LVMH: Diversification Strategy into Luxury Goods

LVMH: Diversification Strategy for Luxury Strategy Problems In 2002, Moeven Hennessy Louis Vuitton became the world's largest luxury goods company with annual sales of EUR 12.2 billion. LVMH has the most famous brands such as wine, champagne, fashion, jewelry and perfume. After entering the high-end industry, LVMH recognized that the products they produced are not necessary, but millions of people around the world wanted it. This desire realizes to some extent illusion and makes consumers feel it has to buy it, otherwise they will not be present so they will be left behind.

LVMH is one of the world's leading luxury goods group. LVMH's strategy is based on a combination of LVMH's fashion and leather products. Net sales increased by 57% over the past two years. In 2001, LVMH achieved strong earnings growth during the economic downturn. This is due to the strength of the Louis Vuitton brand, the Louis Vuitton brand is a world leader in luxury goods and benefits from the synergistic effect of the business group to benefit the young brands. Each company can concentrate on their core business design and marketing while benefiting from shared financial and technical expertise. Everyone moves toward the goal, increasing sales

LouisVuittonMoëtHennessy (LVMH) is a French multinational luxury goods group. Our head office is in Paris, France. LVMH was established in 1987 after the merger of Louis Vuitton (Fashion Producer) and Moet Hennessy (Cognac Maker). The company manages approximately 60 subsidiaries, which are normally managed independently, and each company manages several famous brands. The main holding company of LVMH is Christian Dior, a luxury goods group. LVMH is the world's largest luxury goods maker. Comparing Hermes and LVMH, LVMH has a tremendous corporate strength, Hermes does not have this power, and there are many familiar luxury brands. Some of the most famous LVMH brands:

Focusing on the selection of high quality products, diverse strategies in the era of diversification. Create a halo around the brand and integrate the era of using celebrities to revitalize the sense of luxury. Seek emotion, charm, and a better lifestyle (1985 - 2000). A materialistic view of materialism in the era of exclusivity (1970-1985). The family business in Europe is crafts center. Wave capital inflow of luxury consumption in Europe, emergence of companies such as LVMH, Hermes, Prada. Consumption of luxury goods in developing countries is increasing, and the risk of financial crisis and economic recession is approaching consumers' way of thinking.

Product line diversity and innovation are important for LVMH leadership in luxury markets. One way LVMH to achieve this goal is to expand its customer base to include children and adolescents. "Many reports say that luxury goods are purchasing more grandparents from baby-boomer generations and relatives who spare no effort. Even many experts say that luxury consumption and self esteem are the opposite of personal strict education I believe it is due to psychological and economic creation "