Leadership Shuffling Contributed Massively to LVMH’s Market Growth, Said 19%

The recent milestone achieved by LVMH of surpassing $500 billion in market value has significant implications for the fashion and beauty industry as well as society at large. LVMH’s success is attributed to its effective management strategy, diversification of its brand portfolio, and investment in innovation and new technologies.

As the first European company to reach this milestone, LVMH is setting an example for other regional companies to follow, and its achievements may lead to increased investments, competition, mergers, and takeovers in the luxury goods industry.

Additionally, LVMH’s success significantly impacts the wider European economy as one of the largest employers in France. As the luxury goods market continues to grow and evolve, LVMH’s success is sure to inspire other companies to push the boundaries and reach new heights in the industry.

Real Research, an online survey app, launched a survey on LVMH, the First European company to surpass $500 billion in market value to gather what the respondents think has contributed to LVMH’s revenue and market capitalization.

 Highlights:

• 33.02% are well aware of LVMH’s market value growth.
• LVMH’s market value growth suggests income inequality as spending on luxury goods increased, said 18.28%.
• 37.15% believed LVMH’s market value growth was a result of unique business strategies.

Upon hearing the news of LVMH becoming the first European company to surpass $500 billion in market value, many in the business world were left in awe of the luxury goods conglomerate’s impressive accomplishment.

We conducted a survey to gauge the level of awareness among the general public about this historic achievement and to understand what has contributed to LVMH’s market value growth in the highly competitive fashion industry.

According to the survey results, 33.35% of the respondents reported that they were vaguely aware of this, compared to 33.02% who were well aware of the news, and 31.63% who were not aware at all.

Respondents’ Opinions: LVMH’s Market Value Surpasses $500 Billion

According to Figure 1, respondents were asked about their opinions on LVMH becoming the first European company to surpass $500 billion in market value. Results indicated that 18.28% cited a concern of income inequality in the economy as luxury spending has increased.

Whereas 13.22% indicated possible economic growth and job employment, followed by 13.15% who said it raises the question of how LVMH surpassed $500 billion in market cap and 13.06% who were concerned about the impact of LVMH’s growth on employees, the environment, and social issues.

In addition, 11.92% stated the achievement was impressive, 11.03% said it signifies the quality and craftsmanship of its products, and 9.24% were impressed with the achievement.

In the following poll, when asked in the following question if LVMH’s market value growth was due to specific company strategy or to more general economic tendencies, 37.15%  said it was merely businesses strategies that led to this, while 31.82% said it was economic trends, and 31.03% remained unsure.

Factors Behind LVMH’s Market Value Growth

Next, the respondents were asked what factors they thought increased LVMH’s market worth, which made it the first European company to surpass $500 billion.

The respondents provided various factors that they believed contributed to LVMH’s success. These factors include effective management strategy, a rise in the Euro currency, global expansion, and revenge spending.

19.34% stated it was a result of the leadership reshuffling in early 2023, followed by 19.22% who stated it as a result of revenge spending on luxury goods after the pandemic, 19.02% said effective brand marketing strategies and 14.38% said increased consumption of luxury goods in China. Lastly, 10.04% said the rise of the Euro currency also benefitted LVMH and 18% stated other reasons.

Furthermore, the respondents were asked whether LVMH’s growth is sustainable in the long term. Results indicated that 30.02% believed it is sustainable in the long term, whereas 26.39% said it was too soon to tell, and 20.84% believed it was not sustainable. Meanwhile, 22.75% of the respondents remained uncertain.

Impacts of LVMH’s Market Cap on the Fashion and Beauty Industry

The recent achievement of LVMH in surpassing $500 billion in market value has the potential to impact the fashion and beauty industry in various ways. According to a recent survey, 17.94% of respondents believe that LVMH’s success could lead to increased investments in luxury brands in the industry.

Meanwhile, 15.15% believe it could lead to increased competition among luxury brands. Another 14.99% said it could lead to more mergers and takeovers as other companies seek to match up to LVMH’s scale.

On the other hand, 14.28% said LVMH’s success may inspire other companies to invest more in product innovation and marketing, while 13.02% believe it could lead to increased growth in the fashion and beauty industry. Finally, 9.19% of respondents stated that they believe there will be no impact on the industry from LVMH’s market cap achievement.

What Can Other Brands Learn From LVMH?

According to the results of the last poll, respondents were asked what steps other companies in the fashion and luxury industry could take to achieve similar growth in market value as LVMH. The respondents provided various answers, highlighting strategies and tactics, strong brand image, innovation and technology, and internalization.

25.14% indicated that investing in effective marketing strategies would be a main factor, 17.58% said acquiring brands to expand brand portfolio and increase market share, and 14.1% said to build strong brand recognition.

In addition, 13.52% said to expand new markets and territories, 11.11% stated to invest in product innovation and technology, and 18.55% stated other steps.