LVMH CEO Bernard Arnault is still concerned that a heavy presence online will damage the reputations of the luxury brands in the group’s portfolio, and that’s shaping how the conglomerate’s digital strategy plays out globally.
“We plan to continue investing in digital technology in 2018, but we need to be prudent there, so as not to sell at all costs,” said Arnault during a presentation with investors for the company’s 2017 year-end results. “We need to be strong on the digital front, but we must not trivialize our products.”
Louis Vuitton, Arnault claimed, is currently the only luxury brand that does not mark down prices. He pointed out that other brands who claim not to hold sales still sell product in outlet stores.
“We don’t do that. We don’t have a single store where items are sold at knockdown prices, like outlets. It could significantly boost revenue if we increased our presence on the internet and in all channels, but I think we’re right not to do that. We’re very careful about brand deterioration,” Arnault said.