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LVMH Group’s Marketing Practices


LVMH Group is one of the largest corporations globally, specializing in the production and distribution of fashion and leather goods, wine and spirits, beauty products, and jewelery. The corporation makes billions in profits annually, making its Chief Executive Officer (CEO) one of the wealthiest men alive. The following paper examines the marketing practices of LVMH. The first two sections of the report serve as an introduction into the LVMH conglomerate and the subject of discussion, which is marketing. The paper then offers a critical analysis of marketing management at LVMH, focusing on product, pricing, place, and promotion of the company’s subsidiaries, particularly Louis Vuitton. Following that, a section dedicated to the in-depth discussion of LVMH’s marketing practices and their results is presented. Lastly, based on the aforementioned research, recommendations for the corporation are drafted, clarifying the time frame of each one.

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Introduction: Background of LVMH Group

Introducing LVMH Group

Luxury is a social fabric that connect billions of people whether they are affluent or come from a low-income background. One of the most prominent companies in the world of luxury is LVMH Group. The full name of a giant luxurious goods conglomerate, which includes a dozen of subsidiaries, is LVMH Moet Hennessy Louis Vuitton. It specializes in a variety of products and customer experiences in the luxury market. In regards to the corporation’s history, Moet & Chandon and Hennessy announced a merger in 1971, which was rightfully one of the greatest shifts in the alcoholic beverages sector. In 1987, Louis Vuitton joined the newly formed Moet Hennessy Wines Group, forming LVMH Group. Nowadays, the enterprise “has more than 50 brands, more than 1,700 stores, 68% of them are outside France, and employs nearly 60,000 people” (Chen, 2021, p. 77). Before merging with Moet Hennessy, Louis Vuitton has already established itself as a highly sought-after fashion brand specializing in leather goods, in particular.

The 1990s truly became the decade of Louis Vuitton’s growth caused by collaborations with famous artists and advertising campaigns starring some of the most popular celebrities (Artner, 2018). Following the merger in 1987, LVMH has proven itself to be a disruptor in the luxury market. For instance, the conglomerate became one of the first companies in the world to launch an eCommerce web-site, where consumers would have an opportunity to shop online (Artner, 2018). The corporation quickly realized the potential of metropolises such as London, New York City, and numerous Asian mega-cities. This constitutes one of the company’s biggest strengths — acknowledging the potential of new consumers. As for the recent LVMH operations, it is important to mention the creation of the Institute des Métiers d ́Excellence and the LVMH Prize Initiative for emerging designers.

As for the reasons why LVMH Group, in particular, has been selected for this assignment, there are a variety of them. Firstly, the luxury industry is one of the fastest growing globally, even considering the COVID-19 pandemic. According to Lauria (2018), the market of luxurious goods has consistently grown at a rate of about 10% annually since the 1980s. As for why LVMH was chosen specifically, the numbers speak for themselves. The average annual growth rate of large fashion enterprises such as LVMH Group over the last decade has been in double digits (Chen, 2021). Smaller luxury businesses, on the other hand, developed at a much smaller rate, averaging the rate of 6.5% (Chen, 2021). As a result of such comparable advantage in size, LVMH has access to a greater amount of resources to invest in marketing, which is the focus of this paper. The purpose of this report is to examine LVMH Group’s marketing practices and strategies in order to provide informed recommendations as to how the marketing management of the company can be improved.


There are a range of other reasons why LVMH Group has become the subject of the paper. LVMH takes full advantage of the merger and acquisition strategy. As more companies, such as Amazon and Google, start to make acquisition an integral part of their growth, it is exceptionally important to investigate the mechanisms such companies choose to utilise to market a wide range of their brands. The rationale behind LVMH’s decision to focus on acquisitions and mergers lies in the fact that “since it cannot grow excessively and produce brands casually, it should buy excellent luxury brands” (Chen, 2021, p. 78). It is hard for small, family-owned businesses to grow beyond national borders and internationalize. This is why many of them join LVMH or similar conglomerates, looking for opportunities and resources need to pivot.

LVMH is not simply one singular entity in the luxury segment. It includes a collection of unique companies with their own brand identities, missions, objectives, and creative visions. This diversity makes it all the more challenging to market LVMH as an enterprise. Despite that, the conglomerate continues to grow and push forward. This leads to the second reason of choosing LVMH Group, in particular — prioritization of brand independence within the corporation. LVMH’s brands have been led by genius designers, including Marc Jacobs, Alexander McQueen, John Galliano, Hedi Slimane, and many others. The company has put great emphasis on acknowledging the value such creative minds bring to each of the brands they are heading. According to Chen (2021, p. 78), “the longevity of the designers in the company (around ten years on average) ensures continued design stability.” Each creative director is approved or even scouted by Bernard Arnault, the conglomerate’s Chief Executive Officer. This signifies how important it is for LVMH to find talent, which would suit a particular brand’s aesthetic, vision, and culture. Interestingly enough, following the acquisition of a brand, the corporation ensures that it still reflects its core values by keeping its original team and allowing the office and studio spaces to remain at the same location.

LVMH Today

LVMH Group is a publicly-traded company, with its headquarters located in the city of Paris, France. As of today, the enterprise has rightfully deserved the honour of being regarded as the largest and most prominent luxury conglomerate in the world. Uniting more than 70 brands under its roof, LVMH is truly a leader in the luxurious goods sector. The company adopts six main vectors of operations, including Perfumes and Cosmetics, Fashion and Leather Goods, Watches and Jewellery, Wine and Spirits, Selective Retailing, and Other Ventures (LVMH, 2021). This separation of activities is referred to as the LVMH Model. Some of the most well-known subsidiaries of LVMH Group include Dior, Fendi, Dom Pérignon, Givenchy, Bvlgary, Fenty Beauty, and many more.

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The person who resides over such an impressive selection of brands is Bernard Arnault. He became the conglomerate’s CEO in 1989, shortly after the Louis Vuitton merging. Arnault is the company’s majority shareholder (Warren and Hartmans, 2021). Which has allowed him to acquire an immense fortune. As of May 2021, Arnault is named as the richest person in the world with a net worth of $186.3 billion (Dawkins, 2021). The financial prosperity of the enterprise’s CEO is reflective of LVMH’s overall profitability and immense growth over the past couple of decades.

LVMH Group has demonstrated that, despite external economic and internal organizational challenges, a company can expand consistently over time. According to official reports, as of February 2021, LVMH Group has reached market capitalization of $329 billion, making it the most valuable enterprise on the European continent (Cormack, 2021). Such high figures can be partially attributed to the Group’s resilient growth in a range of Asian countries. The Asian market has proven to be exceptionally lucrative to bsuinesses offering luxury products and services.

LVMH Group has truly established itself as an industry leader by growing fast and steadily. Statistics published online demonstrate that the conglomerate has created an organic sales growth rate of 12% within the 2017 fiscal year (Agnew, 2018). One of the primary contributors to such growth is the success of the Fashion and Leather Goods sector. According to Artner (2018, p. 38), “solely the Fashion and Leather Goods Houses made up for 36% of the revenue and amounted to nearly 1,800 stores in 2017.” When looking closer at the geographical division of the company’s orations in Fashion and Leather Goods, the statistics are consistent. Artner (2018, p. 39) adds that in each of the geographical divisions, “the Fashion and Leather Goods Industry amounts to the greatest part of revenue with a minimum share of 27%.” These numbers prove how important Louis Vuitton is to LVMH as one of the primary brands generating billions of dollars of profits.

In summary, there are a multitude of reasons as to why LVMH has been selected as the case study company for this assignment. Although the paper is going to discuss the marketing strategy of the entirety of LVMH Group, Louis Vuitton will be afforded special focus. As the largest luxury conglomerate worldwide, LVMH is in possession of a wide range of resources, both tangible and intangible, to develop disrupting and innovative marketing initiatives. The company’s high valuation indicates the scope of its financial profitability. Corporations focusing on acquisitions and merges are becoming less of a rarity in the current business environment. Thus, studying the marketing management of LVMH Group may serve as an excellent opportunity to analyse the strengths and challenges commonly facing such large conglomerates. Therefore, LVMH should be regarded as an archetype, examining which is a useful learning experience. Cavender and Kincade (2014, p. 234) clarify that exploring LVMH’s unique organizational structure could offer “a broader view of the luxury industry and more detail and variety of market and operational strategies.” Finally, LVMH Group’s impressive portfolio of brands with distinct identities should be the foundation for an in-depth exploration of different marketing approaches.

Introduction: Justification of Marketing as a Choice

Luxury fashion relies heavily on the concept of a brand and a conclusive brand strategy, in particular. As companies strive to distinguish themselves from competitors and translate a particular vision, it is now exceptionally important for businesses to make their messages heard. Marketing is integral to the luxury sector since it serves as a tool for communicating and interacting with consumers. Branding allows LVMH to take full advantage of the creative vision of each subsidiary by developing a full-fledged identity of each brand. Efficient management of marketing operations has helped LVMH Group to stand out among all the competition. It continues to be the foundation of strategies designed to demonstrate what makes each brand unique in order for the customers to be able to relate to such traits and grow emotionally attached to it. Thus, this paper aims to explore the practices the LVMH conglomerate has used in the past or is still loyal to in the present. After all, these are the initiatives and strategic decisions that allow LVMH to convey its brands’ essence and values.

The world of luxury is on the verge of a great shift. Paris and Milan are no longer the only producers of luxury. A wide range of emerging talents found their own brands and fashion houses focused on providing consumers with experiences of the highest quality. Through the power of social media and other digital technologies, it is now easier than ever for new luxury companies to enter the market. Therefore, one of the primary challenges facing LVMH Group is to secure its dominant position in the luxury sector, which is the task of strategic marketing. Over the recent decade or so, it has become more of a priority for LVMH to make the voices of each of its brands distinct and noticeable. As a result, the enterprise’s executives state that “before carrying out we [they] always ask ourselves [themselves] the question where is the identity of the brand in this campaign” (Romo, Garcia-Medina, and Plaza Romero, 2017, p. 144). If there is no clear answer as to how a certain course of action, particularly related to promotion and advertizing, fits the brand’s greater vision and agenda, LVMH starts considering alternatives. Such a nuanced approach to branding and marketing makes it all the more educating to examine the conglomerate’s marketing management.

Critical Analysis

In order to delve into LVMH’s marketing practices in depth, it is crucial to distinguish between traditional marketing and luxury marketing. In regards to the traditional approach, it often refers to to a predetermined set of mechanisms used to build a relationship and communicate with customers. Such mechanisms include direct communication through sales representatives, event public relations, as well as advertising campaigns. Marketing luxury goods, on the other hand, involves more than that (Chen, 2021). In case of brands such as Givenchy, Louis Vuitton, Moet, or Bvlgari, executives have to find ways to elevate the experience the brand is capable of providing to clients. One of the most efficient ways to achieve a high-quality experience is through communication with consumers, which allows to collect insights into their needs and to simultaneously send out a unique message of a particular brand. According to Chen (2021), social media is now an integral part of marketing in the luxury sector. In the current business environment of luxury, it is almost impossible for a brand to be profitable and desirable without taking advantage of electronic word-of-mouth recommendations and social media advertising.

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In fact, ensuring that there is favorable word-of-mouth surrounding the brand is one of top priorities for LVMH. Klein et al. (2016) argue that this is an integral art of the role of luxury marketing management. LVMH Group invests in creating experiences, which would encourage clients to recommend the brand or its products to family, friends, colleagues, and others. In addition, the corporation skillfully utilizes the trustworthiness of universal role models, such as international celebrities and influencers. One such example is members of BTS becoming Louis Vuitton’s official ambassadors (Mistry, 2021). Chen (2021, p. 79) claims that “the trustworthiness of a well- known follower or celebrity is a vital factor in improving buy intentions for reputable premium goods.” LVMH relies on such partnerships to maximize penetration of its brands into the public consciousness.

Critically analyzing LVMH Group’s marketing management would require a close examination of the conglomerate’s marketing mix, including product, place, price, and promotion. As for the product, LVMH specializes in premium-quality goods, which ae usually handmade or manufactured utilizing a patented technology. The range of the global corporation’s products is wide, including fashion apparel, jewelry, precious stones, high-end wind and spirits, as well as beauty essentials. As a way to distinguish itself from competitors, the conglomerate invests in ensuring the design behind the products is innovative, yet sophisticated. Louis Vuitton, Bvlgari, Loewe, Celine, and numerous other brands under the LVMH umbrella prioritize centuries-old craftsmanship techniques as well as impressive attention to detail.

Instead of relying on machinery akin to a great deal of other corporations reaping the benefits of industrialization, LVMH employs thousands of impeccably trained and highly specialized individuals who often create products by hand. This generates value for consumers by contributing to LVMH’s unique selling proposition only a few other enterprises would be able to recreate. Therefore, it is evident that the company’s goods are the essence of its operations. In the context of marketing, it is important to acknowledge that promoting and presenting a product to consumers starts with its creation. This is why it is so crucial for LVMH marketing managers to communicate the craft and time that go into making each piece in the newest collection or a certain beauty product from the recently released line.

Regarding the place, it is crucial to establish that LVMH puts great emphasis on exclusivity. Thus, the company’s distribution policy is rigorous to maintain the element of inaccessibility. In order to demonstrate LVMH Group’s approach to distribution in action, it is necessary to examine the way Louis Vuitton products are distributed. The company is notorious for ensuring only people who actually want a Louis Vuitton bag can buy one. Firstly, to purchase Louis Vuitton products, clients have to visit the physical store or contact a sales person online. LV executives limit the distribution channels of goods in an effort to connect with its clientele directly. The strategic decision not to sell products in malls and department stores is part of the Louis Vuitton’s marketing agenda. The long-term vision of the brand is to communicate with customers effectively by providing them with the buying experience of the highest quality. The only way for LV to accomplish that is by training its own staff to provide services to the clientele in a proper way and creating a unique sort of atmosphere in-store.

Despite the seeming disadvantages of such a conscious decision to distribute exclusively, it is important to acknowledge that Louis Vuitton stores are all in some of the prime location globally. From Tokyo to Los Angeles, LV stores are located in the busiest shopping areas, which makes it easy for customers to find the store, come in, and be assisted by professionals. Even in case of emerging brands, the resources and power LVMH holds ensure that exclusivity is not unprofitable for the company.

Another factor in LVMH Group’s marketing mix is price. Pricing is interconnected with marketing as it has to suit the demands and sensitivities of the target audience. LVMH as an entity is adamant on utilizing a premium pricing strategy. Even among luxury fashion brands, Louis Vuitton remains relatively expensive. The conglomerate justifies high prices by citing the craftsmanship, creative design, and history that are all part of creating each of the pieces. In summary, LVMH Group’s most prominent brand’s, Louis Vuitton’s, pricing strategy is value-based. In fact, a Louis Vuitton piece is regarded as a statement related to class and social status. This makes the brand’s products extremely sought-after among the society’s elite. The pricing approach of LVMH leads to the production and sale of knock-off products. Factory workers, mostly in Asia, make fake LV bags, purses, scarves, sunglasses, and a variety of other merchandize out of the cheapest materials (Swartz, 2009). As a result, millions of counterfeit products from brands owned by LVMH are sold and resold annually.

Despite premium prices, LVMH expertly markets some of its brands by leveraging the data gathered about the target clientele and adjusting prices accordingly. An illustrative example of such flexibility in pricing on a case by case basis for LVMH Group is Heaven by Marc Jacobs. Launched in 2020, the extension of the Marc Jacobs brand is a reflection on the power of the Gen Z and Gen Y consumers. For the grungy and nostalgia-obsessed teens and young adults, Heaven serves as a reminder of all things late 1990s and early 2000s. Considering the target market and overall aesthetic, pieces from Heaven by Marc Jacobs are priced between $45 and $400 dollars, according to Vogue’s Steff Yotka (2020). This pricing approach serves as evidence of the flexibility in LVMH’s take on luxury. While exclusivity remains the conglomerate’s main source of profitability, executives are aware that the meaning of luxury extends far beyond prices, prioritizing unique buying experiences and carefully crafted, nuanced brand identities for its subsidiaries.

Lastly, when it comes to promotion, few can call themselves as successful at it as LVMH. As a decades-old conglomerate with a rich history and billions in revenue, LVMH Group can afford celebrity endorsements and connect them to a particular brand’s identity. Some of the famous personas featured in campaigns for LVMH brands include Emma Stone, Emma Chamberlain, Kate Moss, Uma Thurman, Hoyeon Jung, and many others. In addition, LVMH invests a lot annually in sponsoring major events in sports, academia, culture, arts, and fashion. As mentioned earlier, the conglomerate holds annual LVMH Prize for emerging young talent in the fashion design world.

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Such events attract a lot of attention from the public and media. Thus, LVMH’s involvement results in additional publicity. Furthermore, some of the most affluential people attend the aforementioned events. Therefore, the conglomerate ensures it remains directly connected to potential and existing clients by endorsing the projects they might be a part of in any way. It is apparent this strategy not only allows LVMH to maintain brand awareness among consumers, but builds associative links between prominent cultural events an LVMH.

Another aspect of promotion worth discussing is advertising. As a luxury company, LVMH refuses to market its products using television advertisements. Instead, the conglomerate adheres to a premium advertising standard for promotional materials in magazines, online, and on billboards. LVMH Group aims to create visual and auditory experiences for existing and potential consumers, which would not simply promote a product, but affect them emotionally. Most importantly, the images created serve as an attempt to make a sociocultural statement for LVMH. This ensures that what the company is creating in terms of advertising is unforgettable, easily recognizable, and entirely unique. LVMH Group actively uses social media to stay connected with consumers participate in trends, and take full advantage of digital tools available via Facebook, Instagram, or TikTok applications. The official accounts of all the brands, which are a part of LVMH, count dozens of millions of followers who engage with each of the company’s content.

Results of LVMH Practices on Marketing

In regards to LVMH Group’s marketing practices and their outcomes, it is important to examine brand marketing efforts of the conglomerate in five key dimensions. They include brand identity, marketing vision, brand equity, and brand architecture, and brand sustainability. According to Okonkwo (2007), brand conceptualization is an integral part of drafting a larger marketing agenda for any company. The brand’s story, values, catch phrases, and offerings constitute its identity, which is then reflected in said brand’s communication with clientele. The need for LVMH to seamlessly integrate newly acquired brands into its portfolio differentiates the corporation from smaller enterprises. Such a paradox extends to the need “to transfer added value to those brands, and initiate needed reorganization, while following a brand protection strategy” (Cavender and Kincade, 2014, p. 237). As mentioned previously, it is crucial for Arnault and the executive board to ensure all the brands remain autonomous as much as possible.

The efficiency of LVMH’s brand identity protection practices is demonstrated by two examples of the conglomerate’s revitalization of existing brands. Dior Couture and Louis Vuitton both owe their rebirth to LVMH. In order to turn the crises around and battle rapidly declining profits in both cases, the corporation initiated a series of strategic changes. For instance, Louis Vuitton has expanded despite a period of financial instability in the 1990s. This is the result of “creating artificial scarcity through limited production and release of products and diversifying product offerings” (Cavender and Kincade, 2014, p. 239). The outcome of LVMH’s practices targeting the development and commitment to a marketing vision for each brand is high awareness of LVMH subsidiaries.

The conglomerate achieves such awareness by manipulating the public’s tendencies to create visual and sensory associations. Furthermore, the company implements the marketing vision at all organizational levels. Cavender and Kincade (2014) also highlight the LVMH corporation’s ability to remain reactive to shifts in marketing orientations among consumers. As a result of conducting extensive research and integrating insights into practice, LVMH has been one of the first companies to invest heavily in experiential marketing. Due to the very nature of luxury as a concept, an experiential marketing approach allows LVMH to achieve “maximum results in the form of increased brand loyalty” (Cavender and Kincade, 2014, p. 240). This demonstrates that LVMH Group is in touch with consumer attitudes and needs, which is essential to market the products.

As for brand equity, two primary measurements of practices related to increasing it are corporate (CBE) and digital brand equity (DBE). LVMH’s CBE remains high particularly as a result of the conglomerate’s executive board’s decision to protect autonomy of newly acquired brands and leverage economies of scale and scope. The corporation has successfully strengthened CBE through integration efforts and transfer of knowledge between brands within LVMH, according to Cavender and Kincade (2014). Regarding DBE, LVMH Group has auspiciously capitalized on the emergence of new technologies by becoming one of the first companies to launch an eCommerce platform in 2000. This has been the first step for LVMH to establish its subsidiaries’ online presence.

In the context of this paper, brand architecture is referred to the enterprise’s brand portfolio and organizational ties connecting various brands to one another. Cavender and Kincade (2014) specify that the key measures of organizational architecture are diversity, sub-branding, as well as brand extensions. LVMH is dedicated to diversifying its portfolio, particularly in an effort to meet an emerging customer demand. Thus, in order to cater to the younger consumer, LVMH executives acquired a series of young and fresh brands such as Urband Decay, Benefit, and Hard Candy. However, each of the new acquisitions had to complement an existing selection of brands in the Perfume and Cosmetics sector, including Givenchy Perfumes, Christians Dior Perfumes, and a variety of others.

As for sub-branding, this measurement dimension is especially relevant in the conglomerate’s Fashion and Leather Goods sector. LVMH has made the strategic decision to avoid sub-branding for established luxury powerhouses, including Dior, Louis Vuitton, or Givenchy. Instead, the corporation invests in capitalizing on product line extensions. The limitations on sub-branding are the LVMH Group’s attempt not to compromise the existing, decades-in-the-making brand image of a certain subsidiary. Despite that, new acquisitions, such as Marc Jacobs and Donna Karan, have successfully expanded through sub-branding extensions. When it comes to brand extensions, LVMH subsidiaries have been prone to over-licensing. Although the conglomerate is now highly selective in relation to the partnerships each brand enters, the damage caused by past mistakes have not been repaired yet.

Lastly, LVMH practices resulted in high brand sustainability of the majority of subsidiaries. The core strategy for LVMH in the past two decades has been to focus on the development of its most iconic and recognizable brands, including Louis Vuitton, Dior, Bvlgari, and a number of other ones. Such an approach was facilitated through “constant creativity and sustained innovation, focused investments, and disposal of non-strategic assets” (Cavender and Kincade, 2014, p. 243). As a result of prioritizing long-term profitability and calculated risk-taking, LVMH has enjoyed expansion, strong growth, and development over the years.

An aspect worth discussing in relation to LVMH Group’s marketing practices is the option of a membership most of the conglomerate’s subsidiaries provide to its customers. Becoming a loyal client of Louis Vuitton, for example, allows consumers to receive an exclusive opportunity to attend special events, get the latest updates on item availability, and get gifts from the brand for various holidays (Chen, 2021). As a result, the company truly creates a family consisting of loyal clientele who has exceptionally high expectation not only for the products themselves, but for the quality of assistance and service, in general, provided.

Apart from examining the results of the marketing strategies employed by LVMH, this section of the paper will investigate the corporation’s marketing practices in further detail. The following passages are going to be dedicated to the exact strategic backbone of LVMH Group, which has allowed the conglomerate to build and maintain a long-lasting reputation of opulence, luxury, and quality.

Firstly, LVMH puts emphasis on handmade production of its products, which then becomes an aspect of promoting them. The company executives ensure that the marketing practices deployed by each brand communicate the value and craft encapsulated in the creation of all the goods. In addition, handmade pieces usually imply customization. A number of most valued LVMH clients have the exclusive opportunity to receive personalized products at their request or as a gift.

Secondly, as mentioned before, the LVMH conglomerate invests a great portion of its resources in ensuring all of its subsidiaries are under the untouchable umbrella of exclusivity. One of the primary reasons as to why the Group’s products are so sought-after is the fact that they are limited edition, hard to access, and cost a lot. All of these constitute layers of fabricated exclusivity, which is the basis for the genius of LVMH’s marketing. Brands such as Givenchy, Louis Vuitton, and Bvlgari are built upon the notion of a certain status associated with owning pieces from them. In turn, such a status is only secured through exclusivity, which is manufactured by LVMH through a variety of strategic decisions concerning pricing, distribution, and access. However, what ties all of the aforementioned factors is marketing and the message the conglomerate wants to communicate to the target consumer base. In addition to an overall sense of exclusivity, LVMH Group encourages its subsidiaries to release limited collections, including collaborations with famous artists, seasonal holiday drops, and off-schedule one-of-a-kind products.

Thirdly, one of the key aspects of LVMH’s marketing is the conglomerate’s ability to scout and capitalize on emerging and established names in fashion, art, and design. Throughout the corporation’s long and twisted history, Helmut Lang, Stella McCartney, Virgil Abloh, Vivienne Westwood, Ricardo Tisci, and numerous other iconic designers have joined the brands under LVMH’s supervision. Apart from hiring promising talent, LVMH leverages the influence of celebrities and influencers it uses in marketing projects, including advertising campaigns, events, and social media. Some of these names include Kanye West, Mikhail Gorbachev, Zendaya, Scarlet Johnasson, and Muhammad Ali.

Lastly, in regards to marketing, the LVMH corporation manages to effectively combine tradition and innovation, offering its customers the most unique and subversive experience. The stories behind the majority of the brands, which are a part of LVMH, are fascinating and rightfully engraved in each of the brands’ identities. Despite that, the company is not fearful of risks in the name of experimentation and disruption. LVMH executives are fully aware of the potential Gen Y and Gen Z clientele holds. Thus, even in promotional activities, the conglomerate makes an effort to be inclusive and let Jaden Smith be just as much of a brand ambassador as David Bowie.

The spirit of innovation seeps into marketing practices in more ways than one. Over the last decade, LVMH Group has demonstrated commitment to utilizing social media and the power of digital communication to the fullest ability. All the content shared via social media channels reflects each brand’s unique creative vision, traditional values, and history. This is an example of a marriage between innovation and tradition supported by LVMH’s marketing management team.

Practical SMART Recommendations

Prior to crafting the most suitable recommendations for LVMH, it is important to identify the primary challenges the corporation faces in regards to marketing, in particular. The first threat is obvious and refers to the potential and existing competition. As the pool of opportunities for emerging businesses in luxury grows, LVMH has to strategise as to how to secure its dominant position on the market. The rise in the number of competitors does not imply potential tensions, but leads to present-day challenges in relation to demand and supply chains. Furthermore, when new companies enter the market, they often try to attract customers by offering the product of the same design and quality at a lower price. Thus, it becomes harder for LVMH Group to compete in terms of pricing, which makes the conglomerate rely on other aspects of the marketing mix more heavily.

Another important challenge to discuss is the constantly changing consumer demands. The world of technology and social media has initiated the phenomenon of month- and even week-long trends. As a result, the taste of consumers is rapidly changing. This posits numerous problems, including the difficulty to predict customer wants and the lack of any possibility to deliver on-trend pieces fast to the stores. In these instances, fast fashion retailers are usually the ones that can facilitate the demand for something new in an extra-short period of time.

Lastly, LVMH faces the challenge of internationalization, particularly expansion into the Asian market. Although, as mentioned earlier, LVMH Group’s fiscal performance in a range of Asian countries has been impressive, there are some long-standing issues related to the unique demands of foreign consumers from the Eastern hemisphere. Since Asia is LVMH’s primary market for growth as of now, it is integral for the conglomerate to reap all the benefits of penetrating the Chinese, Japanese, and Korean markets.

The main strategic direction LVMH has to take in the context of marketing is the adoption of innovative technologies into marketing operations. Technological tools that the conglomerate has the resources to purchase and invest in research and development of can be exceptionally helpful. Firstly, they can allow LVMH Group to collect, analyze, and utilize data from Asian consumers in relation to their needs, demands, preferences, and cultural traits. Secondly, they can facilitate further integration of social media into the corporation’s marketing strategy. Thirdly, they can assist LVMH teams in creating the most unforgettable and personalized in-store experiences for customers.

Each of these solutions, which technologies can help to implement, can be turned into a SMART recommendation. In the year of 2022, LVMH Group should invest at least $300,000,000 in applying innovative technologies to research the Asian consumer market. Although the objectives related to this recommendation require much more detail, it is evident that this advice has the potential of being extremely useful. Gathering and analyzing information from hundreds of millions of Asian consumers will create an immense database that LVMH executives can use to draft marketing strategies for the region. According to Ploneczka (2018, p. 27), “one-third of Chinese luxury consumers said that they are willing to buy products designed especially for their market.” Thus, it is apparent how important collect data might be in exploring ways to customize the luxury shopping experience involving LVMH products for the Asian clientele.

The second recommendation is that LVMH should leverage the technologies readily available to the company to develop a new feature of Louis Vuitton in-store experience unique to the brand’s stores in China by 2024. Ko and Megehee (2012) argue that a high-quality experience and direct involvement in fashion improves the attitude of a consumer towards the luxury brand. They add that, in turn, attitude influences value and brand equity in a positive manner, highlighting that “value equity negatively influences customer lifetime value while both relationship equity and brand equity positively affect customer lifetime value” (Ko and Megehee, 2012, p. 1398). Utilizing the insights gathered as a result of following previous advice, LVMH Group needs to provide the Chinese consumer with a special luxury customized especially for them. This recommendation includes all the elements of the conglomerate’s expansion approach, including prioritization of experience, personalization, Asian internationalization, and innovation. Apart from implementing the feature, LV marketing executives should direct as much of the media’s attention as possible to the brand’s sensational exclusive technological novelty available in China only.

Finally, the third recommendation is for LVMH to increase average engagement rates by 10% on 3 of the most followed accounts among subsidiaries in one year. The volatility of the luxury market makes it all the more challenging to catch the interest of consumers. Arrigo (2018, p. 658) reminds of the importance for luxury companies, such as LVMH, to remain relevant online, citing “the growing relevance in the luxury market of young customers” and the fact that “luxury brand lifecycles have become shorter.” Therefore, it is exceptionally important for LVMH Group to navigate the world of social media with ease. Emerging technologies can provide an original way of presenting or creating contact, or interacting with followers.


In conclusion, LVMH Group is one of the most prominent and profitable corporations in the world. The company continues to dominate the luxury market with billions of dollars in annual sales. LVMH’s success is partially attributed to the marketing practices deployed by its team. The luxury sector expands more each year, which increases the amount of potential competitors. However, through marketing, LVMH has been able not only to hold its own, but grow at a constant pace over the decades. Marketing has allowed the conglomerate to connect its subsidiaries, while distinguishing between unique messages each brand tries to communicate to the target consumer.

LVMH Group’s growth is the result of strategic marketing decisions and well-implemented initiatives. The core rationale behind the conglomerate’s marketing practices is to leverage the benefits provided by its various business capabilities. They allow LVMH to curate the narrative of exclusivity without losing profits. Apart from exclusive access to products, LVMH emphasizes high quality, customer experience, personalization, and talent acquisition. Despite the impressive track record in regards to marketing, there are a few aspects LVMH could improve. There is a need for the corporation’s marketing executive board to leverage the power of digital technologies to the fullest extent, find creative ways to introduce new potential clientele to the company’s rich history, and invest in exploring the needs of the Asian market.

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