Shipwire in the News

Why LVMH Will Weather the European Economic Storm in High Style

Forbes, June 19th, 2012

European financial markets were up and down yesterday following the news of Greek elections. But for one luxury stock Moët Hennessy Louis Vuitton (LVMH), it was just another day of trading.

LVMH, the world’s largest luxury conglomerate that counts more than 60 brands and over 3,000 stores worldwide as part of its posh portfolio, quietly stayed the course as all eyes swung from Greece’s new ruling party to the potential collapse of Spain’s banking system. LVMH stock closed at €118.35, up .08 percent from the previous day.

Not only is LVMH the biggest, it also continues to rack up more profits than its competitors. Last year the group raked in €23.659 billion in revenue with €3.5 billion in profits. By comparison, Richemont which owns such luxe labels as Cartier and Van Cleef & Arpels, pulled in just over €1 billion in the same period. And it’s not just a lucky year. LVMH has been sailing through economic uncertainty both at home and abroad since the luxury market softened in 2008, fueled by its namesake champagne bubbles, shiny baubles and sensual fragrances.

Nate Gilmore VP of Marketing at Shipwire Order Fulfillment a global network of warehouses, tells Forbes one reason LVMH has remained a market leader:

Luxury brands have invested in more than brand over the past 10 years. They excel at selling directly to their target buyer without the distraction of the retail middleman. This allows them to cater to the customer and provide the customer attention required to build a lifestyle brand. Smaller brands are watching and adopting similar brand direct sales. The economy is accelerating the trend of brands controlling the entire buyer experience.

To view the rest of the article, visit here.

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