Research on the Factors Analysis and Strategies of LVMH’s Profitability

Abstract

Moet Hennessy Louis Vuitton (LVMH）has been expanding its territory in the group through mergers and acquisitions. The success rate of the group’s acquisition is very high, and through excellent management and operation, many unknown small brands can return to the market and even give the brand life again. During the pandemic, when the world was in an economic downturn, LVMH’s luxury goods, as non-essential goods for most people, LVMH’s still demonstrated remarkable profitability resiliency. Through the analysis of LVMH’s financial data and market data, this paper summarizes the four main factors affecting LVMH’s profitability and analyzes the formation reasons behind these factors. Eventually, based on these factors, the author will put forward the company’s internal countermeasures and the enlightenment of LVMH on the profit mode in the industry.