M&A in the luxury industry

: a case study of LVMH and the acquisition of Tiffany & Co.

Abstract

Times without numbers, the luxury goods industry is characterized by a particular devotion to tradition, exclusivity, craftsmanship, and brand prestige 3 factors that set it apart from other industries. The following study examines the impact of mergers and acquisitions within the industry, focusing on how major players, as LVMH shape market dynamics and influence smaller luxury companies. While large conglomerates consolidate market power, they also increase the overall attractiveness of the luxury sector and promote growth and innovation. But why, exactly, is M&A such a significant growth strategy? The dissertation consists of qualitative data including interviews with executives, as well as secondary data. Key themes include maintaining brand identity during acquisitions, the strategic importance of direct-to-consumer models, and actions taken to remain competitive. The study also examines the role of operational synergies, creative independence, and the evolving relationship between brand heritage and market expansion. Ultimately, the results suggest that mergers and acquisitions in the luxury industry represente both a challenge and an opportunity, asthey force smaller companiesto differentiate themselves while strengthening the resilience and growth of the luxury market. By encouraging strategic adjustments and innovations, luxury groups not only improve their portfolio but also contribute to the long-term sustainability of the industry.

Date of Award	28 Jan 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Parada (Supervisor)