LVMH Essay Example | Topics and Well Written Essays - 1750 words

LVMH - Essay Example Its distribution network is spread worldwide and caters to the upper class fancies and it has a number of high value brands in its fold. It mainly deals in wines and spirits, Fashion and Leather Goods, Perfumes & Cosmetics, Watches and Jewellery and Selected Retail Items. It has over sixty subsidiaries and they are autonomous in their operations. As a result the brands are mostly sold in upmarket locations, often through exclusive boutiques and showrooms and are not ordinarily available in Malls or markets. LVMH came into existence in 1987 with the merger of two of the largest wine makers Moet and Hennessy. Later they were merged with Louis Vuitton and added a great portfolio of 60 prestigious luxury brands. Christian Dior owns a part of LVMH and both companies are headed by a common CEO. Although its headquarters are in Paris, yet over 70% of its 64,000 strong workforce is based outside France. Its distribution channels are spread over 1,800 stores worldwide. LVMH has banked upon segmentation of the market successfully. It has chosen the upper strata of the society and is in possession of highly coveted items in fashion, wines & spirits, watches and jewellery and perfumes. Its customers are celebrities, high profile individuals, business leaders and executives and the political class. On the second rung it also caters to the wealthy consumers who are growing in numbers due to opening up of global career opportunities. It caters to people in their early twenties to sixties and has a vast product range for them. As the world turns into a global village, a new breed of customers from emerging and developing market is making its way to its stores. Having been long deprived, but attracted to the name and image created by its products they are proving to be the mainstay of LVMH in many a new markets. Thus we see a proliferation of LVMH group’s stores of different brands coming up in the Asian and Latin American markets. Globalization has opened new avenues