Assignment 1.

Case study analysis

The use of case studies has been incorporated throughout the unit to provide a range of
‘real world’ business examples. They introduce a selection of business case studies which
include product successes and failures. Some also demonstrate how businesses have tackled
challenges and as a result regained market dominance.

Your recognition of the issues faced in the marketing environment is required. Informed
discussion with relevance to previous and current marketing studies is also required in
response to the questions posed by the case studies.

You are required to provide a written analysis of a case study – What can we learn from the
world’s richest man? (Copy and additional resources on the unit website). The answers to
the case study analysis are to be typed (single line spacing), minimum of 1,000 words plus
any appendices and a reference list. Wider reading is encouraged and referencing to
academic journals should be used where appropriate. Provide answers to the following
questions as part of your analysis:
1. What are some of the possible challenges for the LVMH group, which are raised in
the article: Softly spoken world’s richest is no soft touch1?
2. The marketing strategy for LVMH has been described as: inventing a paradox, selling
exclusivity by the millions2. Discuss this concept.
3. Research the following five brands from the LVMH group, Lois Vuitton, Fendi, Dior,
Moet et Chandon and Hennessy. Outline their product ranges, positions within the
various markets, and relevance to the LVMH portfolio

1 & 2: Softly spoken world’s richest is no soft touch, The Western Australian, December 22, 2022
reprinted from How Bernard Arnault became the world’s richest person, The Economist,
December 20, 2022 https://www.economist.com/business/2022/12/20/howbernard-arnault-
became-the-worlds-richest-person

Include your full name and student number in a footer in the document. Include page
numbers in the format e.g., 1/5 in the footer.

Objective/Criteria
- 3 questions answered in sufficient depth minimum 1,000 words, with well informed,
logical discussion
- Understanding of academic theory - analysis of relevant theories with application to
the case study
- Understanding of broader concepts - additional research demonstrated with
discussion from a broader perspective which provides support to the analysis
- Academic research - 4 peer reviewed academic journal articles correctly cited and
referenced and with relevance to the discussion
- Quality of writing - clarity in writing, concise, avoiding grammatical and spelling
errors
- Overall report presentation – correct referencing, appropriate appendices, and
correct formatting. Ouriginal report provided.
Case study: What can we learn from the world’s richest man?
Bernard Arnault, the CEO of LVMH has surpassed all the tech CEOs to become the world’s
richest man in 2022. His global empire includes some of the largest fashion, perfume,
jewellery, champagne, and makeup brands.

Answer the following questions as a case study analysis based on the article Softly spoken
world’s richest is no soft touch1.

1. What are some of the possible challenges for the LVMH group, which are raised in
the article: Softly spoken world’s richest is no soft touch2?
- Frustration from lower social class
o Premiumisation and how luxury brand create value
 Luxury started as a niche, limited to the happy few, the only ones who
could afford it. Although these images come spontaneously to mind
when consumers are asked what the word luxury evokes (IPSOS,
2014), modern luxury is very different: It is an actively growing sector,
targeting an expanded clientele.
 Luxury brands have had no choice but to abandon product and
ingredients rarity as the precondition of luxury and adopted
"abundant rarity" strategies (Kapferer, 2012) characterized by feelings
of exclusivity more than actual exclusivity and by artificial rarity tactics
(limited editions, capsule collections). This is also why luxury brands
have changed the focus of their investments, moving from production
to the creation of memorable retail experiences, to personalized
services and to attaching symbolic capital and prestige to the brand
name itself through communication, social influence, social networks,
celebrities, brand ambassadors [...]
 Luxury evokes high prices among consumers of most countries
(Godey, 2013). But the high price of luxury is of a special kind: It can
never be fully justified by a gap in product quality or performance
alone. Sheth Godin's definition of luxury (Godin, 2009) as "needlessly
expensive" does capture this essential facet.
 As luxury high prices are not fully explained by functional qualities,
this means that luxury brands create value far beyond the satisfaction
derived from superior product or service performance or quality.
 https://www.proquest.com/docview/1826443656?
accountid=12629&forcedol=true&forcedol=true
 In fact, the even notion of performance does not fully apply to luxury:
Luxury redefines what quality means.
 https://www.proquest.com/docview/1826443656?
accountid=12629&forcedol=true&pq-origsite=primo
 Now a days, luxury brands are not exclusively for the rich and elite,
and even the masses are purchasing them; this is because most luxury
brands have developed specialized product lines (e.g. Armani has
Emporio Armani, Armani Exchange, Armani Jeans and Giorgio Armani)
to cater to different market segments. Therefore, luxury consumption
is no longer restricted to the most rich and famous of society, but also
 includes the masses earning well with a greater level of consumption
orientation (Catry, 2003).
 Researchers refer to this concept as the “democratization of luxury”
(Kapferer and Bastien, 2012), “mass affluence” (Nunes et al., 2004)
and “bandwagon luxury consumption,” which signifies that
“consumers buy certain categories of luxuries as these are very
popular” (Kastanakis and Balabanis, 2012, 2014).
 https://www.proquest.com/docview/1916152831?pq-
origsite=primo&accountid=12629

o Customer motivation
 Luxury price is that of the "singularities" (Karpik and Scott, 2010) built
by the intangibles (such as heritage, tradition, history, country of
origin, association to famous clients, to an imaginary lifestyle). It is
also the price to be paid to symbolically be part of the same closed
club as these VIP's who made the brand, thus, gain social recognition
and distinction (Veblen, 1899). Finally, beyond wealth and status
signaling (Belk, 1988), as shown by Amaldoss and Jain (2005) it is the
price high enough to make followers, unable to follow.
 Wiedman et al. (2009) proposed an integrated tri-partite model of
these key values created by luxury. They distinguish functional,
individual (luxury for self) and social values (luxury for others).
Functional values remind that unlike art, luxury products have also to
be extremely well performing. Individual values refer to self-identity
values, hedonic benefits and liking materialism. Social values are
fulfilled by luxury conspicuousness. Wiedmann et al. (2009) added a
"financial value" to their model, but this remains awkward: Measured
by an item like "Luxury is inevitably very expensive", this is more a
defining characteristic than a value stricto sensu.
 In modern luxury, the brands have accumulated a symbolic capital
which does not merely rely on the product uniqueness and preciosity
but on the desirability of the brand as a whole. Social statements are
made by wearing the logos of known brands: Social recognition is not
conveyed by a bag unless its brand is recognized even by non-buyers.
 In modern luxury, brands have become crucial because the more one
sells intangible values beyond functional ones, the more these
intangible values must be certified: Only the fame of the brand can
guarantee them. In luxury, no one wants to buy the wrong brand. This
is why luxury business is a brand-building business: Once established,
trust, reputation and desirability can be leveraged to expand the
product base, as well as the consumer base. This explains why luxury
brands can be so largely extended
 https://www.proquest.com/docview/1826443656?
accountid=12629&forcedol=true&forcedol=true
 The luxury sector has grown because today, more people want a
share of this luxury dream, even exceptionally (Nueno and Quelch,
1998; Silverstein and Fiske, 2005). In the modern society,
 consumption is held as a source of happiness (Baudrillard, 1998): It is
normal that its most extreme production as well as experience be
held as an access to dreams, under the umbrella of a highly desirable
brand.
 Another well-known luxury scale (Dubois et al ., 2001) identifies three
factors underlying luxury: distinction, elitism and hedonism. The first
factor is measured by items such as "This is a brand to dream", the
second by "This brand represents luxury" and the third by "It is a real
pleasure to own this brand".
 The luxury sector has grown because today, more people want a
share of this luxury dream, even exceptionally (Nueno and Quelch,
1998; Silverstein and Fiske, 2005). In the modern society,
consumption is held as a source of happiness (Baudrillard, 1998): It is
normal that its most extreme production as well as experience be
held as an access to dreams, under the umbrella of a highly desirable
brand.
 Another well-known luxury scale (Dubois et al ., 2001) identifies three
factors underlying luxury: distinction, elitism and hedonism. The first
factor is measured by items such as "This is a brand to dream", the
second by "This brand represents luxury" and the third by "It is a real
pleasure to own this brand".
 The glamour factor is constructed by the celebrities believed or
known to be buying the brand. They are themselves very mediatized
and contribute to make the brand: Audrey Hepburn made Tiffany and
as Grace Kelly made Hermès. Together with the elitism factor (the
brand being associated with very high ticket special items,
inaccessibility), these VIP's build the "prestige level" of the brand.
 https://www.proquest.com/docview/1826443656?
accountid=12629&forcedol=true&pq-origsite=primo
 One major issue is understanding why people buy luxury goods. Based
on the seminal work of Vigneron and Johnson (1999), a broad range
of studies has been carried out recently on luxury consumer behavior.
Most of them focus on social factors, such as hedonism, group
conformism, status-seeking, perception of the self (Hirschman and
Holbrook, 1982; Lichtenstein et al., 1993; Batat, 2019; Brun and
Castelli, 2013; Hudders and Pandelaere, 2013; Wiedmann et al., 2009)
and cultural specificities (Atwal and Bryson, 2014; Hennigs et al.,
2012; Lu, 2008; Wong and Ahuvia, 1998).
 https://www.proquest.com/docview/2624619976?pq-
origsite=primo&accountid=12629
 Consumption of luxury brands involves purchasing a brand that has
significance not only for consumers but also for significant others
(Wiedmann et al., 2009).
 Vigneron and Johnson (2004) categorize two main dimensions of
perception toward luxury. The first is the personal perception, which
consists of hedonic value and indulgence for an extended self, and the
second is the non-personal perception, which includes perceived
 conspicuousness, uniqueness and quality. Their research highlights
several important factors regarding the perceptions contributing to
the formation of attitude toward luxury. To begin with, luxury brands
have a social dimension; in other words, luxury brands are acquired
for personal satisfaction as well as for the display in front of relevant
others. Second, the personal dimension of luxury brands, which
entails experience and pleasure associated with the acquisition of the
brand, is also of great value and significance. Third, luxury brands are
purchased for their high quality and functionality and a higher price is
associated with premium quality.
 Kapferer and Bastien (2009) perceive that a luxury brand is like a coin
with two different sides to it; one side is luxury for one’s own self and
the other is luxury for others. Luxury for the self involves self-
satisfaction from the acquisition of luxury brands, and luxury for
others involves status consumption and demonstration of an ideal self
to be part of a referent group (Belk, 1988; Kapferer and Bastien,
2009).
 In the field of economics, Leibenstein (1950) categorizes these effects
as “Veblen” or “snob” and the “bandwagon effects.” The bandwagon
effect refers to the consumers’ tendency to buy a popular luxury
brand with a purpose to get approval from/identify with the groups
they belong to (Tsai et al., 2013).
 Status consumption is the acquisition, usage and display of
commodities in order to enhance the actual or ideal self-concept with
the purpose to affiliate with a particular social group (Belk, 1988;
Eastman et al., 1999; Kastanakis and Balabanis, 2012). It helps
consumers “to improve their social standing through the conspicuous
consumption of consumer products that confer and symbolize status
both for the individual and surrounding significant others” (Eastman
et al., 1999, p. 42)
 Identifiable luxury brands such as Louis Vuitton and TAG Heuer,
purchased for their popularity, are relevant in this case, as they
personify status which categorizes the buyers within a certain social
class.
 Conformity refers to modifying one’s behavior or thought process to
have it synchronized with that of other people in the society. It largely
impacts the purchase of publicly consumed commodities, and in the
case of luxury fashion brands it is an integral component because the
primary purpose of these products is to be used socially (Park et al.,
2007).
 High levels of conformity allude to the tendency to display luxury
brands (Rose et al., 1994). Bearden and Etzel (1982) found that there
is a great level of influence of reference groups in choosing the public
goods over private and luxury over necessities. According to Wong
and Ahuvia (1998), western consumers indulge in luxury brand
consumption to illustrate their personal preferences and personality;
on the other hand, Eastern consumers purchase luxury goods to
 conform to their reference groups. Consumers in Eastern cultures
purchase luxury goods for the symbolic meanings that they hold and
to show that they are affluent and wealthy (Park et al., 2007).
 The social context exerts its influence on the purchase of foreign
luxury brands (Hung et al., 2011). Further to this, conformity is linked
to collectivism (Hofstede, 2001; Triandis et al., 2001). Consumers tend
to conform to enhance their interdependent selves by purchasing
luxury goods (Lascu and Zinkhan, 1999). On the other hand,
consumers with independent orientation do not derive their
motivation from external factors, and are internally motivated; thus
independent orientation discourages bandwagon luxury brand
consumption. Summarizing, conformity is an important variable that
enhances the interdependent self and supports consumption of
luxury brands.
 https://www.proquest.com/docview/1916152831?pq-
origsite=primo&accountid=12629
 Those areas could generally be found next to the centres “of wealth
and power and they quickly acquired an allure as tourist sights, places
of style and opulence, and home to all that was modern and
fashionable” and the “ultimate purpose of such grandiose efforts was
to endow commodities with an aura, a mystery or an appeal that
went beyond their use-value” (Gundleand Castelli2006, p. 10). As
cities expanded, and the thirst for luxury increased, they also became
the point of reference for cultural change (Dewald 1996, p. 133) and
for finding events, entertainment and more, so that new ways
emerged for old and new elites of asserting their social and cultural
leadership. In the same time, against the background of the
metropolitan life role-playing and fantasy could become key elements
of an individual’s social behaviour (Gundleand Castelli2006, p. 29).
 If the key of desire appears as a useful tool for managing the
perception of luxury among the consumers in the eyes of luxury brand
managers, at the same time it seems to appeal to the main feature of
the typical middle class mentality.
 As Campbell (1987, pp. 35–38) puts it, this distinctive emotional
condition is at the basis of a desiring or yearning predisposition that
fuelled aspirations and dreams of the bourgeoisie, and that was
characterised by insatiability, an apparently unlimited pursuit of
wants. Also due to the fact that middleclass people “had neither
heritage nor breeding to draw on, they set about winning this by
fashioning a lifestyle of great ostentation. Massive palaces, ultra-
refined interiors, enormous yachts, grand summer houses, glittering
parties, elegant weddings, and international travel became the key
markers of status of the super-rich” (Gundle2008, p. 122).
 In this perspective, luxury goods are available for self-narration in
many forms, distributed on the two levels of the global chessboard,
where wealthy consumers can find a place next to middle class
 consumers in order to receive social recognition, success, and
increase one’s own prestige (Mazzalovo and Chevalier 2012, p. 5):
 The global luxury chessboard is therefore distributed on two levels, if
not more; on the one hand, true luxury, which few people can afford,
increases its hold on the market. The growth in the number of
wealthy consumers (especially in the BRIC [Brazil, Russia, India, China]
countries), combined with a bigger supply, plus investments in the
luxury industries that have been yielding higher returns on investment
than ordinary brands, have led to wide visibility of luxurious lifestyles.
 Nowadays’ consumers appear as ostensibly continuing their search
for forms of excitement or diversion, for identification or self-
expression, also to avoid a return to the obnoxious vision of a well-
organized and planned life as heralded in the modernity (Campbell
1994). Ranging from gourmet food and wine to lavish weekends at
prestige resorts, the variety of possibilities for the appropriate deluxe
experience seems to be expanding every day, drawing with itself a
plethora of new issues about what luxury is going to be, most of all in
the form of “self-illusory, imaginative hedonism that found a practical
outlet in the distractions and shopping of the late nineteenth century
and after […].
 The daydreaming to which novelists had become so expert in catering
was sustained and further stimulated in the new temples of
consumption” (Gundleand Castelli2006, p. 10).
 An extremely important aspect of the relation between luxury and
need is also provided in the interplay between the notions of ‘need’
and ‘desire’, which have been held as vital preconditions for the
presence of luxury in a society. Luxury goods are expected to be
widely desired and even to produce a certain sensation of envy
among those who can’t afford them
 https://link.springer.com/book/10.1007/978-3-030-25654-8
 Likewise, Woodall (Citation2003) has identified another set of 4
dimensions of luxury values, including exchange, use, utilitarian and
intrinsic values. Similarly, Wiedmann et al. (Citation2007)
conceptualized luxury value using four dimensions, i.e. financial,
functional, social, and individual. Likewise, literature also advocates
the candidature for various other luxury dimensions including
objective, subjective and the collective values (Berthon et al.,
Citation2009); as well as symbolic, functional, cost-related,
experiential (Smith & Colgate, Citation2007), self-directed and other-
directed values (Tynan et al., Citation2010). Based on the early
research, it is evident that there are some standard and repeatedly
proven dimensions of luxury values. Apparently, the luxury value
perception has links with social dimension referring to consumption
and use of luxury brands being appreciated in the social circle,
functional dimension referring to the use of and features of the luxury
brand, and the individual dimension referring to the fulfillment of
personal motives. Having understood the role of luxury-based value
 dimensions, building consumer perception and established behaviors,
the literature also argues that the luxury value is an outcome of the
combined effects of various dimensions. However, the significance of
each luxury value dimension will vary across variant cultures (Faschan
et al., Citation2020).
 Here, conspicuousness means to spend money on a luxury product to
display economic power. Conspicuous consumption also encompasses
the factor of expenditure which is specifically made to display one
wealth in an ostentatious manner (Mason, Citation1981). Consumers
do not purchase different things because of their functional benefits
but the reason behind such purchase is to display their image in the
public (O’Cass & McEwen, Citation2004). Klaus-Peter et al.
(Citation2009)carried out a research study in which researchers
divided their sample into 4 clusters; the Materialists, the Rational
Functionalist, the Extravagant Prestige-Seekers and the Introvert
Hedonists. While the 3rd group and 4th group of people acts
opposite. They want to impress others from the brand they buy.
 https://www.tandfonline.com/doi/full/
10.1080/23311975.2022.2135221
 With the marketing appearance, more and more are produced and
sold according to the hedonistic nature of humans (desires), although
this is in contradiction with the rational consumer (homo economicus)
because human desires are huge/unlimited, and purchasing
(economic power)/consumer income is very limited, so consumer
behavior toward desires is irrational.
 https://web.s.ebscohost.com/ehost/pdfviewer/pdfviewer?
vid=0&sid=364a3bce-efcc-40a2-988d-b734e15629cb%40redis
o Threats: Would be a disaster if those middle-class customers are unable to
continuing purchase
 However, the impact of income inequality is seldom analyzed in this
context. One can wonder whether inequality leads to more
consumption of luxury goods. In highly unequal societies, belonging to
the wealthy class used to be traditionally expressed through
conspicuous consumption, as already argued by classics such as
Veblen (1899), Simmel (1904) and Bourdieu (1979). Research on
consumer behavior has confirmed that the so-called Veblen effect had
an impact on consumption until today (Leibenstein, 1950; Mason,
1981; Tian et al., 2001; Kastanakis and Balabanis, 2012), although the
luxury market has transformed from a niche orientation addressed to
the happy few into a fast-growing global industry (Donzé and Fujioka,
2015). Hence, there is a need to measure the possible relation
between the development of luxury consumption around the world
and growing inequalities. Ordabayeva and Chandon (2011) argued
that increasing equality led to more conspicuous consumption by the
bottom-tier consumers because it could fulfill a desire for greater
position gains.
  The relocation of production activities to emerging countries
contributed to the development of counterfeit goods (Gistri, 2021;
Grossman and Shapiro, 1998).
 access to new markets and new consumers – particularly in emerging
countries – is a major topic relating to both the globalization and
democratization of luxury brands. Social distinction and exclusivity are
important factors in explaining the consumption of luxury goods
(Mason, 1981; Eastman et al., 1999; Kastanakis and Balabanis, 2012).
However, to delineate the factors behind the global expansion of
luxury business, scholars tend to point to elements such as the
emergence of new generations of consumers such as millennials
(Cabigiosu, 2020) or the expansion of middle classes and increases in
disposable income rather than social inequality (Eckhardt et al., 2015;
Xu et al., 2013).
 https://www.proquest.com/docview/2624619976?pq-
origsite=primo&accountid=12629

- China market entry

For an emerging country, the presence of luxury stores is a signal of the country's
economic growth and of the emergence of a middle class willing to access to the
best that the consumer society can offer.
If mature countries still remain the dominant luxury markets because of their high
purchasing power (USA, Japan, Europe), then the long-term future of luxury is
elsewhere in these emerging countries. It is predicted that China could become the
Number 1 country of the luxury sector in 2020, because of the considerable size of
its middle class, wanting to enjoy life after decades of deprivation (Bain & Company.,
2014) and who travels now outside China.
https://www.proquest.com/docview/1826443656?
accountid=12629&forcedol=true&pq-origsite=primo
China’s luxury goods market is still expected to keep on growing in China despite the
slowdown of the last years. Chinese consumers’ appetite for luxury brands is still
present and in particular in new geographic areas of mainland China is growing as it
is growing their digital experience in luxury purchase (Rovai, Citation2016).
Chinese consumers, in particular the “new rich” segment arising from the new
Chinese young digitally-savvy middle-class, and the younger upscale digitalised
luxury segment, which is defined as individualism and indulgence
(https://www.tandfonline.com/doi/full/10.1080/08961530.2019.1710736) have
become one of the main consumers’ segments, showing their newly acquired status
or rewarding themselves and their family and focusing on a new online purchasing
experience.
https://www.tandfonline.com/doi/abs/10.1080/20932685.2018.1435294?
journalCode=rgfm20
In particular, they seem to pay particular attention to specific issues related to the
changes of the Chinese luxury landscape, namely, a meaning and perception of
luxury that is embedded in the past, but is responding to the changing public
sentiment; the influence of new regions in China that represent an increasingly
significant market opportunity for long-term luxury brand sustainability; and, the
increasing significance of heritage and country of origin, which enable international
luxury brands to connect with current, but also prospective Chinese luxury
consumers (Rovai 2015, 130). These factors are to be taken into account in
understanding the changing nature of the different typologies of luxury(ous)
experience contemporary consumers are looking for.
In this perspective, it is also important to point out that Chinese culture and way of
thinking insist on concepts of rites and harmony as inspired by Confucian thought. As
a consequence of this, the experience with luxury goods is generally lived and
interpreted as an affirmation of individualism and distinction, reflecting at the same
time the structure of social dynamics. Such a traditional interpretation of the
relationship with goods and services is also related to the concept of inequality
between individuals and the spiritual forces existing between them. In this
framework, luxury goods participate in a ritual hierarchical pattern in which status
and social obligations are reflected. Besides, they represent the character and spirit
of each individual (who can afford them), since traditional Confucian culture does
not consider luxury as something superfluous or frivolous (Rovai 2015).
https://link.springer.com/book/10.1007/978-3-030-25654-8
o Social impact
 Boycott culture - Threats of buyer
 Recently, luxury fashion brands have been the target of several high-
profile consumer boycotts in China. In 2018, Dolce & Gabbana was
boycotted over an advertising campaign for the Chinese market which
was widely decried as “racist.” In 2019, Coach, Givenchy and Versace
faced boycotts over perceptions that they had contradicted China’s
territorial claims. In each of these cases, rapid apologies by the brands
concerned were not enough to quell the controversy, and today they
remain an active target of anti-consumption in China.
 Chinese luxury consumers represent almost a third of the global
market for luxury goods, set to rise to 44% by 2025 (McKinsey & Co,
2017). More than ever, it seems, this immense market is willing to
punish brands for perceived social infractions.
 https://www.proquest.com/docview/2615222530?pq-origsite=primo
 China accounts for 6.7% of LVMH's sales.
 Chinese consumers have also boycotted some American brands as a
show of support for China in its continuing trade fight with the U.S. In
a June survey, 56% of Chinese consumers said they have avoided
purchasing an American product to show support for China's position
in the trade war. That poses a significant risk to U.S. companies, since
three out of four Chinese consumers say they often buy products
from American businesses, according to Brunswick Group's opinion
research practice.
 https://www.proquest.com/docview/2272450361?pq-
origsite=primo&accountid=12629
 Focus on value - Threats of buyers
 Consumer behavior nonetheless appears as significantly differentiated
and is regarded as an effect of the rapid expansion of luxury
consumption. In more economically advanced regions, Chinese
 customers still adopt a highly knowledgeable and refined approach
towards the purchase of luxury brands (Rovai 2015) and they are able
to spend long time looking for the best solution in terms of money
invested and expression of their own personality and individuality:
this process of information research and evaluation can last up to 2–3
months before the actual purchase (Panchout 2013).
 https://link.springer.com/book/10.1007/978-3-030-25654-8
 Fake product - Threats of new entrant
 With the value of the luxury market growing, many designer brands
have become targets for counterfeit producers, and consumers'
decisions to purchase fakes instead of originals have developed into a
worldwide crisis (Jiang and Cova, 2012). The Report on European
Customs Enforcement of Intellectual Property Rights (European
Commission, 2013) states that in this sector, the economic damage in
2012 reached US$313 m of seizures a year (World Customs
Organization, 2013).
 Considering counterfeits as a sign of brand desirability (Wang and
Song, 2013). In addition, as various scholars state (Bloch et al. , 1993;
Cheung and Prendergast, 2006; Wilcox et al. , 2009; Yoo and Lee,
2009), customers may look at fake consumption as an attempt to
assume a particular personality and social traits (imagery block) to
gain social approval. The more a genuine consumer is aware of these
attempts, the more he or she may be personally conscious of
possessing these desirable social and personality traits him- or herself
(Cordell et al. , 1996; Park et al. , 2010), and the more he or she is
inclined to feel positive sensations related to being consistent with a
socially desirable profile (feelings block).
 https://www.proquest.com/docview/1826809459?pq-
origsite=primo&accountid=12629
 Asia is known as the world’s center of both counterfeit goods
production and consumption, with China often seen as the primary
culprit (Predergast, Chuen, & Phau, Citation2002).
 https://ebookcentral.proquest.com/lib/murdoch/detail.action?
docID=4087204&pq-origsite=primo

o Geopolitical impact
 Brands have reacted differently to the crisis of Russia's invasion of
Ukraine: there has been a degree of posturing and virtue signaling,
with some brands making grand statements about boycotting Russia
without actually doing any significant business there.
 Indeed, Russia is no longer a hot market for European luxury brands.
According to a report from Morgan Stanley issued earlier this week,
the importance of Russia and Russian nationals for the luxury goods
sector has declined over the years and is now "relatively immaterial."
 https://web.s.ebscohost.com/ehost/detail/detail?
vid=0&sid=8f1e3554-d538-45f4-9760-5a03715961ec
 %40redis&bdata=JkF1dGhUeXBlPXNoaWImc2l0ZT1laG9zdC1saXZl#AN
=155543356&db=bsu
o Threats: The war between Russia and Ukraine has not much impacted on the
LVMH, due to the fact that those countries have small market of luxury
brand. However, since US and China market is one of the biggest markets for
LVMH, it would be a disaster to lose either one due to their conflicts
 The trade war between the US and China is one of the big problems
that have a propagating effect on other countries (Aslam, 2019;
Gunawan & Arfah, 2019; Ke, 2019). The trade war, which had
decreased at the beginning of 2019.
 https://onlinelibrary.wiley.com/doi/full/10.1002/pa.2543
 The coronavirus outbreak occurred in China. Therefore, this country
suffered the first humanitarian and economic losses. However, the
last straw in their relationship was an outbreak of a coronavirus
pandemic in the Chinese city of Wuhan. President Trump’s official
accusations of a coronavirus outbreak directly indicated that it was
China’s fault. However, China claimed that the virus is American, and
a delegation of American soldiers brought it to Wuhan (Economic
Times 2020), where sports games took place on the eve of the
pandemic. During the pandemic, Moscow joined the political game
between Beijing and Washington, which was accompanied by
spreading information that the coronavirus was invented in American
laboratories.
 Deepening economic, political, and technological ties between
Moscow and Beijing and their open confrontation with the U.S.,
polarise the world more and more
 https://przegladeuropejski.com.pl/resources/html/article/details?
id=229487

2. The marketing strategy of LVMH has been described as: inventing a paradox: selling
exclusivity by the millions3. Discuss this concept.

- Sigmund Freud

3. Research the following five brands from the LVMH group, Lois Vuitton, Fendi, Dior,
Moet et Chandon and Hennessy. Outline their product ranges, positions within the
various markets, and relevance to the LVMH portfolio.

Additional resources:
Softly spoken world’s richest is no soft touch, The Western Australian, December 24, 2022
reprinted from How Bernard Arnault became the world’s richest person, The Economist,
December 20, 2022
https://www.economist.com/business/2022/12/20/how-bernard-arnault-became-the-
worlds- richest-person

The Man Richer Than Jeff Bezos or Elon Musk: LVMH CEO Bernard Arnault - Wall Street
Journal 2023 (5.46) https://www.youtube.com/watch?v=mgWmQ_6M_2o
Bernard Arnault Leaves the Audience Speechless LVMH Moët Hennessy CEO – Still I Rise
2022 (9.57) https://www.youtube.com/watch?v=MFAhJLteQ2I

C Riches, Secretive, patient and a visionary: Meet the man who’s suddenly become the
world’s richest, 4 February 2023, SBS News https://www.sbs.com.au/news/article/secretive-
patient-and-a- visionary-meet-is-the-man-whos-suddenly-become-the-worlds-richest/
5qgi8v48f