Blog > LVMH luxury brand group reaches out to the digitally native generation
LVMH luxury brand group reaches out to the digitally native generation
LVMH (Louis Vuitton Moët Hennessy) are one of the world’s largest luxury goods companies, owning an extensive portfolio of prestigious names across multiple categories including alcohol to clothing, jewellery and cosmetics with brands such as Givenchy, Fendi, Marc Jacobs, Tag Heuer, Louis Vuitton and the newly acquired Dior as just a mere few of the names under their umbrella.
Announced at the beginning of the year, LVMH and the brands that sit underneath the company will be launching a multi-brand e-commerce online store in early June in a bid to reach out to, and connect with more digitally native consumers.
Named 24sèvres.com, the digital platform is set to mirror the companies multi-brand department store, Le Bon Marché which first opened its doors in 1825 and is situated on 24 rue de Sèvres in Paris; which is where the idea for the e-commerce sites name came from. However, during development, the project was kept top secret and codenamed Babylon after rue de Babylone, the street that runs rear to the LVMH department store.
The platform, which will also be turned into a smartphone app is rumoured to be home to 150 luxury brands, 30 of which will be part of the LVMH portfolio, however, the company announced that non LVMH-owned brands including Gucci, Prada, and Loewe will also feature on the site whilst the group attempts to compete with renowned online stores including Net-A-Porter and MatchesFashion.com.
“The idea is to be attractive with unique products, not necessarily have a huge offering,” said Rogers; Chief Digital Officer of the project.
Not only will the project allow consumers to shop for luxury Parisian items, it will also feature a video chat setting which will allow users to video call style consultants, in a similar way to FaceTiming for a one to one personal shopping experience where the consultants can share tips and style advice with consumers. Also featured will be a 77-piece capsule collection that will include exclusive pieces from brands including Chloé, Givenchy, and Loewe to celebrate the launch.
However, this isn’t the first time the luxury giants have tried their hand at breaking into the already crowded, digital world with the launch of their e-commerce site eLuxury, which first took off in 2000 but was later closed in 2009 in a rare high-profile misstep.
According to the New York Times, Rogers – who was headhunted by the company from Apple Inc., and was also the man behind iTunes Radio was asked what made LVMH think that they would be successful this time around when the idea had failed before and Mr. Rogers replied with:
“One word, timing.”
So, what does this mean for the brand’s brick-and-mortar store’s future?
LVMH reported that only 7% of the industries sales are made up from online purchases, with that estimated to rise to 12% by 2020 in a study by Boston Consulting Group. The company also reported that in 2016 only 5.3% ($2.2bn) of their overall revenue came from e-commerce.
The idea, which will initially focus on Parisian styled womenswear including fashion, accessories, and cosmetics is not down to a struggling physical store or to shift the entirety of their business to digital, but to tap into a more digitally native market whilst also preserving the exclusivity of the brands that heightens the value of their products; with the plan to simply mirror the physical store in a virtual environment but offer a click and collect service for Parisian locals.