LVMH hires Publicis Groupe for media accounts including Louis Vuitton
Dentsu was the incumbent on the businesses.
Tekef
Publicis Groupe is the big winner in LVMH’s North American media review, according to three people close to the situation. The French luxury fashion and wine and spirits conglomerate hired the Paris-based holding company to handle brands including Louis Vuitton, Christian Dior, Moët Hennessy and Celine, the three people said.
Dentsu was the incumbent on the group of several brands LVMH had put into review, covering its U.S. and Canadian business. Publicis had already handled Sephora.
Publicis referred calls for comment to the client, which did not respond to inquiries at press time. The review was handled by ID Comms, which did not respond to a request for comment.
A Dentsu representative in a statement said: “At the end of last year, we decided not to pursue the renewal of our relationship with LVMH. We wish them all the best for continued success.”
Despite a challenging economy, the luxury conglomerate has seen sales continue to shine this year. LVMH recently reported a 17% uptick to 21 billion euros in first-quarter sales, citing strong spending in China following pandemic restrictions. However, the company reported more measured growth in the U.S. as younger shoppers in particular pulled back on luxury goods.
The U.S. in 2022 accounted for $22.7 billion, or 27% of LVMH’s $83.5 billion in revenue.
Analysts are impressed. In a recent research report, HSBC Global Research recommended a “Buy” rating, calling LVMH’s progress the “The Bling Supremacy.”
“Sector behemoth starts 2023 on a high note; rest of the year should be strong despite investor fears about US demand,” wrote HSBC analysts in the report.
LVMH in 2022 spent a record $10.1 billion on worldwide advertising and promotion, up 17%, according to Ad Age Datacenter’s analysis of its financial disclosures. LVMH’s advertising and promotion expenses include costs of producing advertising media, purchasing media space, manufacturing samples, publishing catalogs and, in general, the cost of all activities designed to promote its brands and products.
Ad Age Datacenter ranks LVMH as the world’s sixth-largest advertiser.
Contributing: Adrianne Pasquarelli, Bradley Johnson, Brian Bonilla and Judann Pollack
