Case 3-4: LVMH

Question:

The Future

While the Louis Vuitton brand remains enormously profitable, none of the other labels have rivaled its level of commercial success. With its current dependence on star designers such as John Galliano and Marc Jacobs, the group’s success is highly correlated to the whim of the creative. Given the current internal politics and recent departure of Michael Kors, will consumers remain loyal to the brand or the designer? The bigger question is, can LVMH oversee so many luxury brands, make them all profitable and maintain the highest standards of creativity? How will this “loose” conglomerate that Bernard Arnault created in the last decade be integrated and managed effectively?