Culture & Unit economics

Culture & Unit economics

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1 min read

"The Louis Vuitton brand is selling “desire” and “culture,” not just watches, bags or dresses" ~ Bernard Arnault, Chairman & CEO of LVMH

With such a premise, there is no limit to what you can sell and to whom.

By selling products to different markets, LVMH can derisk the business. By diversifying the market and sales channels, they reduce reliance on any one market. - This helps to protect the business from economic downturns or other unforeseen events.

It is basically a capitalization on the global market and culture that in turns fuels their unit economics.

Examples:

  1. In China, LVMH focuses on online marketing, while in the United States, the company focuses on brick-and-mortar stores.

  2. In India, LVMH sells a version of its Louis Vuitton bags that is made with vegan leather.