The pandemic forced physical-first brands to evaluate their operational positions, primarily as it relates to the threshold separating physical and digital – the omnichannel experience. Their resilience and adaptation was quick and noticeable. Unfortunately, non-adapting brands did not survive. Those that pivoted and adapted the wave of change, weathered through – catching the attention of digital-first brands that were quickly realizing the void and friction that existed operating online-only stores.
Guiony continued to share with CNBC his thoughts on digital, and how online is “a complement to the physical experience.” He continued to comment on shopper behavior, “they get a lot of information, but they come to the store because the store experience is something that cannot be matched on the internet.”
In 2020, LVMH reported a revenue loss of 17% vs prior year. Today, it’s a different story, “We can definitely talk about the fact that the business is doing well with most of the client base,” said Guiony. LVMH acquired the jewelry brand, Tiffany & Co. in a $15.8 billion deal. LVMH shares are up nearly 32% year-to-date.
Source: CNBC Europe News 2021/6/22
Photo Credit: LVMH Investor Relations, 2020 Annual Report, p60