Lvmh Group

3.The worldwide rise of Men’s interest in FashionPlanning for the future, LVMH must be cognizant of the emergingpotential markets, like the BRIC nations. The purchasing power indeveloping countries is increased in recent years. For instance,China has become the biggest market for Hennessey cognac andis the second largest customer base for Louis Vuitton worldwide.So, LVMH should focus on increasing its investment in suchemerging economies where high growth rate can be experienced.And due to its hugely diversified brand portfolio, LVMH canexercise significant synergies, such as sharing expertise withindifferent watch brands. Also, the retail market for luxury men’swear could be one of the most promising markets in the future andLVMH should focus on Men’s luxury products in order to takeinitiative when that market get activated.Threats1. Worldwide financial crisis2. Increase market for counterfeit products3. Intense competition in the industryThe luxury goods are very sensitive to the fluctuation of economyand LVMH’s business largely depends on the economic situation ofthe customers. Therefore, the expecting sales of LVMH grouplargely would be affected by the world financial crisis. One otherthing to note is distribution of counterfeit products. Counterfeitinghas risen sharply in recent years, and these counterfeit productsdilute the market share and harm the brand integrity of LVMHgroup.

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