KPM International GmbH’s Post

Am I the only person who that thinks while acquiring Richemont is technically feasible for LVMH, the ramifications could transform the entire luxury world into a dystopian Orwellian novel? Imagine a landscape where power is centralized under one entity, stifling independence, and competition. A scenario where one dominant force dictates terms, leaving little room for innovation and individual expression. Acquiring Richemont would catapult LVMH into a completely different stratosphere compared to the rest of the luxury industry. As enticing as the prospect of such a powerful conglomerate might be, it raises critical questions about the future of the luxury sector. Can we afford to trade diversity and creative freedom for monopoly and uniformity? #LuxuryIndustry #CreativeFreedom #MarketMonopoly #InnovationInPeril #LVMH #Richemont #LuxuryTakeover #IndustryFuture #BusinessEthics #FashionDebate

A great #chart by Quartr about #swiss luxury giant Richemont In 1987, Bernard Arnault created $LVMH. In 1988, Johann Rupert created #richemont $CFR.SW – an acquisition-driven luxury group much like LVMH, and to date, one of Arnault's largest competitors. Richemont is now the second largest luxury conglomerate and the third largest #luxury company (with $RMS being the second) in the world. The group's many prestigious maisons include Cartier, Van Cleef & Arpels, Montblanc, Piaget, and Vacheron Constantin, to name a few. Since inception, Richemont has compounded its top line at 5% per year. Looking instead at the last 15 years, the group has grown its revenue and FCF at a 6% and 9% CAGR respectively. Quartr just created this infographic, mapping out every acquisition since Richemont's inception.

✨ Meet LVMH : The luxury giant with 75 prestigious brands under its umbrella! 🌟 Formed in 1987 from the merger of Louis Vuitton 👜 and Moët Hennessy 🍾, LVMH aimed to create a powerhouse of luxury brands leveraging shared expertise and resources. 💡 By focusing on acquiring and nurturing brands with rich histories and strong identities, LVMH emphasised quality, craftsmanship, and exclusivity. 💎 Some of their famous brands include Louis Vuitton, Dior, Moët & Chandon, TAG Heuer, Sephora 💄, Givenchy, Hennessy, Fendi, Bulgari, Celine, Tiffany & Co. 💍, and Marc Jacobs. 💥 LVMH’s strategy of acquiring diverse luxury brands allowed them to dominate various market segments. They expanded globally while maintaining exclusivity and desirability, using innovation, high-profile collaborations, and celebrity endorsements to enhance brand appeal. 💫 With a presence in over 70 countries, LVMH reported revenues of over €79 billion in 2023 and employs more than 175,000 people worldwide. ⚡ LVMH’s story is an example of how strategic acquisitions, brand management, and a focus on quality can create an empire, inspiring businesses and entrepreneurs alike. #LVMH #LuxuryBrands #BusinessSuccess #Innovation #BrandManagement #GlobalLeadership

Welcome to this week’s Insight in Focus: Regaining their lustre - what is in store for the Luxury sector? While the latest results from LVMH, Hermès and Gucci-owner Kering have sparked optimism for a sales recovery across the luxury goods sector, Flavio Cereda, Investment Manager, Luxury Equities, assesses their implications and the growth normalisation. Flavio also explains his view that demand growth will remain disproportionate, rising most from affluent consumers at the expense of the aspirational segment. Read more here: https://ow.ly/6V6k30sA4kq #AssetManagement #Investing #Luxury #LVMH #Hermes #Kering #Gucci For professional investors only. Capital at risk.

Interesting, though some data on the comments don't seem to be correct to me. At least until 2022 (2023 is not yet officially concluded for many luxury listed companies): Top Groups in Luxury (revenues in bn.Euro): nr.1: LVMH: 79.2 (although "only" 48.8% on fashion and leathergoods) nr.2: Kering: 20.4 nr.3: Richemont: 19.953 (March 31st) Single luxury Brands (revenues in bn.Euro): 1. Louis Vuitton: 20 (speculation) 2. Chanel: 17.2 3. Hermes: 11.6 4. Gucci: 10.5 5. Cartier: 10 (speculation) Top profitable luxury companies (NET RECURRING OPERATING PROFIT, in % of revenues): 1. Hermes: 40.5% (!!!!) 2. Chanel: 33.5% 3. Moncler Group (incl.Stone Island): 29.7% (Ebit) 4. Kering Group: 27.4% 5. LVMH Group: 26.6% (40.6% on fashion and leathergoods) 6. Richemont Group: 19.6%

𝗟𝗩𝗠𝗛: 𝗔 𝗟𝗲𝗴𝗮𝗰𝘆 𝗼𝗳 𝗣𝗼𝘄𝗲𝗿 𝗮𝗻𝗱 𝗨𝗻𝘀𝘁𝗼𝗽𝗽𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 From high-end fashion and jewelry to wines and spirits, LVMH has continually set the standard for excellence and innovation in the luxury market. As the world’s leading luxury group, LVMH's success lies in 𝗶𝘁𝘀 𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘁𝗼 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁𝗹𝘆 𝗲𝘅𝗽𝗮𝗻𝗱 𝗶𝘁𝘀 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 of renowned brands while keeping authenticity at the core of its operations. With over 𝟳𝟱 𝗽𝗿𝗲𝘀𝘁𝗶𝗴𝗶𝗼𝘂𝘀 𝗵𝗼𝘂𝘀𝗲𝘀 under its umbrella, including Louis Vuitton, Dior, and Moët Hennessy, their growth is not just in revenue but in influence, culture, and heritage. 💡 𝗪𝗵𝗮𝘁 𝘀𝗲𝘁𝘀 𝗟𝗩𝗠𝗛 𝗮𝗽𝗮𝗿𝘁? • 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝗲𝘁𝘀 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻 – LVMH thrives on combining the best of heritage with cutting-edge creativity. Their investment in emerging designers and technology keeps them ahead. • 𝗕𝗿𝗮𝗻𝗱 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 – By acquiring and nurturing luxury powerhouses across sectors, LVMH ensures both diversification and dominance. • 𝗚𝗹𝗼𝗯𝗮𝗹 𝗳𝗼𝗼𝘁𝗽𝗿𝗶𝗻𝘁 – LVMH’s strong presence in diverse markets positions them as a leader in the global luxury space. In 2023, LVMH became the first European company to surpass a $500 billion market valuation, a testament to its unmatched power and relevance across generations. 📈 As the luxury industry continues to evolve, LVMH leads the charge, proving that heritage and innovation are not mutually exclusive but a recipe for long-term success. What lessons can other brands take from LVMH’s growth? #Luxury #LVMH #Growth #BusinessLeadership #BrandStrategy #Innovation

Japan's Luxury Market at a Crossroads: Will It Boom or Bust?   Avery Booker, Jing Daily, LVMH, Kering, Armelle Poulou, Jacques Roizen, Jean Jacques Guiony #LuxuryBrands #JapanMarket #MarketTrends #ConsumerBehavior #LuxuryEconomy #BrandStrategy #RetailTrends #JapanLuxury #MarketDilemma #BusinessInsights

Experts are anticipating that the luxury market will start slowly in 2024 and pick up in the second half of the year. We see this mainly from LVMH and other popular luxury goods stocks. What’s my take? That there will always be luxury demand! We’ve seen slowdowns before, and things always end up right back at the top. Buyers always want luxury to be an option. #LuxuryGoods #LuxuryBrands #LVMH #LuxuryDemand

The new venture, called Authentic Luxury Group, will initially focus on Authentic Brands Group owned luxury and accessible luxury names including: Barneys New York, Judith Leiber Couture, Hervé Léger and Vince. Essentially, the new luxury group plans to serve as an incubator for brand growth through strategic licensing agreements and distribution channels across #fashion, #retail, #digital, #hospitality, #realestate, #art and #travel, according to the joint venture; all related to luxury lifestyle and activities. Perhaps, we are witnessing the emergence of a new luxury powerhouse from the United States, poised to join the ranks of the prestigious luxury conglomerates that dominate the fashion and lifestyle markets from France and Italy. While these European giants have long set the standard, this could signal a shift in the global landscape. Time will reveal if this American contender lead by Authentic Brands Group Jamie Salter & Saks Richard Baker can truly redefine the luxury industry on a global scale (in my personal opinion highly feasible).

Want to go fast? Then purchase savoir-faire and “credibility”… As they expand further into luxury experiences (eg Chez l'Ami Louis) - the main segment still showing significant growth - LVMH also try to better prepare for the new tide on hard luxury (eg L’Epee 1839, not to mention Richemont investment)… and I sense we might see more soon. #watchindustry #luxury