Why the Acquisition of Tiffany & Co is Important for LVMH

Indeed, that is the genius of the LVMH model that Arnault has created. It’s quite possible that being the C.E.O. of LVMH would be a less fun and desirable job than being the C.E.O. of Tiffany’s, or Tag Heuer or Dior, or one of the incredible French wineries that LVMH owns.

Each year, new products account for approximately 15 % of LVMH sales, and some of them enjoy operating margins of up to 47 % . (For a list of the company’s brands, see the exhibit “The House of Arnault.”) What makes these statistics all the more remarkable is that many of these products at first appear utterly outlandish—a kidney-shaped handbag cov... See more

As traditional luxury goods, such as the iconic Louis Vuitton monogram bags or Chanel number 5, have become more widespread and attainable than in the past, the wealthy need alternative ways to signal their prestige and power.