Louis Vuitton 2007 Annual Report Download - page 5

2007 LVMH
03
THE GROWTH OF LVMH HAS BEEN DRIVEN BY STRONG CONSUMER DEMAND
FOR OUR PRODUCTS, AS MUCH IN EUROPE AND THE UNITED STATES AS IN
EMERGING MARKETS. INCHINA, RUSSIA AND INDIA, ALL MARKETS WITH
STRONG CULTURAL TRADITIONS, NEW CLIENTS ARE LOOKING TO LVMH’S
STAR BRANDS AS SYMBOLIC OF A LIFESTYLE TO WHICH THEY ASPIRE ENTHU-
SIASTICALLY. THANKS TO ITS UNIQUE PORTFOLIO OF ICONIC BRANDS, THE
TALENT OF ITS TEAMS AND THE GLOBAL REACH OF ITS BUSINESS, LVMH
IS IN AN EXCELLENT POSITION TO GAIN MARKET SHARE AND TO CONTINUE
ITS LEADERSHIP IN THE LUXURY GOODS MARKET IN 2008 AND BEYOND.
By accentuating growth in both traditional and
emerging markets over the course of 2007,
LVMH has made considerable further progress
while continuing to improve operating margin.
All businesses contributed to this performance,
recording double digit organic revenue growth
and improved profitability.
Our Group has thus maintained strong growth
in a contrasting economic environment: strong
global demand, but also significant currency
volatility throughout the year and, in the second
half, major financial turbulence and the first
signs of a slowdown in America. The excellent
results obtained against this backdrop confirm
our confidence in LVMH’s ability to achieve
consistent growth and to react to a competi-
tive and changing world.
A unique portfolio
of iconic brands
The main strength of our Group, demonstrated
by the consistency of the financial results, is
without doubt LVMH’s unique portfolio of
exceptional, globally recognised brands which
are emblematic of history and the world of
luxury. Some of our brands are steeped in centu-
ries of history. Let us not forget that Madame
Clicquot, resisting the sanctions imposed by the
Napoleonic wars, arranged for her champagne
to be sent to Saint-Petersburg in 1814 and that
Louis Vuitton trunks have been sold in Australia
since the end of the 19th century. Hennessy
cognac was first exported to China in 1859 and
to New York in 1794. And only a year after
opening his Maison de Couture, Christian Dior
figured among the five most famous persona-
lities in the world.
Over the last few years, eight of our Maisons
have had the honour of winning the ‘Entreprise
du Patrimoine Vivant’ award. Our star brands
have become benchmarks for the industry. In
all four corners of the world they embody values
and traditions of excellence, fulfilling dreams
and accompanying extraordinary moments.
Thanks to strong, sustained and genuine inno-
vation, they remain loyal to their roots and their
magic and success persists in a modern context.
Strong internal growth driven
by the performance of both
premium established brands
and rising stars
Louis Vuitton, Hennessy, Christian Dior, Dom Péri-
gnon, Moët & Chandon, Sephora, TAG Heuer…
In 2008, which has started with widespread
economic uncertainty, the extraordinary
momentum of our star brands, sure values for
our loyal clientele and models of profitability
within LVMH, remain our core asset. Our stra-
tegy has not changed and our priority remains
to invest in their development. Over the years
their performance has progressively been over-
taken by the emerging brands in each of our
business groups. Fendi has already risen to
become one of our star brands, Krug, Ruinart,
our New World wines, Loewe, Marc Jacobs,
Guerlain, BeneFit… all will again increase their
contribution in 2008 and still retain remar kable
potential.
2008 will be a year during which innovation,
the development of our product range and the
strength of our distribution network will be the
drivers of growth. Our brands are engaged in
particularly ambitious new product launch
programmes. This is particularly true of Louis
Vuitton, Fendi, and all of our Perfumes and
Cosmetics brands. Our watch and jewelry brands
will continue to innovate and to strengthen
their iconic ranges. Illustrating their creative
energy, the Wines and Spirits houses will conti-
nue to offer products of high quality, limited
edition ranges and original events. In 2007, we
passed the mark of 2,000 stores worldwide. This
network, which will continue to expand in 2008,
is not only remarkable for its size; it is also the
subject of constant refurbishment and innova-
tion and is remarkable for its capacity to
communicate the excellence and modernity of
the Group’s businesses to our loyal clientele
across the world.
exceptional development