How LVMH adapts to the changes in China’s market
With modest sales data, the world’s biggest luxury group, LVMH, is hoping that diversifying its business and marketing strategy will provide the boost it needs in China. LVMH has announced that it’s actively diversifying the business, even dabbling in restaurants and catering, to attract young customers in particular, after government policies cut revenue from some of China’s biggest spenders.
LVMH is continuing to transform its brand reputation to experiment with a younger market. In an effort to reach a new demographic, LVMH announced a shift toward developing its less popular brands like Celine and Fendi, which are less overexposed. China’s People’s Daily reported Monday that even though LVMH’s flagship brand Louis Vuitton still has respectable recognition and sales in China, the luxury market is getting oversaturated in China’s biggest cities.