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LVMH: How Luxury Always Wins Even In The Worst Of Markets

Creativity, quality, entrepreneurship and long term vision. These are the central pillars to the multi billion dollar company based on a merger between Louis Vuitton, Moet & Chandon and Hennessy Cognac. The company led by Bernard Arnault (now the 4th richest man in the world) has transformed LVMH into one of the most powerful leaders of the luxury fashion industry in possession of brands such as Sephora, Christian Dior and yes, Louis Vuitton. The company is able to gain so much profit for luxury items such as clothing, fragrances, fine liquors and watches (amongst other things).

The company receives so much that they could light $100 million on fire and it would barely make a dent in their revenue. You might be wondering as you read this, “how tf does that happen?” The answer is right there in it’s central pillars. The LVMH corporation has for over 30 years been on the forefront of luxury goods due to their commitment to adapting an evolving the direction of the companies they own. With quality being an essential part of their philosophy, LVMH held a strong focus on distributing items that were of the best possible quality (if you’re paying thousands for a product, it had better be of the best quality). As for the other three pillars, LVMH for the past 30 years has been a major innovator and marketing giant leading some of the most famous and reliable luxury brands (i.e. Hennessy, Marc Jacobs, Christian Dior, Tiffany & Co. amongst others) into the present, constantly evolving and adapting quality, to align with a creative vision that will more than likely span over the next 33 years.

Based on news from earlier this year, LVMH was able to acquisition yet another luxury goods property, that being the already famous jeweler Tiffany and incorporate the jeweler into their vision for the price of $141 USD per share (just under 16 billion) for the purpose of increasing its overall quality of service. There it is again…quality.

Of course everyone has been adversely affected by the COVID-19 Pandemic, yet even though LVMH has experienced a 27% loss in projected revenues in 2020’s first half alone, it is still proving itself as one of the most reliable and trustworthy names in the luxury industry, not because they’re already massive in size, but because of their devotion to staying the course for luxury goods, keeping them at the highest quality of production, and their uncompromising attitude towards delivering long lasting, reliable, creative and innovative products.

Sure, you could say that the LVMH company could in theory deliver the same quantity for a lower price, though, quality as many creatives are aware, requires time, calculation, structure, and the ability to bring to its products the most readily available innovative, durable and long lasting materials and based on how many luxury goods and services fall under the LVMH umbrella, quality also costs a great deal of money and in order to maintain itself, especially in the global pandemic economy, it charges more.

To cap off the subject, Luxury always wins by it’s devotion to quality, creativity and vision; something that LVMH has mastered and will continue to master in years to come.

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