LVMH looks to grow Rimowa beyond luxury luggage
Luxury giant LVMH has big plans for its high-end luggage brand, Rimowa. It’s currently known for its ribbed aluminium suitcases, but diversification could be just around the corner. Rimowa chief executive Alexandre Arnault, an LVMH veteran, and son of LVMH chairman Bernard Arnault, told listeners at the Conde Nast international Luxury Conference in Lisbon: “What I’d like for us to be in five years is obviously a culturally relevant brand in the space of travel, hopefully not only selling suitcases but other travel-related products and really own this journey for the customer.”
LVMH’s share price has risen by 14% so far this year
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Arnault thinks this is first-and-foremost a brand consideration. Rimowa’s luggage accompanies customers during the “non-enjoyable” leg of their trip – the slog from home to airport, waiting in departures. According to Arnault: “in the actual enjoyable part of the travel, the brand isn’t linked to you.” The simplest way to do that is to push its offerings beyond suitcases.
Arnault continued to tell listeners that Rimowa will try to “make more links” to customers with a diversified set of products and services, all while continuing to make products for the “dreadful part of travel.” This is a big change for a brand that dates back to 1898 – but that might be just what’s needed. Just 25, Arnault is conscious that younger consumers don’t interact with brands and products the same way their parents did. Speaking directly to this, he said:
“I don’t believe that the luxury good is disappearing from our life just due to the fact of millennials rising. In order to capture millennials’ attention, we need to work on intensity and better quality constantly. If we’re able to manage this -- and it’s our constant quest -- I’m certain that they will follow us in millions.’’
Dominion holds LVMMH in its Global Trends Luxury Fund.
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