LVMH To Open More Luxury Resorts
Luxury goods company LVMH has announced it will develop resorts using the name of its Bordeaux winery, Cheval Blanc.
Luxury goods company LVMH has announced it will develop resorts using the name of its Bordeaux winery, Cheval Blanc. A concept was rolled out at the French ski resort Courchevel in 2006 and two more are scheduled for 2012 in Oman and Egypt. LVMH will run the resort under a manager contract similar to other luxury chains such as the Ritz-Carlton. The hotels will showcase its brands as visitors will be able to purchase Dior and Louis Vuitton merchandise. This sounds like a natural transition as more luxury brands pursue alternate projects for growth while staying consistent with brand heritage and increasing their presence globally.
The WSJ reports:
The move shows how LVMH is trying to grow without resorting to costly acquisitions. Two years ago, the company pushed the boundaries of its luxury-goods universe to include yachts when it bought Dutch ship builder Royal Van Lent. A few years earlier, LVMH developed a new high-end rum, 10 Cane, instead of buying an existing brand.
LVMH grew throughout the 1990s and until 2001 thanks to expensive acquisitions. But many purchases, such as perfume maker Guerlain and American fashion house Donna Karan, haven’t turned into major successes. Now, as the industry leader, there are few targets for LVMH that would have a significant impact on its growth.