Luxury Is Still Just Business

Christian Dior, Bulgari, Fendi, Tiffany & Co., Dom Perignon, and Givenchy are just a few of the world’s most recognized luxury brands. One significant factor unites them: they all belong to the same French conglomerate, LVMH Moet Hennessy Louis Vuitton SE, better known simply as LVMH.

According to Reuters, LVMH is a powerhouse in the world of luxury goods, claiming around 22% of the global market for high fashion, fine leather goods, and high-end watches and jewelry. But it’s not just fashionistas and collectors who help LVMH’s bottom line; it turns out that you might be contributing to it, too, even if you aren’t in the market for a Givenchy gown or a Tiffany diamond.

From Fashion to Fragrance

LVMH’s reach extends beyond high fashion into beauty and fragrance. The company owns several popular beauty brands, such as Fenty Beauty, Make Up For Ever, and Benefit Cosmetics, as well as a range of fragrances from its various fashion houses. Many of these products are available at your local Sephora store, which LVMH owns. And if you’re one of the lucky few who can afford anything, you could even buy a luxury yacht from Princess Yachts, another LVMH division.

This vast portfolio allows LVMH to maintain its status as a giant in the luxury market, touching many aspects of its customers’ lives—from the makeup they wear to the champagne they toast with. The conglomerate’s strategy of diversification across different luxury market sectors helps it attract a wide range of customers, from those buying an occasional fragrance to those investing in rare handbags or bespoke yachts.

The Competition: Kering’s Rivalry

If you’re trying to avoid LVMH products, you might look at other major luxury brands. But be warned: many of them are owned by another French luxury conglomerate, Kering. Kering’s portfolio is packed with legendary fashion brands, including Alexander McQueen, Gucci, Balenciaga, and Saint Laurent. It also owns Montblanc, known for its fine pens, Maui Jim sunglasses, and the sportswear brand Puma, which sometimes appears in stores like Costco.

While Kering might be smaller than LVMH, it still commands a significant portion of the luxury market, and its brands are nearly as famous and beloved. Each of these conglomerates competes fiercely for a piece of the global luxury pie, and their combined presence means that much of the world’s high-end market is controlled by just a few key players.

The Independent Players

Are there any luxury labels that remain independent? Surprisingly, yes. One of the most notable is Hermes International S.A., more commonly known simply as Hermes. Hermes is renowned for its ultra-high-end products, such as the coveted Birkin bag. While it might be smaller than LVMH, Hermes is still the second-largest luxury goods maker in the world, far surpassing rivals like Kering and even Ferrari.

Unlike the conglomerates, Hermes continues to market all its products under its name. This independence is a point of pride for the brand and a draw for customers looking for exclusivity and heritage. In a market dominated by large corporations, Hermes stands out for its commitment to remaining independent and maintaining a singular, recognizable brand identity.

Business as Usual

In the end, the world of luxury is still just business. Whether massive conglomerates or fiercely independent brands, these companies are driven by the same goal: to grow their market share and appeal to consumers. LVMH and Kering, with their broad portfolios and aggressive acquisition strategies, have taken control of a large portion of the luxury world. Meanwhile, Hermes proves that there is still room for tradition and independence at the top.

So, whether you’re splurging on a limited-edition handbag or just picking up a new lipstick at Sephora, chances are you’re contributing to the bottom line of one of these luxury giants. Luxury, it seems, is not just a state of mind—it’s a big business.