Richemont

Compagnie Financière Richemont SA is one of the three biggest luxury conglomerates in the world, along with LVMH and Kering Group. Richemont’s portfolio includes some of the most prestigious luxury brands in the world. Those brands mainly operate in the high-end watches, jewelries and accessories industry. All these maisons have specific heritage, knowhow and craftmanship. The Group owns 20 companies. For instance, the portfolio of Richemont includes: Vacheron Constantin (1755), Lange & Sohne (1845)

Chloe is a maison (subsidiary) of Richemont SA. Apart from Chloe, there are other world’s leading luxury goods companies managed by Richemont like Cartier, Lancel, Alfred Dunhill, Montblanc to name a few. Perhaps, that could be one of the most valuable resources Chloe enjoyed over competitors. According to Geoffroy de La Bourdonnaye, the

INTRODUCTION Hermès International, sometimes also referred to as Hermès of Paris or Hermes, is a French luxury goods manufacturer. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing

4. Company Corporate and Business Strategy Generic Strategies Model The generic strategies include cost leadership, differentiation and focus apply in business unit level. Generally, the cost leadership strategy never applicable in luxury industry. This is because most of the consumer purchasing luxury goods do not care about price point. No doubly, LVMH is one of the top world leading luxury products group. Every brand under the group hold its own brand spirits and produce things different from

Table of contents Executive Summary 3 Introduction to LVMH 4 Challenges 5 SWOT Analysis 7 Company Analysis 8 Porter 5 Forces Model 13 Industry Analysis 14 Alternatives 17 Recommendations 23 Endnotes 27 Executive Summary Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise

Company Analysis Strengths LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational

1. Introduction E-commerce has become the hottest topic from the second decade of the 21st century and will continue to expand across the whole world rapidly. Because of the development of online business market, some luxury brands will have to embrace the online retailing trend. Those luxury fashion brands who needs to find an online partner to show their fashion products will give websites, such as Net-a-Porter, a chance to engage in the online luxury fashion market. This report will analyse

which were produced and distributed. This brand was created in 1987. LVMH earned worldwide sales of €16.5 billion in 2007 (+7.7%). This achievement has ensured and conquered competition with its revenues being three times greater than its follower Richemont Group. The group has been split into five core activities with a rich portfolio of over 60 brands. Fashion and leather goods constitute €5.6 billion sales which accounts for nearly 34 % of the group’s turnover. It is also this sector that stimulates

3. Market Dynamics 3-1 Market analysis a) Macro analysis A macro environment audit provides a clear understanding of the external factors which exert influence on the luxury goods industry. There are several key things that Burberry bears in mind from the pestle analysis which are shown in Table 2. Economy (+) The number of luxury consumers has more than tripled in under 20 years, to around 330m people and spending has risen to an estimated €217 in 2013 (The Economist, 2014). (+) The main driver

Their average monthly consumption times are more than twice, and the consumption cost is also the highest in all age groups. The China Daily newspaper has reported that, younger Chinese luxury goods consumption has become a trend. In their survey of Chinese youth luxury goods consumption, more than 60% of young consumers indicated that in order to pursuit fashion and taste, they are willing to pay big bucks to buy luxury goods (Wu, 2014). Miss Wang worked for a foreign bank branch in Beijing Financial