Richemont as Focused Luxury Conglomerate

摘要

This paper clarifies the competitive advantage of Richemont in comparison to LVMH particularly from the angle of portfolio strategy. Unlike LVMH, limited numbers of people know Richemont that does not comprise the name of maisons under the umbrella. Even though LVMH gradually dominates global luxury market, Richemont as the second largest luxury conglomerate must have unique advantages over LVMH to compete, which could help examine the way to tackle the market's dominant company as a follower. Through this study, one similarity and two differences are found in terms of a business strategy. The similarity is that both Richemont and LVMH commit two kinds of portfolio strategies: product portfolio strategy and regional portfolio strategy. In contrast, the differences are as follows: (1) way of brand expansion, and (2) the nature of each conglomerate i.e. designer-driven or craftsmanship-driven conglomerate.