The LVMH Model

The world leader in luxury, LVMH has deployed a business model marked by dynamic growth since its creation in 1987.

Fondation Louis Vuitton © Iwan Baan

“Our business model is anchored in a long term vision that builds on the heritage of our Houses and stimulates creativity and excellence. This model drives the success of our Group and ensures its promising future.”

The LVMH group comprises 70 exceptional Houses that create high quality products. It is the only group present in all five major sectors of the luxury market:  Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing. LVMH currently employs 125,000 people across the world and reported sales of 35.7 billion euros in 2015.

A unique operating model anchored by six pillars:

Decentralized organization

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EcosystemeOur structure and operating principles ensure that our Houses are both autonomous and responsive. This allows us to be extremely close to our customers, to ensure that rapid, effective and appropriate decisions can be made. This approach also sustains the motivation of our  employees, encouraging them to show true entrepreneurial spirit.

croissance-interneThe LVMH group places priority on organic growth and commits significant resources to develop its Houses, as well as to encourage and protect creativity. Our employees are key to this approach, making it essential to support their career growth and encourage them to excel.

integration-verticaleVertical integration fosters excellence both upstream and downstream, allowing control over the every link in the value chain, from sourcing and production facilities to selective retailing.

synergiesSharing of resources on a Group scale creates intelligent synergies while respecting the individual identities and autonomy of our Houses.  The combined strength of the LVMH   Group is leveraged to benefit each of its Houses.

Savoir-faireOur Houses pursue a long-term vision. To preserve their distinctive identities and excellence, LVMH and its Houses have developed forward-thinking initiatives to transmit savoir-faire and ensure that craftsmanship and creative métiers are valued by younger generations.

geographie-2Our Group has the resources to sustain regular growth thanks to the balance across its business activities and a well-distributed geographic footprint. This balance means that we are well-positioned to withstand the impact of shifting economic factors.