LVMH is a French international conglomerate that is headquartered in Paris. The corporation specializes in luxury goods, including fashion, clothing, jewels, accessories, perfumes, watches, and cosmetics. It is the largest luxury goods conglomerate in the world, and in 2019, it had a revenue of $62.5 billion and a net income of $8.4 billion.
The company was found in 1987 by Alan Chevalier and Henry Recamier, under the merger of Louis Vuitton with MoëtHennessy. It controls almost 60 subsidiaries, some of which have their own daughter companies and many of which are luxury cosmetics. This makes its total number of brands 75. The company is itself a subsidiary of Dior.
Founding of Louis-Vuitton-Moët-Hennessy
LVMH was founded in 1987 as a conglomerate by the efforts of Alain Chevalier and Henry Recamier. Even though the company is fairly recent, its history goes back to almost three centuries ago. The predecessors of LVMH, Moët &Chandon, Hennessy, and Louis Vuitton, had started their business in 1743, 1765, and 1854 respectively.
- Moët Hennessy
Moët&Chandon, a fine French winery, was a popular company in its own time. By the 1820s, it had average annual sales of 20,000 bottles. In the 19th century, it saw rapid expansion and had started exporting its products to the US. In 1880, the company was reported having sales of 2.5 million bottles per year.
Moët&Chandon is sometimes also remembered as a champagne supplier to Queen Elizabeth II, for which it was rewarded with a royal warrant. By 1971, the winery had been merged with Hennessy Cognac and together formed Moet Hennessy. It presented both companies to promote their business in the international market.
- Louis Vuitton
Meanwhile, Louis Vuitton had started off its history as a supplier of luggage for the French nobility. In 1858, with the ever-changing transportation methods and new demands by customers, Vuitton introduced the flat-topped trunk with Trianon canvas. Unlike the traditional rounded-top ones, Vuitton trunks were much lighter, effectively airtight, and made stacking for long voyages far easier.
The ability to adapt to the changes imposed by modern transportation made Louis Vuitton stand out as a prestigious seller of the 19th and 20th centuries. By 1885, it had already opened its first brand in the populated city of London. In the following years, it had expanded to most of the US, Asia, and several other locations worldwide.
Thus, in 1987, Moët Hennessy, the leading manufacturer of champagne and cognac, merged with Louis Vuitton, one of the earliest luxury brands, to form LVMH (Lous-Vuitton-Moët-Hennessy) in a $4 billion deal.
Bernard Arnault and Active Acquisitions
Since its launch, LVMH has had one of the most rapid and successful growth in business and marketing history. Part of this owes to the fact that Bernard Arnault, currently considered the third richest person on earth with a net worth of $109 billion, has heavily invested in the French conglomerate.
In 1988, Arnault provided $1.5 billion to form a holding company that held 24% of LVMH’s shares. The same year he spent, $600 million more to acquire an additional 13.5% share of LVMH. In 1989, Arnault spent yet another $500 million and had hold of a total of 43.5% of shares, making the greatest shareholder of the company. Perhaps it was that which led to him being chosen, unanimously, as the CEO and chairman of the company’s executive board.
LVMH now manages over 60 luxury companies, most of which control their own prestigious brands. Its first such acquisition was that of Givenchy in 1988, the 70-year old French couture and cosmetics brand. In 1993, Berluti, the men’s shoes and luxury goods Italian company, was also sold to LVMH.
In 1994, Guerlain, the French cosmetics, skincare, and fragrance brand saw acquisition by LVMH. The year 1996 saw LVMH buying the ready-to-wear clothing and leather goods companies Céline and Loewe. In 1997, Sephora, another famous French cosmetics and skincare chain, was included in the quickly-expanding business of LVMH.
The new century saw LVMH amassing dozens of luxury companies under its umbrella. These consisted of both recent and historical subsidiaries and covered some of the most diverse categories in luxury goods, including watches and jewelry, wines and spirits, perfumes and cosmetics and even luxury yachts, bicycles, furniture, and baked goods.
Marc Jacobs, Thomas Pink, Tag Heuer, Gucci Group, Hermes, Emilio Pucci, DKNY, Kenzo, EDUN, Bulgari, Moynat, Repossi, and Jean Patou are a few of the registered subsidiaries of LVMH. Besides these, LVMH is also widely recognized for its beauty and skincare products.
Christian Dior, for which LVMH paid $13.1 billion and Tiffany & Co., which sold for $16.2 billion, are some of the beauty giant’s best-selling cosmetics brands, but there are several other like Kat Von D Beauty, Fenty Beauty, Fresh andBenefit Cosmetics that stand out as iconic figures in LVMH’s reputable portfolio.
Below we list some of the best products by LVMH.
Kat Von D Ink Liner features an ultra-rich and waterproof liquid pen eyeliner to get ideal bold lines. For people who love felt-tip eyeliners, Ink Liner comes with an incredible formula that makes the application super-easy and comfortable to give you deep black wear that will last.
The product is made up of the same ingredients as those used in Kat Von D’s number one award-winning Tattoo Liner to ensure a satisfactory result. It is strictly vegan and cruelty-free. To experience the best application, re-activate the tip by wiping it with a damp tissue so that any eyeshadow residue may be removed.
Get a flawless full-coverage with Kat Von D Tattoo Foundation with just one droplet. You can trust the transfer-resistant foundation to stay on your face rather than on your clothes. The foundation delivers extreme perfection with a beautiful matte finish. The formula feels as light as a feather on your skin and is immune to caking and creasing.
The liquid texture is delightfully comfortable on your face, giving the skin a smooth and even tone. The formula is guaranteed to last for 24 hours without losing its power. It is perfect for all skin types from normal and combination to oily and dry skin. The product comes in a full-size bottle and a mini tube, which is perfect for the girl-on-the-go. Choose from any of the 46 diverse shades to get the perfect match.
Quick and efficient, Benefit Cosmetics POREfessional Face Primer lets you minimize the appearance of fine lines and pores to get a fantastic, smoother-than-smooth skin. Use it in any way you like – alone, under your makeup, or even over your makeup if you feel like it. Thanks to its special vitamin E derivative, your skin gets constantly shielded from free radicals.
The formula is oil-free and provides your face with a natural and easy-going matte finish. It effectively evens out your skin tone and gives it a polished texture, preparing the perfect canvas for your favorite makeup to look twice as good and stay put for an extended period. This innovative product complements each and every skin tone. Apply a thin layer to lightly-moisturized skin and let POREfessional do its magic.
This incredibly red liquid lipstick is lightweight and made for long wear. It has a mattefinish and goes well with all skin types. The lip color was chosen by Rihanna and is bound to make heads turn. It delivers a high-impact color yet is low maintenance. The lipstick is made of soft matte pigment that lasts all day, yet feels natural on your lips as it has no weight.
Rihanna felt that the perfect red shade in lipstick is hard to get, and so she designed this color that suits the skin and looks fabulous. What makes the lipstick great is that it is vegan and 100% cruelty-free. To use the liquid lip color, first, shake the bottle to activate it. Then, holding the precision wand such that it faces upward, define your lips. With the precision wand facing downwards, fill in your lips for a stunning look.
Fenty Beauty’s lip gloss gives your lips the ultimate shine as well as nourishes them. The formula is non-sticky and has an appealing peach-vanilla scent. The gloss makes your lips look fuller, while the shea butter nourishes them from within, so your lips not only look smoother but also feel softer.
The Fenty Glow is a nude rose shade that can complement any look. Rihanna designed it to be the perfect gloss that would make girls’ lips look irresistibly attractive. The gloss is vegan and cruelty-free. Moreover, 100% of the purchases of the gloss go to the Clara Lionel Foundation.
When it comes to LVMH, it is all about luxury and grandeur. As the world’s largest luxury goods seller, the French conglomerate excels in most product types but especially so in cosmetics. With its worldwide staff of over 150,000 experts and state-of-the-art research and development, the company is a leading business in today’s fashion industry.