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Message: <blockquote data-quote="Jacob Miller" data-source="post: 69296" data-attributes="member: 5063">Really interesting thoughts Neville!I've been monitoring LVMH Group for a while now - primarily because the Tiffany dispute was one of the major commercial issues during my application cycle. I am also a fan and (semi-)regular customer of several of the Group's brands and other similar brands, so I have quite a decent understanding of their client base and target market, etc (read as: my financial decision-making is highly questionable).I agree that the aggressive expansion of LVMH group in this time perhaps points to an investment model comparable, or anecdotal, at least, of a counter-cyclical investment structure where they buy during bad times with the aim of strengthening the brands for when the good times are back.I agree that logic would generally dictate that these luxury brands should be experiencing a downturn at present.  However, the thing that is worth considering here is the primary clientele of many of LVMH Group's brands. Most people who are customers of these luxury brands are in roles which haven't been drastically affected by things like furlough - for example, my income from trading hasn't been hit by furlough/ job loss etc - and lack of travel opportunities/ ability to eat out, etc, mean that some people actually have a bit more cash in hand than they normally would at the end of the month. That, in turn, is what they're then spending on luxury goods. Dropping £250 on a bottle of bubbly for an occasion spent at home, for example, is more accessible when you've not spent ££££ on an international holiday etc. I think your analysis of the Birkenstock deal is pretty much the exact way I thought of it! The use of L Catterton as the acquisition vehicle could, perhaps, mark a paradigm shift for how they use the outfit - a potential indicator that they plan on diversifying their standard portfolio into other brands with different qualities and selling points. I'd have to agree with you though, Neville, in that the Birkenstock trend is somewhat lost on me. I had a pair years ago, never had blisters like it!The acquisition of a stake in Armand de Brignac is highly interesting as, in my opinion, it is one of an increasing number of brands of its type to be acquired by the Group in recent years: the Celebrity-backed, hype/ luxury brand. Almost all of LVMH's portfolio is brands with long heritage and massive respect in their particular industry: Möet & Chandon, Givenchy, Veuve Cliquot, TAG Heuer, etc.Armand de Brignac, although tipped to be excellent champagne (I've not tried it myself!), has been helped massively by Jay-Z backing it as a personal brand. Similarly, Fenty was created by Rhianna before being acquired by the Group in 2019 (although <a href="https://wwd.com/fashion-news/designer-luxury/rihanna-lvmh-close-fenty-fashion-house-1234725677/" target="_blank">it does appear that this relationship could be on the rocks</a>). In a similar vein, while LVMH don't have Stella McCartney as one of their owned houses, <a href="https://www.lvmh.com/news-documents/press-releases/stella-mccartney-and-lvmh-announce-a-new-partnership-to-further-develop-the-stella-mccartney-house/" target="_blank">they do have a business partnership</a>.Though this type of celeb-owned brand is not particularly new to the market (for example, Michael Jordan's "Air Jordan" in collaboration with Nike <a href="https://www.chicagotribune.com/sports/bulls/ct-cb-michael-jordan-air-jordan-shoes-timeline-20200422-scqnqnmomnhmxbxiahg55vurii-htmlstory.html" target="_blank">has been on the market since the mid-80s</a>), but they have definitely spiked in recent years: Kanye West's Yeezy brand in collaboration with Adidas, Ryan Reynolds in Aviation Gin, Bob Dylan in Heaven's Door Spirits, Kylie Jenner with Kylie Cosmetics just to name a few. These brands have all achieved huge success and popularity, and, in my opinion, they present LVMH Group the opportunity to diversify into brands which resonate with a younger audience where this has not been the case in the past.For applicants, I think a discussion of LVMH Group's recent moves provides a unique opportunity at interview to show a really good, in-depth understanding of how a very niche type of brand really works in terms of its market offering, client base, etc. Remember that a good commercial lawyer must be able to show genuine insight into the brands and industries they're advising, being cognisant of its nuances and foibles.</blockquote>

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