LVMH sees opportunity to ramp up online jewelry sales
LVMH, the world’s largest luxury conglomerate, which counts brands like Louis Vuitton and Celine among its many businesses, is looking to capitalise when it comes to selling jewelry online. The company has been quite clear in the past: it’s an early-adopter when it comes to fashion and tech – but it’s not a first-mover (and has no plans to be). Now, as a number of luxury brands in the jewelry space (think Richemont’s Cartier, for example) are boosting their digital profile, LVMH is looking to outcompete them.
LVMH’s share price has risen by 18% so far this year
SOURCE: Yahoo Finance
LVMH’s web retail platform, 24Sevres, is going to open a dedicated jewelry section that plays host to 13 brands. Once, expensive trinkets like those that will be on offer here were thought of as unsellable online. With the rise of Millennial consumers and the increasing digitisation of the retail world, those days are long gone, and jewelry is an emerging battleground.
Why jewelry, specifically? As the Luxury sector continues to go from strength to strength, jewelry has become the fastest growing segment in Luxury. Fashionable clothes and accessories are much bigger markets, but they can’t match jewelry’s 10% year-on-year growth in 2017 (only shoes managed to grow faster).
The prices available on LVMH’s platform will include its own as well as pieces by “specialist jewelers” such as Parisian brand Ofee. The prices will start at $90, and go all the way up to about $2,500.
Dominion holds LVMH in its Global Trends Luxury Fund.
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