LVMH
LVMH Moët Hennessy - Louis Vuitton SE
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legal form | Societas Europaea |
ISIN | FR0000121014 |
founding | 1987 |
Seat | Paris , France |
management |
Bernard Arnault (Chairman & CEO) Antonio Belloni (Group Managing Director) |
Number of employees | 163,309 (2019) |
sales | 53.7 billion . Euro (2019) |
Branch | Luxury goods |
Website | www.lvmh.com |
As of December 31, 2019 |
The listed LVMH Moët Hennessy - Louis Vuitton SE is the global leader in the luxury goods industry , holding rights to 70 different brands that are sold in around 4,600 stores worldwide.
history
The group was formed in September 1987 through the merger of the companies Louis Vuitton and Moët Hennessy , as their directors - Henry Racamier (Louis Vuitton) and Alain Chevalier (Moët Hennessy) - feared a hostile takeover . The name of the group is made up of the traditional brands Louis Vuitton ( suitcase and bag manufacturer since 1854), Moët et Chandon ( champagne manufacturer since 1743) and Hennessy ( cognac producer since 1765). Moët and Hennessy had already merged to Moët Hennessy in 1971 . Chevalier became president of the new company and Racamier became its deputy.
The following year there was increasing disagreement over the operation of the company. Feeling dominated, Henry Racamier turned to French businessman Bernard Arnault , who had owned Christian Dior since 1985 (the Dior perfume business had been taken over by Moët et Chandon in 1968). Arnault should take over shares of LVMH and thereby strengthen Racamier's position. Alain Chevalier, however, turned to the Irish liquor giant Guinness in 1988 , who received a 12% share in Moët Hennessy in exchange for a 12% Guinness share.
However, the supporters quickly became enemies in their own company: with the help of the investment bank Lazard Frères and Guinness , Bernard Arnault took over 45% of LVMH . A legal dispute with Henry Racamier - Alain Chevalier had since retired - followed, from which Arnault emerged victorious. Thus Arnault was able to become president of the group in 1989 against the wishes of the Vuitton and Hennessy family members.
1990 - Henry Racamier had also left the group in the meantime - Bernard Arnault and Guinness increased the 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 in the early 1990s. In 1994 the mutual holdings of LVMH and Guinness were restructured. Guinness now owned 34% of Moët Hennessy , LVMH received a buyback right for shares in the joint distribution company and the Guinness stake in Moët Hennessy .
LVMH expanded the business area to retail by investing in DFS Galleria (department stores in the duty-free area) in 1996 and in Sephora (international perfumery chain from France) in 1997 (and was also temporarily involved in Douglas ) - despite the large Diversification of the business areas and the expansion of the company. LVMH was particularly troubled by the Asian market . The attempt to slow down the merger of Grand Metropolitan (hotel and spirits group) and Guinness also turned into a setback. Bernard Arnault wanted to bring in Moët Hennessy to participate in the new liquor giant and had therefore invested billions in Grand Metropolitan . Grand Metropolitan merged with Guinness to become Diageo in December 1997 . At the end of the 1990s, the upheaval took place, the Asian markets grew again, and LVMH could now buy new brands.
From 2010, LVMH gradually acquired shares in its French competitor Hermès , while the family company , which feared a hostile takeover by LVMH, protected itself in 2011 by founding a family holding company. In 2013, LVMH had to pay a fine of eight million euros to the French banking regulator AMF for the opaque acquisition of Hermès shares . In autumn 2014, LVMH announced that Hermès' shares of almost 23% in the company would be sold to its own shareholders with a profit of 2.4 billion euros.
In 2011 LVMH took over the Italian competitor Bulgari . In 2012 LVMH bought the British men's tailor Arny's and the French leather goods manufacturer Les Tanneries Roux. In 2013, the majority of shares in the Italian cashmere manufacturer Loro Piana were acquired for 2 billion euros.
In October 2016 it was announced that LVMH would take over the majority of the Cologne-based suitcase manufacturer Rimowa in January 2017 . LVMH acquired an 80 percent stake for 640 million euros. The managing director and CEO is Bernard Arnault's 24-year-old son, Alexandre Arnault .
In late November 2019, LVMH announced the acquisition of US jeweler Tiffany for $ 16.2 billion.
Ownership structure and board of directors
Even today, Bernard Arnault is still chairman of the board and major shareholder through his holding Groupe Arnault . Groupe Arnault owns 46.60% of the shares. Other shareholders are: international institutional investors with 33.8%, French institutional investors with 13.5%, own holdings with 0.9% and a free float of 5.2%.
Brands of the LVMH group
It is divided into the following five business areas (in brackets: year of takeover / foundation or share):
Wine and spirits
- Champagne : Moët & Chandon , Ruinart , Mercier , Dom Pérignon , Veuve Clicquot , Krug (since 1999)
- Cognac: Hennessy
- Rum : 10 Cane (founded 2005)
- Vodka : Belvedere (40% 2002; 70% 2004; 100% 2005), Chopin (40% 2002; 70% 2004; 100% 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
- Whiskey : Glenmorangie (2004), Ardbeg (by Glenmorangie )
- Wenjun (2007)
Fashion and leather goods
- Louis Vuitton (since the company was founded in 1987), Givenchy (1988), Céline (1993), Berluti (1993), Kenzo (1993), StefanoBi (1996), Loewe (1996), Marc Jacobs (1997), Fendi (51% from 1999 , 100% since 2001), Emilio Pucci (2000), Thomas Pink (2001), Edun ( Bono fashion brand, 2009), Loro Piana (2013), Nicholas Kirkwood (2013), Rimowa (2016)
Dior's fashion division , Christian Dior Couture SA, has been part of LVMH since 2017. Donna Karan , which was acquired between 2000 and 2001 , was sold in mid-2016. The Parisian leather goods company Moynat was bought by Bernard Arnaults Groupe Arnault in 2011 and is therefore not officially owned by LVMH.
Perfumes and cosmetics
- Perfume : Perfumes Loewe (1996), Acqua di Parma (50% since 2001, 100% since 2003), Bvlgari Parfums (100% 2011), Maison Francis Kurkdjian (2017)
- Cosmetics : Make Up For Ever (1999), Laflachère (?), Benefit cosmetics San Francisco , Bvlgari Cosmetiques (100% 2011)
- Perfume and cosmetics: Christian Dior Parfums (sold to Moët et Chandon in 1968, LVMH since 1987), Parfums Givenchy , Guerlain (4.2% since 1987, 58.8% since 1994), Kenzo Parfums (1993), Benefit Cosmetics ( 1999), Fresh (2000)
watches and jewelry
- Watches: Dior Watches , TAG Heuer (1999), Zenith (1999), Hublot (2008)
- Jewelry and watches: Fred (1998), Chaumet (1999), De Beers LV ( joint venture with De Beers , founded in 2001), Bulgari (100% 2011), Tiffany (2019, transaction by mid-2020)
- Duty Free Shoppers (DFS, 1998), Sephora (1997) (the perfumery chain Marie-Jeanne Godard , which was acquired in 1998 , was merged into Sephora ), Le Bon Marché (1998), Starboard Cruise Services (2000), La grande epicerie de Paris
- LVMH owns three important media: the daily financial newspaper Les Échos (2007), the weekly Investir (1993) and the daily Le Parisien (2015), as well as the special interest broadcaster Radio Classique (2005).
Other activities
- Royal Van Lent (Feadship) , Princess Yachts International , Jardin d'Acclimatation , Cova , Nowness (online magazine as the successor to the online shop eluxury.com, which was discontinued in 2009 ), La Samaritaine (2001), Connaissance des Arts (2000), Cheval Blanc Hotels , Classica , Arléa (2004)
- Belmond (2018), operator of luxury trains such as the Royal Scotsman or the Venice Simplon-Orient-Express
The company's oldest brand is the Château d'Yquem winery , whose history dates back to 1593. The most valuable brand is Louis Vuitton , the value of which was estimated at 20.3 billion euros in 2007.
Luxury goods industry
While the luxury goods manufacturers were long-established family businesses, today they are mostly part of international corporations, see competition below. Outwardly, the brands are presented independently, but internally, suppliers and licensees are divided to save costs. The most profitable and profitable field is the licensing business with fragrances and cosmetics, leather goods, glasses frames, watches and jewelry, since only a few wealthy customers can afford the actual fashion.
Important growth markets for luxury goods are Russia, China, India, Japan and Korea.
Competing companies
- Kering , Paris; The owner is the French billionaire François Pinault . Brands: Gucci , Yves Saint Laurent , Bottega Veneta , Balenciaga , Boucheron , Parisian luxury department stores Printemps-Redoute and others.
- Compagnie Financière Richemont (CFR), Geneva; The 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 clothes, shoes, accessories; Brands: Prada , Miu Miu , Church’s (shoes) and The Original Car Shoe (shoes). From 1999 to the mid-2000s, other internationally known brands belonged to the group.
- JAB Holding (2007–2014: Labelux ), Vienna / Caslano; Luxury goods division of Joh. A. Benckiser SE with the brands Bally , Jimmy Choo and Zagliani (leather goods).
Web links
Individual evidence
- ↑ a b In: lvmh-static.com. Retrieved June 6, 2020 .
- ↑ Annual Report 2018. In: lvmh-static.com. Retrieved January 25, 2020 .
- ↑ Profits at their finest . In: Die Zeit , No. 50/1994, page 33
- ↑ a b Our history , diageo.com
- ↑ a b c d Lvmh Moët Hennessy Louis Vuitton Sa , referenceforbusiness.com
- ↑ a b LVMH: Luxury has its price ( Memento from August 9, 2009 in the Internet Archive ) ,wirtschaftsblatt.at, September 11, 1997
- ↑ Hermès founds family holding ( Memento from January 15, 2013 in the Internet Archive ) ,wirtschaftsblatt.at, December 15, 2012
- ↑ Louis Vuitton adorns himself with Bulgari , manager-magazin.de, March 7, 2011
- ↑ LVMH wants majority of Kashmir specialists , t-online.de, July 8, 2013
- ↑ Case manufacturer: Rimowa is taken over by luxury company LVMH. In: Der Spiegel Online. Retrieved October 4, 2016 .
- ^ LVMH: RIMOWA, global leader of high quality luggage, joins the LVMH Group. (No longer available online.) Formerly in the original ; Retrieved April 2, 2016 . ( Page no longer available , search in web archives )
- ↑ Elizabeth Paton, New York, USA: Another Arnault Takes Charge. In: The New York Times. Retrieved April 2, 2016 .
- ↑ a b Billion takeover from US jeweler: Louis Vuitton grabs Tiffany . In: Spiegel Online . November 25, 2019 ( spiegel.de [accessed November 25, 2019]).
- ↑ LVMH website (as of December 2015), accessed on December 7, 2016
- ^ A b Edward J. Phillips (…) Donates $ 1 Million to Multiple Myeloma Research Consortium. ( Memento of October 8, 2008 in the Internet Archive ) themmrc.org, January 27, 2005
- ^ A b Millennium Acquires Belvedere Trademark in The US findarticles.com, June 29, 2007
- ↑ Strong Tango , weinwelt.at
- ^ Napa Valley Stunner - Famed Winery Sold. sfgate.com, August 1, 2007
- ↑ a b Cape Mentelle . thewinedoctor.com, May 19, 2007
- ↑ Argentinian Economy ( Memento of October 8, 2007 in the Internet Archive ) (PDF) Argentinisches Tageblatt . August 23, 2003
- ^ International briefs; Moet Hennessy to Buy Celine Fashion House. In: The New York Times , March 22, 1996
- ↑ a b c d e f LVMH Companies and brands ( Memento of the original from October 8, 2008 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. lvmh.com
- ↑ LVMH Adds Fashion House Emilio Pucci To Its Empire. In: International Herald Tribune . February 18, 2000
- ↑ Loro Piana: LVMH appoints Antoine Arnault as president. ( Memento of December 11, 2013 in the Internet Archive ) Europolitan , December 9, 2013
- ^ LVMH Makes a Two-Part Offer for Donna Karan nytimes.com, December 19, 2000
- ^ LVMH Completes Donna Karan Deal. nytimes.com, Nov. 28, 2001
- ↑ Donna Karan gets new owner. handelsblatt.com, July 26, 2016
- ↑ Houses> Fashion Leather goods> Moynat LVMH.com, accessed October 11, 2017
- ↑ Why Relaunch Old Fashion Houses? businessoffashion.com, March 21, 2012
- ^ LVMH Acquires Controlling Stake in Benefit Cosmetic. ( Memento of July 8, 2012 in the web archive archive.today ) findarticles.com, September 14, 1999
- ^ LVMH Acquires American Cosmetics Company Fresh. findarticles.com, September 25, 2000
- ↑ The history of Hublot Geneve ( page no longer available , search in web archives ) (PDF), 2008
- ^ Rupert Neate: Venice Simplon Orient-Express sold to owner of Christian Dior and Louis Vuitton. In: The Guardian . December 14, 2018
- ↑ Best Global Brands: 2007 Rankings . ( Memento of September 22, 2008 in the Internet Archive ) interbrand.com