Company Introduction

In this blog i will be focusing on LVMH, Moet Hennessy - Louis Vuitton, Fashion & Leather Goods division. I will try to apply the information i learn from the textbook and in class discussion to developing crisis communication strategies for LVMH. For example, Professor Laskin, explained that crisis can be caused by an outside or inside error (deliberate or not). LVMH, for example can potentially face crises from such inside causes as an employee leaking to the press pictures of next seasons Louis Vuitton bag or overseas factory machines malfunctioning.

LVMH not only owns Louis Vuitton but Loewe, Celine, Berluti, Kenzo, Givenchy, March Jacobs, Fendi, StefanoBi, Emilio Pucci, Thomas Pink, Donna Karen and NOWNESS. Each of these brands have stores around the world. 25 % of LVMH Fashion & Leather Good divisions revenue comes from Asia, 20 % from Japan, 21 % from the rest of Europe, and 19% of the US. Therefore LVMH can face crises from such outside causes as terrorists attacks or natural disasters. Examples of the September 11th attacks, the Sars break out in Asia, and the war in Iraq put a hold on global tourism causing a three year decline in the luxury good industry and causing LVMH to lose money.