LVMH'S First Quarter Performance Exceeded Expectations And Hit A Five Year High.

According to the world's largest luxury group LVMH4 10 reported in the first quarter of fiscal year 2019 data, its group sales rose 16% to 12 billion 500 million euros, more than analysts expect 12 billion 200 million euros, organic growth of 11%.

Its fashion leather Department contributed 5 billion 111 million euros in sales, which is undoubtedly the main force to promote growth.

LVMH Group sales far exceeded expectations, no doubt is a positive signal for the downturn in luxury goods industry.

Looking back to the first quarter, LVMH Group actively promotes the group to develop in a sustainable, high-quality and innovative direction.

"LVMH Group actively promotes group

Sustainable, high quality and innovative direction.

The fashion leather Department has achieved 15% organic growth, of which Louis Vuitton has grown significantly in all fields.

In 2018, LVMH group appointed a new creative director and absorbed new talents for its main fashion leather brand, such as Hedi Slimane of Celine.

The first quarter is the first batch of these designers' products entering the store nodes, especially the first independent men's wear series for Celine, which is a key step for LVMH to adjust the brand strategy.

The sales results showed that these measures were successfully pformed into material achievements, and the creativity of LVMH group was becoming more and more noticeable. Virgil Abloh became the 2000 dollar accessories introduced by creative director of Louis Vuitton menswear and a new craze of new products such as 950 Dior Homme low arm sports shoes designed by Kim Jones, and the fashion show of Louis autumn and winter men and women 2019 and autumn were also widely praised.

In the retail of fashion leather Department, Louis Vuitton has built a new leather workshop in France, which can accommodate 500 craftsmen to meet the increasing demand.

The material of leather products is an environmental issue of continuous concern in the world. In February 18th, the LVMH group promulgated the latest crocodile farming specification and announced that it had completed the whole process of developing the leather source system. This also means that LVMH group has taken an important step in the direction of sustainable development.

LVMH group's brand store network continues to expand, and Louis Vuitton's stores in Florence, London, Monaco and Shanghai international financial center have been reopened after refurbishing.

The cosmetics department's revenue increased by 12% to 1 billion 687 million euros, mainly due to the growth of the Dior perfume department's classic purchase and the popular popularity of the latest perfume Joy, as well as the Rouge Dior and Diorskin series of the Dior beauty department.

It is worth mentioning that LVMH group's beauty incubator Kendo supported by Fenty Beauty, created by singer Rihanna, continued to grow rapidly. The brand created nearly $500 million in revenue for LVMH group in 2018.

The deep cooperation with Rihanna will undoubtedly bring fruit to the LVMH group. The core of the strategy is undoubtedly the attraction of her generation to the Millennials.

Facts have proved that creating a wave of emotions that resonates with young consumers of various backgrounds is the decisive factor for the success of Fenty Beauty.

Sales of selected departments covering Sephora and DFS duty-free shops increased by 13% to 3 billion 500 million euros, mainly thanks to the contribution of Chinese tourists.

In order to provide a more innovative and interactive experience for consumers, Sephora has recently opened a new flagship store in the new Hudson Yards development project in New York and will return to the Hongkong market.

DFS will grow steadily during this period, and its focus will be on Europe. It is expected to open in 2020 at La Samaritaine in Paris.

The watch and jewellery department also gained 9% growth.

With its popularity in Bvlgari, Chaumet's new Liens Evidence gold diamond has also received a positive market reaction.

LVMH group's watch brands Hublot, TAG Heuer and Zenith have also been well received at the just concluded Basel Watch Jewellery Exhibition.

At present, more and more luxury brands are in a difficult position in the Chinese market.

Previously, in response to China's upcoming value-added tax reduction policy, Louis Vuitton took the lead in reducing the retail price of Chinese commodities by the end of March, about 3%.

At the beginning of 2019, the Wall Street journal published the "China issue in the luxury industry". It said that when the economy was down, the luxury industry has long relied heavily on Chinese consumers, but the industry has no solution.

"LVMH always keeps his vigour.

This is valuable for the fast changing fashion industry. "

In order to better grasp the opportunities in the Chinese market, Sun Chenghai, director of communications image of LVMH group and director of China International Import fair, signed an agreement at LVMH headquarters in March 26th. The group will formally participate in this year's China International Import fair in March 26th.

LVMH group wants to have a firm foothold in the Chinese market, I am afraid there is still a long way to go.

As a group with 70 luxury fashion brands, LVMH group has a very different crackdown on fake products.

It is reported that LVMH group plans to launch block chain authentication solution AURA at the end of this spring.

AURA will be used to authenticate the authenticity of brand goods, provide customers with raw material anti-counterfeiting data, and track supply chain and distribution channels.

The news of block chain news website Coindesk pointed out that AURA is expected to be launched in May or June this year. The first perfume product line for Louis Vuitton brand and Dior will expand to other more than 60 brands in the future.

This approach is to ensure the safe storage and pmission of consumer information, showing the concern of LVMH group to enhance pparency and consumer feelings.

Previously, Morgan Stanley, an international investment bank, mentioned that ubiquitous Louis Vuitton would reduce the attractiveness of the brand in its research group for LVMH. However, the LVMH group demonstrated that its brand not only did not reduce brand attractiveness, but also made the best brand education for consumers in its own way.

Last November 16th, the Louis Vuitton Exhibition "flying, sailing and traveling" continued for 78 days at the Shanghai Exhibition Center, and it received a total of 270 thousand people.

The exhibition, designed by the famous fashion curator Olivier Saillard, directly cuts into the history of the brand. The process of light collection of nearly 1000 exhibits takes more than a year.

Louis Vuitton skillfully through the "flight, sailing, travel" brand continuous operation culture, but also is in addition to handbags, clothing, the most vulnerable to consumers ignored part of the pport to every audience.

There are two reasons for the continuous growth of LVMH Group Sales: first, LVMH group's operating profit margin of core business in the past five years has been growing quite evenly over the same period.

Second, the LVMH group understands the trend of manufacturing. Whether it absorbs new talent or adopts new marketing means, it always keeps its vitality, which is valuable for the fast changing fashion industry, and it also gives consumers endless expectation and virtually fostered loyal users.

As the leader of fashion group, the practice of LVMH Group believes that it will inspire many people to pay more attention to the vitality of enterprises, thus creating a better atmosphere for fashion circles.