LVMH announced this month that their upcoming multi-brand e-commerce website will launch in June 6 and serve over 70 countries. This website, named “24 Sèvres” after the location of their department store, will be LVMH’s boldest move into e-commerce, directly competing with department stores and online-only retailers like Sephora and Yoox Net-a-Porter.
This new store will stock 150 fashion, beauty, and luggage brands, of which 20 will be LVMH owned like Louis Vuitton, Dior, or Loewe. L2’s research in the Beauty and Fashion sectors show that while LVMH has several brands with best-in-class digital presences, their portfolio also features some of the weakest brands in digital. This disparity is due to siloed knowledge within each label and LVMH’s failure to spread digital competencies across the portfolio. This new e-commerce website will be a huge opportunity for LVMH to begin to rectify this and create a cohesive digital e-commerce experience.
However, competing with digital department stores will not be easy. L2 research shows that department stores and beauty specialty e-tailers have some of the most sophisticated content and e-commerce strategies. While LVMH has invested several million Euros in 24 Sèvres, it remains to be seen how it will play out against market leaders like Sephora, Ulta, and Neiman Marcus. With e-commerce expected to be the largest sales channel for Luxury goods by 2025, this is a crucial step for LVMH to keep up with changing consumer behavior.