/ 
Case study on LVMH’s Rebound And E-Commerce Drive Growth
Omnichannel

Case study on LVMH’s Rebound And E-Commerce Drive Growth

profile image
5 min
2278 views
Featured Image

Never Miss a Beat

Get weekly email updates from Fashinza to your inbox

Fast Fashion Mobile

LVMH stands for Moët Hennessy Louis Vuitton. It is commonly known as LVMH and is famous as a French multinational company specializing in luxury goods, with its headquarters in Paris, France. Today in 2021, the company's valuation is $329 billion. LVMH is one of the most valuable companies in Europe. LVMH has around 75 brands, Christian Dior, Marc Jacobs, Loewe, Loro Piana, Kenzo, Givenchy, Stella McCartney, Fendi, etc. The umbrella has six branches under them: Fashion Group, Wines and Spirits, Perfumes and Cosmetics, Watches, and Jewelry.

The rise in LVMH's leather section

To start with, LVMH's leather section goods division raised 52% in the first quarter of 2021, which is unexpected. LVMH sales are showing great results in 2021 as well as in 2020. The demand for leather and fashion goods has increased in Asia and the United States, whereas the European store network remains shut.

The LVMH Brands of fashion and leather turned up to 52% by 2020. The financial analytic firm Visible Alpha has noticed that the two brands that have stood out are Dior and Louis Vuitton, with an increase of 31% in the department of shoes, bags, and clothes with a solid performance. According to Jean-Jacques Guiony, the chief financial officer saw a strong performance even from Celine, Loewe, Marc Jacobs, and Fendi.

Growth in the demand of luxury brands

Growth in the demand of luxury brands

LVMH is the world's most giant conglomerate of luxury LVMH Brands in the market, as it continues to spend on marketing and advertising, whereas the rival continues to hold back. The luxury group sales have grown up to 30% in 2021 as compared to 2020 and 8% compared to 2019, which is the pre-market period before COVID-19. The rebound picture of fourth-quarter sales has declined by 19% in 2021. The sales of watches and jewelry have risen to 35%, whereas perfumes and cosmetics increased by 18%; however, retailing stores like Sephora have dropped down to 5% in the quarter.

The market share of the Louis Vuitton has got more investment and should carry out the mantra of buy less with a better attitude supported by the HSBC global head of consumer and retail research, Erwan Rambourg.

The reaction of people on the economic growth

Big-budget advertising and marketing have become apparent. We had a tremendous impact, particularly at Louis Vuitton and Dior with some events," Guiony said. "The environment was reasonably easy because no one else was talking at the time, yet it's worth remembering the quality of what we do is more important than the quantity of the investment," was the statement given. He also added that LVMH Brands plan to increase the market to normalize environmentally friendly products.

Sales volume and price were key growth drivers. The prices have increased from 4 to 7 percent in the fashion and leather division. When Dior and Louis Vuitton were asked if they were underpriced in an interview, Guiony replied: "Prices have to be handled with care. We don't feel there's a particular necessity to increase prices."

Asia sales are highly driven to a large number. Excluding Japan, the account of LVMH Brands is 41% total revenue of the first quarter with sales of 86% year after year. Future M&A was widely dismissed. They said post-acquisition of Tiffany, "We have other fish to fry," meaning tiffany is very important to us. We do not dilute any new venture that could make us less efficient. It is our number one priority.

LVMH Brands, including Moet and Louis Vuitton, have gained profit in the first half of 2019 and were far above the first half of 2020 before lockdown. “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis," chief executive Bernard Arnault said in a statement.

The reaction of people on the economic growth

"Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our leadership in the global luxury market in 2021," he added. said in a statement. Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our leadership in the global luxury market in 2021," he added.

The net profit of the entire group of LVMH Brands was 5.3 billion euros in January and June. There was a 62% rise compared to the first half of 2019. The final underlying profit round-off is 7.6 billion euros.

Conclusion

The fashion industry is a significant part of a vast cultural phenomenon known as the "fashion system," the concept embraces business fashion and the craft and art systems of Fashion. The fashion designer also plays an essential factor and the consumer who is buying and going to wear it. The fashion industry thrives on being unique, diverse, and flexible and tries to embrace or reject fashion ability according to the terms.

It is Fashinza, which helps various brands in manufacturing their clothes and apparels. It also helps the brands from the designing stage to deliver the best quality products on time. It works in four steps: fabric and design, coasting and sampling, transparency and quality check, and lastly, quick and safe delivery. It aims to solve the global supply chain challenge by mixing sustainability with technology. To know more, contact Fashinza today!

fashion-industry
lvmh-brands

Share this Story

Instagram Icon
Instagram Icon
Instagram Icon
Discover Data Led Trendy
Designs With Fashinza