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LVMH 2011
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Interview with the Group Managing Director
CREATING SUSTAINABLE GROWTH THROUGH BRAND
AUTONOMY AND AN ENTREPRENEURIAL BUSINESS CULTURE
— In your view, what are the reasons
behind LVMH’s performance and the
success of its brands?
Our decentralized organization, which
enables our brands to be autonomous, has
considerably enhanced our performance.
Autonomy fosters commitment from our
teams. It is also particularly appropriate
for managing a federation of brands origi-
nally created and managed by families.
Some of our “Maisons” are more than two
centuries old and each one has its own,
unique culture which has transcended
time. In every case, this heritage serves
both as a powerful anchor and a corner-
stone of long-term success. It is absolutely
essential to preserve the values which
make our brands unique, while helping
them make the transition to embrace new
ideas and initiatives, allowing their moder-
nity to flourish. The men and women who
embody these cultures and experience
these adventures at first hand are best
placed to define the most coherent strate-
gies and implement them with entrepre-
neurial flair.
— In applying this management
philosophy, what role does LVMH play
with respect to the Group’s brands?
LVMH provides support for the brands.
Thanks to our leadership position, the bal-
anced geographical spread of our revenue
and the diversity of our business groups,
the “Maisons” can carry out long-term
action plans and maintain their strategic
focus, even during difficult times.
Significant synergies are unlocked when we
develop our store networks, expand into
new markets, share research and distribu-
tion resources, and also in support func-
tions such as media buying. Finally, LVMH
oers a whole range of career development
opportunities. The LVMH “ecosystem” is
based on the pursuit of excellence and an
entrepreneurial spirit which makes it
uniquely attractive to the best talent.
— Can you talk a bit about one
of the highlights of 2011: the tie-up
between LVMH and Bulgari?
This was indeed an important episode in
the Group’s history. Another family business
joined LVMH’s stable of businesses origi-
nating from families. Bulgari is a unique
brand, at the highest echelon of the jewelry
business, widely recognized for its excep-
tional creativity and craftsmanship. In many
respects, we felt we were very close to their
business and this was a key factor in our
decision to bring the two companies
together. We share many of the same values,
over and above their origins as a family
business: an entrepreneurial culture, the
spirit of innovation and creativity that have
kept our brands at the forefront of moder-
nity over time. Another fundamental value
is the excellence we work towards in all
aspects of our business: the quality of our
products, our craftspeople, our salespeople,
and our social and environmental policies.
In the final analysis –and this may well
summarize our entire philosophy– a con-
stant desire to exceed our own expectations
is right at the heart of everything we do,
since it is only when you challenge yourself
to the utmost that you can accomplish such
wonderful things. These are the very values
at the core of Bulgari’s rich history.
— How is Bulgari’s integration within
LVMH progressing?
The main priority has been to deepen
our understanding of Bulgari and discover
more about its heritage, its products and
how it operates, by meeting the men and
women responsible for its success. Great
opportunities for Bulgari have already
emerged primarily in connection with the
development of its store network and mar-
keting investments. But benefits are also
rippling through to all of our Watches and
Jewelry brands. For example, the fact that
the business group’s size has doubled
means that we can envisage more ambi-
tious watch manufacturing projects.
Moreover, Bulgari’s jewelry expertise
brings an important contribution to the
other brands.
— How are you approaching the
coming months given the current
uncertain global environment?
We must be careful given the lack of vis-
ibility, but we are not pessimistic. In the
past LVMH has repeatedly demonstrated
the strength of the “Maisons” and just how
responsive our teams can be when circum-
stances demand it. The vital advantages of
our decentralized organization become
that much more relevant in periods of
uncertainty. We are close to our markets
and keep a close eye on developments as
they occur. This enables us to better under-
stand and respond more quickly to factors
such as new challenges for our brands and
our businesses, the emergence of new cus-
tomer segments, developments in the
media world and consumption trends.
Ongoing dialogue across the Group enables
us to share best practices. Add all this
together and you get a hugely powerful
force. We reaped the benefits of this force
once again in 2011. And we aim to make
sure we do the same in 2012.
Antonio Belloni
Group Managing Director