How does LVMH measure the performance of its brands?

LVMH primarily measures the performance of its brands through a combination of sales growth, brand equity, and market share. This comprehensive approach allows the company to assess not only the financial success of its brands but also their overall reputation and positioning in the market. Sales growth is a direct indicator of how well a brand resonates with consumers and its ability to capture demand. Brand equity reflects the value added to a product by the brand name itself, which can influence customer choices and loyalty. Additionally, market share indicates a brand's competitiveness within the broader industry landscape.

This holistic analysis is essential for LVMH as it manages a diverse portfolio of luxury brands, each with distinct target markets and consumer bases. By focusing on these measurable variables, LVMH can effectively strategize on brand development, marketing initiatives, and resource allocation to enhance the performance of its luxury offerings.