LVMH to unveil multi-brand luxury e-commerce site
LVMH Moet Hennessy Louis Vuitton SA is preparing to unveil a new e-commerce site for Le Bon Marche, its Paris-based department store, according to its new website 24Sevres.com, named after the retailer's flagship address.
The site, which will be spearheaded by former e-commerce director at LVMH's Sephora, Eric Goguey, will sell more than 150 luxury labels, including many outside the LVMH stable. It will stake a curation approach, with features like video chats with Parisian stylists, Bloomberg reports.
Last month, the luxury retail powerhouse launched a new lifestyle and experiential e-commerce platform, Clos19, for its Moët Hennessy wine and spirits brands.
Ian Rogers surprised many two years ago when he jumped to LVMH Moët Hennessy Louis Vuitton SA from his post at Apple leading streaming services (a segment that has become increasingly important to Apple). Luxury retail in general has been behind in developing e-commerce operations, even as research showed that web sales could make up to 18% of luxury sales by 2025.
Now, between Clos19 and the latest announcement, the luxury conglomerate appears to be finally making a series of inroads, positioning itself to take on the likes of Yoox Net-a-Porter, which has dominated upscale e-commerce mostly because many choosy brands, like Tom Ford, have few places to turn.
LVMH enjoys a highly diversified portfolio of goods, and all segments did well in the first quarter. The company seems determined to focus more on high fashion and luxury experiences. In a rare move, the company last year sold its Donna Karan brand to G-III Apparel Group, Ltd, inking the second sale it has made in 30 years. The brand was the first major American designer label for the company, and one of LVMH's biggest moves into the ready-to-wear industry. Among its best performers is its Sephora effort, which enjoys strong online sales.
Last month, LVMH also announced it would acquire Christian Dior Couture from Christian Dior, a deal valued at some $13 billion. The move aimed at strengthening LVMH’s Fashion & Leather Goods, according to LVMH chairman and CEO Bernard Arnault. In April, the company reported quarterly earnings that beat expectations and signaled something of a comeback for luxury. Its first quarter revenue rose 15% to €9.9 billion. Organic revenue growth (with comparable structure and constant exchange rates) was 13% over the year-ago period. Positive growth was achieved in Asia, Europe and the U.S.
During the quarter, LVMH benefited from a favorable comparison base, particularly in Europe, where activity was affected last year by the impact of the November 2015 attacks in Paris. As a result, the company said the trend currently observed cannot reasonably be extrapolated for the full year. Still, investors warmed to the company’s prospects after that report, sending shares to a record high in Paris trading.
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