Map of brands in luxury fashion, LVMH (pt. 3)

Fashion, News and commentaries

For the 3rd in this series of posts regarding brands ownership in luxury fashion, I’m dedicating the whole page for the behemoth conglomerate Louis Vuitton Moet Hennesy (LVMH) Group. As usual, I organized the brands based on how the parent company treats them. In this case, LVMH organizes the business groups as the following (percentages refer to revenue share based on 2013 Annual Report):

  • Fashion & Leather Goods – 34%
  • Selective Retailing and Other Activities –  29% combined
  • Wines & Spirits – 14%
  • Perfumes & Cosmetics – 13%
  • Watches & Jewelry – 10%

LVMH has a 23.1% stake in Hermés and the company does not expressly include more information than that in its annual report. Furthermore, the group also has a private equity arm that is not mentioned in the annual report. L Capital Asia, as the name implies, is focused on brands in Asia and the Pacific – China, India, Taiwan, Singapore, Australia.

brands_map_lvmh

In most of the brands in each business group, LVMH has a 100% ownership and almost always a majority stake. The following are some notable exceptions and also interesting facts on LVMH acquisitions:

What I found the most interesting is how Dior is incorporated into the brand. LVMH includes Dior Parfums and Dior Watches within its portfolio but not the Dior ready-to-wear and couture. Technically, Christian Dior owns a minority stake in LVMH and this is quite an oversimplification of the labyrinthine ownership of Dior and LVMH shares by the Arnault family. See below for a visual representation culled from different sources. There’s a lot of history to how this structure came to be and I will devote a completely different post on it because it will require a lot more research, some of them involves public documents in French. Even Forbes is struggling to make sense of it.

Screen Shot 2014-08-21 at 2.52.03 PM

Map of brands in luxury fashion, pt. 2

Fashion, News and commentaries

For the 2nd in this series of posts on mapping some brands, I’m mapping a mix of private and public companies. It was more difficult finding the exact information such as how the brands are grouped under the parent companies and their revenues so I’m grouping them mostly based on a mix of information found on the company websites as well as news features. The MaxMara maps is pretty much self-explanatory but OTB, Fast Retailing and JAB Holdings need more context

Brands map, pt.2

  1. OTB stands for Only The Brave and is a holding company chaired by Renzo Rosso, the founder of Diesel. What I find especially interesting is Staff International and Brave Kid which are production and distribution companies for brands within and outside the OTB Group. For Staff International, other than Viktor&Rolf, Maison Martin Margiela and MM6, it also has licenses for Marc Jacobs Men, DSquared2 and Vivienne Westwood Red Label. Meanwhile, Brave Kid has licenses for Diesel Kids, DSquared Kids and John Galliano Kids.
  2. Fast Retailing is based out of Japan and most well-known for the Uniqlo brand. The company was recently in the news for its rumored bid for J. Crew, which I wrote about here. The company acquired Link Theory Holdings which owns Theory and Helmut Lang brands.
  3. JAB Holdings, a private German conglomerate, is probably the  most interesting of these companies because of its seemingly small reach in fashion, having acquired brands such as Jimmy Choo; unless we examine its beauty products manufacturer, Coty. It is actually so far-reaching that I will have to devote a completely different map for it on my next post. Incidentally, the luxury brands used to be under the Labelux holding company but has since been fully integrated into JAB Holdings. JAB, which stands for Joh. A. Benckiser also owns Reckitt Benckiser, a consumer goods company that owns a range of products from Clearasil to French’s Mustard. The conglomerate also acquired Peet’s Coffee & Tea in October 2012 for $1B.

Map of brands in luxury fashion, pt. 1

Fashion, News and commentaries

A recent chart depicting the seeming diversity of food brands actually belonging to a few companies made me think that the same could probably be said of fashion brands, especially in the luxury sector. I decided to map some of the biggest brands to serve as guide, which can be quite helpful when I write posts on the business side of fashion.

As most of you probably know, Moët Hennessy Louis Vuitton (LVMH) is a giant conglomerate with subsidiaries that stretch all the way to China and diversified across several products from alcohol to watches. I realized as I was making the charts that it would be quite difficult to fit it all in one post so I decided to do a series instead and this is the first of that series.

I’m starting the series based on information that is the most readily available which means companies that are publicly traded. As I go through the series, I will also do my best to map brands held by private companies as well.

For this series, I’m starting with Kering, Richemont, and Prada. The brands are grouped according to the way the respective companies organize them as business units. For example, Kering has the Luxury and Sports & Lifestyle divisions. Out of the three, Kering offers the most transparent annual report, offering revenues by division, by region and in some cases, by brand. Kering also states its percentage ownership for each brand here, which I’m also pasting below. Richemont on the other hand offers revenue figures by business area: Jewellery Maisons, Specialist Watchmakers, etc. and by region. Prada, the smallest of the three, have 4 brands – sales from each brand are outlined in the company’s quarterly and annual reports.

brands_map_luxury_pt1

 

Here is Kering Group’s percentage ownership of its brands:

kering_ownership