In the world of luxury fashion conglomerates, two giants stand out: LVMH and Kering. While LVMH has long been the dominant force in the industry, Kering is quickly rising through the ranks and giving its competitor a run for its money. With a focus on high-end brands and a keen eye for innovation, Kering is making a name for itself in the fiercely competitive world of luxury fashion.
Kering versus LVMH: It bags and influencers VS heritage and size
When it comes to the competition between Kering and LVMH, there are a few key differences that set them apart. LVMH, with its portfolio of iconic heritage brands like Louis Vuitton and Dior, has long been seen as the epitome of luxury and sophistication. On the other hand, Kering has taken a different approach, focusing on cultivating a younger, more edgy image with brands like Gucci and Saint Laurent.
One area where Kering has excelled is in the realm of influencer marketing and "It" bags. Gucci, in particular, has become a favorite among social media influencers and celebrities, thanks to its bold designs and eye-catching accessories. This has helped Kering attract a younger, more fashion-forward audience and establish itself as a trendsetter in the industry.
On the other hand, LVMH's focus on heritage and size has allowed it to maintain its status as a powerhouse in the luxury market. With a stable of iconic brands that have stood the test of time, LVMH continues to appeal to a more traditional, established customer base. While Kering may be hot on its heels, LVMH's long history and reputation for quality and craftsmanship give it a competitive edge in the industry.
Fashion Conglomerates 101: LVMH vs. Kering
Both LVMH and Kering operate as fashion conglomerates, owning a portfolio of luxury brands that span across various segments of the industry. However, their approaches to managing these brands differ significantly.
LVMH, led by billionaire businessman Bernard Arnault, is known for its hands-on approach to managing its brands. The conglomerate is involved in every aspect of its brands' operations, from design and production to marketing and distribution. This level of control has allowed LVMH to maintain a high level of quality and consistency across its portfolio, ensuring that each brand upholds the standards of luxury that the conglomerate is known for.
On the other hand, Kering has taken a more hands-off approach, allowing its brands more autonomy in their creative direction and operations. This has allowed brands like Gucci and Saint Laurent to flourish creatively and develop their own distinct identities within the Kering portfolio. While this approach has led to some impressive successes for Kering, it has also presented challenges in terms of maintaining a cohesive brand image and ensuring consistent growth across all its brands.
Luxury fashion brands were left with billions of dollars worth of inventory
The COVID-19 pandemic had a significant impact on the luxury fashion industry, with many brands being left with billions of dollars worth of unsold inventory. As lockdowns and travel restrictions forced stores to close and events to be canceled, luxury brands saw a sharp decline in sales and revenue.
Both LVMH and Kering were not immune to the effects of the pandemic, with sales plummeting and profits taking a hit. However, the two conglomerates took different approaches to managing the crisis. LVMH focused on cutting costs and streamlining operations to weather the storm, while Kering took a more proactive approach, investing in digital initiatives and e-commerce to drive sales during the lockdown.
While both conglomerates faced challenges during the pandemic, their strong balance sheets and diverse brand portfolios helped them weather the storm and emerge stronger on the other side. As the world begins to recover from the effects of the pandemic, luxury brands are now focused on adapting to the new normal and finding ways to connect with consumers in a post-COVID world.
While Kering’s Gucci Warns Of 20% Decline, LVMH Sees Growth
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