Louis Vuitton 2003 Annual Report Download - page 11

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INNOVATION STRENGTHENS
LVMH LEADERSHI P IN 2003
In a difficult economic climate, LVMH main-
tains its lead thanks to its strong policy of inno-
vation. The enthusiasm aroused by the Multico,
Cherry Blossom and Suhali lines by Louis Vuit-
ton, the success of the new Christian Dior skin-
care products, the launches of L’Instant de
Guerlain, Very Irresistible Givenchy and Kenzo-
Air, the innovations in timepieces and jewelry,
the Aquagraph by TAG Heuer, Chronomaster
Open by Zenith, the Frisson collection by
Chaumet… and many other initiatives illustrate
the creativity of the Group’s brands and are
contributing to gains in market share in all its
business groups.
LVMH EXPANDS ITS GLOBAL PRESENCE
In 2003, LVMH continued to increase the power
of its retail network. The number of stores rose
from 1,526 in 2002, to 1,592. Louis Vuitton has
expanded its locations in China, opened its first
store in India, innovated in Tokyo in the Roppongi
Hills district, the most popular area among young
Japanese, and has created a stir in New York in
February 2004 by opening its largest store in the
world on Fifth Avenue. Sephora has expanded its
presence in Poland and set up shop in Russia. Moët
Hennessy has established new distribution subsi-
diaries in Belgium and Australia and has the most
powerful distribution network in the American
market.
MOËT HENNESSY
INVESTS I N HI GH-END VODKA
Thanks to its partnership with Millennium, Moët
Hennessy is increasing its portfolio of premium
brands with the Belvedere and Chopin prestige
vodkas. That investment is bolstering LVMH’s
presence in the high-end wines and spirits
segment, the most dynamic in the market.
TWO NEW DESIGNERS JOIN LVMH
Antonio Marras, one of the main
Italian avant-garde designers,
has been put in charge of the
creative revival of the Kenzo
Womenswear collections in Sep-
tember 2003. His first collec-
tion, presented in March 2004,
is getting an enthusiastic
response.
To sustain the expansion of the
Givenchy’s menswear business,
Ozwald Boateng, a young desi-
gner trained on Savile Row,
London’s tailor district, was
named Creative Director for
Givenchy Men in December
2003.
LVMH CONTINUES TO SELL
NON-STRATEGI C ASSETS
As part of its strategy to concentrate on its
highest potential brands, LVMH disposed of seve-
ral non-strategic assets in 2003. The US licen-
ses developed for designers Michael Kors, Marc
Jacobs and Kenneth Cole were sold in April. The
Hine cognac company was sold in late June, the
Canard-Duchêne brand in September and the
Tajan auction house in late December. LVMH
also sold off the Bliss company in the USA and
the Ebel timepiece company in early 2004.
The new Louis Vuitton building, located at the corner of
prestigious 5th Avenue and 57th Street in New York, opened
in February 2004. The store covers four floors totaling
1,200 square meters. The glass facade evokes the Damier
motif by Louis Vuitton while capturing the light.
9
PASSIONATE ABOUT
CREATIVITY