LVMH vs. Kering

Business Model Element	LVMH	Kering	Similarities	Differences	Competitive Advantage
Customer Segments	Luxury consumers, diverse luxury brands	Luxury consumers, diverse luxury brands	Both target luxury consumers and own multiple luxury brands. LVMH’s portfolio includes high-end fashion, spirits, and more. Kering owns luxury fashion brands.	LVMH operates in various luxury sectors, including fashion, spirits, and more. Kering primarily focuses on luxury fashion brands.	Diverse Luxury Portfolio (Both), Luxury Fashion (Kering), Diverse Luxury Sectors (LVMH).
Value Proposition	Prestige, exclusivity, craftsmanship	Prestige, exclusivity, sustainability	Both emphasize prestige and exclusivity. LVMH is known for craftsmanship and heritage. Kering highlights sustainability efforts.	LVMH places a strong emphasis on craftsmanship and preserving brand heritage. Kering prioritizes sustainability initiatives across its brands.	Craftsmanship and Heritage (LVMH), Sustainability (Kering).
Channels	Boutiques, department stores, e-commerce	Boutiques, department stores, e-commerce	Both use boutiques, department stores, and e-commerce for distribution. LVMH operates boutiques for its brands. Kering uses similar channels.	LVMH owns and operates boutiques for its luxury brands. Kering also uses boutiques, department stores, and e-commerce for luxury brand distribution.	Boutique Network (Both), Luxury Brand Distribution (Both).
Customer Relationships	Brand loyalty, customer service	Brand loyalty, customer service	Both foster brand loyalty among customers. LVMH provides high-end customer service. Kering also emphasizes customer service to maintain loyalty.	Both companies aim to cultivate brand loyalty through their luxury brand offerings and provide high-quality customer service. LVMH’s brands have a strong reputation for customer service.	Strong Brand Loyalty (Both), Exceptional Customer Service (LVMH).
Key Activities	Brand management, manufacturing, marketing	Brand management, manufacturing, marketing	Both engage in brand management, manufacturing, and marketing activities. LVMH manages luxury brands across various sectors. Kering specializes in luxury fashion brands.	LVMH’s diversified portfolio includes brands in multiple luxury sectors. Kering primarily focuses on luxury fashion brands.	Diverse Luxury Sectors (LVMH), Luxury Fashion Focus (Kering).
Key Resources	Luxury brands, brand reputation, distribution	Luxury brands, brand reputation, sustainability	Both rely on luxury brands, brand reputation, and distribution networks. LVMH’s brands are well-established. Kering emphasizes sustainability practices.	LVMH’s key resources include an extensive portfolio of prestigious luxury brands. Kering prioritizes sustainability efforts as a key resource.	Brand Portfolio (Both), Sustainability Initiatives (Kering).
Key Partnerships	Retailers, suppliers, luxury brand collaborations	Retailers, suppliers, luxury brand collaborations	Both collaborate with retailers, suppliers, and engage in luxury brand collaborations. LVMH partners with luxury brands. Kering collaborates with luxury fashion brands.	Both LVMH and Kering collaborate with various stakeholders, including retailers, suppliers, and luxury brand collaborations. LVMH places a strong emphasis on partnering with luxury brands.	Luxury Brand Collaborations (Both), Emphasis on Luxury Fashion (Kering).
Revenue Streams	Luxury goods sales, fashion, spirits, cosmetics	Luxury goods sales, fashion, accessories	Both generate revenue from luxury goods sales. LVMH has diverse revenue streams from spirits, fashion, cosmetics, and more. Kering primarily focuses on luxury fashion and accessories.	LVMH’s revenue streams span various luxury sectors, including spirits, fashion, cosmetics, and more. Kering’s primary revenue source comes from luxury fashion and accessories.	Diverse Luxury Revenue (LVMH), Luxury Fashion Focus (Kering).
Cost Structure	Manufacturing, marketing, brand promotion	Manufacturing, marketing, brand promotion	Both incur costs related to manufacturing, marketing, and brand promotion. LVMH invests significantly in marketing and brand promotion. Kering focuses on luxury fashion manufacturing.	LVMH’s marketing and brand promotion expenses are relatively high due to its diverse luxury sectors. Kering’s costs encompass manufacturing across its luxury fashion brands.	Extensive Marketing (LVMH), Luxury Fashion Manufacturing (Kering).