Science Fair Project Encyclopedia
Louis Vuitton Moet Hennessy (usually shortened to LVMH) is the world's largest luxury goods company. It is the parent of around 50 sub-companies that each manage a small number of prestigious brands. The child companies are run, to a large extent, autonomously. LVMH is based in Paris. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of brandy. In 1987, they merged with baggage manufacturer Louis Vuitton to form the current group. Collectively, the group operates around 50 brands.
The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies. His successful integration of various famous brands into the group has inspired other luxury companies into doing the same. Thus Gucci group (now part of the French conglomerate PPR), Prada or Compagnie Richemont have also created extended portfolios of luxury brands.
The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its orgins back to 1593. As of 2003, the group had a turnover of approximately 12bn euros with a net income of 2bn euros. The group is publicly traded on Paris's Euronext stock exchange and is part of the CAC40 index. The group currently employs 56,000 people. The company is headquartered in Paris, and 40% of the staff work in France. LVMH operates around 1,500 stores worldwide. Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities and in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands, such as Tommy Hilfiger, which can be bought in shopping malls around the world.
LVMH's brands include:
- Wines and Spirits
- Fashion and leather goods
- Parfums Christian Dior
- Parfums Givenchy
- Kenzo Parfums
- BeneFit Cosmetics
- Make Up For Ever
- Acqua di Parma
- Perfumes Loewe
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