What the LVMH-Rihanna partnership means for the luxury market

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With the launch of Fenty House in partnership with pop-icon and fashion and beauty entrepreneur Rihanna, LVMH breaks the mold of luxury brand building. He reports dramatic changes in the luxury market, led by the undisputed market leader.

Yesterday Bernard Arnault, CEO of LVMH, announced the creation of a new luxury home under the creative direction of Robyn Rihanna Fenty. The new line will be launched later this spring.

Homes are the way LVMH organizes its family of more than 70 brands in its six reporting segments. Leading a House is the pinnacle of LVMHThe hierarchy.

Rihanna debuted in 2017 working with LVMH in its Perfumes and Cosmetics segment, launching the Fenty Beauty brand. It was developed by LVMH's Kendo division, described as a cosmetic "incubator" company, and debuted in the LVMH subsidiary, Sephora, as well as distributed elsewhere.

Fashion Company (BoF) reports that Fenty Beauty has reported 500 million eurosUS $ 562 million in its first full year. Famous for its 40 inclusive basic shades, Fenty Beauty's success is incredible and gives Arnault the assurance that Rihanna will be able to do so again in the much larger segment of LVMH's fashion and leather goods industry, which includes 15 houses and generated 18.1 billion euros in 2018, against 6.1 billion and 12 houses in perfumes and cosmetics.

Fenty House marks a number of firsts for LVMH. It is the first fashion brand built from scratch since 1987, from the Christian Lacroix brand. It is also the first original LVMH brand created by a woman. And the first time, a woman of color will run an LVMH home.

But more specifically, this is the first time LVMH is addressing a celebrity to create a fashion brand, rather than being hired to approve it.

"While LVMH and its competitors have invested and collaborated with fashion designers such as Stella McCartney, Alexander McQueen, John Galliano and Jonathan Anderson, the Fenty deal is different: it's an alliance with a performer" Mickey Alam Kahn, editor of Daily luxury.

"If done with class, the Fenty brand is only the first for LVMH to establish similar relationships with other celebrities, who enjoy tremendous success," he continues.

Intersection of fame and fashion

The creators become famous thanks to fashion. Now, Rihanna brings fame to fashion, up to 30 million euros according to the calculations of LVMH. Rihanna contributes this sum "to her time, her name and what she represents", while LVMH pays the equivalent of 30 million euros in cash, according to the report. BoF.

But Rihanna is more than a pop singer with impeccable makeup, stylish fashion and 70 million young Instagram followers. She has the chops. "LVMH is hiring an entrepreneur and a leader to lead the new fashion brand, not just a very successful artist and singer," he says. Shelley E. Kohan, Assistant Professor at the Fashion Institute of Technology.

This is n"t his first foray into fashion. Rihanna collaborated with Puma as the creative director of a sportswear line in 2014, which ended in 2018 when the Puma company, owned by Kering, was split. And her lingerie line, Savage x Fenty, with its appeal included in body and color, made waves at the New York Fashion Week parade last September, following its launch in May 2018.

"Providing cutting-edge, state-of-the-art fashion to LVMH's new customer base fits perfectly with the company's model and the direction that LVMH seems to take," Kohan continues. " Arnault sees Rihanna as the creative and fashion skills needed to build a business in the long term. . "

More than an ambitious brand

Suction is a popular term in luxury circles, as in "ambitious brand". It translates into a luxury brand designed to attract young people concerned about their status. An ambitious brand is often a cheaper gateway to true luxury. Beauty products, such as Rihanna's Chanel or Fenty Beauty lipsticks, often fulfill this ambitious role.

With Fenty Maison, I see aspirations coming from the other direction. It's not so much an ambitious brand for LVMH's customers, but an ambitious brand for the company itself. & nbsp; Fenty Rihanna House is LVMH's gateway to the future of luxury .

"LVMH is intimately connected to the latest fashion trends," said Alam Kahn, who highlighted Virgil Abloh's choice as director of graphic design for Louis Vuitton, another sign of LVMH's future direction.

"This tells us where LVMH wants to position its product to appeal to younger, wealthier, and more generous customers, who take the example of casual wear and the street for comfort, style and exclusivity," he says. -he.

Yes, Fenty House is intended to attract a younger client and expand its base, but it's more than that. This means that LVMH is not resting solely on its laurels, but is sinking into a future that it intends to shape.

LVMH innovates with a new luxury model

While LVMH was formed in 1987 with the merger of Louis Vuitton and Molly Hennessy, its roots go back centuries, 1854 to Louis Vuitton and 1743 to Moëleum Hennessy. By building Fenty House in 2019, she innovates with a new luxury model to invigorate an industry that operates largely under old luxury ideas.

Milton Pedraza, president of the Luxury Institute, says that's what he expects from a leader like Arnault and LVMH. "LVMH paves the way with open innovation. This is open an island business to an outside collaboration to innovate bigger, better and faster than if you only count on your employees. "

In this partnership, LVMH is building a new model of innovation based on co-creation. "LVMH knows how to co-create to resize and distribute the product. It also creates a new definition of luxury that is more open and inclusive, "he said. "It's the model that they can potentially use with many other co-creators."

Kohan feels the new energy that this collaboration will bring not only to LVMH's customers, but also to the company itself. "This pop celebrity entrepreneur will help introduce a new way of thinking in the more aristocratic and European world of LVMH."

This is the most exciting in the news LVMH-Rihanna Fenty House. This means that a historical company with guardianship over a portfolio of historic luxury brands is not afraid to adapt to the economic situation.

Rihanna brings a new life and a young and new spirit to an increasingly global and diversified luxury market. Hat down to LVMH for running in the future without backing down.

"This cocktail of creative forces and paradoxes it contains is what makes it interesting. LVMH understands that the higher the level of creative innovation, the higher the risk, but also the potential return, "says Pedraza.

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With the launch of Fenty House in partnership with pop-icon and fashion and beauty entrepreneur Rihanna, LVMH breaks the mold of luxury brand building. He reports dramatic changes in the luxury market, led by the undisputed market leader.

Bernard Arnault, President and CEO of LVMH, yesterday announced the creation of a new luxury home under the creative direction of Robyn Rihanna Fenty. The new line will be launched later this spring.

Homes are the way LVMH organizes its family of more than 70 brands in its six reporting segments. Leading a House is the pinnacle of LVMHThe hierarchy.

Rihanna debuted in 2017 working with LVMH in its Perfumes and Cosmetics segment, launching the Fenty Beauty brand. It was developed by LVMH's Kendo division, described as a cosmetic "incubator" company, and debuted in the LVMH subsidiary, Sephora, as well as distributed elsewhere.

Fashion Company (BoF) reports that Fenty Beauty has reported 500 million euros, or 562 million US dollars, during its first full year. Famous for its 40 inclusive basic shades, Fenty Beauty's success is incredible and gives Arnault the assurance that Rihanna will be able to do so again in the much larger segment of LVMH's fashion and leather goods industry, which includes 15 houses and generated 18.1 billion euros in 2018, against 6.1 billion and 12 houses in perfumes and cosmetics.

Fenty House marks a number of firsts for LVMH. It is the first fashion brand built from scratch since 1987, from the Christian Lacroix brand. It is also the first original LVMH brand created by a woman. And the first time, a woman of color will run an LVMH home.

But more specifically, this is the first time LVMH is addressing a celebrity to create a fashion brand, rather than being hired to approve it.

"While LVMH and its competitors have invested and created partnerships with fashion designers such as Stella McCartney, Alexander McQueen, John Galliano and Jonathan Anderson, the Fenty contract is different from its alliance with a performer," says Mickey Alam Kahn , editor. Boss of Daily luxury.

"If done with class, the Fenty brand is only the first for LVMH to establish similar relationships with other celebrities, who enjoy tremendous success," he continues.

Intersection of fame and fashion

The creators become famous thanks to fashion. Now, Rihanna brings fame to fashion, up to 30 million euros according to the calculations of LVMH. Rihanna contributes this sum "to her time, her name and what she represents", while LVMH pays the equivalent of 30 million euros in cash, according to the report. BoF.

But Rihanna is more than a pop singer with impeccable makeup, stylish fashion and 70 million young Instagram followers. She has the chops. "LVMH is recruiting a contractor and a leader to lead the new fashion brand, not just a very successful artist and singer," says Shelley E. Kohan, assistant professor at the Fashion Institute of Technology.

This is n"t his first foray into fashion. Rihanna collaborated with Puma as the creative director of a sportswear line in 2014, which ended in 2018 when the Puma company, owned by Kering, was split. And his line of lingerie, Savage x Fenty, with the body and color appeal included, made waves during the fashion show in New York last September, after its launch in May 2018.

"Providing cutting-edge, state-of-the-art fashion to LVMH's new customer base fits perfectly with the company's model and the direction that LVMH seems to take," Kohan continues. " Arnault sees Rihanna as the creative and fashion skills needed to build a business in the long term. . "

More than an ambitious brand

Suction is a popular term in luxury circles, as in "ambitious brand". It translates into a luxury brand designed to attract young people concerned about their status. An ambitious brand is often a cheaper gateway to true luxury. Beauty products, such as Rihanna's Chanel or Fenty Beauty lipsticks, often fulfill this ambitious role.

With Fenty Maison, I see aspirations coming from the other direction. It's not so much an ambitious brand for LVMH's customers, but an ambitious brand for the company itself. Rihanna's Fenty House is LVMH's gateway to the future of luxury .

"LVMH is intimately connected to the latest fashion trends," said Alam Kahn, who highlighted Virgil Abloh's choice as director of graphic design for Louis Vuitton, another sign of LVMH's future direction.

"This tells us where LVMH wants to position its product to appeal to younger, wealthier, and more generous customers, who take the example of casual wear and the street for comfort, style and exclusivity," he says. -he.

Yes, Fenty House is intended to attract a younger client and expand its base, but it's more than that. This means that LVMH is not resting solely on its laurels, but is sinking into a future that it intends to shape.

LVMH innovates with a new luxury model

While LVMH was formed in 1987 during the merger of Louis Vuitton and Moët Hennessy, its roots go back several centuries: 1854 for Louis Vuitton and 1743 for Moët Hennessy. By building Fenty House in 2019, she innovates with a new luxury model to invigorate an industry that operates largely under old luxury ideas.

Milton Pedraza, president of the Luxury Institute, said it was what he expected from a leader like Arnault and LVMH. "LVMH paves the way with open innovation. This is open an island business to an outside collaboration to innovate bigger, better and faster than if you only count on your employees. "

In this partnership, LVMH is building a new model of innovation based on co-creation. "LVMH knows how to co-create to resize and distribute the product. It also creates a new definition of luxury that is more open and inclusive, "he said. "It's the model that they can potentially use with many other co-creators."

Kohan feels the new energy that this collaboration will bring not only to LVMH's customers, but also to the company itself. "This pop celebrity entrepreneur will help introduce a new way of thinking in the more aristocratic and European world of LVMH."

This is the most exciting in the news LVMH-Rihanna Fenty House. This means that a historical company with guardianship over a portfolio of historic luxury brands is not afraid to adapt to the economic situation.

Rihanna brings a new life and a young and new spirit to an increasingly global and diversified luxury market. Hat down to LVMH for running in the future without backing down.

"This cocktail of creative forces and paradoxes it contains is what makes it interesting. LVMH understands that the higher the level of creative innovation, the higher the risk, but also the potential return, "says Pedraza.