import and export tariffs have limited the
company's overseas markets. Third, LV ... Show more content on Helpwriting.net ...
According to LVMH Annual Reports, 2009 to 2011(Exhibit 6), the group enjoyed double–digit
growth and healthy profitability. They primarily focused on Absolute and Aspiration customer
segments and setting the proper price for them. LV sold most of its products in their own stores that
helps their products not to get lost during distribution to show up in the gray market. LV improved
the efficiency of its production system and focused on innovation all of products. Also, LVMH
manufactured all of its products and did not buy products from third parties for resale, which sets it
apart from its competitors. From Exhibit 7, LV had the absolute advantage in Revenues, Recurring
Operating income and Stores compared with its

Lvmh Report
Business Report of LVMH
Group members:
Rining Mutang Beili Yin
10130350
10153456 10095036
Sekit Chubuppakarn Xu Yang
10095786 10136050
Mahsa Tolou Sharifi
0
Executive summary
LVMH, the world s largest luxury group, came into being with the mergers of Moët Hennessy and
Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather & fashion
goods, other three are perfumes & cosmetics, watches & jewelry and selective retailing.
In the external environment of part two, the report analyzed the relevant dimensions of the macro
environment by use of the PESTEL framework and the luxury industry by the Five forces
framework. The global economy, people s expectations on luxury goods, drive for ... Show more
The Group s latest move will be expanding into LVMH hotel management of the Cheval Blanc
brand in Egypt and Oman. This initiative was mainly driven by the demand from its current
customers for luxurious travel experiences (Socha, 2010).
2. The strategic position 2.1 External environment
2.1.1 The macro environment: PESTEL framework a. Economic Global economies have been
recovering with uncertain fact ors still existing. However, due to its established global presence,
LVMH s outlook is positive, both in the major markets developed countries where its leadership

position has been firmly secured
5
over decades and where people s pursuit for quality luxury is believed to continue; and in
emerging markets where the Group s solid foundations has been established and expansion will be
accelerated at the right timing (LVMH, 2010). In spite of the economic downturn, the Group has
been benefiting from the s trong growth in Asia and resilience in Europe. Recessions come and go,
but some individuals are always willing to spend on luxury goods like handbags and watches, which
in return pay them back in quality life and admiration from friends (Hazlett, 2004). No matter good
or bad economy, it does not have much impact on the spending of those really rich elites. However,
according to Bernstein Research, the

Company Corporate And Business Strategy
4. Company Corporate and Business Strategy
Generic Strategies Model
The generic strategies include cost leadership, differentiation and focus apply in business unit level.
Generally, the cost leadership strategy never applicable in luxury industry. This is because most of
the consumer purchasing luxury goods do not care about price point.
No doubly, LVMH is one of the top world leading luxury products group. Every brand under the
group hold its own brand spirits and produce things different from each others. Those brands must
have few best seller product line with its signature pattern or design implemented on the saleable
goods. For example, Dior has "Lady Dior" bags and Bvlgari has the "Serpenti" collection of jewelry.
These differentiations are unique and perceived by customers as difference. Therefore, the product
value is enhanced. Due to the limited and uniqueness thus consumer willing to pay for a premium
price to buy luxury products.
Strategy Clock Model
This strategy aims to position a product at the higher price levels, whereas customers willing to buy
the product because of its high perceived value as well as high product quality. And this is the
normally practices adopted by the luxury brands. They propose to achieve premium prices with high
targeted segmentation, promotion and distribution etc. Obviously, LV is one of the brand done
successfully in this strategy, it has given a very high profit margin within the group. However, only
the top brand products in

Sephora Essay
Sephora is a retail chain of cosmetics and perfume stores founded in 1969 by Dominique
Mandonnaud. It first started as a small perfumery in Limoges, France, called Shop 8 and was
revolutionary at that time due to its concept of 'assisted self–service '. The store had an open–sell
setting where customers could try the products before they bought them and where the organization
of the products in the store was by type, not by brand as in every other store.
In 1993, Mandonnaud bought 38 retail cosmetics stores from the UK 's Boots PLC chain and
merged them with the 12 Shop 8 stores that the company already had at that time. The stores were
then rebranded to what is known today as Sephora.
Although Sephora's initial strategy was to expand within France and its surroundings such as
Monaco and Luxembourg, after Sephora was acquired by Louis Vuitton Moët Hennessy (LVMH) in
1997, it started pursuing a global international strategy. With every store around the world, Sephora
maintains similar products, overall atmosphere and services and every strategic decision is made by
the higher management at the headquarters.
Its first international store was in 1998 in New York City and the company began to expand in the
European market starting with Italy. However, not every country was hospitable to Sephora's
expansion such as the United Kingdom, Spain and Japan, where the company struggled.
Nowadays, the Sephora brand is available in 31 countries in 2,000 points of sale and features

Case Study Of Mergers And Acquisitions
Mergers and Acquisitions:
LVMH, Bulgari, Loro Piana, and Hermes
Introduction
There are a number of competing theories of mergers and acquisitions (M&As) based on the
purpose for which such M&As are undertaken. Among these theories are empire building (Baumol,
1967, & Mueller, 1969), establishment of monopolies (Roll, 1986, & Mueller, 1993), management
entrenchment (Shleifer & Vishny, 1989), and the attainment of greater efficiencies (Mead, 1968, &
Jensen, 1988). These theories are built on the motivations that prompt compa–nies to enter into
M&A transactions (Motis, 2007:2). There are instances, however, when target companies do not
voluntary agree to a takeover but are compelled by aggressive manoeuvres of the acquiring
company. In such ... Show more content on Helpwriting.net ...
The accumulation was done surreptitiously, and LVMH repeatedly denied intending to take over
Hermes until it had accumulated such holdings as its ultimate intention could no longer be denied.
The reason Hermes spurned the attempted takeover by LVMH is because of the latter's size and
diversification; it feared the relegation of the Hermes tradition to an insignificant subordinate
business of the huge conglomerate. Howev–er, Bulgari saw size and diversification as assets of
LVMH which it embraced as beneficial to its interests. According to Trapani, "Our view of the
market is...if you want to create value, you have to combine luxury with scale" (Elliott, 2011:1). Had
LVMH approached Hermes earlier and in good faith with its intentions, there may have been a
possibility that the latter would have agreed, as had Bulgari and Loro Piana. However, the lack of
transparency and evidence of bad faith caused the French regulator to justly fine LVMH 8 million
euros. It was wise of LVMH to back out of any takeover attempt after having been penalised, as it
had lost the moral high ground when it violated Hermes's rights to

Report on Christian Dior
| A REPORT ON CHRISTIAN DIOR | STUDENT NO:200912051 | | | |
AKNOWLEDGEMENT
I would like to say thank you everyone who helped me to finish this assessment successfully and to
God almighty that saw me through all this.
TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION........................................................................................................1
AIMS AND OBJECTIVES............................................................................................2
LIST OF DIAGRAM AND TABLES.............................................................................3
CHAPTER 2
BRIEF HISTORY........................................................................................................4
ACTIVITIES ... Show more content on Helpwriting.net ...
In the following years Dior had many different designers which included Saint Lauren and Bark
Bohan. In 1948 Bohan launched a new brand in the Dior house called baby Dior and in 1969 they
also launched a range of cosmetics following that he also launched the first collection of Christian
Dior home clothing line for men in the year 1970.they also launched a range of Dior watches. They
have since maintained a good reputation in the production of high quality luxury goods although
under different managements. As at 2009 they had an estimated 160 boutiques worldwide. The
diagram below shows the total income that is generated by the Christian Dior Corporation.
Revenue by business group (Table) IN MILLIONS OF EUROS DIVISIONS | 2009 | 2008 | 2007 (1)
| Christian Dior Couture | 717 | 765 | 787 | Wines and Spirits | 2,740 | 3,126 | 3,226 | Fashion and
Leather Goods | 6,302 | 6,010 | 5,628 | Perfumes and Cosmetics | 2,741 | 2,868 | 2,731 | Watches and
Jewellery | 764 | 879 | 833 | Selective Retailing | 4,533 | 4,376 | 4,164 | Other activities and
eliminations | (52) | (91) | (124) | Total | 17,745 | 17,933 | 17,245 |
SOURCED FROM THE DIOR FINANCE WEBSITE.
NATURE OF CORPORATE GOVERNANCE
Corporate governance can be defined as the process, customs, laws by which the affairs of a
company are managed and controlled it also

Fashion Industry China: Csr Case
Fashion Industry China: CSR Case
Subject Submission Date Class Team Members CSR cross–analyses on fashion Industry Tuesday
15, 2012 MBA Pudong – Corporate Social Responsibility Christiane Pagsisihan Damien Dandelot
Jose Antonio Mallen Tendai Chitapi Vera Boisa Harbhajan Khalsa
Executive Summary
The research paper trough four main Corporate Social Responsibilities (CSR) issues (Children
Labor, Working condition, Environmental impact and Environmental Sustainability) indicates
several glaring trends within the fashion industry. First of all, there appears to be an overall
evolution in the CSR practice and actives during the last decade in the fashion industry. Moreover, it
seems evident that CSR is more and more considered as important ... Show more content on
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These table has been made according some information coming from diverse councils and web site,
but with a primarily focus on the Nordic Fashion Association, Code of Conduct and Manual (2012).
Table 2 – List and describe the CSR –related issues relevant to the industry CSR issues relevant to
the fashion industry Description of the issue Human Rights Exploiting people for profit. This
concern is widespread throughout the fashion industry worldwide. Freedom of association and the
effective Ensure that workers participating in unions are not subject to discrimination recognition of
the right to collective bargaining or punitive disciplinary actions. Forced Labor Trafficking and
exploiting human beings for the purpose of monetary gain. Issues Child Labor Discrimination
Working Conditions Wages, payroll records and deductions Labor contracts Environment
Corruption and Bribery Ethical Animal Ethics Models Employing children under the legal age to
work in factories, sweatshops or even in their own homes. Unfair treatment in favor or against a
person based on their religious affiliation, skin color, nationality, gender, race, economic class etc.
Forced labor. Extended work hours with little or no compensation. Occupational health and safety.
Withholding pay and legal documentation. Refusing to negotiate with unions. Abuse of power and
authority. Toxic waste. Heavy chemicals and dyes. Abuse of power by officials, corporate or
otherwise, for

The Fashion Designer Of The 1940-1950 Ies, Christian Dior
The most powerful and influential fashion designer of the 1940–1950–ies, Christian Dior was an
uncrowned king of post–war fashion. He created a sensual silhouette New Look, which immediately
became a legend. Dior also defined a new business model in a post–war fashion industry – he was
the first to unify a release of a variety of products of one brand, thereby creating the first–ever
fashion empire.
Dior was born after the Second World War – in 1946, when Christian Dior created fashion house
and named it his own name. French market was offered a new luxury beauty concept, which was
breaking contemporary beauty standards. The new image was named "New Look". Dior created the
image of real beauty. Himself he liked to watch women dancing and often named his created dresses
by flower names. As Europe was very tired of war and military, it liked this look, as it was bold,
innovative and luxurious. In 1947, company released its most famous perfume Miss Dior. This
perfume still has only one opponent in a market – Chanel No 5. Christian Dior was very familiar
with the plants, so for his perfume he chose only exceptional quality and purest aromatic plant
extracts. It was not just quality, but extremely luxurious quality. Dior perfume are fourth in the
world in terms of sales.
In 1948 Dior fashion house became a Haute Couture fashion house and started to create products of
different categories – clothing, ties, socks, fur coats, jewellery and perfume. In 1957, after a sudden
fashion

Gucci Executive Summary
1. Introduction
a. Company Background of LVMH
LVMH Moët Hennessy or famously knows as LVMH is a leading luxury goods provider based out
of France. Formed after merger of Louis Vuitton and Moët Hennessy in 1987, LVMH has plethora
of small and renowned brands under its portfolio with products ranging from clothing, to cosmetics
to jewelry to perfumes to watches to wines. Bernard Arnoult is the CEO of the company and the
company was able to generate revenues of over $28 billion USD in 2012. Their products are sold
through LVMH boutique's, which is controlled by them and is almost 2400 in numbers across the
world (LVMH Financial Report, 2013).
b. Company background of Gucci
One of the most successful Italian fashion and leather brand, Gucci belongs to French Company
Kering and is named after its founder Guccio Gucci. Founded in Florence in 1921, Gucci has since
then shot up to fame owing to its high–end luxury fashion and leather products. It operates through
directly operated stores across the world and also the products are wholesaled through franchise or
upscale departmental stores. The number of directly operated stores is more than 450 and the
company was able to generate revenue of over $4.5 billion in sales in 2013. The brand itself is
valued at over $12 billion USD (Alice Chan, 2011).
2. Brand Overview
Brand marketing is no longer a hub–and–spoke model; it is a kaleidoscope of channels, customer
intelligence, and interactive and social elements. The Web channel is an

Corporate Social Responsibility Has Long Gone
"As actors in economic and social life, we are called to the highest standards of integrity, respect and
engagement in our behaviors, every day, everywhere." – Bernard Arnault
Luxury industry:
The conventional approach to corporate social responsibility has long gone. Now, there is a desire to
incorporate social and environmental speculations that will fortify each brand's strategy. This is
where the luxury industry comes into picture. The brand industry can absolutely impact social orders
and our society. It promotes our culture, history, and nurtures talent of the young. Thus, supports
long term growth chain of luxury value chain.
The global luxury goods industry has been on an upward trend since the past few years. Even
though the ... Show more content on Helpwriting.net ...
3. Perfumes and cosmetics:
Make–up products, perfumes and skin care products are a part of this segment of the company.
4. Watches and jewelry:
The company specializes in the field of chronograph watches and accessories for both men and
women.
5. Selective retailing:
LVMH promotes its products taking into consideration the status of the company in the industry. It
captivates the minds of international travelers especially. Assistance and direct access is also
provided at its stores.
6. Other activities:
LVMH is a part of real estate markets as well. Other than real estate, the company also builds
yachts. This section also includes media. It publishes magazines and newspapers. It manages online
portals and radio stations as well.
Environment and Social Factors:
"LVMH has for the past 20 years anticipated and adapted production processes, habits and
behaviors, working each day to find better solutions to the many environmental challenges our
industry faces." (LVMH)
Environmental factors:
Following are few initiatives taken by LVMH:

1. Renewable energy sources like solar, geothermal and wind share almost zero carbon footprints.
These energy sources are an integral part of the environmental policy of the company.
2. The company's warehouses, stores or offices are specifically designed taking into consideration
greenhouse gas emissions.
3. LVMH established an internal carbon fund

Louis Vuitton Case Study
Executive Summary: The global luxury goods' marketplace in the past decade has experienced
nothing short of a complete evolution and transformation. This industry has endured global
economic downturns in advanced economies such as the United States requiring them to branch out
of their comfort zones and expand into emerging markets specifically the BRIC countries. These
Asian nations possess high GDP rates that are anticipated to increase significantly in the upcoming
years. Luxury goods were once a possession of strictly the wealthy, brand conscious consumer with
a high disposable income. Within these developing economies reside a "new breed of young
entrepreneurs and noveau riche consumers", offering large potential within the ... Show more
Gray Markets LVMH has found that gray markets, markets where a firm's product are sold or resold
through unauthorized dealers, are a significant problem. In Japan, handbags cost more than 40%
more than they did in France (Nikoemeran). This difference in price created a gray market where
groups from Japan would fly to France to purchase Louis Vuitton handbags for resale through
parallel channels in Japan. These gray markets can create a number of problems for LVMH. The
first is the dilution of the exclusivity, where the exclusive rights of distributors are watered down
due to the influx of additional distributors of the same product. The result is a drop in margins for
distributor (Sloan). A second problem gray markets create is free riding. Free riding occurs when
authorized distributors start skimping on important services they provide to promote a product, such
as presale service, education on product attributes and sales person training. This reduction in
services causes the customers of high–end brands, who value these services, to abandon the brand
(Sloan). The third problem caused by gray markets is damage to channel relationships.
Manufacturers spend a lot of time and money establishing relationships with their distribution
network. The result of gray markets is unhappy distributor(s) that could greatly affect the flow of a
manufacturer's product and therefore could be very costly (Sloan).

Case Study LVMH, Strategy and future: Diversification.
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background
to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL
(External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM
IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2
Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0
APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top
Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix
6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry
Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness–
Competitive Matrix20 ... Show more content on Helpwriting.net ...
Key managers that can run each business independently but with a group vision are also part of the
equation. Additionally the luxury industry is strongly dependent on tourism which is influenced by
economy trends. The 9–11 events and the global economy slowdown have had a great impact on the
industry. Finally huge investments were done to win strategic position, having an important impact
on revenues. Appendix 5 is an example of the proportion of cost and impact on revenues and the
stock performance.
New entrants The risk coming from new entrants is low, except perhaps, for the development of
niche brands that can slowly earn a position. The strong financial resources and the "story" of the
brand that is needed to succeed are two elements that create a barrier. Bernard Arnault explained that
a brand needs a heritage; you can not cross cut and succeed (Thompson, Strickland & Gamble 2005
and Antoni 2003). Furthermore financial resources are very expensive since lenders perceive that the
expected margins are difficult to get; thus it is hard for smaller companies to access financial
markets (Colonna 2003). The "entrepreneur / designer" will need to look for a "godfather"the
support from one of the big groups. As Muriel Zingraff, Harrods' director, observed, "We may have
more patience with smaller brands if they are owned by a parent company, such as LVMH or the
Gucci Group."(Sherwood 2001, p. 6) Additionally the

Gucci Case Study
SUMMARY:
Gucci was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened
in Rome. Guccio was responsible for designing many of the company's products. In 1947, Gucci
introduced the Bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci
also developed the trademark striped webbing, which was derived from the saddle girth, and the
suede moccasin with a metal horsebit. The Gucci group really said it all, Tom Ford, creative director
and Domenico de sole, president and CEO, stood side by side facing the camera with eyes of steel.
These two men had, in the first six months of 1999, been the centerpiece of one of most higly
contested hostile takeover battles ever seen on the Europian ... Show more content on
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ALTERNATIVE COURSES OF ACTION
1. Put a settlement agreement into place between Gucci Group, LVMH, and PPR wherein there will
they will have equal rights.
ADVANTAGES:
i. More ideas will come out ii. One step ahead against rivals iii. May increase profit iv. Improvement
of product and service quality
DISADVANTAGES
i. May worsen the conflict between the opposing parties
2. Let LVMH take over Gucci.
ADVANTAGES:
i. No more conflict ii. Improvement of product and service quality
DISADVANTAGES
i. Original founders will not be as powerful as they are before.
3. Continue the plan of exit agreement.
ADVANTAGES:
i. No more conflict ii. Gucci will regain their power
DISADVANTAGES
i. Loss of ideas coming form LVMH ii. Loss of capital coming from LVMH

V. STRATEGY FORMULATION Based on the given advantages and disadvantages in each of the
alternative courses of action, I can therefore say that the best course of action to be taken is
Alternative course of action no. 1 because compared to the two alternatives ACA no. 1 has more
advantages and less disadvantages.
VI. PLAN OF ACTION In order to materialize the said recommendation and just like the real
process, they should:
1. Focus first with the in fighting between the controlling

Business Analysis: Company Analysis Of Louis Vuitton
Louis Vuitton – Company Analysis
Business Description
Louis Vuitton
Louis Vuitton is one of the renowned brand, owned by the company LVMH. This brand possess the
identity of originality in its designs. This is the major value addition given by the company. This
brand has acquired the first position in the list of ten most powerful brand in the world of fashion
industry in the study done by Millward Brown in 2011 with the value of $24.3 billion. The brand
itself has worth more than US$19 billion. This brand brings the product of elegance, innovation and
inspiration in front of the world of fashion.
The LVMH Group
This group was founded by Louis Vuitton Malletier in 1854.The company started its business with
the suitcase making business. It is a French conglomerate which have it headquarters at Paris,
France. The organization was shaped by the 1987 merger ... Show more content on Helpwriting.net
...
¥ Guarantee brands' self–rule as per their own unique identity.
¥ Share abilities and encounters of every brand and actualize collaborations.
¥ Set up and create groups of brilliance.
¥ Also going for manageable future development (in bearing of ecological well–disposed items) and
broadening.
Marketing Mix Analysis
This analysis can be done through the 4 P's analysis:
¥ Product: The organization makes item is of recognized quality and pays consideration on moment
points of interest. Since its establishment in the eighteenth century, produce 0f Louis Vuitton
merchandise has dependably strived for flawlessness. The idea of supreme quality is put on a
fundamental level of Louis Vuitton's promoting procedure. With this procedure, it limits the buyers
to purchase Louis Vuitton or nothing. Going past the nature of an extravagance item, Louis Vuitton
likewise accentuates unequivocally on tradition and innovation at the same

Hermes International S.a Inc.
Introduction Hermès International S.A. (referred to hereafter as "Hermès") is a high–end luxury
retailer that specializes in the production of leather goods, apparel, among other products. Hermès
has a long and illustrious past that began in 1837 producing harnesses and saddles for horses
(Hermès "2015 Annual Report", 16). Since then Hermès has grown at full gallop. Over the past
century and a half, Hermès has diversified their production from leather goods to other products
including high–end ready to wear apparel, accessories, shoes, belts, watches, fragrances, and other
goods (Hermès "2015 Annual Report", 31). Currently Hermès operates 307 retail outlets in 50
countries and has revenues of €4.84 billion (Hermès "2015 Annual Report", 20, 65–69). Hermès
continues to be an extremely strong player in the high–end luxury goods market. However, Hermès
has many opportunities to further expand market share in other sub–sectors.
Retail Strategy Hermès' retail strategy is designed to ensure both exclusivity and the highest
perceived value. Hermès targets men and women aged 18 and up who are demand inelastic relative
to price and are interested in purchasing high–end apparel, accessories, and other goods. Hermès
positions itself as an ultra premium and highly exclusive fashion company doing everything they
can to reduce access and to prevent brand dilution. While Louis Vuitton has 1,536 retail outlets
(LVMH "2015 Annual Report", 11), Hermès only has 307 stores (Hermès "2015

Sephor A Retail Chain Of Perfume And Cosmetics Stores Essay
1. About Sephora
Sephora is a retail chain of perfume and cosmetics stores founded in 1969 by Dominique
Mandonnaud. It first started as a small perfumery in Limoges, France, called Shop 8 and was
revolutionary at that time due to its concept of 'assisted self–service '. The store had an open–sell
setting where customers could try the products before they bought them and where the organisation
of the products was by type, not by brand as in every other store.
In 1993, Mandonnaud bought 38 retail cosmetics stores from the UK 's Boots PLC chain and
merged them with the 12 Shop 8 stores that the company already had at that time. The stores were
then rebranded to what is known today as Sephora.
Although Sephora's initial strategy was to expand within France and its surroundings such as
Monaco and Luxembourg, after the company was acquired by Louis Vuitton Moët Hennessy
(LVMH) in 1997, it started pursuing a global international strategy. With every store around the
world, Sephora maintains similar products, overall atmosphere and services and every strategic
decision is made by the higher management at the headquarters.
Its first international store was opened in 1998 in New York City and the company began to expand
in the European market, starting with Italy. However, not every country was hospitable to Sephora's
expansion such as the United Kingdom, Spain and Japan, where the company struggled.
Nowadays, the Sephora brand is available in 31 countries having over 2000 stores

Analyze of Louis Vuitton Case Study
Overall strategy of LVMH LVMH's website states the following as their missiom statement, "The
mission of the LVHM group is to represent the most refined qualities of Western 'Art de Vivre'
around the world. LVMH must continue to be synonymous with both elegance and creativity.Our
products, and the cultural values they embody, blend tradition and innovation, and kindle dream and
fantasy. " In 1987, Racamier agreed to a merger with Moët Hennessy, a company that was much
more larger than LV, to form the Moët Hennessy Louis Vuitton group. Bernanrd Arnault, ranked as
the fourth richest man in the world ( by Forbes, 2007) , was invited to invest in LVMH by the
company's chairman, Henri Racamier. Investing through a joint ... Show more content on
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Within this strategy, LVMH is able to price their items at a premium, give consumers products with
superior quality, prestige, and exclusivity, and invest in rapid innovation and high customer service.
LVHM can then mitigate buyer power and the ability of substitutes to take business because
customer sensitivity to price increases is low and consumers stay brand loyal.
Following up the business model in the service of excellence; Major strategic priorities:
Priority of internal growth, sustained by innovation, quality and controlled distribution. Guarantee
brands' autonomy in accordance with their own indentity. Share skills and experiences of each brand
and implement synergies. Set up and develop teams of excellence.
SWOT is an acronym for the internal Strenghts and Weaknesses of a firm and the environmental
Opportunities and Threats facing that firm. SWOT analysis is widely used techniques through
managers create quick overview of a company's strategic situation.
Consequently, analyzing factor of LVMH Group we could say:
1.Internal factors; a) Strengths –strong brand positioning –wide geographical presence –broad
product portfolio b) Weaknesses –declining margins despite

Lvmh: Diversification Strategy Into Luxury Goods
LVMH: Diversification Strategy into Luxury Goods
Strategic Issues By 2002, Moet Hennessy Louis Vuitton was the world's largest luxury products
company, enjoying annual sales of 12.2 billion euros. LVMH carries the most prestigious brand
names in wine, champagne, fashion, jewelry, and perfume. Upon entrance of this luxury product
industry, LVMH was aware that they produced products that nobody needed, but that were desired
by millions across the world. This desire in some way fulfills a fantasy, making consumers feel as
though they must buy it, or else they will not be in the moment, and thus will be left behind. The
LVMH business portfolio began to take shape in 1987 with the merger between Louis Vuitton and
Moet Hennessy which was a ... Show more content on Helpwriting.net ...
In regards to product quality, LVMH has acknowledged, "the quality of timelessness takes years to
develop, a company must pay their dues." This meaning the company must come to stand for
something. There are torturous processes through which the products go through to ensure that they
are of a quality and standard above all the rest. LVMH also employs only dedicated people, and
keeps them for a long time. This is all in an effort to contribute to longevity, timelessness, and
authenticity. As for innovation, this is sometimes harder to guarantee than quality. It is important to
merge the old with the new; it is important to honor the past and invent the new at the same time. It
takes a special person to work for LVMH, especially in regards to management. Management must
discover talented artists and designers and trust them enough with the privilege of complete creative
freedom without any limits. LVMH uses a decentralized approach to allow great work to be
accomplished. The central headquarters for LVMH, located in Paris, is very small. Growth is
considered the right balance between timelessness and fashion. Growth was available in new
markets developing countries, and products, of high desire. It is important that advertising projects
brand image. LVMH has all advertising done by the design team, as opposed to the marketing team.
This is in effort to keep proximity between the

World Leader Of Luxury Products
Moët Hennessy Louis Vuitton (LVMH) is a luxury goods conglomerate based in France. Bernard
Arnault is the chairman and CEO. LVMH was formed in 1987 with the merger of Moët Hennessy
and Louis Vuitton thus becoming the world leader of luxury products. LVMH is the only group
present in all five major sectors of the luxury market – Wine and Spirits, Fashion and Leather
Goods, Perfumes and Cosmetics, Watching and Jewelry, and Selective Retailing – with 70
distinguished houses total. They own 15 fashion & leather goods houses, 24 wine & spirit houses,
10 perfumes & cosmetics houses, 7 watches & jewelry houses, and 6 houses in selective retailing.
LVMH is one of six companies that own over forty fashion brands. In 1999 LVMH started the
watches and jewelry division of the brand. Additionally opening a New York headquarters around
this same time. In 2000 the London based house opened and it was used as training center for group
leaders. In July 2015 Jean Claude Biver, president of the watches division, stated the LVMH plans to
launch watch to rival the Apple watch.
In 1992 they founded a division that focuses on the environment. LVMH has for as far back as 20
years foreseen and adjusted production procedures, propensities and practices, working every day to
discover better answers for the numerous ecological difficulties our industry faces. LVMH has a
long term commitment that products created by the group houses are made from natural and often
rare and exceptional raw materials.

Ethics And Ethics Of LVMH
A family–run group, LVMH strives to ensure the long–term development of each of its Houses in
keeping with their identity, their heritage and their expertise.
LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH, is a European multinational
luxury goods conglomerate, headquartered in Paris, France. The company was formed by the 1987
merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971
merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer.
It controls around 60 subsidiaries that each manage a small number of prestigious brands. The
subsidiaries are often managed independently. The oldest of the LVMH brands is wine producer
Château d'Yquem, which dates its origins back to 1593.
LVMH is home to 70 distinguished Houses rooted in six different sectors. True to tradition, ... Show
more content on Helpwriting.net ...
With all this coming and ethics of the company. In my article, I will mentione ethics, but also I will
look back on the other facts of the company . Ethics & Social Responsibility
LVMH is committed to creating diversity within the group. LVMH recognizes the influence they
have on consumers; sparking a sense of pleasure solely equated from the imagery they use from
luxury. They are aware they have a responsibility to act as an exemplary corporate citizen. Their
practices "comply with the most exacting standards of integrity, responsibility and respect for all
stakeholders, everyday and everywhere around the world." With this, they have created the
following:
EllesVHM:
In November 2009, the LVMH group announced several noteworthy commitments:
– Increase the number of women on executive committees
– Ensure greater representation in succession plans for influential

Luxury Brands: What Are They Doing About Social...
Luxury Brands: What Are They Doing About Social Responsibility? David S. Waller, Marketing
Discipline Group, University of Technology Sydney Anurag G. Hingorani, Marketing Discipline
Group, University of Technology Sydney Abstract Although luxury goods may be synonymous with
extravagance, lavishness, and even waste, it may appear to be a contradiction that a number of
companies that manufacture and sell luxury brands have also discovered the value of being socially
responsible. With growing criticism of the high costs and exploitation in the manufacture of luxury
goods, some companies are increasing the extent to which corporate social responsibility and
sustainability issues feature in their business practices. This paper will look at the ... Show more
In 2007, the WWF–UK measured 10 luxury brands on their environmental, social and governance
(ESG) performance – and the brands did not fair well (Bendell and Kleanthous 2007). In relation to
the marketing of luxury brands in a world of rich and poor, the report states: "Luxury brands are
experiencing rapid expansion in societies that contain both very rich and very poor people. Such
societies can view displays of conspicuous consumption as a threat to social cohesion. This is true,
for example, in China, where the authorities in Beijing have banned the use of billboards to
advertise luxury products and services. In this context, the credibility of luxury products and
services will be derived from their ability to generate wellbeing, not only for consumers, but also for
those involved in (or affected by) their production, use, reuse and disposal."
The report ranked the top 10 largest luxury goods companies on an environmental, social and
governance (ESG) performance ranking. This was based on: (1) what the companies report to the
community; and (2) what media and non–governmental organisations have said about the
companies. The companies were given a score out of 100, and graded from A (the best) to F (the
worst). Out of the 10 companies, none were graded more than a C+ with L'Oreal topping the
ranking,

The Fashion House Of Louis Vuitton Moet Hennessy
Louis Vuiton Moet Hennessy (LVMH) is a luxury goods conglomerate and owns more than sixty
prestigious brands around the world. The company has a retail network of more than 3,000 stores
around the globe in products divisions such as: wines and spirits, fashions and leather goods,
perfumes and cosmetics, watches and jewelry, and selective retailing. Some of the most notable
brands are: Donna Karan, Marc Jacobs, Louis Vuitton, Bvlgari, Moet and Chandon, Veuve Cliquot,
Hennessy, Parfums Christian Dior and Sephora. In 1987, Louis Vuitton merged with Moet
Hennessey resulting in Louis Vuitton Moet Hennessy (LVMH). The fashion house of Louis Vuitton
was established in 1854, Moet and Chandon dates back to 1743 in its inception, and ... Show more
This speaks volumes about the way LVMH values its employees and those on the front lines of its
retail operations. LVMH sees its employees as: passionate about the brands they represent,
enthusiastic, entrepreneurial, driven by a taste for sales and a service mindset. LVMH says its
employees – sales staff, stock controllers, visual merchandisers, trainers and managers – are the
primary ambassadors for their Houses. The company earns an average of $252,603 of revenue per
employee and $46,566 of income. The following displays the goals of a typical LVMH employee:
To increase the sales of their store/sector
To embody the values of the House in terms of dress and sophistication of dialog
To deliver a unique, distinctive shopping experience to the customer
To guarantee the excellence of customer relations throughout the sales process: welcoming the
customer; gathering and understanding his or her needs; guidance towards a suitable range of
products and collections; offering of services and loyalty card where applicable
To maximize sales opportunities by mastering the spontaneous approach, complementary sales and
incentives to return techniques
To develop a new customer base and establish lasting customer loyalty
To contribute to all "non–sales" activities (opening and closing the store, cashing up, management of
stocks/inventories, store security, etc.) LVMH is a strong mix of

The real success beyond LV is about segmenting its unique...
The real success beyond LV is about segmenting its unique products. According to the "Louis
Vuitton and the diamond model" figure 16 the importance of the products are displayed in a
diamond figure. This categorization approach about LV's products not only segment its unique
products but also is an example of how a globally well known successful brand achieve its mission
in the luxury market.According to the figure 17 above, the potential contribution of the Asian
consumers to the fashion leather goods category provided a different age for the brand (LVMH 2012
a: 11). It is important to highlight that Asia as a geographic region has the potential to support the
growth of the revenues of the brand. Moreover, Japan is a unique country ... Show more content on
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According to the Conference Call in 2012, "Bernard Arnaut" explained the "advertising strategies of
Louis Vuitton as; stores, shop windows, press advertising, internet and TV" (Proquest 2013 b). Well
defined advertisement strategies are the gateway for effective public relations. Because, with the
advertisements of LV public relations forms the stories behind the scenes. So to say, by building
creative stories based on the advertised products, public relations builds long lasting relations with
the media. This is the reputation and well known brand LV's main global PR strategy. Moreover, the
most strong advertising weapon of LV is to collaborate with celebrities worldwide (Blog at
WordPress.com 2013). Every luxury brands has a special category to catch the attention of the target
consumers attention in order to contribute positively to its profitability level. According to the
results of profitability of the company in 2009 which was %37 for leather goods and fashion
collection, especially speedy model of the handbag category of Louisvuitton had a high demand
among consumers (Poral and Dopico 2011:13). Moreover, the success of the value creation of the
leather goods category for LV is not by chance. "It is about the production people, sales staff and top
management cooperation between themselves" (Bastien and Kapferer

Lvmh Marketing
Bespala, Y., Dmitrieva, M., Jackson, S. and Reutoi, N.
LVMH
Word Count – 3,154 words.
Index
Topic Page No.
Introduction 3
Marketing in a Contemporary Context 4
Understanding Consumer Behaviour 6
Market Research 8
Segmentation, Targeting & Positioning 10
The Marketing Mix 12
Conclusion 14
References 15
Appendix (Including Additional Readings) 18
Introduction
"There are four main elements to our business model – product, distribution, communication and
price. Our job is to do such a fantastic job on the first three that people forget all about the fourth."
(Bernard Arnault, CEO of Moët Hennessy–Louis Vuitton. Taken from ... Show more content on
Helpwriting.net ...
As such, LVMH has steered much of the focus of its central brand eastwards, to an area where
consumers have more disposable income than ever and are ready and willing to embrace the
influence of their Western counterparts – China. All the while, the company makes no substitute for
quality by bringing the very same products to the Chinese market, making no concession in pricing,
treating the Chinese market as that of a developed country, where demand for the service provision
on offer from LV is growing faster than anywhere else.
Understanding Consumer Behaviour
Consumer decision–making is needs–based. Consequently, the process of understanding consumers
does not so much rest on identifying the behavioural patterns of a group and then choosing to pitch a

product to them, but rather on identifying the specific need which is common to certain people and
accordingly striving to satisfy that need (Brady, 2010).
Maslow would classify the specific need of those within LV's target market as one related to
'esteem', or

Lvmh: Expanding Brand Dominace in Asia
1. Country specific advantages are the advantages which can be captured by any producer in that
particular country. For LVMH, which is originated from France, can benefit from some privileges of
France:
Country of Origin: ¡§Made in France¡¨ represents classics and quality so that people are loyal to the
luxurious products manufactured in France. France is also a leading luxurious market worldwide
which brings France reputation on high–end product.
Good supply: Excellent and the best textiles, leather or even grapes are possessed by France or
maybe its neighboring countries (for example, Italy). Those are important raw materials of LVMH¡¦s
major products like leather for briefcase, grapes for champagne, etc. In addition to the tangible ...
Show more content on Helpwriting.net ...
Penetration to different market: Different sub–brands should be based at different countries so that
the vision of the individual brands will be more adaptive to each location and enjoy the particular
specific advantages so as to increase efficiency.
5. Counterfeit products dilute the market share and harm the brand integrity of LVMH, especially in
the business area of fashion and leather. The factories and merchants in Asia are growing more
sophisticated in counterfeiting, enabling them to penetrate and export many of their products and
worldwide. In order to cripple the rampant counterfeiting industry, the primary step for LVMH is to
communicate with Asian government (especially PRC government), and to seek legal assistance of
local customs authority to clear away the distributions of the counterfeiting products. However, this
may not be effective as WTO has recently asked China to impose laws to monitor the condition, but
no remarkable and effective result is drawn since then. The company should further contract the
distribution channels to reduce the chance for the counterfeiting parties to reach the raw materials of
LVMH¡¦s products. In addition to exclusive retail stores, it is important for LVMH to limit the use of
vendors and suppliers; or else, LVMH could integrate the distribution channels vertically by
acquiring the suppliers companies directly. This should be able to reduce the

LVMH Case Study PIRSOI TEODORA
LMVH in China: building its empire of desire
1. Why is LVMH so successful in China?
In my opinion LVMH is so successful in China first of all because their prices and glamorous
prestige is reflected onto its customers and the Chinese luxury customers value being recognized as
wealthy elites having a high social status. Secondly, ever since their opening LVMH had an
exclusively unique heritage and craftsmanship, that made the brand so attractive for the customers.
Another reason why the Chinese people love Louis Vuitton is the fact that having an overcrowded
and communist society they feel the need to be noticed, to be perceived as different. That is the
point that Louis Vuitton knew how to exploit in order to make them feel unique and ... Show more
4. How does LVMH encourage Chinese customers to purchase LVMH products in China rather than
abroad? Do you think that these strategic initiatives will be successful? Why or why not? What other
ideas do you think LVMH should pursue to encourage Chinese customers to purchase LVMH
products in China?
One of the main reasons why Chinese customers prefer to shop abroad is the fact that it is seen as a
better show off and also the prices tend to be lower due to the taxes that are applied for luxury
products in China. No matter the fact that the sales of their products in other locations than China
bring them important profits in Europe, LVMH is still trying to redirect the Chinese people to buy
their products in China. One of the measures they took in this aim was to limit the number of leather
products available on the LVMH European market and also limit the working hours in their stores in
certain European locations such as Paris, which is one of the most wanted and perceived as the most
preferred shopping destination.
On the other hand, they are doing all their best to assure premium services in the Chinese stores, so
that no matter the price differences that may interfere, the customers would still be satisfied with the
special treatment and attention they receive in the stores and also

Analyzing The Organization, Its Markets, Customers And...
1.Introduction
1.1 Purpose of the report
The purpose of this assignment is to use the research data and then apply this to analyze the
organization, its markets, customers and product.
1.2 Background
Chanel (Australia) Pty Ltd is a foreign–owned private company which forms the Australian business
of global cosmetics and fashion giant Chanel SA, based in France. (IBIS, 2015) It was a Paris–based
fashion house founded in 1909 by Gabrielle Bonheur Chanel. (Chanel, 2008)
Chanel Australia wholesales and retails perfumery, cosmetics and fashion products across Australia,
with stores located in Sydney, Melbourne, Brisbane and Perth. (IBIS, 2015)
1.3 Scope
This report will analyze the one of Chanel perfumes called Chanel No.5which is the most famous
perfume in the world. It includes the classification of product, competitors, environment and target
market in the Australia from 1921 to 2015.
1.4 Assumption
Assume all of the data and conditions in the article are tenable.
1.5 Limitations
Because of that some information is gathering from many different sources such as some websites
and textbooks. So some information may not be the updated and completely true.
Background Information
2.1 Industry
Chanel Industry belongs to the Luxury Retailing industry that is characterized by a low level of
market share concentration, with the top four players accounting for less than 40.0% of revenue.
Chanel is one of the largest companies in the global which worth about $5.6 billion.

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