After The Outbreak, LVMH Group Accelerated The Speed Of Brand Integration

      As the leader of luxury goods group, LVMH, on the one hand, is acquiring "big fish" that can bring direct influence  ，  On the one hand, they are determined to abandon the "little fish" who are not competitive.

In February this year, the group announced that it would give up its partnership with North American pop star Rihanna, Fenty, a new brand established by LVMH group for more than 30 years. However, due to performance pressure and the impact of the epidemic, it has stopped all work. But according to the statement, Fenty is only temporarily suspended. Fenty's full range of brands also includes cosmetics and underwear, and this year added skin care lines, which still accept investment from LVMH group. So far, Fenty is still one of the most successful star fashion brands.

Shut down luxury brands   Fenty is just the tip of the iceberg,   The group also shut down operations of Thomas pink, its shirt brand, and is looking for new buyers.

In addition, LVMH frequently changed the designers of its brands in the past year, including Givenchy, berluti and Kenzo.

But the group started replacing its brand designers in large quantities three years ago. For example, in 2018, the designer of Louis Vuitton men's wear was replaced by Virgin abloh, the manager of Off White Street brand, and Celine designer was replaced in the same year, and Pheobe Philo was replaced by Hedi Slimane.

After Hedi Slimane took office, Celine showed signs of suffering Waterloo at the beginning. Sales did not rise but fell, but then began to rise again  ，  The group said it was still optimistic about Hedi Slimane's business vision.

Kim Jones has been replaced by Dior, the group's director of art for Fendi last year.

In addition, Givenchy's design director, Matthew Williams, also officially joined the group last year  ，  Givenchy's revival remains to be seen.

After revamping its design, LVMH Group recorded revenue growth of 10% year-on-year in 2018, and many of its brands recorded double-digit growth.

In addition to the adjustment of designers, the group has also adjusted some personnel arrangements in the organizational structure. Alexandre Arnault, the third son of the founder of LVMH group, has been appointed as Tiffany's executive vice president to manage the product and media division. After the outbreak of the epidemic last year, although the revenue of LVMH group decreased, the effect of big brands was obvious, and consumers' money all poured into the pockets of big brands such as Hermes, LV and Dior.   In the first quarter of this year,   The sales performance of the group has recovered to the pre epidemic level, mainly driven by Dior and Lv.

At the same time of last year's epidemic, the group also completed the acquisition of Tiffany, an American jewelry brand. The acquisition made up for the defects of LVMH group in hard luxury, and also secretly launched a challenge with another luxury goods giant Richemont group. In contrast, in the battle of luxury goods group, Kaiyun group began to have the fatigue of catching up. The group suffered heavy losses last year, and the number one brand Gucci became a drag on the performance, with sales falling by 23%. LVMH group has also become a group with a P / E ratio of 36 times, much higher than that of Kaiyun group by 28 times.

LVMH group is also quick to move in new technology fields. Previously, LVMH, Prada and Lifeng group jointly established a blockchain consortium. Although the emergence of the epidemic has a huge impact on the group's income, it has also become a catalyst for its reform. For the modern luxury industry, grasping the spirit of the times is possible to achieve a breakthrough in business