LVMH looks to boost digital innovation with major investment in Lyst
The world’s largest luxury conglomerate, LVMH, is looking to accelerate its strategy of boosting digital innovation with “a major investment” in Lyst. This won’t be the two companies’ first involvement with one another – LVMH has acquired “up to $60.5 million” of Lyst, according to Crunchbase, and Group Arnault, LVMH’s biggest shareholder, helped raise a further $40 million alone.
LVMH’s share price has appreciated by 26% year to date
SOURCE: Yahoo Finance
Lyst is a search engine devoted solely to the fashion world. On its homepage it claims to have “over 11,000 designers and stores in one place,” and suggests that this is “everything you’ll want.” It is customised to the individual user, promising “daily curated edits, personalized style recommendations and fashion’s simplest checkout.”
The promise of such a service is crystal clear, and might be the apotheosis of the intersection between fashion and Ecommerce. From Lyst’s website: “Look amazing. We do all the hard work so you get to have all the style you love.” It’s more convenient than going round the high street, it has more to choose from, and it uses algorithmic genius to do a better job of tailoring your experience to your needs and wants than you could do alone.
It’s pretty clear to see why LVMH – which has been working tirelessly in recent times to boost its online credentials with initiatives like 24 Sèvres and a start-up incubator program – would be interested in Lyst. It might just give the world’s largest luxury company the ability to compete with online upstarts like Yoox Net-a-Porter and Zalando in their own territory. Other players are making similar moves – but few of them carry the experience, brand power and financial clout of LVMH.
Dominion holds LVMH in its Global Trends Luxury Fund.
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