onStrategy

LVMH's valuation

April 26, 2023
< 1 minute

Strategy | Business Models | Tech

LVMH's portfolio

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.

Discover posts:

Threads and ‘The cold problem’

Threads and ‘The cold problem’

It has been a crazy week for both Meta and Twitter. My impression is that this ‘fight’ started back 10 years ago: “Twitter is such as mess — it’s as if they drove a clown car to a gold mine and fell in.” – Mark Zuckerberg, 2013 …fast forward on (...)

Read more
Spotify's new design

The TikTok-ization of everything: now Spotify

Source: Spotify I was discussing last week with the students about the TikTok-tification of apps: Instagram, Amazon, Netflix, Shein, Reddit, Youtube, and many others. Of course, Spotify could not miss this trend and announced yesterday their new design app Main takeaways from the event: 1/ The user interface moved from (...)

Read more