LVMH – The most successful luxury firm that you’ve never heard of

Dom Pérignon, Hennessy, Céline, Christian Dior, Moët & Chandon, Kenzo, Louis Vuitton, Givenchy and Bvlgari – the list goes on and on. You have seen these brands in the most influential magazines and their stores in the best locations of large cities.  However when you buy goods from these luxury houses, you don’t only support them but the largest luxury corporation by revenue called LVMH.  But why has almost nobody heard of this firm?

The most famous luxury brands have been founded decades ago by a visionary person in a new category. For example Louis Vuitton started manufacturing waterproof stackable canvas trunks or Pierre Pérignon created champagne by a grape experiment. After years gone by and usually after death of the inventor, a luxury brand could be able acquire their state of heritage and exclusivity.

According to branding strategy insider, branding and marketing of luxury product differ from every-day goods, called the Anti-laws of marketing. A crucial factor is that they are targeted to non-owners and for people who can’t afford them, to make them look upwards to the owners of the goods and dream of possessing one too. In addition pricing of luxury goods need to increase all the time, so that the luxury brand holds it image and value in the eyes of the public.

What is the reason then behind of the non-marketing of LVMH group for public? As a comparison, for example DrOetker uses completely different approach. They have branded all of their product lines under the name of the parent company and have made sure people can trust the quality and consistency. The reason behind this difference could lay on the fact of not trying to mess up with the gut feeling of the old and famous houses or that they want to make the designers feel less restricted. In addition all of the brands are different from each other, so a huge firm association could be unappealing for the public and effect on the revenue. By letting people be in the darkness of the information, or ignorance, probably makes LVMH’s brands even more intriguing and the receipt for the success.



Tungate, M. (2009). Luxury world. 1st ed. London [etc.]: Kogan Page.

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4 Responses to LVMH – The most successful luxury firm that you’ve never heard of

  1. anze24 says:

    Hi jonilan. I can definitely agree with your statement that addition pricing of luxury goods need to increase all the time, so that the luxury brand holds it image and value in the eyes of the public. Not so long ago I read in one book about marketing where was mentioned one example of jewelry shop. The sales did´t go well so the head of the shop told one of her employee to lower the prices while she was on vacation, but employee misunderstood and raised prices. When she came back all of the jewelry was sold. Why? Because jewelry has a image as a luxury piece and with that high low price could lead to concerns about the quality.

  2. verabelinskaya says:

    Really interesting post considering the fact I haven’t heard that the brands are all under LVMH. I think that if all of those brands were publicly known to be under one it would create a feeling of a not as exclusive and luxurious product. If I knew one company rules all these brands and it would be advertised maybe I would feel like buying a more unique item to give me the value I am looking for. However it definitely works for other industries. For example I always gravitate towards DrOetker products because I know they are good and I trust it in no matter what I am buying.

  3. malvinabelle says:

    Thank you for your article Jonilan, I admire a lot this French group of companies that decided to sell their product at very high prices. Playing on quality, originality and innovation this group has known how to stand out! They succeeded their bet they are well and truly “The Future of the Tradition” and every one would like to have the same image. I think this group does not want to do marketing because it makes him mysterious and even more desirable.

  4. seunghh says:

    Hi Jonilan!

    This article was very interesting due the fact that I have never heard of LVMH before. I heard of most luxury brands, but that one would control so many of them was new. I think LVMH is making a very good approach that they stay ”invisible” from most of the consumers, simply because it doesn’t change the image of the other luxury companies, and it doesn’t restrict them in any way. Very smart business strategy, giving other brands flexibility and still getting good profits from them. That way customers don’t get scared and everyone is happy.

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