Louis Vuitton 2015 Annual Report Download - page 13

11 / 50
LVMH 2015
—
Interview with the Group Managing Director
CULTIVATING A CLOSE RELATIONSHIP
WITH OUR CUSTOMERS AND OUR MARKETS
—
Growth is slowing, the world
is changing: does this mean new
challenges for the luxury sector?
The strong progress of our brands
shows that there are still excellent
growth opportunities in the luxury
sector. As long as we can be proac-
tive and cultivate close relationships
with our markets, all of the changes
that are currently happening are
opportunities. The lifestyles of new
generations are infl uencing society
as a whole, in terms of mobility, new modes of
consumption, the search for experiences, new
concepts of service, a sensitivity to ecological and
social values, the omnipresence of digital media,
and more. To stand still while our customers change
would mean being left behind. Without losing sight
of their values, our brands need to adapt constantly,
to stay desirable and fresh. Another change is that
the world has become smaller and more accessible,
with information from around the world available
in real-time and people travelling much more.
Purchases by travelers are intimately tied to the
experience of discovering the world, and they
expand our market, although they are also subject
to exchange rates and security concerns. Local
customers are also a source of growth and oppor-
tunity, as long as we combine product innovation,
personalized service and entertaining events to
build deep and enduring relationships.
Can digital be about
more than just online shopping?
Luxury customers are highly connected, and for
them the digital world means much more than easy
online shopping. The Internet and social networks
have become new media where they can get infor-
mation and customized services, catch up with
friends, form opinions and have fun. Mobile devices
fi ll a multitude of formerly separate roles, and they
allow consumers to make purchases anytime and
anywhere: really a new way of life. For luxury brands,
customers’ emotional engagement is very impor-
tant. Our passion for excellence and
creativity in our stores therefore has
to carry over into the digital world, so
that the experience can be just as high-
quality whether the point of contact
is physical or digital. Moreover, digi-
tization can enrich the relationship:
with Sephora’s mobile terminals, sales
representatives can o er each cus-
tomer a bespoke experience; Louis
Vuitton’s LV Pass app will soon be
able to adapt to every user’s centers
of interest. Every Maison builds its digital identity
in accordance with its vision of excellence, but the
Group is increasingly a driving force for innovation
and sharing best practices.
Brands are providing more information
about their role as corporate citizens.
Is this a response to new expectations?
Our customers and our employees grow more
attuned to these issues every day. There is a real
desire to be associated with companies that have
a positive infl uence on society. Our commitments
to employment, supporting young people and
improving our environmental profi le are the heart of
our long-term strategy. By teaching the younger
generations, we hope to pass on and sustain the
artisanal skills and knowledge that are our core
strengths: that is the mission of the Institut des
Métiers d’Excellence and the reason for our contri-
bution to the ESSEC international business school’s
recently-endowed chair in Savoir-faire d’Exception
(“Exceptional know-how”). The LVMH Prize for
Young Fashion Designers supports young talent.
Lastly, there are several important environmental
protection aspects. Our Maisons use rare, natural
materials. In that sense, our supply chains, produc-
tion sites and stores o er opportunities for improve-
ment. The LIFE program, in place since 2013, has
structured our Maisons’ actions around a shared
commitment. We are always innovating, we have set
up an internal price for carbon usage to set in motion
a virtuous circle and support the goals of COP21.
Antonio Belloni
Group Managing Director