LVMH

LV, Fendi, Givenchy, Dior and Hennessy etc. Everyone has heard at least some of those luxury brands, and we all know how expensive they are. However, you may not know that all those luxury brands are all managed by one company, LVMH. LVMH is the biggest luxury products group. It was founded in 1987 as a result of merger between Louis Vultton and Hennessy, which is also why those two brands are still on the front page of its website today, even LVMH has decades of other luxury brands now. In October 2010, LVMH bought 14.2% of Hermes, it said that it is not seeking control o

f it, but LVMH’s leading position in luxury retail industry seems unshakable now.

Like the blog I wrote before, luxury brands like LVMH seems has not been affected by the economic decline in the past few years. Actually, all the data show that it has a very strong sales growth. Compares to the other retail stores that are been struggled by the decline, LVMH is very unique. However, it has its reasons. Luxury brands have a very large market that has not been opened up yet. Rich people in countries like China, Brazil are still seeking for goods that can help them look as rich as they are. According to the article “LVMH’s Net Income for Year Soars 73%” from New York Times, the net income of LVNH 2010 surged 73 percent to $4.1 billion. The article also states that “Demand from the newly affluent, especially in Asia, is driving much of the rebound in the luxury industry after overall sales slumped around 8 percent in 2009.”

LVMH is now the model of retail industry, especially when people are still wondering if the economic crisis has gone at this point. Consumers still have confident on luxury brands like LVMH, while the investors should look at this more seriously.