lvmh-subsidiaries

What are the LVMH subsidiaries?

LVMH is a French multinational corporation and conglomerate with a focus on luxury goods. The company, which is officially known as LVMH Moët Hennessy Louis Vuitton, was founded in 1987 by Bernard Arnault, Alain Chevalier, and Henry Racamier.  Arnault, a French investor, had the idea to create a luxury brand group from the outset. To realize this vision, he collaborated with the CEO of Moët Hennessy Alain Chevalier and the president of Louis Vuitton Henry Racamier. The integration of these aspirational brands was ultimately successful and has been replicated by other companies in the industry. At the time of writing, LVMH operates 75 subsidiaries which it calls houses across six core sectors: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, and other activities.

Parfums Christian Dior

Parfums Christian Dior is the perfumery, makeup, and skincare line of French fashion house Christian Dior SE which was founded in 1946 and is now chaired by Bernard Arnault.

The first product to be released was a women’s perfume, but in more recent times the subsidiary has started selling men’s fragrances and a greater variety of cosmetics. These include foundations, concealers, mascara, brushes, and lipstick.

Dom Pérignon

Dom Pérignon is a vintage champagne brand that was named after the Benedictine monk and cellar master who was a pioneer of blending grapes to improve wine quality.

The quality and pedigree of Dom Pérignon are such that the wine will not be produced in years considered to be poor vintages. LMVH assumed control over the company when it acquired fellow wines and spirits house Moët & Chandon.

Chaumet

Chaumet is a luxury jeweler and watchmaker that was founded in 1780 by Marie-Étienne Nitot. With over 240 years of craftsmanship experience and an impressive list of clientele, the company has seen expansion into Asia with a particular focus on the Chinese market.

LVMH acquired Chaumet in 2012.

DFS

One of the less well-known LVMH subsidiaries is luxury product travel retailer DFS. 

The company, which was founded in Hong Kong in 1960, operates over 400 duty-free stores across 15 major airports and 18 popular travel destinations.

In addition to high-end products, DFS also sells premium services such as a beauty concierge and exclusive airport lounge access.

Royal Van Lent

Royal Van Lent is a Dutch manufacturer of luxury yachts that was founded as an association of families to revive the industry after World War II.

One of these families was the Van Lent family, who owned a shipyard many years beforehand and consistently produced fast yachts that won speed races.

The company was awarded its royal charter in 2001, with LVMH acquiring it seven years later. Royal Van Lent’s signature Feadship Tango superyacht was released in 2011 and retailed for approximately $120 million.

Key takeaways:

  • LVMH is a French multinational corporation and conglomerate with a focus on luxury goods. At the time of writing, LVMH operates 75 subsidiaries which it calls houses across six core sectors.
  • Parfums Christian Dior is a men’s and women’s cosmetic company owned by LVMH, while the famous champagne brand Dom Pérignon also came under the company umbrella after it acquired fellow wines and spirits brand Moët & Chandon.
  • Some lesser-known LVMH subsidiaries include luxury watch and jewelry maker Chaumet, premium duty-free product and service provider DFS, and Dutch yacht manufacturer Royal Van Lent.

Read Next: LVMH Business Model, Kering Business Model, Prada Business Model.

Read Next: ASOS, SHEINZaraFast FashionUltra-Fast FashionReal-Time Retail, Slow Fashion.

What brands are owned by LVMH?

LVMH Group generated €64.2 billion in revenues in 2021, comprising 75 houses and brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others. The company employed 175,000 people in 2021.

Does LVMH own Gucci?

LVMH does not own Gucci. Rival Kering owns Gucci. In the late 1990s and early 2000s, a war between Prada, Kering, and LVMH ensued to take over Gucci, which eventually would be successfully bought by Kering. In 2021, as part of Kering, Gucci generated €9.73 billion in revenues.

Is Prada owned by LVMH?

LVMH does not own Prada. Prada is still in the hands of Miuccia Prada and Patrizio Bertelli. It’s one of the few fashion brands still in the hand of the family which founded it.

How many brands of LVMH are there?

LVMH Group generated €64.2 billion in revenues in 2021, comprising 75 houses and brands.

Related Visual Resources

Slow Fashion

slow-fashion
Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion, it’s all about speed from design to manufacturing and distribution, in slow fashion, quality and sustainability of the supply chain are the key elements.

Fast Fashion

fast-fashion
Fash fashion has been a phenomenon that became popular in the late 1990s and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.

Inditex Empire

inditex-fast-fashion-empire
With over €27 billion in sales in 2021, the Spanish Fast Fashion Empire, Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. The country that contributed the most to the fast fashion Empire sales was Spain, with over 15% of its revenues.

Ultra Fast Fashion

ultra-fast-fashion
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

ASOS Business Model

asos-business-model
ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.

Real-Time Retail

real-time-retail
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

SHEIN Business Model

shein-business-model
SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.

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