In a recent announcement of its annual results, LVMH, the French luxury conglomerate, has called for its renowned brands Dior and Louis Vuitton to “scale down their growth” by 2024. The company’s chairman, Bernard Arnault, commended the outstanding performance of the Fashion & Leather Goods division, generating a total revenue of €42.16 billion in 2023. This marked a substantial 9% increase from the previous year. Arnault specifically lauded Christian Dior and Louis Vuitton as two of the leading brands in the soft luxury market, alongside Chanel and Hermès.
Despite the remarkable success, Arnault emphasized the importance of maintaining reasonable growth rates and suggested that a maximum growth rate of 8-10% would be ideal for enhancing the desirability of these esteemed brands. He proposed a strategic shift towards focusing on the product mix rather than sales volume as an effective means to preserve their allure.
Earlier this year, LVMH underwent a significant reorganization, appointing Delphine Arnault as the CEO of Christian Dior and Pietro Beccari as the leader of Louis Vuitton. Bernard Arnault expressed satisfaction with the success of Dior collections designed by Maria Grazia Chiuri and highlighted Louis Vuitton’s distinctive business model, which prioritizes high-quality products. As LVMH looks towards the future, its flagship brand, Louis Vuitton, is expected to continue its development through new diversifications.
Useful links:
– LVMH Official Website
– Christian Dior Official Website
