LVMH, the world’s leading luxury group, continues to make headlines in 2025 with bold moves and cutting-edge initiatives. Fresh off a challenging first quarter marked by a 2% revenue dip to 20.3 billion euros, LVMH is pivoting to innovation, price adjustments, and operational streamlining across its iconic brands, all while gearing up for its high-profile presence at VivaTech, Europe’s premier startup and tech event, from June 11-14. The group’s latest focus on brand desirability, luxury customer experience, and exemplary leadership reflects its mission of “The Art of Crafting Dreams,” positioning LVMH as a beacon of creativity and resilience in the luxury sector.
Table of Contents
LVMH’s Innovation and Tech Strategy
At the heart of LVMH’s 2025 vision is its commitment to blending tradition with technology. The upcoming LVMH Dreamscape at VivaTech will showcase groundbreaking solutions from 11 LVMH Maisons and 14 tech partners, spotlighting how luxury and innovation intersect. Over four days, more than 70 expert-led talks will take place on the LVMH stage, with the LVMH Innovation Award ceremony scheduled for June 12. This event not only highlights the group’s ecosystem of startups but also underscores its role as a founding partner of VivaTech, where it has consistently championed global innovation since the event’s inception.
The LVMH Dreamscape is designed to inspire, offering visitors a glimpse into the future of luxury through immersive experiences that merge savoir-faire, creativity, and sustainability. For LVMH, this is more than just a showcase—it’s a statement about the evolving nature of luxury, where customer expectations and digital transformation drive new opportunities. By focusing on brand desirability and the luxury customer experience, LVMH is setting the stage for next-generation engagement, ensuring that its Maisons remain at the forefront of global trends.
Navigating Market Challenges
Despite its innovative spirit, LVMH faces significant headwinds. The first quarter of 2025 saw declines in key markets, with fashion and leather goods—its largest revenue driver—falling 4% and wines and spirits dropping 8%. Weak demand in China and the U.S., two of its most important regions, contributed to these results. Asia (excluding Japan) saw an 11% sales plunge, while U.S. sales fell 3% year over year. Only Europe bucked the trend, posting a 2% gain.
To address these challenges, LVMH is preparing to raise prices by 2-3% on select high-end products, a move its deputy CEO believes will not dent demand from affluent customers. The group is also exploring strategies to mitigate the impact of ongoing tariff disputes, including expanding U.S. manufacturing. However, scaling up production in the U.S. is not a quick fix—it requires time to recruit and train skilled workers. For now, LVMH is focused on managing macroeconomic uncertainties and fine-tuning its mitigation plans while closely monitoring global demand.
Strategic Focus and Leadership
In the wines and spirits division, LVMH is doubling down on its most prominent brands, such as Moët & Chandon and Hennessy, while reining in international ambitions for smaller labels. This shift is part of a broader revival plan for the Moët Hennessy division, which has struggled with declining revenues and operating profits. The division’s CEO, Jean-Jacques Guiony, announced plans to reduce the workforce by nearly 13%, mainly through natural attrition and not filling vacated roles. The goal is to return to 2019 staffing levels of 8,200 employees, down from the current 9,400.
Guiony emphasized the need to focus on areas with the greatest potential for success, acknowledging that the division had become “too cumbersome.” By streamlining operations and concentrating on core brands, LVMH aims to strengthen its position in a challenging market environment. This strategic pivot is also seen as a test for Alexandre Arnault, son of LVMH founder Bernard Arnault, who is vying for a more prominent role within the conglomerate.
A Vision for the Future
LVMH’s ability to adapt and innovate is central to its enduring success. The group’s participation in VivaTech and its focus on sustainability, digital transformation, and customer-centric innovation demonstrate a forward-looking approach. By balancing tradition with technological advancement, LVMH is not just surviving but shaping the future of luxury.
The luxury giant’s resilience is further reflected in its pricing strategy and operational agility. With room to raise prices and a flexible approach to manufacturing, LVMH is well-positioned to navigate the uncertainties of global markets. Its emphasis on brand desirability and the luxury customer experience ensures that it remains relevant to the next generation of consumers.
As LVMH continues to evolve, its commitment to innovation, strategic focus, and leadership excellence will be key drivers of growth. The group’s journey is a testament to the power of adaptability in the face of change, offering valuable lessons for businesses across industries.
Discover how LVMH is redefining luxury for the digital age—explore its latest innovations and strategies at VivaTech and beyond.