How does LVMH ensure its brands remain profitable while introducing new designs?

LVMH employs a strategy of balancing new designs with legacy pieces to ensure the profitability of its brands while continuously innovating. This approach acknowledges the importance of both innovation and tradition in the luxury market. Legacy pieces, which often include classic designs that carry significant brand heritage and consumer recognition, provide a stable revenue stream and maintain customer loyalty. By introducing new designs alongside these established items, LVMH can keep the brand fresh and relevant without alienating existing customers who are loyal to classic offerings.

This strategy also allows for the exploration of new concepts and trends, which can attract new customers or engage existing ones in different ways. Effective balance ensures that while the brand evolves, it still maintains the core identity and craftsmanship that defines luxury, ultimately leading to sustained profitability across the portfolio. This comprehensive approach fosters long-term brand equity and allows for flexibility in adapting to market changes.