Moet Hennessy Louis Vuitton SE (LVMH) - Digital Transformation Strategies

Moet Hennessy Louis Vuitton SE (LVMH) - Digital Transformation Strategies

Summary

This report provides insight into LVMH's tech activities, including its digital transformation strategies, its innovation programs, its technology initiatives, its estimated ICT budget, and its major ICT contracts.

LVMH Moet Hennessy Louis Vuitton SE (LVMH) is a manufacturer and marketer of luxury goods. The company's product portfolio comprises clothing, fashion and leather goods, wines and spirits, perfumes and cosmetics, jewelry, and watches. It also offers cruise services and runs select retail businesses under the DFS, La Grande Epicerie de Paris, Sephora, and Le Bon Marche Rive Gauche banners. LVMH markets products under the Christian Dior, Guerlain, Givenchy, Kenzo, Louis Vuitton, Celine, Emilo Pucci, Loewe, Nicolas Kirkwood, Make Up For Ever, and Zenith brand names. The company's business operations span across the US, Europe, Asia, and the Middle East.

La Maison des Startups LVMH is an accelerator program created by the LVMH Group for startups from across the world. The program was designed to enable collaboration between LVMH Maisons (houses) and startups to develop innovative products and services for the luxury industry. Louis Vuitton invites up to 30 startups every year. It conducts several workshops that engages startups to discuss challenges faced by the luxury industry.

In 2016, LVMH in collaboration with Viva Technology, a startup and technology event in Europe, launched the Luxury Lab to encourage luxury startups to showcase their ideas and innovations. Luxury Lab is a 500-square-meter space dedicated entirely to the luxury industry.

Scope

• In 2021, LVMH announced that it has agreed to use Google Cloud’s suite of Artificial Intelligence (AI) technologies and cloud computing services to help its individual brands improve demand forecasting and optimize inventory management. The company stated that the AI technologies will be implemented across global supply chain and logistics operations; partner, employee, and customer interfaces; and product development to better understand customers’ previous interactions and current needs and offer superior, personalized customer services. The company has also announced that it will use Google Cloud to modernize its IT infrastructure.
• LVMH launched a multi-brand ecommerce website called 24 Sevres in 2017 to offer luxury brands from its own portfolio as well as other brands. Meanwhile, LVMH adopted an omnichannel approach to seamlessly blend in-store sales with digital platforms to maximize sales. For instance, Parfums Christian Dior operates an omni-channel fulfilment center in Orléans region of France. And in 2021, Louis Vuitton inked an agreement with Chinese e-commerce company JD.com to sell its products via JD.com’s platforms in China.
• LVMH’s brands have begun accepting digital currencies for the convenience of tech savvy customers. TAG Heuer, LVMH’s luxury watch brand, accepts online payments in cryptocurrencies in the US. It allows customers to make purchases using different cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, and stablecoin. In 2022, Hublot, another luxury watch brand of LVMH, partnered with BitPay, a crypto infrastructure provider, to accept cryptocurrency payments for its luxury products.

Reasons to Buy

• Gain insights into LVMH's tech operations.
• Gain insights into its tech strategies and innovation initiatives.
• Gain insights into its technology themes under focus.
• Gain insights into various product launches, partnerships and investment strategies.