The Power of Luxury Brands and LVMH's Strategies

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This chapter discusses the power of luxury brands and the strategies employed by LVMH, the largest luxury advertiser in the world. It explores how LVMH focuses on owning the locations of the value chain and ensuring that profits accrue to their brands. The chapter also delves into the evolution of advertising in the luxury industry and the importance of promoting a lifestyle rather than just the features of a product.

We tell the full history of LVMH, and how Bernard Arnault turned a $15m investment in a bankrupt French textile company into the world’s largest individual fortune. It’s a story that’s equal parts Berkshire Hathaway, Steve Jobs and Barbarians at the Gate… and wholly under-appreciated for the genius business model innovations that enabled it. Whatever industry you operate or invest in, there’s so much to be learned from Bernard and LVMH’s complete reshaping of the luxury sector over the past three and a half decades. And oh yeah, it also involves Nazi spies, Italian family murders, Rupert Murdoch, Rihanna becoming a billionaire, Jay-Z’s champagne feuds and Beyoncé wearing a 128 carat diamond. Tune in! :)

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