LVMH MOET HENNESSY LOUIS VUITTON

The official name is LVMH Moet Hennessy Louis Vuitton SA (hereinafter referred to as LVMH). A conglomerate company specializing in luxury products with a focus on fashion, based in France.

By Balthazar

Born in 1987 by the merger of Louis Vuitton and Moet Hennessy. In 1989 Bernard Arnault's Christian Dior acquires LVMH. (Currently, the LVMH Group is located under Christian Dior SA. Parfums Christian Dior, the perfume division of Christian Dior, is under the umbrella of the LVMH Group. In addition to LVMH, Kering, which owns Gucci and Balenciaga, and Richemont, which owns Cartier and Chloe, are the top three companies with many luxury brands in the world.

Bernard Arnault was born in France in 1949. Growing up in a wealthy household that runs a construction company. In 1971, he graduated from Ecole Polytechnique, an elite school in France. After graduating, he got a job at his father's construction company. At the young age of 28, he gained a position as a manager. After that, he entered the development and real estate management industry from the construction industry. In the 1980s, he entered the United States and ran a real estate business, but failed in management. However, here he will learn American management methods such as mergers and acquisitions (M&A), a general term used to describe the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

In 1984, he embarked on the acquisition of Bussac Saint-Frail, which owns Christian Dior in France. (At that time, Bussac Saint-Freer was a French state-owned enterprise due to the financial crisis.) Bussac Saint-Frere was about 12 times as large as Arnault's company, but his company was closely linked with an investment bank. It succeeded in acquiring Bussac Saint-Frail, which had a business restructuring plan and overcame the company that had made a name for itself.

It goes without saying that the purpose of this acquisition was, of course, to get Dior in hand. The reason why Arnaud entered the brand business is that when he was doing business in the United States, many Americans thought that "France is Dior" and was shocked by its worldwide name recognition. It was because he felt the future of the fashion brand business from the belief that even if it declined once, it could be revived.

Under these circumstances, Arnaud switched the focus of his business from real estate to fashion and began rebuilding Christian Dior. He continued to strengthen both sides of fashion and management, such as hiring people who are familiar with the fashion industry with his own management skills and financial knowledge.

Dior brand began rebuilding in the 1980s. Meanwhile Karl Lagerfeld is CHANEL, he respected the tradition of the brand while incorporating newness, and realized the rejuvenation of the brand. Dior at this time was designed by Marc Bohan, and the newness as a brand was exhausted, and it was in a state of operating only with the legacy of the past.

In 1987, Louis Vuitton and Moet Hennessy merged to form LVMH. The merger established a holding company, LVMH, with a 50-50 stake, under which Louis Vuitton and Moët & Chandon were, but the management teams of both companies were in conflict and did not function well as a company.

LVMH then acquired CELINE in 1987. This was aimed at a synergistic effect with Dior, which lags behind leather products such as bags.

In 1987, he founded Christian Lacroix and joined the group. (Lacroix was Bernard Arnault's enthusiastic investment in establishing his own brand, which was unusual for Arnault's strategy to buy brands one after another, but later sold the brand.)

In 1988, Arnaud acquired up to 40% of LVMH shares in the form of a partnership in this conflict. LVMH acquired Givenchy's perfume and clothing divisions, respectively.

In 1989, Gianfranco Ferré, who was active mainly in Italy and was acclaimed worldwide, was welcomed as a Dior designer. From here Dior regains its youth.

In 1989 Arnaud bought more shares and got LVMH. In this way, Christian Dior became a subsidiary of LVMH, and a huge conglomerate company that could hold fashion brands such as Givenchy, Dior, CELINE, and Louis Vuitton and many luxury liquor brands was born.

Arnaud acquired LVMH with the stable business of high-end liquor (Dom Pérignon, Moet & Chandon, Hennessy, etc.) under Moet & Chandon and the acquisition of Louis Vuitton, which has global strength in bags. The aim is to strengthen the stability of the company and the synergistic effect of bags and clothing fashion.

Bernard Arnault, who built the giant fashion brand empire, will continue further acquisition of fashion brands and bring them under its umbrella. Specifically, Kenzo in 1993, Guerlain in 1994, Loewe in 1996, Thomas Pink in 1999 (luxury shirt brand), Emilio Pucci in 2000, Donna Karan, and Fendi in 2001.

Similar to the reconstruction of Christian Dior, each brand acquired has a rejuvenation strategy and a young designer of interest.

John Galliano was appointed to Christian Dior in 1996 to replace Gianfranco Ferré. Christian Dior made a leap forward, thanks in part to Galliano. Givenchy was appointed by designers such as Galliano, Alexander McQueen, Julien Macdonald, and Ozwald Boateng.

In Celine, Michael Kors, who took office from fall winter 1998-1999, revived the brand and made a big leap forward. In addition, Kenzo's Antonio Marras and Loewe were appointed as designers by Narciso Rodriguez and Jose Enrique Ona Selfa.

Louis Vuitton entered ready-to-wear from fall winter 1998-1999. Marc Jacobs, who was highly acclaimed in the United States, launched the ready-to-wear division. As a creative director, he oversees everything from clothing to bags to accessories, incorporating youth and newness into previous Louis Vuitton bags. (Brands have grown significantly in Asia, including the Louis Vuitton boom)

No results

Shop now