Editor’s Note
This article explores how major luxury groups, led by LVMH, are shifting their strategies to prioritize immersive, integrated customer experiences over traditional retail models.
LVMH, the undisputed leader in the sector, has intensified its focus on integrated customer experience. International Louis Vuitton boutiques are no longer mere points of sale. They blend art, gastronomy, and retail. The house has also intensified its collaborations with contemporary artists and content creators to fuel a global and coherent narrative.
Under the new leadership of Pietro Beccari, Louis Vuitton is now expected to focus on its product proposition. The top priority? Accelerating the transition of its men’s and women’s collections towards hybrid concepts, blending heritage and modernity. An imperative to meet the diversification of expectations from international clients.
It was a year of high stakes for Kering. And against all odds, the dynamic Luca de Meo has already begun to bear fruit. Because in 2025, Kering undertook a major strategic refocusing. Faced with declining sales at Gucci (-5% in the third quarter), the new CEO seems to have had free rein to reorganize Kering’s activities.
Among the major moves was notably the decision to divest Kering’s beauty division to L’Oréal. A transaction worth approximately 4 billion euros that strengthens the financial agility of the luxury group. This repositioning alone illustrates a more pragmatic approach from Kering. The group is strong in fashion, leather goods, and jewelry. And in 2026, it intends to capitalize on these strengths.
The acquisition of Kering’s beauty division allows L’Oréal to strengthen its presence in the luxury segment. And to invest in the high-end market by leveraging the strength of well-known franchises such as Gucci and Creed. These new franchises bolster L’Oréal’s already prestigious portfolio, which notably launched its Miu Miu perfumery franchise in 2025.
More than ever, L’Oréal asserts itself as the leader in the beauty market. And investments in the luxury domain demonstrate the dynamism of this premium offering in the global cosmetics and perfumery market. However, a point of caution remains: US tariffs could slow L’Oréal’s sales in the crucial US market.
In 2025, Richemont found itself in a singular position. The luxury group is currently at the crossroads of several structural tensions.
On one hand, the group strongly benefited from the resilience of its jewelry houses, led by Cartier and Van Cleef & Arpels. Their sales continued to grow, driven notably by demand in Asia and the Middle East.
Conversely, the watch segment showed signs of slowing down, particularly in the American and European markets. Luxury watchmaking is thus facing a normalization of purchasing behaviors after the post-2020 euphoria.
Another point of concern: fashion and leather goods. Admittedly, this division represents a modest part of Richemont’s activity. However, in the first half of 2025, it recorded an operating loss of 33 million euros. It is therefore the weak link of Richemont. The Alaïa house, a good performer, is the only couture house of Richemont to see its sales increase. It even recorded a double-digit increase in its revenue.
The Chloé house is improving its momentum, although Richemont has not communicated its sales figures, which suggests a still negative result for the moment. More worryingly, in Richemont’s latest financial report, the group did not even mention Delvaux. The leather goods maker, acquired in 2021, could therefore be subject to a divestment in 2026.
Unsurprisingly, artificial intelligence also made its way into the luxury universe. In 2025, it established itself as a strategic tool. But for now, houses use it more on the customer journey side than on the creation side. Thus, predictive AI allows brands to better understand purchasing behaviors. And they also integrate AI into personalized advisory tools, notably to promote cross-selling.
To stand out, luxury is betting more than ever on the human experience. And the 100% real-world anchored relationship becomes the new luxury. More than ever, immersive and cultural experiences are at the heart of the strategy. And in 2025, one of the best examples observed was undoubtedly the activation of Louis Vuitton with its boutique cruise ship, Le Louis in Shanghai. The experience of a retail…