Hermès vs LVMH: A Case Study Of Two Luxury Models, L'Officiel Coffee
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Hermès vs LVMH: A Case Study of Two Luxury Models
And what it tells us about the future of the fashion industry.
In a moment that caught the attention of the entire luxury world, Hermès briefly became the most valuable company on France’s CAC 40 stock index. On that Tuesday, its market value reached €243.65 billion — surpassing even LVMH Moët Hennessy Louis Vuitton SE (€243.44 billion).
Yes, Hermès — a private, family-run maison — beat the most powerful luxury conglomerate in the world, even if just for a moment. But this wasn’t just a blip on the stock market. It’s a powerful signal that two very different approaches to luxury are playing out — and the results are worth examining.
A Tale of Two Luxury Models
Let’s start here: Hermès and LVMH stand for two opposite philosophies when it comes to luxury.
Hermès is one of the rare fashion houses that remains independent. Alongside Chanel, it has resisted joining any of the major luxury groups like LVMH, Kering, Prada, or OTB. Since its founding in 1837, Hermès has stayed true to a model rooted in heritage craftsmanship, scarcity, and timelessness. It doesn’t chase seasonal hype, flashy marketing, or expansion at all costs.
Its focus? Artisanship over algorithms. Leather over logos.
While most luxury brands rely on frequent drops and buzz-worthy collaborations, Hermès remains quietly consistent. The brand’s supply-constrained business model ensures that demand always exceeds availability — especially for icons like the Birkin and Kelly. These bags aren’t simply bought; they’re earned. Customers wait patiently, build relationships, and often join waitlists that stretch for years. Starting at around €10,000, these pieces soar on the resale market, upheld by a carefully curated sense of exclusivity.
On the other end, we have LVMH — the ultimate luxury conglomerate with more than 75 brands under its umbrella, covering everything from high fashion and cosmetics to watches, wines, and jewelry. Just within fashion, it owns 14 brands, including Dior, Fendi, and Marc Jacobs.
LVMH has mastered the business of scale: acquiring legacy labels, revitalizing them, and creating synergies across categories. Its broad portfolio means the group speaks to multiple demographics, balancing high-end prestige with more accessible offerings.
And while this strategy is highly effective from a business perspective — and has opened the doors of luxury to a wider audience — some critics argue it runs the risk of “luxury dilution.” Take Sephora, for example. It’s a standout success story for LVMH in the beauty space, but it also operates at a very different margin and model compared to, say, Louis Vuitton. The mass visibility might help with revenue, but does it take away a bit of the mystery that traditional luxury is known for?
Who’s winning now?
Recent macroeconomic shifts have put pressure on the luxury industry overall. A slowdown in the Chinese market, economic uncertainty in the U.S., and global geopolitical tensions have led several luxury brands to report slower growth — or even drops.
LVMH’s Q1 results showed a decline of nearly 8.4%.
So the big question is: is Hermès just benefiting from good timing, or does its strategy offer a smarter, more resilient model for luxury’s future?
Hermès seems to be weathering the storm more smoothly than others. Why? Because it doesn’t chase the same audience. While many brands have been focusing on aspirational consumers, Hermès remains laser-focused on its core: legacy buyers, ultra-high-net-worth individuals, and multi-generational clients. These clients aren’t as affected by market fluctuations — and their loyalty builds what we could call a “fortress economy.”
The brand doesn’t need to shout. Its quiet strength comes from precisely that restraint. The result? Resilience. Strong pricing power. And an aura of exclusivity that feels even more valuable during uncertain times.
Remaining independent vs. joining a conglomerate
Let’s rewind to 2010 for a moment.
That year, LVMH’s CEO Bernard Arnault revealed he had quietly built a stake in Hermès — an unexpected move that shocked the industry. Nicknamed “the wolf in cashmere,” Arnault’s intentions were clear: he wanted to bring Hermès under the LVMH empire.
But the Hermès founding families weren’t having it. They united to resist the takeover and eventually forced Arnault to sell his shares. Their decision to stay independent — once seen as risky and nostalgic — now looks more like a brilliant long-term move.
It allowed Hermès to keep full control over its identity, values, and long-term strategy. No external pressures. No distractions from other brands. Just pure focus on what makes Hermès… Hermès.
That said, being part of a group like LVMH comes with serious advantages too. A shared network of talent, deep financial resources, cutting-edge technology and innovation capabilities, and protection during volatile economic times. And let’s not forget: LVMH’s results might be down slightly — but they’re still solid. It’s far from a failure.
What can we learn from this?
The Hermès vs. LVMH comparison is not about who is better. It’s about two very different — and successful — ways of building a luxury brand. And in today’s saturated market, Hermès offers an important reminder:
Luxury isn’t just about what you sell. It’s about how you make people feel.
In a world of constant drops, loud campaigns, and fast growth, Hermès shows us that sometimes the best strategy is to slow down, say less, and stay rare.
If you’re dreaming of working in fashion — whether it’s in branding, marketing, merchandising, or product — this case study is full of insights. The kind of strategy you’ll work on at Hermès is totally different from the fast-paced innovation machine at LVMH. Neither is wrong. But understanding how these models operate will help you decide where you want to build your career — and what kind of fashion brand you want to be part of.
A lesson for the future of luxury?
Hermès’ moment in the spotlight shows that a tightly held brand with discipline and restraint can, at times, outperform even the most powerful conglomerate.
In an age where visibility is everywhere, perhaps invisibility — mystery, patience, and scarcity — is the new luxury flex.
And maybe, just maybe, the future of fashion isn’t about doing more. It’s about doing less — better.
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What else happened in the industry this week? 💚
NEW FACES 👀
Jonathan Anderson is going to Dior Homme
Source: Business of Fashion
It’s hardly a big surprise, but it’s official: Jonathan Anderson was appointed the artistic director of Dior Homme. He will showcase his debut collection for the French brand’s men’s line this June. Sooo excited for his debut!
Jean-Paul Gaultier appoints its first-ever successor to the founder
Source: Business of Fashion
Jean Paul Gaultier has tapped Dutch designer Duran Lantink to be its creative director. This is a big moment for the Puig-owned label, as Lantink is the first designer to succeed its namesake founder and stage the first ready-to-wear show in over a decade (it was shuttered in 2014), which will be unveiled during September’s Paris Fashion Week.
Duran Lantink, winner of the 2025 Woolmark Prize and LVMH’s 2024 Karl Lagerfeld prize, founded his namesake label in 2021. However, he plans to suspend it to focus on his new opportunity at Jean Paul Gaultier.
AROUND THE WORLD 🌏
Ralph Lauren returns to New York with a fashion show
Source: WWD
Yesterday, the designer of dreams returned to Manhattan to showcase his fall 2025 collection. Held in the new Jack Shainman Gallery flagship in TriBeCa, the collection drew inspiration from the early 1980s. Majestic setting!
Dior stages its latest Pre-Fall collection in Kyoto
Source: WWD
Christian Dior was fascinated by other countries—Mexico, Scotland, and Japan, among others. Maria Grazia Chiuri has preserved the ties with those countries by staging shows in exotic locations that were dear to the founder since she became a creative director in 2016. This Tuesday, she presented the Pre-Fall 2025 collection in Kyoto’s Tō-ji Garden. The line serves as an expression of Christian Dior’s love of Japanese florals, embroidery, and garden motifs, and the strong links between the Maison and Japan.
Jil Sander opens a flagship in Dubai
Source: WWD
Jil Sander made its Middle Eastern debut with the opening of the first flagship in Dubai, a region of high interest for many luxury brands.
“We are proud to introduce the brand’s modern take on luxury and look forward to meeting the dreams of the Middle East customer,” Renzo Rosso, founder and chairman of the brand’s parent company OTB Group, told WWD.
FASHION EXHIBITIONS 👠
Source: Vogue
The Met Costume Institute prepares to host its first fashion exhibit focused on menswear since 2003
The annual Met Gala is around the corner, taking place, as usual, on the first Monday—May 5 this year. Each year, the event celebrates the Costume Institute’s new exhibition. This year it’s "Superfine: Tailoring Black Style", inspired by guest curator Monica L. Miller’s 2009 book, “Slaves to Fashion: Black Dandyism and the Styling of Black Diasporic Identity.” This will be the Museum’s first fashion exhibit focused on menswear since 2003. It will run from May 10 to October 26, 2025, at the Metropolitan Museum of Art in New York.
The Met Gala’s dress code is usually themed to the exhibition. This year it’s “Tailored for You”, a nod to the exhibition’s focus on suiting and menswear.
This year’s Met Gala co-chairs are Colman Domingo, Lewis Hamilton, A$AP Rocky, Pharrell Williams, LeBron James, and Anna Wintour.
And in case you are wondering, this is the guest list:
Watch the event LIVE Monday, May 5 at 5.30 p.m. ET on Vogue.com and Vogue’s social media channels.
Giorgio Armani to celebrate 20 years in couture with an exhibition in Milan
Source: WWD
The Italian designer’s Armani/Silos space in Milan will open on May 20 an haute couture exhibition to celebrate the brand’s 20th anniversary of Giorgio Armani Privé couture line. Titled “Giorgio Armani Privé 2005-2025,” it will feature Armani’s 150 couture gowns he has personally curated. This will be the first time his Privé collections will be displayed in Milan, as they are usually presented twice a year at Paris Couture Week.
After the inauguration on May 20, the exhibit will open to the public the following day and run through the end of the year.
BEYOND FASHION ✨
L’Officiel opens its first-ever L’Officiel Coffee spot in the world
Source: WWD
The glossy magazine is venturing into hospitality with a newly opened coffee outpost in the world, and it’s in Tokyo’s luxury retail district, Omotesando. The three-story building includes a caffé on the ground floor, an exhibition space with archival L’Officiel issues on the first floor, and the L’Officiel bar on the second floor.
L'Officiel magazine first launched COFFEE with a pop-up at the World Economic Forum in Davos in January 2023. However, this is the magazine’s first permanent coffee shop in the world.
“With L’Officiel Coffee, we wanted to bring the brand’s heritage of fashion, culture and editorial excellence into a physical space — an experience that feels refined, intentional and globally relevant. Japan was the ideal starting point,” Dr. Calvin Choi, global chairman of L’Officiel and The Art Newspaper, and founder of AMTD IDEA, a subsidiary of AMTD Group, the owner of both titles, told WWD in an exclusive interview.
Like the Elle Caffé that opened in Saudi Arabia in 2023, l’Officiel Coffee in Tokyo shows that the growing trend among lifestyle and the hospitality industry is not only adopted by brands but also magazines that want their readers and consumers new ways to engage with their favorite publications beyond the printed page. It’s also another proof that there is an important reader and customer base outside of the fashion capitals that needs to be seduced.
WNBA names Coach its first official handbag partner
Source: BoF
Coach announced a multi-year partnership with the WNBA as the league’s first handbag partner, marking another powerful intersection between fashion and sports. The long-term collaboration kicked off on Draft Night on Monday at The Shed in New York City with the WNBA Draft Orange Carpet presented by Coach. The orange carpet vs the red carpet is actually really nice too 🧡
FASHION AND TECHNOLOGY 🤖
CFDA partners with ALTA, a personal styling app powered by AI
Source: WWD
The Council of Fashion Designers of America has forged a partnership with a personal styling app powered by AI that helps users figure out what to wear and what to buy depending on the weather (like a new weather forecast but for fashion), the destination, the occasion, etc.
“Through CFDA’s new partnership with Alta, we can provide designers with ways to leverage technology into more personalized shopping experiences and help them with new opportunities to grow their businesses,” Steven Kolb, chief executive officer of CFDA, told WWD.
Fashion Career Tip
How learning languages can open you up to more opportunities in fashion
Learning languages is an essential skill in today’s interconnected world, including in an international industry like fashion. If you are looking for a job or internship, they can open more opportunities in the industry.
In our recent article, we talked about:
The key languages in the fashion industry
Which fashion professionals use them the most
The benefits of learning languages and some tips
Click here to read the article.
Fashion Campaigns of the Week 💖
Dreaming of warm(er) days and OOO with Balenciaga’s High Summer 2025 campaign.
Jacquemus shot its Spring 2025 campaign, “La Croisière”, in Egypt over a 24-hour journey from Cairo to Aswan.
What to watch this week 🎥
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What to read this week 📚
Fashion Tools: How to use Pinterest for your Fashion Research
When you think about fashion research, you might immediately turn to Vogue Runway, fashion archives, or brand websites. But what if I told you that one of the most powerful tools for building your fashion knowledge and inspiration is… Pinterest?
Yes, that app you might associate with wedding mood boards and DIY recipes is actually gold for fashion students, aspiring stylists, trend forecasters, and content creators.
Whether you’re just starting out or already studying fashion, Pinterest can elevate your creativity, sharpen your research skills, and make your fashion vision stand out.
In my recent article, I’ll show you step-by-step how to use Pinterest like an insider with examples, strategies, and real-world applications that go far beyond casual scrolling. Click here to read it.
Fashion Profiles to follow this week
Andrea Bossi Digital Editor l’Officiel USA: follow the life and career of a fashion editor
Agathe Vernazobres Giorgio Armani France and Benelux PR Director: follow the adventures of a fashion PR
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Great breakdown!
Great article, super well done! Checkout what I wrote a few days ago on the same topic https://marcinparis.substack.com/p/when-the-discreet-overtakes-the-grand?r=5ib925