Luxury giant LVMH Moët Hennessy Louis Vuitton ( LVMH), is a $500 billion powerhouse conglomerate comprising 75 distinguished brands, rooted in six different sectors — with no plans to slow down.
The company recorded revenue of $86.3 billion, last year, an increase of 23 percent in 2021 revenue. Its store count has more than quintupled over the past two decades, with locations across 81 countries and more than 196,000 employees worldwide.
Its stock reached above $199 per share, in April making it the first European company to surpass $500 billion in market value. Experts term the company as “recession-proof,” able to sustain itself through economic downturns and boasting products that uniquely appreciate over time.
It is led by LVMH CEO Bernard Arnault, the world’s richest person according to the Forbes real-time billionaires’ index. Arnault’s strength lies in identifying companies with longevity. His most recent acquisition was Tiffany & Co. for $15.8 billion in 2021.
His strategy is that when buying any brand he does not look for the brand that is powerful at that moment. But he looks for a brand that he thinks can be here 100 years from now, said an official LVMH for North America.
Arnault, LVMH plays “the long-term game,” said Oliver Chen, managing director at TD Cowen. That keeps the company’s brands in good shape in terms of integrity, perception, and relevance, he said.
Though managed by LVMH, each Maison has creative control over its brand, with its C-suite executives and mission. LVMH’s ability to consistently deliver products that build on its brands’ legacies, in conjunction with current trends and culture. LVMH consistently collaborates with celebrities, fashion icons, and influencers to stay relevant for the younger luxury crowd.
After the Covid pandemic, the company remained focused on expanding its brick-and-mortar stores, which are needed due to the extraordinary growth from LVMH’s e-commerce and digital channels.
Remaining relevant is key to longevity in luxury — and LVMH’s strategy in building a brand that not only endures but continues to excel.
LVMH geared to stay afloat even in recession
