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Weathering the storm
Tough economic conditions in recent times certainly left their mark on the business world. Major social and political events have likewise had an inevitable impact. It is hardly surprisingly that most industries have had to bear some unpleasant consequences.
The luxury goods sector is a notable exception to all this. Strong growth has been the norm for the last couple of decades or so and the aforementioned problems have done little to dent this momentum.
On the contrary, today's environment for luxury goods consumption shows several positive signs. More people are in work and many consumers enjoy greater spending power. In emerging countries like the BRIC nations, the more affluent consumer segments continue to expand in numbers. There is also significance in the fact that luxury products have caught the imagination of individuals with aspirational tendencies.
Stability has long been the norm in this market. Change was the exception rather than the rule. Consumer tastes do evolve though. In this context, a notable recent emergence has been the growing demand for luxury brands which incorporate an experiential dimension.
In response to the soaring interest, new luxury offerings have materialized. Established operators have expanded their product range and widened their portfolio of offerings. However, such developments serve to compound the challenge of successfully managing a luxury brand.
The LMVH conglomerate
Few names are more synonymous with the notion of luxury than Louis Vuitton. The company has long held a prime position as a global leading fashion brand and is widely acknowledged as such.
The fashion house strengthened its hand further by merging with Möet-Hennessy in 1987. Joining forces with the renowned producer and retailer of wines, spirits and perfumes paved the way for LVMH, a conglomerate of big hitters in the luxury brand world.
One of the most significant consequences of this merger was the rise of Bernard Arnault to the position of...