LVMH group, founded in 1987 by the merger of Moet Hennessy and Louis Vuitton is the world leader in luxury, with a unique portfolio of over fifty brands. There are more than 60,000 employees, nearly 1700 stores across the world, a turnover of 910 million euros in 2005. It is partly for these reasons that it was decided to investigate the disclosure of LVMH, a unique company with a philosophy of "creative passion." This company has a set of strong brands in the evocative power and great iconic names in the history of luxury. The main strengths of the group are: - it is the only player in all luxury businesses, has a good geographical balance of sales, power of brands, that are timeless and renowned internationally, financial strength of the group and creativity of teams. It is driven by innovation and outstanding development of its activities worldwide, including the United States and Asia, or taking advantage of the rise of China, India and Central Europe. The performance allows LVMH to confirm the objectives of profit in 2006 with an increase of 11% during the first three quarters.
Indeed, the group can count on outstanding growth opportunities, a dynamic innovation policy, a favorable economic and strengthening its international position as a world leader in luxury trades. To inform its shareholders as regularly as possible, LVMH has a whole variety of communication media. As discussed in this study, this diversity allows the Group to reach different targets that always do not have the same expectations.
Today the LVMH is a world leader in luxury, and the Group is the result of successive alliances between firms, from generation to generation, that have successfully combined tradition of excellence, creative passion, openness to the world and a winning spirit.
Ambassadors in the world of luxury, brands of wines and spirits together in LVMH sell exceptional products, sought by a quality-loving customer.These marks (Moet et Chandon, Veuve Clicquot, Dom Perignon Hennessy Cognac, etc.). LVMH Group are also the world leader in premium wines and spirits. LVMH has a set of unique brands (Fendi, Celine, Kenzo, Givenchy ...) in the fashion and leather goods whose flagship Louis Vuitton is by far the world's leading luxury brand. A Culture of excellence, successful innovation, ability to lift their "bestsellers" to the rank of classics: with these combined strengths, the Group's brands have demonstrated an exceptional dynamic circuit in the selective beauty and perfume luxury market .
In a few years, LVMH has become one of the best performers that trades in watches and jewelry. Icons and lines with a strong innovation within its brands (TAG Heuer, Zenith, Dior Montres, Chaumet, Fred ...), this sector is growing steadily in market share and improves profitability.Located on three continents, the activities of selective distribution (Sephora, Le Bon Marche ..) are fully involved in promoting a business environment appropriate to the status and image of excellence in luxury brands.
The turnover at the end of fiscal 2005 totaled 13,910 million euros. This was up by 11% over the previous year. Changes in perimeter and currency fluctuations in 2005 had no effect on this development. The share of sales in France compared to other geographical destinations decreased by 1% while the share of Asia (excluding Japan) grew by 2%. Regarding sectors, the figures remain stable for the majority.
Tags: LVMH group; a study of the group; leaders in luxury market; growth opportunities; dynamic innovation policy
[...] Once it is filed or registered with the AMF, it becomes a public document that can be accessed at any time, by all persons. As mentioned above, it is posted on the AMF website. Moreover, just as for the Annual Report, one may apply directly to the website of LVMH for it, and receive it three days later in print. - Comparison of two media Depending on the circumstances the Reference Paper is an expanded Annual report or a specific document published at the most opportune time. Why create a specific document? [...]
[...] They share the trials it conducts. We can mention two such cases that have attracted much of the Group: the lawsuit against Google and against Morgan Stanley, in which the LVMH group has earned fame. - LVMH had accused Google Adwords of allowing the association of words such as "imitation, replied, copies," with the brand Louis Vuitton, "to put the messages of advertisements at the same height as her official site, the leading Result of the search engine". The High Court of Paris condemned Google France and its American parent company to pay 200,000 Euros in damages to the company Louis Vuitton, for "trademark infringement" on February but also, and it is a new fact, for "unfair competition and misleading advertising." - The Commercial Court of Paris, by the judgment dated January sentenced Morgan Stanley for gross misconduct in respect of LVMH. [...]
[...] Apart from its purely financial communication to be outlined in the 3rd part via the reference document and the annual report, LVMH advertises its social and environmental responsibility. This presumably to protect the ecological disaster of its business, as this would impact its share price negatively. By communicating on these issues, i.e. by being "societally" responsible, it transforms into a legitimate activity. - Respect for the environment and sustainable development For over 10 years the environment has been a major concern of LVMH. [...]
[...] Names Tasks Bernard Arnault President and CEO Antoine Bernheim Vice-President Antonio Belloni Chief Operating Officer Antoine Arnault Group administrator Delphine Arnault Executive Committee member of Christian Dior Couture. Jean Arnault Chief Operating Officer and Director Montaigne Participations et Gestion. Nicolas Bazire Director development and acquisitions. Nicholas Clive Worms Chairman of the Supervisory Board of Worms & Cie. Diego Della Valle Chairman of the Board and CEO Tod's SpA. Albert Frere Co-creator of the Swiss holding company Pargesa. Jacques Friedmann Corporate Director. Pierre Gode Advisor to Bernard Arnault Gilles Hennessy Vice President of Moet Hennessy. [...]
[...] LVMH also introduced a website to its shareholders, allowing them to have clear and accurate information via the Group's quarterly earnings release and many press releases intended for them. Although LVMH attaches great importance to its disclosure, the fact remains that certain points remain opaque, suggesting that the information about the Group is not always as transparent as it claims. The Group controls and thus turns to its advantage the media. In this regard we include The Tribune, which facilitates Investing, or even financial communications transmitted through its website. [...]
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