LVMH CHALLENGE Les cols Claudine
The Market General ➢ ➢ ➢ ➢
Consumption of luxury goods has remained vigorous during the last few years → emerging markets → an increasing opportunity Role of tourism is crucial Trends: digital development, constant innovation, customized services. 3 main players: LVMH, Kering & Richemont.
Benchmarking (2017) ❖ LVMH has done much better on sales and profit from recurring operations (also due to the higher number of brands) ❖ However, the leader in stock price terms is Kering
The SWOT Strengths ✓ Main leader in the market ✓ Wide portfolio of brands ✓ Great geographical coverage ✓ Brands of the group are well-known ✓ Strong identity, due to history and heritage ✓ Decentralized management
Opportunities ☆ Emerging markets (especially in Asia, where the company is very popular) ☆ Sources of creative talent worldwide ☆ E-commerce expansion ☆ The luxury sector is a healthy one
Weaknesses ✘ Limited capacity of production ✘ Higher focus on “star” brands ✘ Neglection of smaller brands
Threats ☠ Rise of counterfeit goods ☠ Other luxury sector competitors ☠ Deflaction of prices ☠ Global/regional economical and political conditions
The Business Plan Unique Stores - The idea WHAT ✚ To create a store which would look like a house, so that the client can feel at home. WHY ✚ It would gather all the brands of the groups → experience the group and not a single brand → UNITY ✚ Enhance the group strategy.
HOW ✚ A traditional house, from the 17th or 18th century. ✚ 4 bedrooms and dressing room for each, bathrooms, dining room and a kitchen. ✚ A Michelin-starred chef would cook. ✚ Cosy house, but also filtered → the IDENTITY of LVMH ✚ Neutral → the core and the codes of each brand do not have to be more prominent than others. ✚ Several services would be provided: events booking, makeup for wedding preparation...
WHERE ✚ 1st phase: One house in France, Paris. Focus on heritage. ✚ 2nd phase: One house in the rest of Europe, Asia, Japan and USA. ✚ Few places available → EXCLUSIVITY
The Business Plan - 4 P’s A house where several brands of the Group are gathered. The aim is to create a spirit and strategy of union.
Quite expensive, regarding the multiple luxury experiences available. Target: patricians and parvenus.
In the countryside : near Paris for the first one.
Promotion through luxury magazines and in-store invites to usual customers. Distribution through websites or in brand’s stores.
The Business plan Special stores - The idea WHAT ✚ To create a special store where customers can have a moment of luxury, private and intimate. WHY ✚ It would gather all the cores of different brands ✚ To come back to something simpler that the daily life.
HOW ✚ A store really closed to nature to break the routine. ✚ To propose different services that customers can ask before his arrival. ✚ Preserve the intimacy of the customer. ✚ A unique universe according to the place of the stores.
WHERE ✚ In a quiet place that is linked with a brand’s creator → give more authenticity ✚ The address will be unknown.
The Business plan A place like a “clandestine� bar for example : secret adress, special universe according to the tastes of consumers.
Quite expensive : High Net Worth Individuals (target)
Secret place until the booking, it could be everywhere.
Promotion in the stores for very loyal customers.
The Business Plan The consumer experience Feel special ✚ Feeling of peace : Unique Store on the countryside ✚ Enjoy their moment of luxury ✚ Employees dedicated to consumers ✚ Unknown place and special universe : special stores
Learn ✚ Employees are here to explain the history of a brand/product or of the Group (Unique & Special stores) ✚ Special stores : cores and codes of some brands according to the universe of the store
Self-indulgence ✚ Spend time with family/friends/colleagues ✚ Buy products in Stores : extend the experience. ✚ Personalized products ✚ Timeless experience : share moments and remember them ✚ “Luxury can enrich everyday life with a hint of something special” Hansen & Wänke, 2011
The prototype
Colors :
Brands :
ALL
of them
Services :
PERSONALIZED
SPECIAL universe Brands :
SOME
of them
Conclusion Aim : Show the Group as a
HISTORY and
VALUES of the Group
UNITY
“put the accent on the consumer experience discovering brands and the Group”