Future Of Luxury Brand Groups

Future Of Luxury Brand Groups
Advertising

The Wall Street Journal describes today how luxury groups are considering moving from being 'pot pouris of fashion, cosmetic and liquor brands' to a position where they concentrate on a...

Guy Brighton
  • 8 october 2004

The Wall Street Journal describes today how luxury groups are considering moving from being ‘pot pouris of fashion, cosmetic and liquor brands’ to a position where they concentrate on a few key – and profitable – brands. Colossal luxury groups were created with the hope that benefits derived from economies of scale in areas such as supply and marketing would greatly benefit the three main groups (LVMH, Richemont, Gucci). However all the groups have seen a three year slump in sales and there is an alarming fact that each groups’ top brand (Gucci for Gucci, Cartier for Richemont, Louis Vitton for LVMH) earns more than twice the operating margins than their parent companies. Furthermore, Louis Vitton contributes half of LVMH’s $3.7b annual revenues!

Access this article for free
Fill in your email below and you'll gain access to this article while also receiving a number of membership features as part of a special 30-day trial.
*Already a member? Log in here

Learn About Our Membership Services

Need Research Help?
As a member you can ask us any research questions and get complimentary research assistance with a 4-day turnaround. Reports inclde stats, quotes, and best-inclass examples on research topics.
Remain Informed & Strategic
We publish several trends reports each month. By becoming a member you will have access to over 100 existing reports, plus a growing catalog of deep topical analysis and debrief-style reports so you always remain in the know.
See Trends Come To Life
Meet your peers and immerse yourself in monthly trend and innovation webinars and discounted conferences.
No search results found.