LVMH: Is China Still a New Market?


This case study examines LVMH, a global producer of luxury goods such as Fendi dresses, Louis Vuitton handbags, Moët champagne, Hennessy cognac, TAG Heuer watches, and Christian Dior perfumes. A primary focus is how LVMH has grown in China, which is gradually becoming one of its core markets. Background on the strategy and global growth of the group provides context to a more in-depth analysis of the importance of China to the luxury retailer. The case focuses on the evolving strategy of LVMH, which has become increasingly sensitive to consumer perceptions of luxury in China compared to Western countries. The risks and difficulties of marketing in China are stated in the context of the overall significance of Asia in the group and compared to Europe and America. Was the relative decline of Asia and China in terms of their share of group revenues in 2013–2016 only a temporary phenomenon? How could LVMH rekindle its growth in the region?

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