LVMH Presentation
Imagine the luxury experience of tomorrow
Group 2 : Filipa ALVES - Camille BARBE - Margaux BOMBE - Pei Xin LIN
Content ☓ LVMH ☓ The Problem ☓ Unique Store ☓ Secret stores ☓ Customer experience
Introduction LVMH known as one of the biggest luxury group in the world. LVMH covers 6 categories that integrate different kinds of products. Customers can know the brand but not its belonging to the LVMH Group. LVMH is engaged in many programs : exhibitions, sponsoring prizes, encourage the talented new generation.
LVMH: The Group MoĂŤt Hennessy
LVMH prize for the young
Louis Vuitton
1989 1987
1994 1993
2016
2005 1997
2013 Exhibition of pavilion salt
Exhibition "Icons of modern art"
LVMH: The Group Categories: ❖ ❖ ❖ ❖ ❖ ❖
Houses of Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other Activities
LVMH: The Luxury Sector ❖ ❖ ❖
The consumption of luxury goods has remained vigorous Stake of the emerging markets continuously increasing. Tourism is crucial to maintain and improve the health of this sector. Total of 60% buying abroad and in the airport.
Source : Delloite Luxury Multicountry Survey for Glibal Powers of Luxury Goods 2017
LVMH: The Luxury Sector What’s next? ❖
Search for digital development.
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Customization.
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Continuously improving the services provided to the client. Also focusing on experiences.
LVMH: The Luxury Sector Competition Gucci, Balenciaga, Saint Laurent
Cartier, Montblanc, Van Cleef & Arpels
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Competition is relatively high
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Competition is based on quality, talent and innovation
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Designers have an essential role in a brand’s growth
LVMH: The Strategy 3 Core Values:
→ Creativeness and Innovation → Excellence Delivery → Entrepreneurial Spirit ❖ ❖ ❖ ❖
Innovation is the KEY word Acquirements policy Kenzo example: overshadowed brand that LVMH decided to keep. Heritage of each maison, craftsmanship, MODERNITY & EVOLUTION,
LVMH: Overview 2017
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Total revenue in 2017: 42 billion €. 13% increase. Fashion and leather goods represent a large part of sales. Outstanding increase. Stars and overshadowed brands Watches & Jewelry → To develop in the future.
The Problem - 70 houses under the group - Lack of recognition by customers of all brands
Unique store A store which will look like a house to make the consumer feels like home.
This store will gather all the brands of LVMH and the arrangement of the house will be neutral to promote the LVMH Group as a unity.
The house : several bedrooms, dressings and bathrooms. There will also be a dining room and a kitchen. The colours will be neutral. 17th century’s house.
Unique store
Unique store Some employees of the Group can be there to help and give advices to the consumers. Those employees will talk about the Group.
Several services will be offered. First of all, the consumer will choose the moment that he want to spend. Then, he will indicate the duration and after all he will choose some services like a sommelier for the night.
Unique store Example of Patricia MacDougal : attorney who loves skiing. She has a chalet in La Clusaz and a summer house in Monaco. Her favorite brand is Fendi. She loves writing poems. She’s looking for a quiet place and will go to a store of a brand of the LVMH Group and book a secret store in the Massif Central. She will ask for a chef. She’ll come home with a personalized gift.
Unique store Location of the house : the first one will be in France. For this one, it will be in the countryside, in a peaceful place. It’s important for the customer experience.
If this house succeed, LVMH will implement four others Unique Stores in the region of the world were the Group is settled. It will be few select places according to the marketing theory.
Unique store The target : patricians and the parvenus because the Unique Store does not have to remain secret contrary to the Secret Stores.
The social signifier and conspicuous consumption theories : some people are sensitive to the exclusivity of luxury (rare, desired and offer an advantage.
Secret houses Secret houses would be reserved for ultra-rich person who want to live like common people. The aim is to offer to rich people a moment of luxury. Each house will have a unique universe according to the place of the house. The houses will be built on special places that remind the cores of the brands of LVMH Group. The aim is to reinforce the group heritage.
Customer experience : feel special In the Unique Store, the consumers will be alone. They will privatize the store for them. That’s why they will feel special.
The employees of the Group will be dedicated to the consumers to make them feel unique just like luxury.
For the secret stores, they will feel special because the place will not be known.
Customer experience : learn about the Group & brands All the services proposed will use products of the Group’s brands and houses. The Group is not well-known as a unity. That’s why a sommelier can explain some details about the Group for example. For the Secret Stores, consumers will learn about some universes and sometimes brands. And for Unique Store, they will learn about the Group and all the brands of LVMH.
Customer experience : Self-indulgence Consumers will share moments with their family or friends. It will be a unique moment because the Store will be privatized for them.
The consumers will be able to buy some products in the Store to extend their experience. The products can be personalized.
The aim is to make the customer think about the brand and remember the best moments he shared with persons he was with.
Conclusion The aim of our ideas is to know the Group as a unity by proposing houses that gather the products of all brands. Want to put the accent on the consumer experience discovering brands and the Group.
Thanks for reading and listening