Leadership drives growth and innovation at LVMH in 2019
Performance is anchored in leadership at LVMH, the leadership of all the Group’s employees whose vision and ability to motivate their teams enable the organization to achieve ambitious objectives. This entrepreneurial spirit encourages risk-taking and perseverance. It requires pragmatic thinking and an ability to motivate teams, leading them to excel in a continually evolving competitive environment where staying ahead is imperative. From the acquisitions of Belmond and Château du Galoupet to the launch of FENTY, the renaissance of Patou and the initiation of a partnership with the China International Import Expo (CIIE), throughout 2019 LVMH and its Maisons demonstrated that entrepreneurial spirit is embedded in their DNA.
4th LVMH Innovation Award presented at Viva Technology 2019
LVMH’s focus on excellence springs from a long-term vision centered on working with the best talents and nurturing expertise in the most sophisticated techniques. The LVMH Innovation Award was created to identify promising startups, support their development and encourage a virtuous circle of exchanges between LVMH Maisons and the startups. Since 2017 the LVMH Innovation Award has been awarded to a startup during the Viva Technology show, recognizing the top solution relevant to the luxury industry. The theme of the 2019 award was Crafting the Customer Experience of Tomorrow. “Among the hundreds of candidates who applied for this year’s award, the great majority were from outside France. This enthusiasm testifies to the success of this award, which gives these young startups tremendous exposure at one of the world’s prime showcases for innovation, said Ian Rogers, Chief Digital Officer of LVMH. On May 17, the award was presented to the startup 3D Look, specialized in mobile body-scanning technologies for apparel retail. 3DLOOK will receive personalized support from the LVMH Group for a full year to drive its development as part of La Maison des Startups at the Station F incubator.
LVMH becomes major partner of China International Import Expo (CIIE)
LVMH and thirteen of its Maisons took part for the first time in the China International Import Expo (CIIE), a major event designed to develop trade and cooperation between China and other countries. Inaugurated by Chinese president Xi Jinping and French president Emmanuel Macron, the event was one of the year’s highlights for the LVMH Group, spotlighting France by celebrating the 55th anniversary of diplomatic relations between China and France. Against the backdrop of this powerful symbolism, it was natural for LVMH, the world’s leading luxury products group, committed to representing the best of French savoir-faire and innovation, to become a major partner to the CIIE. LVMH hosted a 500-square-meter pavilion at the Shanghai National Convention and Exhibition Center where it showcased its Maisons and their unique ability to fuse innovation and heritage.
LVMH exports intrapreneurship program to London and Tokyo
LVMH launched the DARE (Disrupt Act Risk to be an Entrepreneur) program in 2017, reflecting a strong belief that its talents are an exceptional source of creativity to stimulate innovation and achieve excellence. The initiative enables employees of LVMH in all positions across the Group to express their vision of innovation and transform it into concrete projects.
At the beginning of October 2019, the DARE program for the first time welcomed LVMH managers from the Europe Middle East Africa (EMEA) region to London. The London edition took place at LVMH House, a mansion in the Mayfair district that embodies a label of excellence for development of high potentials and managers from the Group. The 13,000 employees of LVMH based in EMEA were invited to propose their ideas for reinventing the customer experience. The 60 talents selected worked closely with students from Central Saint Martins and the Imperial College of London to transform their ideas into business plans. The ideas were then challenged by mentors before participants pitched their projects to a jury.
In mid-November, talents from LVMH in the Asia-Pacific region came together for three days at the Aoyama Treehouse in Tokyo – a space dedicated to “Mindfitness” and innovation – for a new edition of DARE. Participants were challenged to apply their creativity to imagine the future of retail, a key theme for LVMH Maisons in Japan and the entire Asia-Pacific region, a fast-expanding strategic market for the Group. The three winning projects from this Japan edition involved reinventing the in-store experience with personalized services or an art of gifting that better respects the environment, as well as solutions to better address the end of product lifecycles.
Renaissance of Maison Jean Patou
LVMH acquired Maison Jean Patou in September 2018 to revive its ready-to-wear business. A few months later, in May 2019, the couture Maison unveiled a new visual identity and a new name: Patou. Over the years Patou became a fashion institution, led by designers including Marc Bohan, Karl Lagerfeld, Jean-Paul Gaultier and Christian Lacroix. Today Guillaume Henry has succeeded them as the new artistic director. He presented his first collection for Patou in September 2019, creating considerable buzz in the middle of Paris Fashion Week with a wardrobe of exquisite Parisian elegance, elevated by bold pieces such as boxing shoes – created with sporting goods brand Le Coq Sportif – or platform pumps, giving the silhouette the impertinent tone that defines Maison Patou.
Launch of FENTY
Inspired by a worldwide community beyond traditional boundaries, FENTY embraces a fundamental freedom: a freedom from convention and rules. In May 2019 LVMH announced the launch of FENTY, a new luxury ready-to-wear Maison developed by Rihanna. A luxury brand for the 21st century, FENTY marks a new evolution in luxury, created from simple yet elevated materials, with a modern take on classic silhouettes. FENTY will operate from a digital flagship – www.FENTY.com – and releases supported by ephemeral boutiques, a unique experience for both a physical and digital audience. Releases will include limited special-edition pieces and core items.
Belmond expands LVMH’s presence in luxury hospitality
Established in 1976 with the acquisition of the Hotel Cipriani in Venice, Belmond has a portfolio of exceptional hotels and travel experiences spanning trains, river cruises and safaris in some of the world’s most inspiring and enriching destinations. The arrival of Belmond as part of the LVMH Group in April 2019 promises new ultimate luxury experiences and complements the hotel activities of the Cheval Blanc Maisons and Bvlgari hotels. Belmond expands the LVMH collection of unique experiences at exceptional destinations including the Isuassu Falls in Brazil, the lost city of Machu Picchu, the treasure town of Cusco in Peru and the hills of Fiesole in Florence.
Château du Galoupet, Cru Classé des Côtes-de-Provence joins LVMH
Located along the coast in La Londe-les-Maures, Château du Galoupet enjoys an exceptional location near the Salins salt marshes opposite the Mediterranean islands of Porquerolles, Port Cros and Le Levant. The estate, already recognized and referenced at the end of the 17th century, benefits from a micro-climate which refreshes the vines with temperate and salty winds and is conducive to elegant wines and consistent yields. With 89 unplanted hectares, Château du Galoupet offers an exceptional natural ecosystem for the world leader in wines and spirits. LVMH is proud to have added this remarkable Cru Classé des Côtes-de-Provence to its portfolio in 2019.
LVMH reaches agreement to acquire U.S. luxury jeweler Tiffany & Co.
At the end of November LVMH and Tiffany & Co. announced a definitive agreement whereby LVMH will acquire the U.S. luxury jeweler for $135 per share in cash. The transaction, which is expected to close in the middle of 2020, represents an equity value of approximately €14.7 billion. The acquisition of Tiffany & Co – the largest in the history of LVMH – will strengthen the Group’s position in luxury jewelry and further increase its presence in the United States.
“We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come,” said Bernard Arnault, Chairman and Chief Executive Officer of LVMH.