The Success Of LVMH, The World's Luxury Goods, Is Not Cold.

LVMH group is the world's largest luxury group, called "Lu Wei Ming Xuan" in Chinese. LVMH is the abbreviation of Moet Hennessy Louis Vuitton, the Chinese name is France MOET & CHANDON Hennessy LV group. From the complex company name, we can see that LVMH group covers three famous brands, LV bags (Louis Vuitton), Moet and Chandon (Moet Chandon) and Hennessy Brandy (Hennessy). Moreover, there is also a well-known brand Dior (Dior), which is closely related to LVMH group. LVMH Moet Hennessy Louis Vuitton owns 70 brands of high quality products. It is also the only five major areas that cover the luxury market - wine and spirits, fashion and leather goods, perfume and cosmetics, watches and jewelry. High end retail The group.

The combination of MOET & CHANDON and Hennessy is Moet's full name Moet & Chandon (Moet and Chandon), which is the world's most popular champagne brand. In 1743, Claude Moet, a wine maker living in champagne, founded the champagne business. His grandson Jane-Remy Moet has made MOET & CHANDON brand world-famous, because its deep friendship with Napoleon has made this champagne brand sound and won the reputation of "Royal champagne". From 1805 to 1841, MOET & CHANDON became the most famous wine merchant in Europe. Dom Pierre Perignon (1638-1715) is known as the father of French champagne. During the French Revolution, Abbey of Hautvillers and vineyard were confiscated, and MOET & CHANDON brewery bought gold in the auction. The MOET & CHANDON distillery opened the birthplace of the champagne to the champagne Museum, and set up a bronze statue of the Buddhist monk of peron, so that the champagne lovers visited the "pilgrimage" mentality, so that the drinkers thought MOET & CHANDON was the most authentic champagne. In 1927, MOET & CHANDON decided to name the 1921 year champagne stored in the cellar as "Dom Perignon". Became the first year champagne of the king of champagne.

In 1765, Richard Hennessy, an Irish Richard who had served for the French king, was acutely aware of the huge international sales potential of Hennessy in the Cognac COGNAC (COGNAC) and established her own winery in Cognac area. Starting from the United States, Hennessy began to blossom in the global market since the end of eighteenth Century. In early nineteenth Century, Hennessy appeared in Australia and Southeast Asia. Since then, markets in South America, Japan and China have been opened one after another. In 1860, 1/4 of Cognac brandy sales came from Hennessy. By 1967, the sales volume of the winery reached one million boxes. By 2013, Hennessy had sold 5 million 500 thousand cases of quality wine and became the world's largest top French wine and spirits brand. In 1971, MOET & CHANDON (Moet & Chandon & amp; Hennessy) merged with Hennessy (Hennessy) two major breweries, forming the MOET & CHANDON Hennessy group (Moet). Louis Weedon and LV logo in 1837, only 16 years old LV (Louis Vuitton) bid farewell to their hometown to go to Paris to break the world, with the craftsman apprenticeship. In 1853, LV was promoted to the chief assistant of the boss and became the most trusted suitcase expert of the queen of France.

From 1947 to 1957, Dior spent ten years designing attractive fashion, redefining the concept of elegance and femininity. The name of Christian Dior is world-renowned and has become synonymous with French luxury. In 1947, Dior held its first customized fashion show. Dior believes that the perfume can play a role of icing on the cake, when he launched the first clothing series, launched the Miss Dior perfume, which also updated the concept of global luxury design. In 1953, Dior listed the first lipstick. In 1955, Dior hired a 19 year old Yves Saint Laurent Yves Saint-Laurent as design assistant. In 1957, Mr. Dior became the first fashion designer to be on the cover of the times magazine. In October 24, 1957, Christine Dio died of heart disease. At that time, Yves Saint Laurent, who was only 21 years old, was in danger, took over as the chief designer and shot red at the fashion conference, so it was also called Christine S. However, he left Christian Dior Co after joining army and illness, and founded his own brand YSL (Saint Laurent) in 1962. In 1968, Dior perfume company was sold to Hennessy by Boussac. In 1978, Dior's parent company Boussac group went bankrupt, and Willot Group bought its assets. In 1981, Willot Group also declared bankruptcy.

Arnaud bought Christian Dior1949, and Bernard Arnaud (Bernard Arnault) was born in an industrial family in France. In 1971, Arnaud graduated from Paris Polytechnic and entered the Ferret-Savinel construction company founded by his father, and became an engineer. Subsequently, he successively promoted to different senior management positions and became chairman of the company in 1978. In 1981, when French President Mitterrand came to power, a large number of conservative entrepreneurs in France chose to go to the us to develop their careers. Arnaud was also one of them. When he lived in the United States, Dior perfume began to sell in department stores in the United States. The brand from his hometown comforted his homesickness and made him feel very fond of Dior. In 1984, Arnaud, 35, returned to France from the United States. In the wave of privatization in France, he bought the owner of Christian Dior, Willot Group (later renamed Financiere Agache by Arnott). Arnaud then reorganized the Financiere Agache holding company. In 1985, Arnaud became chairman and CEO of Christian Dior. He adopted the strategy of developing the world's top luxury companies to make the group profitable again. In the meantime, he revived Christian. Dior And take it as the cornerstone of building a new business organization.

In 1987, Arnaud used the current assets to buy clothing and leather products company Celine to improve its position in the apparel industry. LVMH group was born in 1980s, due to the decline in family holdings, MOET & CHANDON Hennessy (Moet Hennessy) group has been worried about being acquired. Louis Weedon is worried that the market is too dependent on the purchasing power of the Japanese. So in 1987, Louis Vuitton and Moet Hennessy wine group merged with the French bank to form the LVMH Moet Hennessy Louis Vuitton group. Alan Chevalier, President of MOET & CHANDON Hennessy (Alain Chevalier), is the president of the group, and Henry Lacamille, President of Henry Lacamille (Henry Recamier), is the chairman of the group strategic committee. However, the two companies remain unchanged in the original company position as a subsidiary of the group. After the merger of the two companies, the two founding families together hold 35% of the new company's shares and more than 50% of the voting rights.

However, the merged Louis Weedon and MOET & CHANDON Hennessy are quite independent in their actual operation and have not achieved good business integration and collaboration. The founding family of MOET & CHANDON Hennessy belongs to the aristocracy. The Louis Weedon family is a civilian origin. The two families are incompatible mentally and culturally. At that time, in order to expand the sale of alcohol in overseas markets, shevrier had LVMH signed an international distribution agreement with the British brewery manufacturer Guinness PLC and held shares with each other. This has also led to contradictions and power struggles between the two managers of Chevalier and La karmeyer in terms of whether to strengthen liquor products or clothing and leather products. Arnaud sneak attack on LVMH at that time, Arnaud had Dior Couture (Dior Couture), and because of MOET & CHANDON Hennessy and LV merger, the ownership of perfumes perfume was classified into LVMH group. Arnaud wanted to return Dior perfume to Dior system, but was rejected by LVMH. In order to win Dior perfume, Arnaud set up a joint venture Jacques Rober through Christian Dior and the UK's Guinness company (Guinness and LVMH Holdings). Arnaud controlled 60% of the company's holdings and the other 40% of the company. In October 1987, the stock market crash, Arnaud courageous attack, at a very low price to collect LVMH shares.

Soon, Arnaud controlled 43% of the LVMH group's stake. After becoming the largest shareholder of LVMH, Arnaud cleaned the team of MOET & CHANDON Hennessy and Louis Weedon. In 1989, Arnaud completed his goal of creating the world's top luxury group and gained control of LVMH. Since then, Bernard Arnaud has been chairman and chief executive of LVMH group. After that, Arnaud wanted to get his partner, Guinness company, but he did not agree. Thus, by modifying the agreement with Guinness company, the shares held by Christian Dior in LVMH group increased from 24.5% to 41.6%. In 1997, Guinness and Grand Metropolitan two were merged into Te A Jill (Diageo). After making LVMH a luxury giant, Arnaud spent 20 years shaping LVMH into the global luxury goods industry. At the end of the 1980s, fine workmanship LV became synonymous with tedious and expensive. The younger generation no longer favored LV. In 1997, Arno hired Marc Jacobs, an avant-garde designer from New York, to be the creative director of the company. After studying the history of LV, Jacob invented a series of unique designs with modern flavor to make LV bags more competitive.

Subsequently, LV began to use public relations gimmick, signing with celebrities and other means to create influence. LV spent $150 million in renovations in the exclusive store in Paris, and built a scaffolding with two LV cases on the outside of the store. This scaffold has become a huge advertisement with remarkable results. The most effective way is to create artificial scarcity, and the company limited the price of products every quarter. A $5550 handbag was first sold in exclusive stores in Fifth Avenue, New York, and consumers in London and New York had to wait for months to get this kind of handbag. The purpose of this handbag is not to make money, but to arouse people's admiration. In 1990s, Arnott began to buy luxury brands that were more expensive than LVMH at the time, including shirt makers Thomas Pink, Chaumet jewelry, Fendi leather, Pucci and Donna Karan. Latest fashion Krug champagne and TAG Heuer. Arnott is concerned about brands that are less than expected but promising, including women's brand Celine, Zenith watch, Pucci fashion and Ruinart champagne. In 1992, Louis Vuitton opened its first boutique in Xpu Ha Palace Hotel, Beijing, China.

For the failure of Gucci and Hermes, some people say that if Arnaud sees a beautiful brand, he wants to earn his income. This is a kind of obsessive compulsive disorder. In January 1999, LVMH group spent $1 billion 400 million in a short 20 days to acquire a 34.4% stake in Italy leather goods manufacturer Gucci group (Gucci) in a short span of two days. Faced with this situation, Gucci proposed to buy LVMH fully, but Arnaud refused, because all acquisitions would cost too much money, and it was not cost-effective. After being rejected by LVMH, Gucci decided to expand its shares and sell 42% of the total share capital to 3 billion dollars for sale to France Paris spring group (PPR, now renamed Kering).

After the expansion, PPR became the largest shareholder of Gucci, while LVMH's share in Gucci was diluted from 34% to 20%. Moreover, Gucci also reached a strategic agreement with PPR to ensure the independence of Gucci and continue to develop multi brand strategy. Gucci's actions annoyed Arnaud. He sued the Holland court for investigation. The court held that Gucci was acting unfairly, but did not decide to cancel the transaction between Gucci group and PPR. LVMH appealed to the Supreme Court of Holland. After repeated consultations, LVMH group finally agreed to transfer the shares of Gucci group to PPR in 2001. So PPR bought Gucci group at a price of 8 billion US dollars, from one retailer to the third largest luxury group in the world. In October 2010, Arnaud suddenly announced that the LVMH group had purchased 17.1% of Hermes shares through equity swap.

This is beyond everyone's expectation, and because of the low stock purchase price of LVMH, huge profits have been recorded as Hermes shares have risen sharply. LVMH has always liked acquisitions, and although Arnaud said he had no intention of hostile takeovers, he would not seek board seats. However, the Hermes family, which owns more than 70% of the company's shares, is obviously unwilling to let Arnaud have a hard time with their company, because LVMH is also the biggest rival of Hermes. Moreover, the arrogant and flashy luxury of Lu Wei Hin Xuan also makes it difficult to insist on manual sewing traditional Hermes. However, when Chevalier took charge of MOET & CHANDON Hennessy group in 1980s, Chevalier bought 15% of Hermes. After the merger of MOET & CHANDON Hennessy and LV, share ownership is owned by LVMH. Later, Hermes decided to go to the market to ask Arnaud to buy back the shares.

At that time, Arnaud was busy restructuring LVMH and adjusting its development direction, and agreed to sell the 15% stake. Perhaps, because he had held a 15% stake in Hermes, Arnaud might feel that having a 17.1% stake this time is also reasonable. However, the French stock market regulatory authorities issued a ticket of up to 8 million euros for LVMH, because LVMH concealed no information at all stages of the increase in Hermes shares and seriously violated the rules of public information disclosure in a row. But since then, Arnaud has continued to buy Hermes shares and raised his shareholdings to 23.2%. 2014, under the mediation of the Paris commercial court, LVMH agreed to give up most of the Hermes shares and will not buy them in the next 5 years. Under the settlement agreement, the LVMH controlled by Arnaud will distribute the Hermes shares to its shareholders, while the Christian group Dior, the largest shareholder of LVMH group, will hand over these Hermes shares to its shareholders. Arnaud's family holding company, Groupe Arnault, will still hold about 8.5% of the shares of Hermes Arnault. The ownership structure of Arnaud family

Bernard Arnaud (Bernard Arnault) is the chairman of the board of directors of Groupe Arnault S.A., a family holding company of. Arnaud group controls Financiere Agache SA. Financiere Agache owns 70% of Kristen Dior group. Kristen Dior group (Christian Dior) holds 41% of LVMH group. Kristen Dior (Christian Dior) is the world's largest high-end fashion brand holding company, and is the parent company of LVMH group. Kristen Dior group holds 100% of Christian Dior Couture, Dior fashion is not LVMH group's enterprise. As the luxury industry began to slow down in various major markets around the world from 2013 to 2015, the performance of luxury brands went back sharply. LVMH group's share price fell 12% in a year, and Bernard Arnaud Arnault, who won the richest title in France for seven consecutive years, also gave the French richest man to the successor of L'OREAL group L (Bernard Oreal) in 2016.