"For several months, LVMH has enjoyed uninterrupted growth, to which all our business groups have contributed. It would be an over-simplification to suggest that this is due to the economic upturn alone. The Group's performance is also, above all, the result of the relevance and consistency of our long term strategy. A strategy that we pursued, unchanged, throughout the recent economic crisis. The support of the enduring values of our star brands, creativity as an absolute imperative, the quest for perfection in our products, and our efforts to ensure an environment of excellence coupled with impeccable service at our stores form the wellspring of our success. To these we must also add the agility and the motivation of our organization which benefits from the hands-on enterprise culture of the men and women of our Group. It enables us to take the right decisions quickly, invest where needed and seize opportunities to increase our market share. And this applies just as much when global economies are shrinking as when they start growing again."
LVMH's selective approach to their market is downright successful. The company, through its strategic planning, knows exactly where is wants to be at all times. Although economic times have dipped, the company had an extremely successful year in 2010, increasing its stock 60%.
LVMH is a cash cow. The brands un LVMH maintain market dominace. They have a sustainable competitve advantage, holding dominace in the Luxury Goods market share.
Through the company's sucess in Dom Pérignon, they launched several vinatages, all which recieved critical acclaim. Louis Vuitton opened in London in 2010, whiched enhanced the appeal of the brand as well as the reputation for London as a city. In the perfumes and beauty domain, Jude Law starred in five-minute movie for Dior that Bernard Arnault says, "brilliantly illustrated the unique magic created by Mr Dior." This was after the crisis that overwhelmed Christian Dior and its Chief Designer John Galliano.- I call that "brilliant damage control."
Also, in 2010 the beauty mecca, Sephora introduced themselves to a new market, Latin America.
Louis Vuitton Bond Street Maison in London
The performance of many other brands are also worthy of mention: Hennessy, Moet & Chandon, Fendi, Guerlain, Givenchy, Make Up For Ever, Marc Jacobs, Benefit, Hublot... We are home to a wide range of brands, we respect and strengthen the originality of each of them, each of our brands builds its future on its own culture and its historic know-how; this is a source of unique know-how for our Group. We give them all the nurturing and support they need for their long term development, while respecting their roots, their heritage and their individual personality. Whether they have established leadership positions in their markets, or have embarked on a promising development campaign, all of our brands have enhanced their standing and their appeal. They have continued their rational expansion and acquired the strength they need for the future. This same determination to invest for the long term led LVMH to become a shareholder in Hermès International – another brand which symbolizes French know-how, whose standards we share and whose vision we support. Its culture, so particular, is to be preserved preciously and our Group, as a shareholder of this company, will guarantee it.
LVMH continues to develop and expand into cities and countries with pockets of wealth; Among its 2,468 retail stores there are now outposts in Ho Chi Minh City, Vietnam; Phnom Penh, Cambodia; Yekaterinburg, Russia; Macao; and Abu Dhabi. This growth is possible because LVMH stays true to each brands roots, highlighting the connection between the current work and the history of each brand.
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