Photo: Leah Grace Capitan / Seeking Alpha
Congrats to $LVMH for reaching a EUR +500 bn valuation. Here are my thoughts on their business model:
1/ Rarity will continue to outperform abundance. That is the power of artisanship.
2/ The group has a balanced ‘egg basket’, that can perform in any business environment: Fashion/Leather Goods, Spirits, Perfumes & Jewelry
3/ Their growth strategy was two-fold: (1) focus on emerging markets and (2) M&As (including building their web 3.0 team)
4/ Some of their iconic brands have a history that started in the 19th or 18th century: Louis Vuitton (1854), Tiffany & Co. (1837), Birkenstock (1774), Hennessey (1765), Moët (1743)
5/ The LMVH group has more than 5500 stores; most in Asia (China) and the USA
6/ Although the shop experience is crucial, the omnichannel strategy is a strong point
7/ Regardless of the inflation, the groups posted a +23% in profit (YoY)
Of course, there are also some challenges, but I will address them in another post.
