Editing LVMH Moët Hennessy - Louis Vuitton, Société Européenne
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1. Richemont could be a big competitor: Based on the revenue data and performance analysis, LVMH remains the market leader in the luxury industry. However, it faces major challenges from Richemont, each with its own strengths and weaknesses. LVMH should focus on expanding its presence in the jewellery industry to compete more effectively with Richemont. Besides, The decision of Richemont to reject the acquisition proposal from LVMH could potentially impact Richemont's stock and attract more attention, particularly from investors who value the "more boutique in core business" mindset. | 1. Richemont could be a big competitor: Based on the revenue data and performance analysis, LVMH remains the market leader in the luxury industry. However, it faces major challenges from Richemont, each with its own strengths and weaknesses. LVMH should focus on expanding its presence in the jewellery industry to compete more effectively with Richemont. Besides, The decision of Richemont to reject the acquisition proposal from LVMH could potentially impact Richemont's stock and attract more attention, particularly from investors who value the "more boutique in core business" mindset. | ||
2. Geographical Factor: LVMH has a strong geographical presence in the Asia Pacific region, with most sectors and revenue generated from Asia in 2022. Particularly in China, where the Covid policies have allowed for reopening, the spending power of Chinese consumers continues to rise. The total revenue in Asia will be very significant in 2023. Richemont also generates a significant portion of its revenue from the Asian market. The 2023 total revenue in Asia Pacific of Richemont would be positive to be expected. On the other hand, Kering's performance has been negative, experiencing a decline of 7% from Q1 2022 to Q4 2022. The pace of growth was well below that of competitors. | |||
Overall, LVMH's performance is expected to continue to increase, and there is optimism regarding its total revenue for 2023. | Overall, LVMH's performance is expected to continue to increase, and there is optimism regarding its total revenue for 2023. |