LVMH is a luxury group owned by the Arnault family, which generated over €79 billion in revenue ($83 billion) in revenue in 2022, with a luxury empire that spans many segments. Yet the fashion and leather goods segment (comprising brands like Fendi and Louis Vuitton) is the major one, generating over €39 billion in revenue in 2022.
LVMH is a luxury powerhouse with brands spanning five categories (wines & spirits, fashion & leather goods; perfumes & cosmetics; watches & jewelry; and selective retailing).
Thad transformed Bernard Arnault, its founder and CEO, into one of the wealthiest people on earth. Indeed, the Arnault family keeps tight control over LVMH.
The company leverages a multi-brand strategy, where the group coordinates actions and organizes manufacturing/supply chain efficiencies across its brands.
Yet, each brand is managed independently, and each brand is its distinctive attributes.
A company that follows a similar strategy is the Kering group, which owns brands like Guccy, Yves Saint Lorent, and many others.
The luxury industry started a consolidation process in the mid-late 1990s that culminated with the Gucci Wars, which created two major groups in luxury: LVMH and Keering.
Indeed, in the Luxury industry, a few brands have stayed independent; some of those brands comprise Prada.
And Dolce & Gabbana.
Other major brands have either been consolidated into LVMH & Kering or acquired by large investment funds.
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