CHAPTER 13Securing Future Trajectory: From Balance Sheet to Market Value
Louis Vuitton, the world's top luxury goods company, reported €64.2 billion of revenue in 2021. This figure was up 44% from 2020 and 20% from 2019.1 Also in 2021, Louis Vuitton was named the most valuable luxury company in Interbrand's Top Global Brands study. It was ranked 13th overall in the study and was the only fashion company to make the top 20 in the list.2
Bernard Arnault, chairman and CEO of Louis Vuitton, explained the reasons behind the outstanding performance of the brand in 2021 during the gradual recovery from the pandemic. He credited the results to a highly efficient team. He also noted exceptional adaptability amid a difficult business environment.
These financial and nonfinancial accomplishments emerged from the company's commitment to placing customers in the center of all operations. Amid a prolonged crisis, Louis Vuitton maintained a relationship with its customers, and the brand continues to inspire.3
From the Louis Vuitton case, we can learn how a considerable concern for financial results must accompany market orientation and the application of customer‐centricity by the marketing team. When that happens, nonfinancial outcomes lead to financial performance. High awareness of our product or brand is a first step. However, it is not enough before customers are interested in our product or brand.
FIGURE 13.1 The financial components of the omnihouse model
In this chapter, we'll ...
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