How Louis Vuitton creates perceived value through scarcity and price priming

🚨 When luxury giants stumble, the entire market listens. LVMH just reported a 5% decline in fashion and leather goods revenue to €9.15 billion in Q3 2024. Louis Vuitton and Dior — two of the world's most coveted brands — are feeling the pressure. Here's the branding lesson: Even the strongest brand positioning can't shield you from market realities. But it's how you respond that defines your legacy. LVMH isn't panicking. They're doubling down on: ✓ Product innovation ✓ Cost optimization ✓ Long-term brand strategy In luxury, consistency beats perfection. Your brand's resilience is tested not in good times, but in challenging ones. The brands that emerge stronger will be those that stay true to their core values while adapting to new market dynamics. What's your take — how should luxury brands navigate economic headwinds without compromising their positioning? Learn more about strategic brand positioning: https://lnkd.in/eSW9Q7SE #BrandStrategy #LuxuryBrands #LVMH #BrandPositioning #MarketResilience #SMGHConsulting #BusinessStrategy #LouisVuitton #Dior #BrandConsulting

Big news in the luxury world this week: Kering sold its beauty division to L’Oréal in a deal worth around €4 billion. At first glance, it might seem like a routine business transaction, but from a brand strategy and marketing perspective, it’s a bold repositioning. Here’s why it caught my attention:
•Clarity of brand focus – Kering is doubling down on fashion and leather goods, reinforcing its image as a house of creative powerhouses like Gucci, Saint Laurent, and Bottega Veneta. 
•Strategic collaboration – L’Oréal, a global leader in beauty, gains access to powerful luxury labels, creating potential for storytelling across fashion and fragrance.
 •Defining modern luxury – This move reflects how the industry is constantly redefining what “luxury” means, it’s not just about owning everything under one roof, but about owning your narrative and knowing where your brand creates the most value. For marketers and brand strategists, it’s a reminder that in the world of luxury, focus can be as powerful as expansion, and that true strength often lies in strategic partnerships that preserve authenticity while enabling scale. It’s a great reminder that in today’s landscape, luxury isn’t just about owning more, it’s about knowing who you are and where you create real value. #LuxuryIndustry #BrandStrategy #LuxuryMarketing #Kering #LOreal #BrandStorytelling #GlobalLuxury #LuxuryBrands #Gucci #Marketing #Brandrepositioning

LVMH "Returns to Growth" and Is Everyone's Celebrating a 2% Fashion Revenue Drop? Let me translate luxury finance speak for you. LVMH's fashion and leather goods division, which includes Louis Vuitton and Dior, dropped 2% in Q3. That's after a 9% drop in Q2 and 5% drop in Q1. But because analysts predicted a 3.5% drop and only got a 2% drop, headlines are screaming "LVMH returns to growth!" That's not growth. That's just falling slower. Ww know luxury thrives on perception management, but is this the case of Olympic levels financial spin? Here's what's actually happening in my humble opinion. The world's largest luxury conglomerate has spent three consecutive quarters watching its core fashion business decline. The "good news" is that it's declining less dramatically than expected. Champagne sales bounced back (Americans restocked for the holidays). Dior fragrances sold well (people will splurge on perfume before they'll drop £5k on a bag). China "improved significantly" (which means it stopped falling off a cliff). This is stabilisation, and hopefully proper recovery will follow soon. The really interesting part is that LVMH's CFO told analysts they'll start seeing benefits from recent creative director changes in the first half of 2026. Translation: "The new designers need time to save us, so lower your expectations for the next six months." Meanwhile, LVMH is reportedly trying to offload Marc Jacobs. Because nothing says "we're back" like quietly selling brands while reshuffling leadership at your top houses. What this really signals is that the luxury correction is deeper and longer than anyone wants to admit publicly. When LVMH, the most powerful luxury group in the world with the deepest pockets and strongest brands celebrates a 2% revenue decline as good news, that tells you everything about where the industry actually is. Yes, it's definitely better than a 9% drop. But calling it "growth" is like celebrating that you're only slightly underwater instead of drowning. The luxury industry's real test is if the new creative directors actually move the revenue needle, or is this just expensive hope while waiting for economic conditions to improve? #LuxuryReality #LVMH #TheLuxpreneur #LuxuryIndustry #FinancialResults #LinkedinNews #LinkedinNewsUk

LVMH Signals a Comeback in Global Luxury Demand After two quarters of decline, Louis Vuitton Moët Hennessy, the world’s largest luxury conglomerate posted positive organic growth (+1% YoY) in Q3, sending its shares (in Europe) up 13% on Wednesday. 👜Revenue: €18.3B (≈$21.3B) came in slightly below last year’s €19.1B but above analyst expectations. The recovery was driven by solid demand in the U.S. and Europe and improving trends in Asia (ex-Japan). Consumers are gradually returning to Louis Vuitton, Dior, and Tiffany, attracted by new collections, strong brand storytelling, and the “quiet luxury” trend that favors timeless design over flashy logos. 👠 LVMH’s continued investment in exclusivity and and in-store experience has helped sustain demand despite macroeconomic headwinds. 💄The Sephora beauty segment stood out with remarkable growth including a record-breaking launch of Hailey Bieber’s Rhode beauty line while wine and spirits stabilized after earlier tariff-related pressure. 💬 “In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands,” the company said.

A Defining Moment in Luxury Beauty The luxury world just witnessed a major shift L’Oréal is acquiring Kering’s entire beauty division, including the prestigious House of Creed, in a landmark €4 billion deal. This move isn’t just about numbers; it’s about long-term brand vision. L’Oréal will gain 50-year exclusive rights to develop and distribute beauty products for Gucci (from 2028), Bottega Veneta, and Balenciaga. Bottega Veneta and Balenciaga will transition right after the deal closes (expected in H1 2026) Gucci Beauty will follow in 2028, once Coty’s current license expires Why it matters: This deal is set to reshape the global luxury beauty landscape. For L’Oréal, it’s a strategic leap strengthening its leadership in prestige beauty and integrating couture brands with long-term potential. For Kering, it marks a refocus on its core fashion houses and financial resilience after two challenging years, reflecting how even top conglomerates must adapt and prioritize. Interestingly, both groups are also forming a joint wellness and longevity venture, showing how the lines between beauty, wellbeing, and science continue to merge in modern luxury. As someone studying Sustainable Luxury Management, I find this move fascinating it reflects how strategic partnerships, shifting consumer values, and brand focus are constantly redefining the luxury ecosystem. Question for you: Do you think the future of luxury beauty lies in long-term licensing partnerships or complete in-house ownership? #LuxuryBusiness #LOreal #Kering #Gucci #Creed #BeautyIndustry #Fragrance

Welcome to High Margin, a weekly newsletter from Robert Williams offering perspectives on creativity and business in luxury — from fashion and watches to art, wellness, travel and more. This week, a shocking heist at the Musée du Louvre has jewellers and luxury brands in the French capital on red alert. Paris Art Week is keeping everyone busy, with early feedback suggesting the revamped gathering is living up to the hype (Helen Marten's immersive work in partnership with Miu Miu is a stand-out). Hermès and Kering both reported 3Q sales Wednesday. Read the full story and subscribe to High Margin: https://lnkd.in/g7XupMpE

💎 Which LVMH Brand Earns the Most Revenue? LVMH is the world’s largest luxury group, owning Dior, Fendi, Bulgari, Sephora, Hennessy, and more. But when it comes to revenue, one brand stands above all: Louis Vuitton. 👉 Louis Vuitton is the biggest driver of LVMH’s Fashion & Leather Goods division, which generated €42B+ in 2023. This single brand accounts for the largest share of group revenue. ✨ Why Louis Vuitton dominates luxury: 1️⃣ Star Power & Cultural Relevance Lisa (BLACKPINK) as global ambassador → driving LV’s popularity across Asia. Zendaya → the face of Gen Z luxury in the West. BTS’s J-Hope & Pharrell Williams (Men’s Creative Director) → strengthening LV’s global streetwear & cultural edge. 2️⃣ Heritage + Innovation Founded in 1854, Louis Vuitton built its reputation on craftsmanship (iconic trunks, leather goods). Today, LV blends tradition with modern collabs like Yayoi Kusama and Takashi Murakami, making its products collectibles. 3️⃣ Global Reach + Exclusivity Stores in the most prestigious locations worldwide. Scarcity-driven strategy: limited pieces, waitlists, and timeless bags like the Neverfull and Speedy keep demand high. 4️⃣ High Margins & Brand Equity Leather goods have some of the highest profit margins in luxury. Louis Vuitton isn’t just a fashion brand — it’s a cultural icon. 📈 The result? Louis Vuitton is LVMH’s top earner, proving that when heritage, star power, and global strategy align, the brand becomes more than luxury — it becomes a global business engine. --- 🔑 Louis Vuitton’s secret isn’t only in its craftsmanship. It’s in how it connects heritage with modern culture through celebrities and collaborations from Lisa to Zendaya making it the most profitable luxury brand under LVMH. #LVMH #luxurybusiness #luxuryIndustry #LVSS26 #parisfashionweek #LouisVuitton #Fashionbusiness #Businessinsights

Why Luxury Needs More than Scale: A reflection on Kering X L’Oréal Kering and L’Oréal just announced a strategic partnership in luxury beauty and wellness. On paper, it makes sense: global scale, operational expertise, and new business opportunities. But as someone passionate about luxury strategy, this move raises questions about heritage, exclusivity, and brand aura. The core of what makes luxury truly desirable. Historic Houses like Creed, Gucci, or Saint Laurent have built their value over decades on craftsmanship, storytelling, and rarity. Entrusting them to a corporate beauty giant may accelerate growth, but it risks diluting the very elements that create desire. Here’s a thought: why not launch a new fragrance or beauty line as a collaboration? • Heritage stays untouched. • Kering can leverage L’Oréal’s expertise in R&D, distribution, and marketing. • The market gets a fresh, aspirational product, while existing Houses retain their aura. Luxury is not just a category, it’s an emotional contract with consumers. Growth and efficiency are important, yes, but they should never compromise the core value of desirability and craftsmanship. This is why strategic thinking in luxury must balance scale with soul. Partnerships are exciting, but the question remains: can they grow without losing what makes them irreplaceable? #LuxuryStrategy #BrandHeritage #Kering #LOréal #LuxuryMarketing #ExecutiveThoughts

🔍Big move in luxury & beauty today : Kering is selling its beauty division to L’Oréal for around €4 billion, including the high-end fragrance house Creed and long-term licences for brands like Gucci, Bottega Veneta and Balenciaga. As a luxury-marketing student, what stands out to me: Focus back on core: Kering is clearly refocusing on its fashion roots, shedding the beauty arm to reduce debt and sharpen its portfolio. Scale via partners: Rather than doing everything in-house, Kering is entrusting L’Oréal’s beauty expertise to amplify its luxury brands’ potential in fragrance and cosmetics. Luxury meets experience: The deal also hints at wellness & longevity ventures showing how “luxury” is expanding beyond product into lifestyle and experience. ✅My takeaway: In luxury marketing, it’s no longer enough to just sell a product. It’s about strategic focus, choosing where you excel, and finding the right partnerships to elevate brand value. 💡Question for the community: Do you think brand authenticity is better maintained when luxury houses internally manage every category (fashion + beauty), or when they focus on core strengths and outsource or license others? #LuxuryMarketing #BrandStrategy #BeautyIndustry #Kering #LOreal

LOUIS VUITTON POSTS RECORD-BREAKING SEASON WITH $25B IN REVENUE Louis Vuitton reported its most successful season in history, generating over $25 billion in revenue for fiscal year 2024, according to parent company LVMH’s latest earnings report released in April 2025. •Revenue grew 17% year-over-year, driven by surging demand in Asia and North America. •Louis Vuitton retained its spot as the world’s most valuable luxury brand, valued at $47.2 billion by Brand Finance in 2025. •The season featured blockbuster collections under creative director Pharrell Williams, including shows in Paris and Hong Kong that drew global media attention and celebrity endorsements. These results underscore Louis Vuitton’s dominance in luxury fashion, powered by heritage, innovation, and global brand strength.