LVMH

The LVMH Moët Hennessy - Louis Vuitton S. A. is a listed French corporation, which holds the majority rights to over 60 different luxury brands that are sold in over 3040 stores worldwide. The Group is an industry leader in the luxury goods industry.

History

The conglomerate was established in September 1987 by the merger of Louis Vuitton and Moet Hennessy, since their boards - Henry Racamier (Louis Vuitton) and Alain Chevalier ( Moët Hennessy ) - feared a hostile takeover. The name of the Group shall be composed of the traditional brands of Louis Vuitton ( luggage and bag manufacturer since 1854), Moët et Chandon ( champagne manufacturer since 1743) and Hennessy (Cognac producer since 1765 ). Moët and Hennessy had joined together in 1971 to Moët Hennessy. Chevalier became president of the new company, Racamier was his deputy.

The following year, it came increasingly to disagreements over the operation of the conglomerate. Henry Racamier felt dominated and therefore turned to the French businessman Bernard Arnault, the since 1985 the Christian Dior SA belonged (the perfume shop of Dior had been taken over by Moët et Chandon 1968); Arnault should take over the shares of LVMH and thus strengthen Racamiers position. Alain Chevalier 1988, however, appealed to the British spirits giant Guinness, who received a 12 % stake in Moët Hennessy in exchange for a 12 % share of Guinness.

The supporters, however, were quickly enemies in your own company: Using the investment bank Lazard Frères and Guinness took over Bernard Arnault of LVMH 45%. A dispute with Henry Racamier - Alain Chevalier had since left - followed, from the Arnault but emerged as the winner. Thus Arnault in 1989 was against the will of Vuitton and Hennessy family members President of the Group.

1990 - Henry Racamier had left the company now - increased Bernard Arnault and Guinness mutual participation to 24%. The ubiquity of the Louis Vuitton monogram in the mid-1980s damaged the brand's reputation as a status symbol and led to declines in sales at the beginning of the 1990s. In 1994, the cross holdings of LVMH and Guinness were reorganized. Guinness is now owned 34% of Moet Hennessy, LVMH got a right to purchase shares in joint sales company and the Guinness share of Moët Hennessy.

LVMH spread the business segment of the retail by investing 1996 in DFS Galleria ( famous department stores, the duty free area) and 1997 in Sephora ( international perfumery chain from France) ( and was for a time involved in Douglas ) - despite the large scatter of the businesses and the expansion of the business. Especially the Asian market is made ​​to create LVMH. Even the attempt to thwart the merger of Grand Metropolitan (Hotel and spirits group) and Guinness, turned into a setback. Bernard Arnault wanted Moet Hennessy contribute to be part of the new spirits giants, and therefore had invested billions in Grand Metropolitan. Grand Metropolitan merged with Guinness in December 1997 to Diageo. The late 1990s, then was the transition, the Asian markets rose again, LVMH could now buy new brands.

Even today, Bernard Arnault is still chairman of the board and major shareholder of the Groupe Arnault. Groupe Arnault owns 47.40 % of shares. Other shareholders are: International institutional investors at 26.8 %, French institutional investors at 17.4 %, own stock with 3.3% and a free float of 5.1%.

As of 2010, LVMH acquired successively shares in the French competitors Hermès, whereas the family, the fear of a hostile takeover by LVMH, in 2011 protected himself by founding a family holding. 2011 took over LVMH the Italian competitor Bulgari. 2012 LVMH bought the British men's custom tailor Arny 's and the French leather goods manufacturer Les Tanneries Roux. 2013, the majority of shares in the Italian cashmere manufacturer Loro Piana was acquired for two billion euros.

Figures

Brands of the LVMH group

Is divided into the following five divisions (in brackets: year of acquisition / establishment or unit ):

• Champagne: Moët & Chandon, Ruinart, Mercier, Dom Pérignon, Veuve Clicquot, Krug (since 1999)
• Cognac: Hennessy
• Rum: 10 Cane (founded in 2005)
• Vodka: Belvedere (40 % in 2002, 70 % in 2004, 100 % in 2005), Chopin (40 % in 2002, 70 % in 2004, 100 % in 2005)
• Wine: Domaine Chandon California, Bodegas Chandon, Domaine Chandon Australia, Château d' Yquem (64 % since 1996 /99), Terrazas de los Andes (founded in 1999), Newton ( 2001), Cape Mentelle (2003), Cloudy Bay (2003 ), Cheval des Andes (founded in 2003), Numanthia
• Whisky: Glenmorangie (2004), Ardbeg ( by Glenmorangie ), Glen Moray ( by Glenmorangie )
• Wenjun

• Perfume: Perfumes Loewe (1996 ), Acqua di Parma (50 % since 2001, 100 % since 2003 ), Bvlgari perfumes (100 % 2011)
• Cosmetics: Make Up For Ever (1999), Laflachère, Bvlgari Cosmetiques (100 % 2011) (?)
• Perfumes and cosmetics: Christian Dior Parfums, Parfums Givenchy, Guerlain (4.2% in 1987, 58.8 % since 1994 ), Kenzo Parfums (1993 ) Benefit Cosmetics (1999 ), Fresh (2000)

• Watches Dior Watches, TAG Heuer ( 1999), Zenith (1999), Hublot (2008)
• Jewelry & Watches: Fred (1998), Chaumet (1999), De Beers LV ( joint venture with De Beers, established in 2001 ), Bvlgari (100 % 2011)

• Retail: Duty Free Shoppers (DFS, 1998), Sephora (1997 ), Le Bon Marché (1998 ), Marie -Jeanne Godard (1998), nowness.com ( 2000-2009: eluxury.com ), Miami Cruiseline Services (2000 ), La Samaritaine (2001)
• Media: Investir (1993 ), Radio Classique (1999), Classica, Connaissance des Arts (2000), Arléa (2004), Les Echos (2007), Défis, TPE -PME, Salon des Entrepreneurs ( (?) (?)? )
• Other Activities: Royal Van Lent, Jardin d' Acclimatation

• Yacht builder Princess Yachts International, since 2008 also includes the Dutch shipyard " Feadship " on the island of Kaag to the Group.
• Yacht Charter: Princess Yacht Charter

The oldest brand of the company is the Château d' Yquem, which dates back to the year 1593. The most valuable brand, Louis Vuitton, whose value was estimated in 2007 to 20.3 billion euros.

Luxury goods sector

While luxury goods manufacturers have long been well-established family businesses, they are nowadays usually part of an international luxury goods group, see competition below. Outwardly, the brands are represented independently, but internally suppliers and licensees are shared to keep costs down. The revenue and most profitable field is the licensing business with fragrances and cosmetics, leather goods, eyeglasses, watches and jewelery, as the actual fashion can afford only a few wealthy clients.

Key growth markets for luxury goods are Russia, China, India, Japan and Korea.

Competing firms

• Kering ( company ), Paris; Owned by the French billionaire François Pinault. Brands: Gucci, Yves Saint Laurent, Puma SE, Bottega Veneta, Balenciaga, Boucheron, Paris luxury department stores Printemps -Redoute and others.

• Compagnie Financière Richemont (CFR ), Geneva; Owner is the South African billionaire Johann Rupert; Focus on watches and jewelry; Brands: Cartier, Montblanc, Arpels, Piaget, Jaeger- LeCoultre and others.

• Prada Group, Milan; CEO Patrizio Bertelli; Focus on clothing, shoes, accessories; Brands: Prada, Miu Miu, Church's ( shoes) and The Original Car Shoe (Shoes). From 1999 to the mid-2000s had more internationally known brands belonged to the Group.

• Labelux, Vienna / Caslano; 2007 founded the luxury goods division of Joh A. Benckiser SE with the brands Bally, Zagliani ( leather goods), Derek Lam, Jimmy Choo, Belstaff ( clothing ) and Solange Azagury - Partridge (jewelery).

• EganaGoldpfeil Holding, Hong Kong ( insolvent since 2007); the German owner Hans -Joerg Seeberger died in October 2007; The focus was on German brands, primarily leather goods; Brands: Comtesse, gold arrow, salamanders and licensed Cerruti 1881, Joop! and others.