Not a Fashion Brand



What Bernard Arnault had to say at the LVMH Annual Results Meeting and how it reflects Louis Vuitton’s strategy. 
[2023]



The LVMH annual results meeting took place last Thursday and between the revenue data and carefully optimistic projections, a few critics were mentioned regarding the last  Louis Vuitton menswear fashion show. The collection, directed by no other than Pharrell Williams, was marked by critics as unsophisticated. 
In response, LVMH Chairman Bernard Arnault stated: “It is important to remember that Louis Vuitton is not a fashion business. It is a business we have wanted to insert fashion into since 1995”. 

This statement reflects a specific perception of the brand, a strategic position in the landscape of brands under the LVMH house. 

I can only presume Mr. Arnault doesn’t fear every critic’s review. After all, he has been leading the LVMH conglomerate successfully. In his response, he could have based his point on many different statements. For example, he could have claimed that not every bold artistic choice is celebrated by critics. He could have said that the profit speaks for themselves and that the stardom of Pharrell Williams has created much-welcomed attention for Louis Vuitton. 

Mr. Arnault offered a much more strategic approach to share. He implied that the mere examination of Louis Vuitton as a fashion brand is wrong at its core since it was founded as a leather goods artisanal brand, only expanding its reach to apparel in the last 30 years. 
 
That would mean that this major brand, which has stacked up €86.2B in revenues in 2023 alone and is among industry leaders in fashion weeks and outside of them, isn’t a fashion brand because it was not founded as such.
Louis Vuitton is a well-established luxury brand, serving royals since 1854. Its founder was the manufacturer and the formal suitcase packer of Empress Eugénie de Montijo, wife to Napoleon the 3rd.

Although the brand’s legacy stems from leather goods and luxury products, it is undeniable that Louis Vuitton is one of the leading fashion brands globally today, and for good reason. 

Moreover, it is by LVMH’s leadership that the brand has been expanding its activity as a fashion brand in both physical fashion and digital. 

So, Bernard Arnault’s statement leaves me wondering; Is it that the strategic view of the brand’s essence as a leather-goods boutique is a quintessential positioning, meant to further grow the brand’s presence, or is this positioning not coinciding with the actual actions and reality of the brand’s perception by public view.

I personally beg to differ with the critic’s claims about the collection, however, it seems to me that the small discussion they have had in that meeting is far more influential and telling of the brand’s future.