SWOT Analysis Of LVMH
Brand and Product Overview
LVMH, being a huge conglomerate, does operate in a different luxury markets, offering variety of products for their customers. The whole LVMH group is focusing on items that would be demanded by high-income customers. According to Pan & McCauley (2005) brands played an important role in the luxury industry, as buyers in this segment bought not only the product but also its associated values in terms of class-consciousness, emotional and artistic appeal, a unique design and a cultured and refined taste (p. 1). Let’s have a look at some products of the LVMH group. LVMH is divided in a five separate areas of business: fashion and leather, wines and spirits, watches and jewelry, selective retailing, perfumes and cosmetics. …show more content…
This section of the report will explain them in more detail.
Strengths
LVMH being a leader in the fashion and luxury industry has acquired a very strong brand name and brand portfolio. In addition, LVMH customers have a long-term experience of the goods, due to high quality and perfect customer support. Moreover, LVMH has contracts with many TV stars, and celebrities, who help them to market their products and services. Presence in the wines and spirit market is a great strength was due to strong position in the cognac market. One of the most important characteristics of the LVMH products is quality control and market diversification.
Weaknesses
The fact that wines and spirits division and retail division are conflicting with each other makes the company vulnerable. Moreover, LVMH used to have some financial difficulties. According to Pan & McCauley (2005), “LVMH too suffered setbacks due to the overall depressed economic environment globally from 2000 to 2003” (p. 7). Also, LVMH was experiencing weak sales performance at that time. It could as the result of targeting only one audience segment.
LVMH, being a huge conglomerate, does operate in a different luxury markets, offering variety of products for their customers. The whole LVMH group is focusing on items that would be demanded by high-income customers. According to Pan & McCauley (2005) brands played an important role in the luxury industry, as buyers in this segment bought not only the product but also its associated values in terms of class-consciousness, emotional and artistic appeal, a unique design and a cultured and refined taste (p. 1). Let’s have a look at some products of the LVMH group. LVMH is divided in a five separate areas of business: fashion and leather, wines and spirits, watches and jewelry, selective retailing, perfumes and cosmetics. …show more content…
This section of the report will explain them in more detail.
Strengths
LVMH being a leader in the fashion and luxury industry has acquired a very strong brand name and brand portfolio. In addition, LVMH customers have a long-term experience of the goods, due to high quality and perfect customer support. Moreover, LVMH has contracts with many TV stars, and celebrities, who help them to market their products and services. Presence in the wines and spirit market is a great strength was due to strong position in the cognac market. One of the most important characteristics of the LVMH products is quality control and market diversification.
Weaknesses
The fact that wines and spirits division and retail division are conflicting with each other makes the company vulnerable. Moreover, LVMH used to have some financial difficulties. According to Pan & McCauley (2005), “LVMH too suffered setbacks due to the overall depressed economic environment globally from 2000 to 2003” (p. 7). Also, LVMH was experiencing weak sales performance at that time. It could as the result of targeting only one audience segment.