The Positive Diary

Divide and rule?

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A few days ago, Bernard Arnault, under his flagship company LVMH (Moët Hennessy Louis Vuitton), became the richest man in the world, his wealth crossing $200 billion. He overtook Jeff Bezos of Amazon.

I like to see the happening from a marketing perspective.

His company deals in 5 main categories that enjoy 72 different brands. Of course, he had the option to bring the entire range under 1 brand and could have saved tons of marketing money. But he did not. Each brand means something to someone – a classic case of niche marketing. And that’s how it should be.

Every brand has a personality. And they build followers accordingly. If one cannot afford to raise many children, it’s better to stick to one-child policy. One healthy offspring is better than having a bunch of weak siblings.

LVMH brand count:

1. Wines and spirits – 27
2. Perfumes and Cosmetics – 15
3. Fashion and leather goods – 17
4. Watches and Jewelry – 7
5. Selective Retailing – 6

And the brand names:

Wines and Spirits
• Ao Yun
• Ardbeg
• Armand de Brignac (50%)
• Belvedere
• Bodega Numanthia
• Cape Mentelle
• Chandon
• Château Cheval Blanc
• Chateau d’Esclans
• Château d’Yquem
• Chateau du Galoupet
• Cloudy Bay
• Colgin
• Dom Pérignon
• Eminente
• Glenmorangie
• Hennessy
• Krug
• Mercier
• Moët & Chandon
• Newton Vineyard
• Ruinart
• Terrazas de los Andes
• Veuve Clicquot
• Volcan de mi Tierra
• Whistlepig (Minority stake)
• Woodinville

Fashion and leather goods
• Berluti
• Celine
• Christian Dior
• Emilio Pucci
• Fendi
• Givenchy
• Kenzo
• Loewe
• Loro Piana
• Louis Vuitton
• Marc Jacobs
• Moynat
• Patou
• Rimowa
• Stella McCartney

Perfumes and cosmetics
• Acqua di Parma
• Benefit Cosmetics
• Cha Ling
• Fresh
• Givenchy Parfums
• Guerlain
• Kendo Brands
• BITE Beauty
• Fenty Beauty by Rihanna
• Marc Jacobs Beauty
• KVD Vegan Beauty (formerly Kat Von D Beauty)
• OleHenriksen
• Kenzo Parfums
• Maison Francis Kurkdjian
• Make Up For Ever
• Parfums Christian Dior
• Perfumes Loewe

Watches and Jewellery
• Bulgari
• Chaumet
• Fred
• Hublot
• TAG Heuer
• Tiffany & Co.
• Zenith

Selective retailing
• DFS
• La Grande Epicerie
• La Samaritaine
• Le Bon Marché
• Sephora
• Starboard Cruise Services

Note: I depended on the Internet for my research. I stand to be corrected should the numbers or names be incorrect. Irrespective of the details, my belief stands – to each his own.

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Written By

Prakash Bang

Prakash Bang

A true entrepreneur, Prakash started his career with a capital of Rs 2000. At age 14 he pawned his mom’s jewelry to get started as a door-to-door salesman. He sold products of sorts including Chappals from Kolhapur, Chaddars from Solapur and Sarees from Surat. Barking dogs and slamming doors were his marketing university. Streets remain his alma mater. He is a Science graduate with Honours, holds a Masters in Business Administration and is a member of the Indian Management Association. Prakash is a visiting faculty at many management institutes, various Universities and sits on the Board of many companies in India and abroad. His marketing workshops have enlightened over 10,000 entrepreneurs & businesspeople. Always an entrepreneur, he and his ideas have been featured many times in major Indian media. He is the author of the book, “YOUR ENTERPRISE ISN’T DEAD. YET.” The book is a paradigm shift from popular management practices. The book has been acclaimed by stalwarts from the industry. He has also authored, “My 2 Cents Worth.” – A select collection of his posts that created some flutter on Social Media. An avid traveler, he is passionate about photography and takes pride in documenting his travels. So far, he has published 44 books on travel and has created a National Record by writing the longest travel blog. He is featured in Limca Book of Records and remains unbeaten since 2014. Marketing made him travel. Travel taught him marketing. Prakash lives in Pune half of the time. The other half even he doesn’t know.

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