Louis Vuitton is owned by LVMH, among the largest Luxury goods companies in the world. With over $53 billion in revenues by 2019. It owns 75 brands in six different sectors. Some of these brands comprise Louis Vuitton, Bulgari, Christian Dior, Fendi, Loro Piana, Celine, Givenchy, Kenzo, Berluti, and Rimowa. LVMH is owned by the Arnault family (Bernard Arnault, the CEO, is among the wealthiest men on earth) with a 47.44% ownership stake and over 63.5% of the voting power. Thus asserting a tight control over the Luxury Empire.
Inside the French Luxury Empire
LVMH major shareholders (Source: LVMH financials).
LVMH is a global luxury empire with over €46 billion in revenues for 2018 spanning across several industries: wines and spirits, fashion and leather goods, perfumes and cosmetics, watched and jewelry, and selective retailing. It comprises brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others.
Other luxury empires
Kering Group follows a multi-brand business model strategy, where the central holding helps the brands and Houses part of its portfolio to leverage on economies of scale while creating synergies among them. At the same time, those brands are run independently. Kering is today a global luxury brand that made over €15 billion in 2017 based on this multi-brand strategy. Within the Kering group there are brands like Gucci, Bottega Veneta, Saint Laurent, and Puma. The two primary operating segments based on luxury and sport & lifestyle.
The family-owned Italian luxury brand, Prada generated over three billion euros in revenues for 2017. Europe represented almost forty percent of the total revenues. Among Prada brands, Prada made more than eighty percent of the company’s revenues, followed by Miu Miu, with more than fifteen percent, Church’s which generated two and a half percent of its total revenues. Instead, Marchesi 1824 (a luxury bakery) and Car Shoe (a shoe company) made about half a percent of the total revenues. Among its products line leather goods represented more than fifty-six percent of the total Prada revenues. Followed by Footwear and Clothing. More than eighty percent of Prada revenues got generated via its directly operated stores. Miuccia Prada owns sixty-five percent of Prada Holding, while Patrizio Bertelli owns thirty-five percent. Prada holding owns eighty-percent of Prada.
With over $4.4 billion in net sales for 2018, Tiffany has brand awareness and a perceived sense of luxury and quality thanks also to strategic marketing, PR, and media relations activities. Many of these activities are focused around the iconic Flagship Store located at 727 Fifth Avenue.
Brunello Cucinelli is an Italian luxury and casual-chic brand, which built its success around cashmere clothing. Brunello Cucinelli built its business around the Humanistic Enterprise model, which revolves around Italian Craftsmanship, Sustainable Growth, and Exclusive Positioning and Distribution. More than 50% of the company revenues come from the retail mono-brand, directly managed by the company.
Read Also:
- LVMH Business Model
- Kering Business Model
- Prada Business Model
- Tiffany Business Model
- Brunello Cucinelli Business model
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