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Analysis Of The Unique Management Concept Of LVMH Brand

2013/10/28 18:38:00 21

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Brand Management Concept LVMH Luxury Brand

marriage between the nobility and the common people

Many companies and brands under P > LVMH have a history of more than 100 years.

Moet and Chandon originated in 1743, Hennessy originated in 1765, and Louis Weedon was founded in 1854.

In 1971, MOET & CHANDON merged with Hennessy's two major breweries to form MOET & CHANDON Hennessy liquor group.

In 1987, Louis Weedon merged with MOET & CHANDON Hennessy and formed the Louis Weedon MOET & CHANDON Hennessy group.

in the establishment of < a href= "http://www.91se91.com/news/index_c.asp" > LVMH < /a >, the two hundred family businesses of Louis Weedon and MOET & CHANDON Hennessy have achieved professional management. They are the professional managers of the two enterprises, leading the enterprises to merge together.

But professional managers have never thought that their efforts will become the goal of others.

Louis Weedon P has a long history and reputation, but until 1977 it was actually a family controlled small and medium-sized enterprise, with fewer than 100 employees and an annual sales of 70 million francs.

This year, La Camille, who is already 65 years old, came to the post of president of Louis Weedon after his father-in-law Henry Vuitton passed away.

Mainly because of the popularity of the "rich" Japanese, Louis Vuitton realized tens of times of income growth only by hand bag in the next ten years.

In 1984, Louis Weedon shares went public, and family shareholding ratio began to decline rapidly.

Chevalier, President of MOET & CHANDON Hennessy, is a pure professional manager. He joined MOET & CHANDON in 1969. P

In 1987, the founding family shareholdings dropped to 22%, and the voting rights dropped to 33%, and the company was threatened by mergers and acquisitions.

under the combination of the Bank of Paris in France, Chevalier, who was afraid of the loss of control of the company's acquisition, and La Camille, who was worried about the single risk of the company's products, accounted for 1/3 of the Japanese market. When the Japanese suddenly disliked the LV handbag, two people who had never known each other came together.

In June 1987, Louis Vuitton merged with MOET & CHANDON Hennessy and LVMH was set up.

LVMH became the group holding company of Louis Weedon and MOET & CHANDON Hennessy. Chevalier served as the group president, La Camille served as chairman of the group strategic committee, but the two companies remained unchanged in the original company group.

Louis Weedon and MOET & CHANDON Hennessy are quite independent in their actual operation and do not achieve good business integration and coordination: there are two managers and two founding families.

The founding family of MOET & CHANDON Hennessy belongs to the aristocracy, and the Louis Weedon family is a civilian origin.

The psychological and cultural incompatibility between the two families and the contradiction and power struggle between the two managers provided an opportunity for Bernard Arnaud to take the lead.

< a > href= > http://www.91se91.com/pioneer/ > > Bernard < /a > bottom reading > /strong > /p >

Bernard was born in France in 1949, a middle-sized family.

My father was a son-in-law. In 1950, he began to take over Ferre, Savi Neil, a family business that his father-in-law Savi Neil founded in 1926. His main business is to help people build factories.

After graduating from Polytechnic University in Paris (P), Bernard entered the family business as an engineer.

In 1974, after inheriting the grandmother's legacy, Bernard became the main shareholder of the company and began to run the family business.

By 1980, Bernard's main business was concentrated in the real estate market.

Since then, his interest has expanded to newspapers, chain hotels and so on.

At the end of 1984, Bernard bought his bankrupt P.

The real estate entrepreneur is not the main textile industry of the Bush group, but a pearl of its Dior, Dior.

As a result, Bernard ignited the passion of pursuing world famous brands.

The Dior brand was founded in 1947 by entrepreneur Marcel booth, who supported designer Christian Dior. Arnaud also wanted to follow suit, invest in excellent designers, create new brands, but failed, so acquisition became his choice of brand investment.

In P 1987, the takeover threat that caused Louis Weedon and MOET & CHANDON Hennessy to merge hastily came from Bernard.

After the merger of the two companies, the two founding families together hold 35% of the new company's shares and more than 50% of the voting rights. It seems that the acquisition threat and control rights can be avoided.

But the stock market crash in October 1987 and the conflict and friction between the two companies' president still gave Bernard the chance to buy and enter LVMH.

At the end of 1987, at the end of the year, Bernard began to absorb LVMH's stock when the stock price crashed.

Meanwhile, Chevalier from MOET & CHANDON Hennessy and the two managers from La karmeyer from Louis Weedon began to look for alliances to strengthen their control over LVMH.

Chevalier and La Camille who merged LV and MH together and set up LVMH, because they did not unite and fight constantly, eventually married others, and the two came out one by one. Baer was included in the main LVMH.

September 1988, when LVMH was established in one year and three months, Bernard pushed his father to LVMH group to supervise the chairman of the board of directors with a 29.4% stake.

Although he remained chairman of the board of directors of the group management, Chevalier, the famous professional manager in France, was already very aware that he was now facing a real shareholder, asking himself to act according to his instructions, and to make his own report.

He even told the media: "if I go back to 35, I will never choose the same career path as I do now.

I will try to start my own business to all young people. "

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Chevalier, who is not willing to live under people, decided to join the lagga Meyer, who also wanted to return to his own kingdom. Through capital restructuring, the shareholding of P and LV declined from 98% and 100% to below 50%, and the independent operation power of --EndFragment-- was regained.

The way is to buy the Weedon family back to Louis Weedon by open bidding, and MOET & CHANDON, Hennessy is bought by its longtime partner, Guinness, England. Chevalier and La karmeyer each control their own kingdom and leave LVMH to Dior, a small minority shareholder of Louis Weedon and MOET & CHANDON Hennessy.

But the plan failed.

The director of Guinness company decided to stop the purchase because he was worried about personal legal risks (he had no previous contract with Bernard's company on the proportion of LVMH shares, and could not be allowed to raise the shares separately).

La Camille took advantage of the stock price and sold his own LVMH stock and made a big profit and left the field.

In January 1989, Chevalier resigned and Bernard became chairman of LVMH management board. P

unique a href= "http://www.91se91.com/news/index_c.asp" > brand management < /a > View /p >

from Dior, Bernard fell in love with luxury brands, and since he was too hard and too slow to cultivate, he bought it.

After controlling LVMH, Bernard's luxury brand acquisition began to accelerate greatly. In addition to LV, Hennessy and Dior, more than half of the more than 60 luxury brands, such as Bvlgari and Fendi, came through mergers and acquisitions.

Bernard's brand looks almost always successful.

Since 1987, LVMH has made 63 acquisitions, holding 74 companies and selling 48 companies at the same time.

There were only two major accidents: the management boycott made LVMH lose GUCCI, and the joint venture of founding family members blocked LVMH's acquisition of Hermes.

In P October 2010, LVMH announced that it had acquired 14.2% of Hermes, plus the convertible derivative instruments on hand, with a total holding volume of 17.1%, becoming the largest single shareholder outside the Hermes family heir.

In January 2011, the Hermes family shareholders filed an application for exemption from the French Securities Regulatory Commission, set up a 50.2% stake and set up a holding company to deal with LVMH's possible takeover actions relying on "family solidarity".

However, LVMH did not give up. In July 2013, LVMH increased its holdings to 23.1%.

LVMH will always hold Hermes shares until the Hermes business is in trouble or the family is in turmoil.

management after M & A, Bernard has his own way of doing things.

The core of Bernard's brand management philosophy is to give full autonomy to all the brand managers of LVMH.

Managers hold part of their Brand Company shares, and individual brands can get the support they need from the group.

Bernard said, "many of these well-known brands were originally created from the family business and created by different family businesses.

Although these brands are already a member of the largest luxury goods group in the world, they should be allowed to maintain the feeling of family management, so that they can fundamentally maintain the successful operation of these brands. This is the real enterprise management.

Every brand manager has to operate and manage like his own brand and enjoy full freedom. "

Although LVMH headquarters has regulators and department heads, Bernard's warning is to give full scope to the active subsidiaries.

"Effective management is mainly dependent on our corporate culture," Bernard said. "If they do not give enough freedom, they can't create the best products that have the necessary Reiki.

The success of a company will depend mainly on the management effect of these two seemingly contradictory forces.

a company tries to make a designer to manage the design and style of its many brands and strive to be uniform. Bernard thinks this is wrong.

"The right thing to do is to let each brand have its own independent innovation design and image maintenance.

We make every brand operate with sufficient autonomy and highly decentralized management. "

Bernard said, "LVMH is a company brand, not a product brand.

The famous brand products such as Louis Weedon, Fendi, Givenchy, Clinique and so on were originally produced by the same group company. This fact is that consumers may be totally unaware and not interested, but in fact, there is no need to know.

The above brands should be completely independent of each other.

But from an enterprise point of view, every brand operator, including their employees, should be very clear: they belong to the largest luxury goods group in the world, which is very important for the maintenance of the overall image of the company.

I personally believe that LVMH has successfully positioned itself as the owner of all these big brands, and such a corporate image is also the key to LVMH's success. "

the test of family inheritance /p >

LVMH is headquartered in Paris and listed on the Paris stock exchange. It is a constituent stock of Paris CAC40 index.

In December 31, 2012, the Arnaud family held 46.42% of LVMH shares, and the voting power ratio was 62.65%.

The distribution of the remaining shares is: Bulgari family 2.5%, personal 4.9%, French institutional investors 14.8%, foreign institutional investors 29.8% (among which the United States, Britain, Sweden and Germany are holding 9.1%, 6.4%, 2.7%, 1.8% respectively) and 1.6% shares in stock.

2012, LVMH achieved sales revenue of 28 billion 100 million euros, earning 5 billion 900 million euros, and selling profit margin of 21%. The net profit of the attribution group was 3 billion 400 million euros, 2.90 cents per share, and 17% asset liability ratio.

Bernard ranked fourth in the 2011 "Forbes" global richest list, and dropped to tenth place in 2013.

He has incorporated family businesses into his own capital through the capital market, but has repeatedly declared that he should keep LVMH under his family's control.

His children, like him, were educated from their childhood to inherit the family industry. He was confident that "the Arnaud family is smarter than others."