Inside LVMH Certificate - GP2 (2024), Sbobinature di Costume E Moda

Scarica Inside LVMH Certificate - GP2 (2024) e più Sbobinature in PDF di Costume E Moda solo su Docsity! Presentation In this first course, you will discover the world of LVMH and get an overview of the luxury industry. • Unlock LVMH, the world leader in high-quality products and services. From our business sectors to our iconic Masons, we will give you a first glimpse of the unparalleled LVMH ecosystem and our unique business model. Time to complete this section: approximately 1.5 hours • Get the keys to understand the luxury industry. We cannot talk about LVMH without delving into the Luxury industry, of which the Group is the leader. This section focuses first on the definition of luxury, and provides an overview of important figures and trends. Then, you will consider specific insights on key industry stakes, such as forecasting shifting consumer expectations, the orientation towards personalization, digital transformation, innovation as a key asset to succeed, and a specific focus on the Chinese market. Time to complete this section: approximately 3.5 hours • Test your knowledge: A 10-question quiz to assess your understanding of LVMH and the Luxury industry. Time to complete this section: approximately 0.5 hour. The quiz will only cover the material of this course. Once you finish the quiz, keep in mind that your progress should be marked as "COMPLETED" to unlock the following Course. • Timing: This course takes more than five hours to complete. You will have access to different content formats, including articles, videos, and podcasts to facilitate your overall learning experience. Do not worry, you can complete this course at your own pace and time. Dear learner, At LVMH, we are committed to transmit our passion, knowledge and savoir-faire to the next generations of talents. This learning program is designed to deep dive into the uniqueness of the Luxury Industry and cultivate the essential knowledge and skills that will help you navigate the next step of your career. Through these 4 courses, you will gain valuable insights into the trends and key challenges shaping the Luxury industry today and tomorrow. Furthermore, you will have the privilege to uncover the behind-the-scenes of our teams all around the world who are building the future of our Maisons. You will access exclusive content curated by Luxury experts, including LVMH and our Masons teams, as well as renowned professors from around the world. But before you deep dive, let's go through some key information to ensure a smooth learning journey: • Release of Course 1: May 21 • Release of Course 2, for learners who already completed Course 1: May 28 • Release of Course 3, for learners who already completed Course 2: June 4 • Release of Course 4, the last course, for learners who already completed Course 3: June 11 • Release of final assessment for learners who completed all four courses: June 18 • Deadline to complete the final assessment: July 18 (6 PM Paris Time) In every course, you will find two quizzes: one midway through and one at the end. To successfully pass each quiz, you must achieve a minimum score of 70%. You can retake these quizzes as many times as necessary. Upon completing all four courses, you will gain access to the final assessment. To obtain the Certificate, you must score at least 70%. Please note that you can attempt the final assessment only once. First chapter of your learning journey - the luxury discovery Introduction to the luxury industry and LVMH We are entering the world of LVMH and the Luxury Industry. LVMH: its unique and diverse ecosystem, its values and solid business model with a long-term vision have enabled the Group to position itself as the leader in the luxury industry. The world of LVMH: more than 75 Maisons, 6 business sectors, over 213000 employees across 81 countries and more than 6000 stores: LVMH is an exceptional universe. The world leader in luxury products: Any description of the LVMH group usually begins with these words. Founded in 1987, the LVMH Group is now home to 75 exceptional Maisons, many of which are centuries old. Each one of them cultivates excellence across six very different business sectors: • wines and spirits, • fashion and leather goods • perfumes and cosmetics • watches and jewelry • selective retailing • other sectors with media, hospitality and more Making us the only luxury group rooted in such a variety of businesses. The foundation of our success is our more than 213000 passionate talents (employees). They represent more than 190 nationalities, hailing from a variety of backgrounds. We are proud at LVMH to have four generations at work with an average age of 37. They combine the energy of youth with the expertise that only experience brings. 71% of our talents are women and over 55% of them are working in retail. For all our talents, the LVMH group offers a unique ecosystem of unparalleled savour-faire and creativity, conveying emotions and providing an unlimited playground, whatever they’re looking for in their career. We offer limitless opportunities for: • those who are passionate about the finest materials, • as well as those who are enthusiastic about beautiful products (integration) • those who are passionate about hospitality (integration) • those who are passionate about the journey (journey) • those who want to be where the business beats (savoir-faire) • those who want to be at the heart of the product (savoir-faire) • those who want to join multi-centenary brands and contribute to reinventing them every day (innovation & creativity) The Values of LVMH At LVMH, we are all driven by four key values to craft the future together: 1. Being creative and innovative Creativity and innovation are part of LVMH's DNA; throughout the years, they have been the keys to our Maisons' success and the basis of their solid reputations. These fundamental values of creativity and innovation are pursued in tandem by our Group's Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future, always respecting their unique heritage. 2. Delivering excellence Within the Group, quality can never be compromised. Because the Masons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself. 3. Cultivating an entrepreneurial spirit LVMH's dynamic momentum is inspired by an entrepreneurial spirit at every level of the organization. We have been entrusted with the heritage of the exceptional entrepreneurs and creative talents who founded our Maisons, and we have kept a decentralized organization to maintain the pragmatic agility that encourages efficiency and swift responsiveness. While LVMH may be the world leader, we have retained the spirit of a startup where entrepreneurial challenges are intimately tied to creativity and a never-ending quest for the highest quality. 4. Being committed to positive impact Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility and respect for the environment. They drive our Maisons' performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places we operate, and that our Group is actively working to build a better future. Discover the uniqueness and diversity of our ecosystem ... 6 business sectors and over 75 Maisons True to tradition, each of our Masons builds on a strong legacy while focusing on the exquisite calibre of its products: timelessness, heritage, strong brand codes, DNA, and unique savoir-faire. What sets our Masons apart is their ability to achieve the seemingly impossible balance between the past, present and future. They continue to delight and amaze today with their contemporary relevance. In this chapter, you will deep dive into each of our 6 business sectors - Fashion & Leather Goods, Wines & Spirits, Perfumes & Cosmetics, Watches & Jewelry, Selective Retailing, and Other Activities, as well as into some of our Maisons. Focus on wines & spirits Exceptional brands that each cultivate their own uniqueness. Moët & Chandon, Krug, Veuve Clicquot, Hennessy and Château d'Yquem are just some of the world-renowned wines and spirits brands that have become synonymous with the most prestigious origins and terroirs. Located in Champagne, Bordeaux, and across a collection of wine Estates around the world in countries such as New Zealand, Australia, Argentina, Spain, India, and China, many of these are centuries-old Maisons with a unique character, which share a strong culture of excellence. Overseen by the division Moët Hennessy, these exceptional champagnes, wines and spirits from around the world come together as a collection of rare brands where heritage and innovation, authenticity and creativity converge. To support future growth and maintain the very high quality that has made the Masons successful, the Wines & Spirits business sector pursues a dynamic and responsible procurement policy. All the vineyards owned within the division have had sustainable winegrowing certification since 2017, and the Maisons forge partnerships with winegrowers by helping their grape suppliers comply with these certifications. The latest House in the Wines and Spirits division, Eminente, was launched in 2020. Eminente embodies the rebirth of 19th century Cuban rum, elaborated by César Mart, the youngest Maestro Ronero (Rum Master) of the island and aged 7 years minimum in white oak barrels. Another very recent update to Moët Hennessy's world leading portfolio is the addition of Joseph Phelps Vineyards in July 2022. This acquisition follows Moët Hennessy's development strategy, which aims to satisfy its consumers and distribution partners' aspirations with an increasingly diversified and comprehensive portfolio, adding Houses with strong values of excellence, craftsmanship and heritage. For the following months to come, the Wines & Spirits division has major strategic priorities: • Pursue value-enhancing strategy • Expand production capacities to ensure sustainable growth • Develop direct sales to end-customers • Further improve efficiency of distribution in key markets • Accelerate efforts to protect the environment, in particular in supply chains and packaging Focus on Veuve Clicquot: The ride from grape to glass Founded in 1772 in Reims (France), for the past 250 years, Veuve Clicquot has been pushing the boundaries of champagne inspired by Madame Clicquot's audacity, inventive spirit and societal commitment. In 1805, Madame Clicquot unexpectedly became a young widow. At just 27 years old, with skill and grace, she took the reins of the champagne House, which she led driven by her vision, taste for excellence and inventive spirit. Making Veuve Clicquot champagne has always been a creative act, requiring unique expertise grounded in a love for Pinot Noir and the art of aging. From harvest to shipment, Veuve Clicquot is inspired by the Mason's longstanding motto, “only one quality, the finest”. In the video, the Veuve Clicquot winemaking team, Lison (Wine Educator), Marie (Winemaker) and Antoine (Vineyard Development Manager), gives the lowdown on making their famous champagne, step by step. Every harvest is unique and every year the challenge remains the same: to create consistency of style and quality, from picking the finest grapes in the vineyard, to aging the bottled blend in chalk cellars. Focus on fashion & leather goods Maisons that combine creativity with timelessness. Preserving an identity and roots, whilst at the same time constantly reinventing themselves in order to appeal to their contemporaries, has always been the "raison d'être" of the Maisons in LVMH's Fashion & Leather Goods sector. Over the years, this division has been enriched with younger Masons that also allow creative talents to express themselves. Working with the best designers, while respecting the spirit of each brand, is one of our strategic priorities. Our creative directors promote the Maisons' identities, and are the artisans of their creative excellence and their ability to reinvent themselves. In order to guarantee a fitting environment for their exceptional products, Masons in the Fashion & Leather Goods sector strive to master their distribution: in this way, they offer their clientele unique customer experiences. Alter-CareTM. A new approach that supports caring for ourselves and Mother Earth in perfect harmony. Rooted in nature, with Stella's vegan and cruelty-free principles at its heart, this 'conscious Luxury' skincare line is natural, effective, and responsible. Focus on Benefit Cosmetics In 1976, twin sisters Jean & Jane Ford opened their first beauty shop in San Francisco. Thanks to their playful vision of beauty, powered by laughter and fun, they pioneered a true cosmetic revolution. Today, Benefit is known worldwide for its feel- good products and services. Get an exclusive look into the inner workings of one of the world's most innovative and fun beauty brands. Christie Fleischer, CEO of Benefit Cosmetics will discuss the company's commitment to corporate social responsibility, and offer invaluable advice on teamwork, active listening, and empathy. Get to know Benefit’s business model Beauty was inspiring to the CEO and Benefit is a brand that’s so welcoming and engaging and really has unique positioning. It’s a group that has so many aspirational group. It can take four years to test and create a mascara. The secret of Benefit is that they are very authentic. They make no apologies for our brand and they stay really true to that. They are very consumer-centric, from what products to make to how put it on social media. They prioritise team. So brand, customer, innovation and team are the things that drive Benefit to success. They have four categories of business that are important to us: brows, pores, lashes and face-colours. They are problem solvers: they look to find something that a consumer wants them to solve and that’s how they go about making sure that they’re making the best solution to that. They have more than 5000 brow and beauty experts around the world to help the customers. They will never stop to be authentic and to innovate themselves. All about the benefit brand The secret to the success of benefit the brand is that they go always left when the world goes right. The mission is to ignite joy. Benefit is the perfect blend of innovation and fun. CSR is who we are Benefit’s philosophy is diversity and inclusion: everyone can be who they are. They are focused on recruitment. They do right not only for people but also for the environment: minimal packaging, post consumer recycled materials, environmental impact audit. Christie’s career tips What would you say to young people who are starting out in their careers? And what skills and qualities do you think are the most important to succeed? The most important thing to me is to find the things that give you energy and be honest with yourself about the things that don’t, because there isn’t really a correct clear path to get there and I do firmly believe that you will be successful at the things that bring you energy and it will propel you. That is incredibly difficult to be successful at the things that don’t give you energy. From a skill set perspective, of course there are hard skills that are required for different types of jobs but I think, generally speaking, teamwork, active listening, curiosity, those are the things that I think will drive you to success in the long term. So trust your gut. It will be right most of the time. And don’t worry too much about the small things. There’s always different challenges that may arise throughout somebody’s journey and path, everyone having a different one of course. So what are some of the challenges that you’ve faced and how do you overcome those times? It’s hard for us to sit here and not acknowledge the collective challenge we all faced, which was the global pandemic. I think being clear on vision, concise on communicating what that is, is the path through conflict. The challenges never go away, they just look different over time. All you must do is to pause, be clear about your actions, concise about communicating that and don’t do it on your own. Empathy and strength are not in conflict each other. Learning is an active role you have to take when you are the CEO but you want to continue to be better. Focus on watches & jewelry Dynamic houses with iconic collections Counted among the most dynamic brands on the market, the Masons in the Watches & Jewelry sector of LVMH operate in two segments: high-quality watchmaking on the one hand, and jewelry and high jewelry on the other. A quest for excellence, creativity and innovation guide the Maisons in this area every day. The watchmaking side capitalizes on the complementary positioning of its Maisons: TAG Heuer's international stature, Hublot's strong dynamic of innovation and Zenith's age-old savoir-faire. In jewelry and high jewelry, the Masons of Bvlgari, Tiffany & Co., Chaumet, Fred and Repossi employ their bold creativity and perfectly mastered savoir-faire to constantly surprise their customers and offer them the objects they desire. The division is focusing on the quality and productivity of its retail networks and on developing its online sales. Multi-brand retailers are selected very carefully in order to ensure its high standards are met. In an equally selective approach, the Masons also continue to refurbish and open their own stores in buoyant markets in key cities. Focus on TAG Heuer's Watchmaking excellence Since 1860, watchmaking pioneer TAG Heuer (pronunciation: taghoir) has been blending technological innovations, high-precision timekeeping and cutting-edge designs to create products whose performance continues to shape the passing of time. In 1860, at the age of just 20, Edouard Heuer founded his own brand and was to revolutionize the watchmaking industry by breaking away from the established rules. Ever since that time, TAG Heuer has been creating incredible watches and chronographs of extreme precision. The world of TAG Heuer is intimately Until Le Bon Marché arrived, clothing was the affair of tailors who would make made-to-measure clothes in people’s homes. Boucicaut realized that tailoring could be done under their roof, providing changing rooms for women and waiting areas in which to entertain their husbands.  Did you know Boucicaut was a pioneer in understanding the importance of retail architecture and design?  He knew that to entice clients, his ‘cathedral of modern shopping’ needed to be immediately identifiable. In 1869 he ordered architect Alexandre Laplanche to create a monumental entrance and rotundas topped by domes that could be seen from afar. In 1872, he asked Louis-Charles Boileau and Gustave Eiffel to give the building the aesthetics you see today, notably the vast glass roof, which allowed natural light to pour into the shop. Did you know Le Bon Marché developed both the in-store event and the seasonal sale?   To keep their clientele interested, ‘surprise’ was the name of the game. And in 1880, to keep them surprised, Marguerite created a calendar of events, listing the opening of the season’s collections, perfume sales, promotions, art shows and even concerts.  Did you know Le Bon Marché created France’s first animated Christmas window?  Most shops do it now, but in 1909, when the store created a mechanised display  (dedicated to Robert Peary, the first person to reach the North Pole on April 6th 1909), they were well and truly ahead of their time. Focus on Other Activities Houses which represent a certain art de vivre. In this business group, LVMH brings together people who share a passion for lifestyle, culture and the arts. Being ambassadors for culture and a certain “art de vivre” is the raison d’être for the Maisons in this area of our business. They all benefit from a vertical integration system, in order to offer high quality products and services to their customers.  This approach is part of the quest for excellence pursued by each of these Maisons: from the Les Echos group, which includes key titles from the economic and cultural press to Royal Van Lent, which markets custom-designed yachts under the name of Feadship; and Cheval Blanc which is developing a collection of exceptional hotels. Focus on Cheval Blanc - An invitation to the world's most sought-after destinations to discover a new Art of Emotion Celebrating a delicate alchemy between tradition and innovation, local architecture and timeless elegance, the 5 Cheval Blanc hotels celebrate bold design and contemporary inspirations with local roots and craftsmanship. Since the opening of its first Maison in 2006, Cheval Blanc has developed unique properties with an unparalleled sense of detail. In a warm, caring atmosphere, every Maison takes the utmost care in creating fulfilling and memorable moments for guests and their families. A new vision of Luxury hospitality Cheval Blanc redefines prestigious French hospitality with a collection of one-of-a- kind Maisons in exclusive destinations, uncompromising in privacy and experience. Cheval Blanc creates a new residential experience in the world's most exclusive destinations through the construction of new properties or redevelopment of iconic sites. The Maison shares a powerful entrepreneurial spirit, an acute sense of detail and dedication to an haute-couture approach to hospitality. Here are 3 key highlights to understand the uniqueness of Cheval Blanc in the world of hospitality: 1. The Art de Recevoir, a Cheval Blanc signature With infinite creative freedom to design ultra-personalised experiences, long-time friends, loyal guests, and new Cheval Blanc devotees are surprised and delighted, with a thougthful approach to service, which gives a unique character to each stay. Sunrise bootcamp, Mini-Moke picnics on secret beaches, surprise birthdays organized by Le Carrousel, a bespoke visit of the City of Lights, or a first track on the Alpine Slopes. 2. Where craftsmanship meets creativity Inspired by the spirit of LVMH and its love for contemporary innovation, Cheval Blanc revisits the codes of ultra-Luxury hospitality with bold modernity. This unique approach to service leads to made-to-measure works of art and design, transforming every Maison into a living gallery. This celebration of creativity and quest for constant reinvention extends from art and design, to thoughtful service gestures aiming to make our guests' stays that much more exquisite. 3. A careful attention to exclusivity A careful attention to exclusivity is deeply rooted in the design and service standards of each of the 5 Maisons. With spacious surroundings, purposefully limited inventories, dedicated facilities such as private pools or treatment rooms, secret entrances and acute organisation of flows, Cheval Blanc prioritises every guest’s individual desire for privacy, with a highly personalised approach to culinary arts, wellness, and entertainment. …of which success is driven by a solid and unique Operating Model anchored by 6 pillars It’s the business model that drives a company’s success and ensures its future. At LVMH, our 6-pillar model is anchored in our long-term vision and family spirit - one that builds on each Maison’s heritage, and stimulates creativity and excellence.    Did you know the Group’s vocation is to ensure the development of each of its Maisons,  while respecting their identity and their autonomy?  It does this by providing all the resources each Maison needs to design, produce and market their products and services defined by excellence and the highest quality.     PILLAR 1: Decentralized Organization   Promoting risk-taking and perseverance   LVMH’s organization is agile and decentralized, which encourages efficiency and responsiveness. Our specific structure and operating principles ensure that each Maison can be autonomous and responsive at all times – something that helps us to ge t c lo se to our  cus tomer s, and ensure s  that rapid, ef fect ive and appropriate decisions can be made.   We entrust all our employees with significant responsibilities, which stimulates individual initiatives, and motivates teams by  encouraging  them  to show true entrepreneurial spirit.  By promoting pragmatic thinking and the ability to motivate teams, we challenge ourselves and our talents to achieve, continuously push the boundaries and never shy away from risk-taking and perseverance - and our decentralized organization approach promotes this.    PILLAR 2: Vertical Integration  • Centralised organisation (because is decentralised organisation) • Sustaining savoir-faire • Creating synergies • Vertical integration • Organic growth • Balance across business segments and geographies 6. How many employees work at LVMH and how many are women? • 156,000 employees, out of which 80% are women • 165,000 employees out of which 30% are women • 213,000 employees out which 71% of women 7. How many Maison’s are part of the LVMH group? • 15 • 62 • 48 • More than 75 8. Which business sector at LVMH generated the highest share of revenues in 2023? • Selective retaining • Wines and spirits • Fashion and leather goods • Perfumes and cosmetics 9. Which Maison of the perfume and cosmetics division is the oldest? • Acqua di Parma: 1916 • Guerlain: 1828 • Make up for ever: 1984 • Officine universelle buly: 1803 10. Which is the oldest wine estate and youngest brand in the wines and spirits division? • Domaine des lambrays (oldest) & Eminente (youngest) • Hennessy (oldest) & Ao Yun (youngest) • Veuve cliquot (oldest) & Krug (youngest) • Domaine des lambrays (youngest) & eminente (oldest) Your immersion into the luxury industry Let’s focus on its driving trends and challenges It is time to deep dive into the key fundamentals of luxury. The floor is yours: the uniqueness of the luxury industry Before discovering the Luxury Industry and its key stakes for the upcoming years, please take 30 minutes to answer these two questions: What are the main characteristics of the Luxury Industry, and what makes this sector unique? • Brand identity: A luxury brand’s identity must capture its excellence (what does brand identity mean?), as well as its unique personality, aura and attitude, so they are careful to ally themselves with a specific cause or outlook. Tiffany has come to stand for the most romantic symbol of love, Liberty as a collection of the exotic and eclectic, Lamborghini as the playboy’s ultimate toy. Each tries to establish a personal connection with their audience, reflecting their dreams, desires and need for recognition. Sponsorship is popular, whether sports (Rolex alone sponsors tennis, golf, sailing and motor sports), film (Omega, Aston Martin and Brioni are all associated with James Bond; Chopard sponsors the Cannes Film Festival); and Burberry reaches to young audience by giving a platform to young British bands. Some establish their pre-eminence by creating a foundation (DvF and Zegna) or allying themselves with high-brow pastimes (Chanel and art, Cartier and Polo); Prada, Ferragamo and Rolls Royce have even opened their own museums. It’s these associations that generate interest and create more depth and texture to a brand’s story. • Heritage: Luxury brands usually have a long history, emphasising staying power and the knowledge they’ve accrued along the way. Sometimes their mystique revolves around an exceptional founder, such as Coco Chanel or Salvatore Ferragamo. Often they’re firmly rooted in a country’s sense of self: so Savile Row tailors and Rolls Royce play on their Britishness; Veuve Cliquot and Cartier are unmistakeably French; and Bulgari’s logo references ancient Rome in its typeface. It explains why luxury brands often reinforce their founding date, their history and what’s happened during their lifetime: so Wolsey underwear was worn by both Captain Scott and the Norwegian Roald Amundsen on their race to the South Pole in 1911 gives gravitas and legitimacy that newer brands can’t claim. With no history to speak of, new luxury brands must rely instead on powerful and captivating brand stories – or brand positioning • Craftsmanship: Quality materials and high standards of hand-crafting that is hard to reproduce by machine are the embodiment of true luxury. This artistry, craftsmanship and durability appeal to the connoisseur and set it apart; it’s why Louis Vuitton boasts that one of its suitcases or handbags goes through more than 1,000 stages before it ends up in your hand. And Ermenegildo Zegna runs their own factories that weave the fabrics that they use in their suiting. Often luxury brands started life with teams of skilled workers in small workshops, so artisan craftsmanship becomes central to their identity. Gucci emphasised this in their 90th anniversary advertising campaign, where they featured black and white photos of their workshops from the 1950s, pointing to the consummate crafting knowledge passed down from generation to generation. • Exclusivity: Somewhat ironically, the luxury brands that continue to grow are selling exclusive products to more and more aspirational customers. Unique and privileged experiences are the cornerstone of a luxury brand.  • Scarcity: The point about luxury is that everyone shouldn’t be able to afford it, so many high-end brands ration their products and accessibility. The six-year waiting list for the Hermès Birkin bag is legendary: if it’s worth waiting for, it’s worth having. At the other end of the spectrum is Pierre Cardin, a once highly respected couture brand that flooded the market with more than 800 licenses in 94 countries by 1990, losing control over quality and design, and ultimately devaluing the brand’s reputation. The 2000s have introduced the idea of high-end brands reaching new audiences by collaborating with high-street chains, producing limited editions that customers fight to get their hands on for just a few weeks. It combines scarcity with a mass approach that drives desire but safeguards the brand from overexposure – and makes the product, service or experience seem more valuable. • Customizable products: We don’t want to hark on about Louis Vuitton, but they are great at what they do. By providing custom-made items and made-to-order products, they continue to appeal to more customers, and can charge higher premiums for their goods. • Material quality: Quality materials and high standards of hand-crafting that is hard to reproduce by machine are the embodiment of true luxury. This artistry, craftsmanship and durability appeal to the connoisseur and set it apart. • Quality According to you, what are the three most important factors influencing the future of Luxury? The three most important factors influencing the future of Luxury are evolving consumer preferences, technological advancements, and sustainability. Evolving consumer preferences drive the demand for unique and personalized luxury experiences. Technological advancements enable luxury brands to innovate and enhance their products and services. Sustainability is becoming increasingly important as consumers seek eco-friendly and socially responsible luxury options. These factors will shape the future of the luxury industry and determine its success. **You can browse on the internet to find some examples of each chosen factor shaping Luxury. First, how to define luxury? Anne Michaut from HEC Paris tackles this question, while sharing the 7 essential characteristics of luxury. Luxury is quite elusive in nature: when you see a Luxury product, how do you know it is a Luxury product? In the video, Anne Michaut, Associate Dean for Education Track and Pedagogy and the Director of the LVMH Academic Chair at HEC Paris, covers the common definitions and understanding of Luxury as an elusive concept, and shares the 7 essential characteristics that help measure the "luxuriousness" of an offering. operate with distinct management rules and principles. So stay tuned to discover more”. Now deep dive into key figures and trends of the Luxury industry Discover more about Bain & Company’s annual study. Joëlle de Montgolfier, Executive Vice-President for Bain & Company’s Global Consumer Products, Retail and Luxury Practice, shares her analysis on the trends shaping the Luxury sector of today and tomorrow. The trends shaping the luxury industry “What is Bain & Company? Bain & Company is one of the leaders in strategy consulting. We work with business leaders in all sectors, but we happen to have a strong ‘forte’ in luxury. We are known for publishing an annual market study which has become a reference for luxury executives, as well as journalists and financial analysts. It is a privilege to host this module of INSIDE LVMH. I will cover the trends that will shape the luxury market over the coming decade. How to define luxury? Let’s start with a definition of what we call ‘luxury’. In Bain’s annual study, the overall luxury market comprises 9 categories: 1. Cars 2. Personal luxury goods 3. Hospitality 4. Fine wines and spirits 5. Gourmet food 6. Furniture 7. Art 8. Private jets 9. Cruises Despite a volatile economy, the luxury market reached €1.4 trillion in retail sales in 2022, an increase of 20% from 2021. Within this overall market, personal luxury goods are the ‘core of the core’. It’s the main segment that we have been tracking in our annual study for over 20 years. It includes fashion, accessories, such as leather goods and shoes, beauty and fragrances, jewelry and watches. This segment had been consistently growing at 6% per annum for 20 years up until 2019, when the pandemic induced a severe contraction of the market. However, 2021 saw an impressive V-shaped rebound, with the market growing back beyond 2019 levels. And in 2022, the market continued to see meaningful growth, despite uncertain macroeconomic conditions globally and a delayed COVID-recovery in China. Ultimately, the market saw 27% annual growth between 2020 and 2022. 2030 forecast We are positive about the growth prospects leading into 2030. We expect the personal luxury goods market to reach about €560 billion by then an annual growth rate of 6% from 2023. The luxury landscape is seeing a profound transformation. The recovery from COVID does not mean a return to the previous world and luxury is going through a deep reinvention. Let’s start by understanding the future consumers. The future luxury consumers Over the next decade, we will see younger generations make up an increasing portion of the luxury market. Spending on luxury goods by Generation Z and the even younger Generation Alpha is expected to grow three times faster than that of other generations through 2030, reaching about a third of the overall market. This growth is partially driven by the fact that Gen Z tends to start buying luxury goods at age 15, about 3 to 5 years earlier than millennials did. Beyond generational shifts, we expect to see some changes in where luxury consumers come from. Overview by region Currently the US represents the largest market for personal luxury goods with about a third of total spend. In recent years, we have seen luxury expand from traditional fashion hubs like New York to new epicentres - such as Austin, Texas, or Denver, Colorado - and brand efforts to be more inclusive and target traditionally overlooked, consumer segments such as African Americans, have also opened up new growth opportunities. Beyond the US, Europe and china represent the largest market today. By 2030, we expect the Chinese luxury market to become the leading market globally, slightly larger than the US. Beyond that, we know there will never be ‘another China’ in terms of luxury market size, but we expect a wave of growth to come from India and from Asian markets, such as South Korea, Thailand or Singapore. We are also seeing changes in what luxury customers buy, moving beyond physical luxury goods to the full spectrum of luxury spend. Luxury experiences and experience-based goods were hit hardest by the pandemic, but are returning to pre- Covid levels as people satisfy their pent-up desire for luxury travel and fine-dining. Luxury brands are making inroads to this space, both by entering the hospitality and fine dining markets and by delivering experiences, ‘within and beyond the flagship’. More and more, we are seeing luxury brands open restaurants, collaborate with luxury hotels and introduce temporary but immersive art installations, pop-up shops and experiential events. These activities create memorable emotional moments for customers beyond buying. Where consumers shop We’re also witnessing a continued transformation in where consumers buy luxury goods. Luxury spending has continued its migration to online, a channel that skyrocketed in 2020 and has continued to grow since, increasing by 20% between 2021 and 2022. At the same time, brand-owned stores are gaining share. Mono brand stores saw greater relevance in 2022, thanks to fierce ‘back-to-store’ attitudes and a desire for in-person interactions. This growth has also been fostered by the evolving role of the store from a place of transactions to a place to build relationships, with more and more luxury stores focusing on creating customer intimacy, communicating a brand’s history and values and delivering convenient omnichannel experiences. Going forward, online and mono brand formats will continue to gain share. By 2030, online will become the largest luxury channel in luxury, reaching one third of the market and fuelling a complete omnichannel transformation. Brand-owned retail, including physical stores and brand-owned websites will make up about 31% of the market. This growth means that it will be increasingly critical for brands to take control of their relationship with consumers across online and physical channels. We will see more and more brands harness data in a way to connect with customers in personalised ways., leveraging technology to fuse the online and offline experiences of a brand Key takeaways In conclusion, while the luxury market is still recovering from COVID, it looks very different than before. The customer base is expanding and extending its spend beyond physical goods to the full spectrum of luxury. Brands are assuming more and more control of distribution and are offering value to consumers beyond physical products. The world of luxury will continue to evolve and luxury players will need to re-invent themselves; but as always, the biggest transformations start with people and you, as the future talent of this industry, will have an exciting role to play! Main factors influencing the future growth of the luxury sector Key topics to be optimistic about. Erwan Rambourg, top ranked Luxury analyst and renowned author of books about the future of Luxury, shares optimistic trends and mechanisms that are likely to support the industry's growth for the next decade. Here, Erwan Rambourg shares an optimistic view about the next decade of growth in the Luxury sector and highlight the key topics that will influence that growth. The next decade for luxury The objective of this video is to share an optimistic view about the next decade of growth in the luxury sector and highlight the key topics that will influence that growth. Next decade of growth for the luxury industry First, there are three reasons to be optimistic about the next decade of growth in luxury: sustainability and governance issues will not be merely a fashionable conversation or an opportunity to greenwash. A genuine transformation of processes is needed. As the next consumer will not be gullible and they will be asking questions. A substantial amount of growth potential remains to be harvested Key takeaways As a conclusion, there are many growth opportunities for the sector and Covid has accelerated some key changes in the industry. For brands who are quick enough to embrace change and willing to take risks and rethink their business models, there are great success stories ahead!” Let’s focus on the major stakes shaping the future Renowned professors and passionate LVMH talents will guide you into our next topic. Luxury brands must both address new consumer expectations... Emanuela Prandelli, from Bocconi University, uncovers how the Luxury world is embracing new sales models. In which way have consumers started reshaping their approach to consumption to keep satisfying their need for novelty without compromising the future of our planet? To address this question, Emanuela Prandelli, Associate Professor for the Department of Management and Technology at Milan’s Bocconi University, talks about how Millennials and Generation Z are disrupting traditional sales models, redefining the way Luxury goods are consumed, and forcing the Luxury sector to rethink its sales approach.  New luxury consumption “Sustainability is the core challenge each brand is facing today. Luxury brands are in principle better equipped to address this challenge as they have always aimed at offering durable pieces whose superior price is justified by superior quality, that guarantees their value on time, making them literally timeless. However, to meet the need of customers, who are more and more used to continuous innovation, many luxury brands have started to inject into their strategies some degrees of accelerated speed typical of fast fashion markets, by shortening their cycles and dropping more often new collections into a consumption scene that systemically requires new stories to share into the social landscape. How are more and more environmental conscious customers reacting to this trend? In which way do they have started reshaping their approach to consumption to keep satisfying their need for novelty without compromising the future of our planet? There are two main answers emerging into consumption modes that are reflecting into new business models within the industry. Let’s shortly dive into each of them: 1. Rediscovering the exclusive value of vintage products: first in their continuous search for distinction through unique products, responsible customers have begun to rediscover the exclusive value of vintage products, which are objectively different one from the other because of the peculiar story they are imbued with. Thanks also to the development of fashion marketplaces and second-hand luxury consignment platforms, pre owned - often label as pre- loved - items are flourishing and finding new legitimisation within the luxury world, alimenting a business which, according to BCG, is expected to count between 10 and 20% on the overall luxury market by 2030. Buying a vintage piece is no longer just a way to individually save money, but also a more noble and socially accepted mean to avoid unnecessary waste, while enhancing the potential for recognised product differentiation. This spontaneous consumer trend has pushed some luxury companies to invest in and even acquire independent second-hand platforms, in order to systematically monitor the phenomenon and have a full picture of their own customers, instead then pretending to minimise its relevance. 2. Rethinking of ownership: a second interesting answer that especially millennials are providing to environmental overexploitation comes from applying their access-based culture also to the luxury world. The pay-per-use approach, which is characterising most part of their daily consumption, from music to entertainment, from hospitality to car sharing, has inspired a broader lifestyle that puts ownership under discussion. Millennials today seem to prefer living truly unique experiences than buying exclusive objects. As a consequence, luxury brands are blurring the lines between aspirational products and exceptional experiences. Players from different industries, ranging from the food to travel, from well-bring to hospitality, are getting into closer competition for both the consumer’s share of mind and wallet. In the ‘Uber-luxe’ world, high- end consumers are looking for self-gratification through unrepeatable experiences, more and more often shared in real time through social media. It’s surely a more intimate approach to luxury, which however does not reduce the potential for showing off to the extent that full satisfaction, especially for millennials and Gen Z, comes from real time posting into their enlarged communities of reference, today sized by the number of followers. This need to have always something new to share has pushed these younger consumers to change their approach to luxury goods: they do not necessarily need any more to own a high-end object to feel and signal status; they just want to access and use it when desired. The so-called ‘everything as a service’ logic enters the consumer wardrobe and rental becomes a new viable business model also for luxury companies. We have run extensive research based on experimental design on this emerging consumption mode, discovering a few interesting things: first a broader audience can familiarize with otherwise inaccessible brands and experience them first hand, even if temporary. In this way, luxury companies can educate a larger portion of demand and positively impact on brand loyalty in the long run. Second, the pay-per-use logic effectively addresses the sensitivity to sustainable consumption. Our studies prove that renting luxury items instead of buying them does not affect the perception of status that each customer feels when displaying them. However, this happens at the expenses of self-perceived dishonesty: in other words, consumers self-attribute equal status when renting, but they are somehow aware they are cheating. This effect is even more pronounced in the perspective of external observers, who also attribute lower status to consumers renting products. Exploring contingencies, however, we discovered that this deception feeling is significantly attenuated when consumers already own some items similarly positioned: in this case rental is a way to simply enhance variety, for instance, to avoid posting two pictures with the same outfit on Instagram and smart consumers start preferring traditional purchase for iconic, timeless pieces, while opting for access-based consumption for new trends. Even more interestingly, we found that especially millennials show more positive attitudes towards rental, decrease dishonesty feelings and enhance their willingness to communicate to peers their rental choice when they are in an environmentally conscious mood. In other words, when consumers are more sensitive to responsible consumption, access-based luxury triggers proudness and word-of-mouth. Renting luxury becomes just a clever choice to responsibly increase a consumer’s wardrobe variety and an interesting new pattern to explore by luxury companies that want to make a meaningful statement into a more sustainable environment”. ..and tackle the challenge of personalization We remain with Emanuela Prandelli to understand the right balance between brand signatures and design, and product personalization. The sustainable nuance of customisation On a final note, it’s also remarkable to notice that customisation has an interesting sustainable nuance. A customised item is, by definition, an item which juxtaposes itself against the logics of fast fashion: - on the one hand, it requires some time to be crafted and it is designed for an audience of one; - because the demand for the product is established prior to production, there will necessarily be least waste. - further customised products are more exclusive in the eyes of consumers, and as such, they will typically value the product more and be more inclined to extend its usage because the product itself becomes imputed with their own personality - last but not least, customisation can also be seen as a strategy to fight against the counterfeiting phenomenon, which represents a very relevant issue in luxury and a further threat for sustainability. To a millennial customer who is more and more concerned about both environmental and social sustainability, a customised item can offer a guarantee of authenticity and controlled manufacturing processes. More smart consumption Taken together, these are quite interesting implications: as luxury consumers are currently putting further emphasis on the role of sustainability and the relevance of authenticity and they are more and more evidently shifting their attention from quantity to quality, from over-consumption to smart consumption. In this context, brands which are providing consumers with the chance to imbue their products with some degrees of consumer essence may be perceived as truly timeless investments.” Another key state: innovation Let’s focus oh how innovation is a key asset for Louis Vuitton Agnès Vissoud, Digital Innovation Director at Louis Vuitton, explains the importance of innovation in the Luxury Industry and at Louis Vuitton. Let's discover with her how to successfully foster innovation in a Luxury Mason in order to uphold creativity, transmission and savoir-faire. “Innovation as key asset for luxury brands After spending 10 years with creative agencies, directing marketing intelligence and consultancy entities, and working for brands like Coke, IBM, Nestlé, I joined Louis Vuitton in 2011 and built the digital experience and performance department, which was responsible for defining the Maison digital ecosystem. Driven to mix strategy and new technology, I founded the Louis Vuitton Digital Innovation department in 2017. Our mission is to make Louis Vuitton future fit by merging physical and digital worlds, but also by creating a full new value chain. I’m also in charge of leading the change brought by Artificial Intelligence and mainly, generative artificial intelligence across the full Louis Vuitton value chain. To name but a few, I built the foundation of one of the world’s largest luxury blockchain consortium, the Aura Blockchain Consortium, and I also created and developed the first client virtual reality experience, named Asnières Immersive, as well the Louis Vuitton VIA, first exclusive program dedicated to digital collectibles. We have major ambitions and we have the right team to thrive and succeed, composed of diverse talents, experts, from client experience, blockchain, web3, strategy, communication, data, artificial intelligence and new techlogies. 1. Innovation & Transmission of savoir-faire In the luxury industry, the role of innovation is to uphold creativity and savoir-faire by acting on every level of the value chain from conception, creation, production and distribution. Also innovation allows us to share our history with our clients in a new way. For instance, we created Asnières Immersive, Louis Vuitton’s first virtual reality client experience to support story sharing with our clients. The goal was to share with our clients our historical savoir-faire and over 170 years of history through a unique experience, transporting them into the heart of the maison in a very entertaining way. Of course, the magic of Asnières Immersive happens in our stores and also in our savoir rêver events around the world. We believed that virtual reality technology is mature enough, with the right quality, to invite our clients into those universes. It was totally new and our clients are curious and ready to pioneer and experience new fields with us. This reinforced their connection with the maison and they enjoyed learning more about our history and savoir-faire in a very unique, immersive and entertaining way. Innovation can also help up to transmit our savoir-faire and our artisan gesture. Mixed reality technology will certainly help us to transmit these gestures and savoir-faire with the craftsman in our ateliers. 2. The innovative spirit Louis Vuitton has already a long history of innovation. In 1854, the flat trunk was a revolution in travelling. In 1929, the first to Stokowski travelling desk was created and with the advent of flexible canvas in the 1950’s it shaped how people travel for generations. Louis Vuitton is always looking for the next horizon and frontier, it’s part of our DNA as a Maison. Thus Louis Vuitton continues to be groundbreaking: our creative directors have always piloted audacious and new creative and artistic collaborations. Louis Vuitton is fundamentally a House of Culture. Our culture is one of creativity and innovation is part of this culture. 3. Innovation & excellence At Louis Vuitton, innovation is not a race. It’s here to last, to identify and activate new technologies. Since the first day it has been about shaping the future of our Maison, building something that would last for the next 180 years, just as the first trunks back in 1854. Let’s look at the Louis Vuitton VIA: a passport between the digital and physical worlds. It puts our maison in a new path. It’s a unique program accessible to 200 clients to explore new horizon, unveil exclusive products and offer unique experiences to our customer through a passport between digital and physical words. This program embodies a new form of disruptive loyalty as it is direct, cooperative and community based model, with traditional clients and also digital collection enthusiasts. In a market where brands must build strong bonds with their clients, VIA leverages all five key levels of client loyalty: 1. Reward 2. Ownership 3. Recognition 4. Empowerment 5. Connection VIA is part of Louis Vuitton House of Culture. It helps nurture and make a link between our historical savoir-faire and digital craftsmanship. 4. Sources of inspiration Now that we’ve learned all about innovation at Louis Vuitton, let’s focus where the Maison draws its inspiration. To begin, we are inspired by the DNA of our Maison, our long history of creativity, inventiveness and pioneering spirit. We are also inspired by the world around us and by what’s happening in the world, such as societal changes, digital innovation, and the ever evolving intersection between luxury and fashion. We look closely at market trends, usage, adoption, new technology, product performance and identify and seize new strategic opportunities. Our role at digital innovation is to identify and experiment with the next big transformation that will impact our maison and our industry . Therefore, we look at new technologies that are changing the playing fields. For example, how can tools like generative artificial intelligence can support creative and designers and bring value to both our clients and the maison. We also look at the crossroads of technologies like generative AI and blockchain, which will create new synergies, opportunities and challenges. And of course, we look at culture: how are fashion and art driving demand for new products, events and experiences? In our ever changing world, it’s an exciting time to be focused on making Louis Vuitton future fit. To conclude, there are few points to keep in mind to foster innovation in a maison like Louis Vuitton: 1. Anchor innovation in the DNA of the maison: if you can change the label, you’re in the wrong path! 2. Adopt the pioneering spirit of Louis Vuitton: be an intrepreneur! 3. Share your knowledge and vision with the people that can help you put them into action 4. Dream, and take a bold, daring approach.” there for our customers every step of the way. We have to anticipate their expectations and respond to all their demands. Since the pandemic, remote communication options have gained momentum, such as streaming selling sessions or video chatting directly with a consultant. Apart from easy communication, we also need to efficiently respond to any arising concerns after the product purchase, for example repair assistance (remote diagnostics and provision of product care guides) or offering product maintenance service (cleaning and repairs). 3. Revamping the value chain to secure the execution of the strategy One of the key omnichannel enablers is securing cross-functional collaboration and full integration of the Maisons’ assets. All operations, from order allocation and warehouses to stores, delivery and after-sales - all activities have to be optimized. Solutions must also be implemented to support this collaborative initiative. This collaboration requires a high degree of flexibility, so the Maisons’ ecosystem has to work in unison and not silo-by-silo. With all the tools we have, we need to generate an in-store transformation. This is an important step as Luxury business is a retail business. The changes have to affect the store and the talents working at these locations. This touches upon all the activities, including inventory, store design, processes, roles and responsibilities, hiring and training, store routine, and relevant KPIs. 4. Measuring success and the impact Now that the new strategy, mindset, and processes are set in stone, we need to monitor the new client journeys. At this stage, it is important to let go of the notion that offline and online businesses are two separate entities, as now they are a united front. Thus, the key vector of the omnichannel is based on client satisfaction and performance. Simply put, we prioritize the client’s happiness through their experiences. In turn, a satisfied and content client is a loyal and involved client, who will continue making purchases, contributing to a boost in our sales and profits.   So, what can we learn from this? On one hand, it is possible to introduce a variety of different omnichannel-related initiatives. However, they might not effectively contribute to a truly seamless omnichannel customer journey or respond to today’s consumer needs and expectations. We have to understand that today’s Luxury clients already think and act in ‘omnichannel’, and the brands have to catch up with growing requirements of their customers.  If I had to highlight key focus points in ensuring that the company achieves a client- centric focus and fully omnichannel processes, I would recommend focusing on the following key elements: 1. Aligning the organization and its people under one collective goal. 2. Ensuring better collaboration across a range of operations and activities. 3. Reviewing all tools and instruments to be client-centric and not set up exclusively silo-by-silo. 4. Achieving a complete store transformation. In the end, the priority of making the omnichannel work is pushing each part and each involved person of the value chain to contribute to its execution and progression. Teamwork is what makes the dream work, after all! What do you think will be the leading market in the Luxury Industry in the future? Focus on China: A key market for Luxury China is on track to be the world’s largest Luxury market soon. The 1990s put China on the agenda of Western companies, as the country stopped issuing foreign exchange certificates and allowed the purchase of imported products with the Yuan. This is when many Western Luxury brands opened their first Chinese stores.   Thirty years later, China is today a key market for Luxury brands, and the prestigious reputation of Luxury brands stimulates a strong demand in Chinese consumers.   Andrew Wu, Group President of LVMH China, looks back over the last 30 years of LVMH’s presence in the region and reveals the ongoing importance of high-end retail as a crucial pillar to succeed in the market and gain consumers’ loyalty. When did LVMH enter the Chinese Market? On January 1st 1994, china stopped issuing foreign exchange certificates and Chinese consumer were allowed to purchase imports with the yuan. Many international brands became interested in China, Dior was the first to enter Chinese department stores. The foreign owned retailer left 5-star hotel lobbies to enter local malls. Over the past 25 or 26 years, dozens of brands under LVMH, in every category, have entered Chinese shopping malls and department stores. LVMH has stimulated the fashion industry in China and we are very happy to see the melding of Chinese and western cultures that make us inseparable. How do you see the future? High end retail is about convincing and communicating with clients which form a career development point of view is very useful. What makes the luxury industry prosper? The development of the global luxury goods industry and the expansion of over 70 brands in the LVMH group depend on retail, from the budding of the luxury goods industry to its prosperity today. Success came not just from craftsmanship, raw materials or quality, but also in exceptional retail. The solution to future customer experiences won’t come from the older generation, but from young talent. Spotlight on Chinese consumers A key topic for brands. Chinese consumers will shape the future of Luxury; Join Rane Xue, Senior Vice President Global Chinese consumers at Moët Hennessy Diageo China, and Xiaolei Gu, Innovation Director Asia at Fabernovel, as they share their insights.  Since this discussion, Rane Xue has been promoted, and she is now Vice President Data & Digital at Louis Vuitton China. The evolution of Chinese consumers by Rane Xue & Xiaolei Gu When we are talking about Global Chinese Consumers, who are we talking about? It is this specific group of consumers who tend to have this international exposure and international experience and we will further explain why - and we believe this is important for the luxury brands. The traditional way of looking at and the segmenting of consumers do apply, of course, but we though this anthropological and cultural approach might be interesting, especially for luxury brands. So who are we talking about exactly? Maybe now we can dive in a little bit more. Hopefully, this so-called Venn diagram explains a little bit of what we mean by the global Chinese consumer from the perspective of how china intersects or connects with the world. Of course, as of today the pandemic might have put the global a little bit on pause. But in the mid to long run, we believe this is how everything needs to be interconnected and there are probably four typologies that we can look into in the way that we look at the Chinese consumer. Starting from the lest, obviously, we have the majority of the Chinese consumers living in China domestically and they travel domestically, but at the same time, we know there are probably about 10% of frequent outbound travelers. Today, they are Chinese travelers” who very frequently travel across different continents from the study samples that we did. Last but not least, maybe the most important reason in my personal opinion is that these global Chinese consumers are trendsetters and change agents, that are brain changers and drive changes to the Chinese society. So here we are seeing a start-up company that a group of Chinese international students built up after they relocated back to China and it’s called “Know yourself ”. At the very beginning, they were just a bunch of international students who studied psychology and they started a WeChat account called “Know yourself ” to introduce some psychological framework to help their young readers understand themselves and the things happening around them in a fast-paced society. But later and later, as more and more people started to follow them and then they started to gain their influence, they already raised series B fundings. That allowed them to provide more therapist support, more offline coachings to help their 10 million Chinese young readers to constantly explore who they are and then introduce new mindsets. So it’s a group of international students impacting 10 million young Chinese. The changes also happen on a more micro level. I’d like to take myself as an example: after I relocated back to Shanghai to be able to stay with my family a little bit more - my family is a relatively traditional family. My mum di ally understood why a pair of Lululemon yoga pants is priced at a high pricing point like that. This is a mind storm for my mum and that generation, and she actually started to buy Lululemon yoga pants herself. These impacts also happen beyond consumption upgrades. One thing that I’m very proud of, with the influence that I can bring to my family, is they start to embrace some unconventional choices that my generation is making and then they start to build understanding of some unconventional groups of people like LGBTQ communities, and start to understand their rights. Once we manage to capture this group of global Chinese consumers, I think they will create halo effects to their home country. And we believe, if we want to understand the future of luxury in China, it’s extremely critical for us to understand this group of global Chinese consumers because they are setting the trend. What is the state of mind of global Chinese consumers and what changes are they driving? Some of the hardest and most important topics of our industry today are: - individuality - diversity and inclusion - sustainability Individuality The reason why we want to start with individuality is because luxury is a lot about individualism and personal taste, personal pleasure, but when it comes to Chinese consumers we still categorise them in a more collectivist culture versus that of the western world. What I want to highlight here from a global Chinese consumer perspective versus more like a generational or cultural regional perspective is that global Chinese consumers see more fluidity on the concept of individualism. Fluidity means that the understanding and perception is not fixed but rather fluid in reaction to different cultural contexts and where they are. That is to say, they know how to appreciate individualism in a western context and, in the meantime, they can also understand why it is super important to have conformity in a Chinese context. Individual future and collective decision-making is something that, for sure, applies to this group of consumers but I truly believe they will be the ones to think about a connected future and drive changes through collective efforts. Diversity and inclusion This is really a topic that is going beyond HR or just corporate communication. It is becoming the core of our brand purpose for many of the brands, especially in the luxury sector. Obviously, diversity and inclusion could be understood in many different ways: in the western context we talk a lot about the gender, the ethnicity, the colour, the subcultures and, sometimes, we ask ourselves as Chinese as we seem to be such a unified culture, even physically. How do we talk about diversity? I would say today there are really many different angles to look at that. As we can see, it is really event the local luxury brands, like a lingerie brand (called Neiwai) has really challenged the uniform way of defining beauty. They have this campaign to really give back the real beauty to all the different shapes and forms of the Chinese women. Obviously, this is really growing more and more at the heart of the luxury brand building. In our point of view, the true diversity and inclusion is also about embracing multiple perspectives, embracing different ideas and possibilities, because we believe this is how the collective intelligence will work together and it would be fair enough to say only people who have traveled and seen enough and interacted with different cultures and mindsets, will be able to develop such diversity or such inclusion attitudes and mindset. Sustainability It is such an important evolving trend, even in China where the Chinese consumers are really catching up and becoming more aware. You can see even in smaller ways when we order our takeaways how we can contribute in our own way to a better world and a better sustainability effort. It is all about sustaining our effort in a big or small way. China is a nation that has come a long way from fighting basically poverty and survival to today where we are gaining economic power. We start to become more aware about how do we give it back to nature and to our next generation? This mindset and learning could be developed over just a few decades and that’s just much shorter compared to the western world. Culturally speaking, even historically, the Chinese understood mankind and nature need to live in harmony, so I’m very confident that this is really something that the Chinese deeply embrace in our culture and it is up to our brands to really uncover that and to really facilitate and enable the consumer to make efforts along the way. Moët Hennessy has made a very strong commitment in biodiversity with “Living Soils”. Arguably what I would say is what Mother Nature offers is probably the optimum luxury. Because China is such a big market with 1.4 billion consumers domestically and a lot overseas as well, they are of different characteristics: different levels of maturity on luxury consumptions and even different consumption patterns. The key question for us as brand owners is how do we prioritise and, more importantly, strategise among all these axes with our ambition as a brand and our own resources? My personal convinction is that global Chinese consumers should be a priority for luxury brands, not only for the consumption power that they possess and demonstrated, but also for the fact that they are the most sophisticated Chinese consumers, if I may say, and they will be the first ones to really resonate with what our brands really embody and the type of value that we want to deliver as a luxury brand to the world, not only a specific market. The global Chinese consumer is not only a concept, it is a real concrete, tangible group of consumers where we can identify and take action with, to try to engage them with. But this does require the businesses and organisations to think and organise themselves a bit differently putting the consumer at the heart, beyond just organisations working respectively, because as you understood by now, the consumers are moving across within what we have explained in this international context. At the same time we are trying to figure out what are the specific ways that we can really reach out to them, empowered by data, by better insights to the Chinese digital ecosystem and of course, last but not least, the cross-team collaboration. The Chinese Second chapter: Luxury & society Presentation LVMH has made sustainable development a strategic priority since its founding. In this module, deep dive into the environmental and social strategies with which the Group is crafting a future that’s more creative, sustainable, and inclusive. • Unlock how Luxury and Society have been inextricably linked over time Meet renowned professors who will share their vision of the link between Luxury and Society, and how sustainability is at the heart of brands' engagement. Time to complete this section: approximately 1 hour • Discover the strong commitment of LVMH towards environmental sustainability LVMH’s environmental policy has been a pillar of its growth strategy for more than 30 years. Time to complete this section: approximately 3.5 hours -including a personal practice- • Learn more about how the Group strives to have a positive impact on society as a whole A strong sense of responsibility towards society is anchored within the Group's spirit. Time to complete this section: approximately 2 hours • Test your knowledge A 10-question quiz to assess your understanding of the main stakes regarding Sustainability. Time to complete this section: approximately 0.5 hours - The quiz will only cover the material of this module - Once you finish your quiz, keep in mind that your progress should be marked as “COMPLETED” to unlock the following Course. Dear learner, We hope that you enjoyed the first course of the INSIDE LVMH Certificate path, immersing yourself in the Luxury sector & LVMH. You saw several key stakes, from new customer expectations, to digitalization & innovation and a focus on China. It is now time to deep dive into a crucial topic as Luxury and Society have been inextricably linked over the time. As a leader in the Luxury Industry, LVMH has a duty to be a role model and show the right behaviors to follow. Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility and respect for the environment. They drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places we operate, and that our Group is actively working to build a better future for our planet. The luxury industry over time… Past, Present and Future: The Luxury Formula Serge Carreira from Sciences Po Paris explains the paradox of Luxury: it has to be of our time and timeless at the same time. What makes a Luxury brand relevant over time?  In the video, Serge Carreira, Lecturer in the Program of the Master “New Luxury and Art de Vivre” at Sciences Po Paris, focuses on one of Luxury's most singular dimensions: Time.  He uncovers how Luxury can evolve with society to ensure its values are lasting.  Luxury is a magic word. Everyone has a view on what luxury is or not. Some will describe it as a feeling, others will consider an object or an experiment. It will be too restrictive to define luxury as only what is not needed. As a matter of fact, luxury is a cultural expression beyond immediate needs. It is defined through a combination of various elements: the quality, the identity, the use, the price, the desire, the scarcity… we will focus on one of its most singular dimensions: time. The fact is that the idea of luxury combines individual and social representation. It generates a temporal mutability of luxury. Luxury is a quest for perfection, an appreciation of knowhow and culture and an aesthetic vision. If luxury evolves with society, its values are lasting. There is a kind of paradox in this: it has to be of our times and timeless at the same time. Luxury & the past “There is no past we can bring back by longing for it. There is only an eternal now that builds and creates out of the past something new and better” says Goethe. Luxury is rooted in the past, but it should not be nostalgia. Past means heritage. A luxury product has an history. The vocabulary of luxury includes Crafts, Myths, Icons and Excellence. However, if luxury doesn’t evolve, it could become dusty and “old”. Luxury brands in the present What makes the brand relevant? How does it resonate nowadays? “Beauty in things exists merely in the mind which contemplates them” states David Hume. The eye changes and then luxury changes. Luxury expresses a desire to beautify life. It could be considered as the pursuit of an absolute beauty. It is something “extra ordinary”, which means something not common. It has a dreamy touch. Aesthetic is a major element to turn luxury attractive. Luxury is a business of offer, not a demand. That is why it could be sometimes pushing the boundaries. Despite its strong roots in the past, luxury is a game changer. In order to be in a constant attraction relationship, it has to reflect today’s customers’ expectations: authenticity, transparency, sustainability and inclusivity. These value are at the core of the luxury concept. “Lasting” is one of the characteristics of luxury. It juxtaposes the different temporal dimensions. The future of luxury It doesn’t mean luxury as to be futuristic. Nevertheless, what makes it so special is the fact that it remains always relevant despite trends. The craft, the myth and the design make a luxury product durable. It brings also a personal emotion. As it is a meaningful object, a bag, a ring, a scarf or a watch can be transmitted from one generation to another one. Moreover, by essence, luxury embodies bold and perennial values: quality beyond aesthetic, legacy beyond desire, emotion beyond ownership, creativity beyond trends. Brands and society Brand values are strongly linked to society and consumers. What emotions and societal values are strongly associated with brands, and in line with society's aspirations?  Research has shown that consumers rely on Luxury consumption to communicate certain values, and thus reward companies that truly reflect those values. Follow Anne Michaut, Associate Dean for Education Track and Pedagogy and the Director of the LVMH Academic Chair at HEC Paris, as she uncovers the role of brands in society related to their opportunities to express functional, experiential and symbolic values.  Consumer choices are driven by the value created by brands and perceived by customers. Past research has shown that there are three distinct types of value created, also driving consumption motivations, namely functional, experimental and social or symbolic interaction. The central topic is the role of brands in society related to their opportunities to express strong values. 1. The functional value of a good, service of experience offered by your brand is based on the perceived utilitarian or physical performance. In luxury Focus 1: Sustainability How to define sustainability? How companies and individuals may consider their engagement and commitment to improving society? In the video, Anne Michaut, Associate Dean for Education Track and Pedagogy and the Director of the LVMH Academic Chair at HEC Paris, shares her definition of sustainability, and uncovers how businesses not only focus on minimizing their negative impact, but also seek to effect a positive one. The concept of sustainability has witnessed a growing interest in society in the past decades. What is sustainability? In proper definitions, sustainability and sustainable development were seen as “the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs”. This definition, focusing on the notion of persistence over generations, is the most frequently cited definition of the concept to date. Another commonly used definition is based on the so-called three pillars of sustainability. This is to say maximising simultaneously the biological system goals, economic system goals and the social system goals. As the world has witnessing the negative effects to climate change, water scarcity, species extinction, etc., while acknowledging the potential role of brands in activity, championing better policies, transforming business models and influencing consumer behaviour, many companies deeply revisited their activities. A more holistic vision of sustainability initiatives For a long time, much of sustainability has been about limiting damage, but today that has changed. Throughout the supply chain, businesses not only chase their negative impact, but also seek to enhance a positive one. This is about leaving “crisis” mode and recognising an opportunity to infuse a net positive mindset: 1. Seeking for upside benefits: the “gold” that smart companies mine from being sustainable includes higher revenues, lower operational costs and reduced risk 2. Managing the downside with efforts to cut waste and reduce resources used, can save money that drops to the bottom line 3. A value-based concern: doing the right things attract the best people, enhances brand value and builds trust with customers and other stakeholders. Also the direct link with operations remains essential and critical. We may question whether limiting companies’ options to this approach does not trigger a narrow view of the issues at stake to the point of neglecting a more holistic vision of the role of companies in sustainability of society, rather that the sole business they operate in. First we may argue that there is a moral obligation for companies to engage in sustainability of society as a whole. That is to say: companies have a moral duty to be sustainable. Second, and going one step further, one may argue that every company needs tacit or explicit permission from governments, communities and numerous other stakeholders to do business. In other words, acting sustainability provides companies with a license to operate. Third, there is a reputation dimension to sustainability: to improve a company’s image, strengthen its brand and enliven morale and even Rais the value of its stock. If we consider sustainability form these angles, companies and indivuslas may consider their engagement and commitment to improving society as a whole through actions may be disconnected from the core business, but meaningful in the bigger picture. As such, they should start from the perspective of the need of society rather than start from their own activities. In this vision, companies engage in actions not only coherent with their business but also related to it. To take an example of this, a company producing honey-based products could act in favour of the protection of the bees, including nature protection and education of citizens. In this mindset gift toward engagement, companies a may want to revisit their role and manage not only their consumers’ expectations but also society’s expectations to be accepted beyond their customers by non- customers as well. It is not about focusing on the tension between business and society, but rather about focusing on their interdependence in the broad sense. What about communicating around these initiatives? One essential issue with sustainability communication is to carefully consider the potential differences between consumers’ expressed requirements and their implicit expectations regarding sustainability. In other word, what consumers voice (expressed requirements) does not fully encompass all of their implicit expectations. First, implicit expectations about the role of brands can be broader that the value delivered to their customers and encompasses a value delivered to society as a whole. What should be your impact as a company to earn the right to operate? Second, their implicit expectations might at times exceed the actual brand performance on sustainability. Communication should consider consumers’ unvoiced expectations in regards to sustainability performance and compare them with the reality of their performance. Any gap is likely to create irritation and frustration from a consumer and society perspective. To conclude: 1. The responsibility of companies towards sustainability may be envisioned with a broader scope 2. Brands should enforce a more holistic vision of sustainability initiatives, by moving from sustainability to engagement toward values and commitment toward society as a whole 3. Brand should consider customers’ implicit expectations when communicating Focus 2: Equity, Diversity and Inclusion What are the definitions of Equity, Diversity & Inclusion? Felicia Henderson, Lecturer at Sciences Po Paris, gives a brief overview of equity, diversity and inclusion in organizations and offers some suggestions for how you can foster equity and inclusion in your workplace or future workplace.  We’ll talk about a brief overview about equity, diversity and inclusion in organisations and offer some suggestions for how you can foster equity and inclusion in your workplace or future workplace. Let’s define the concepts “equity”, “diversity” and “inclusion” (acronym EDI or DEI). Each term has a distinct meaning: - diversity refers to demographic difference or the ways that people differ from each other. We speak about identity characteristics or dimensions of diversity. Race, ethnicity and gender are common in discussions of diversity, but they are only a few of the characteristics that distinguish one person or group from another. Other dimension of diversity include religion, sexual orientation, age, national origin, physical ability, socioeconomic status and many other as shown here. - while diversity looks at numbers, inclusion looks at an organisation’s culture and climate. In an inclusive workplace, all individuals feel welcomed, respected and valued. No employee’s identity characteristics create an advantage or disadvantage to that person’s feeling safe to be who they are and enjoying a sense of belonging, support and empowerment. - Finally, equity is a our fairness based on an individuals’ varying life experiences. It is not “equality” if we limit equality to mean identical treatment, instead equity means creating fair access, opportunity and advancement for all, which requires identifying and removing barriers that exist for some demographic groups and reforming policies, processes and procedures that perpetuate unequal outcomes. - Consumers tend to express their values through the brands they select. - Brands can become powerful personal branding tools as they project clear and strong values. - Brands can deliver higher perceived value to their customers by expressing their own values. LVMH: 30 years of sustainable commitments Taking action to make a difference. LVMH takes action. Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility and respect for the environment. Our commitments drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places and communities where we operate, and that our Group is actively working to build a better future for our planet. “The LVMH Group embodies a unique culture, one that we express around the world through our products, as well as our ethical, social, environmental and cultural actions, with each aspect contributing to a truly living legacy.” - Bernard Arnault, Chairman and CEO of LVMH In the light of the 30-year mark for LVMH in honouring these commitments, let's look back on the evolution and progression of this path and dedicated strategy over the years. LVMH’s long-term success depends not only on the Group’s solid business model and profitable growth strategy, but also on its unwavering commitment to creativity, excellence, and our environmental impact and corporate citizenship. In the second part of this Course, you will focus on the 3 Group’s commitments: - Commitment to the environment with LIFE 360 - Social commitment with the 2025 CSR ROADMAP - Commitment to the arts and culture  LVMH & the Environment What are the commitments of LVMH? Do you speak “sustainability”? Glossary • "Eco-Design”: Eco-design is a design strategy that focuses on three broad environmental categories: materials, energy, pollution/waste. Its goal is to integrate sustainability and environmental protection standards throughout the service/ product life cycle to minimize the impacts that arise from manufacture, use and disposal of the product/service. • "Circular economy”: The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended • 'Traceability”: Understanding where exactly your products came from including the raw materials used to create them. • “Regenerative agriculture/viticulture”: An agriculture/viticulture capable to regenerate ecosystem functions (soils, biodiversity, water) by partnering with the living and ensuring qualitative livelihood for the stakeholders involved (farmers, communities), in order to produce high-quality raw materials. • “Life cycle Assessment (LCA)”: LCA is a methodology for assessing environmental impacts that are associated with the entire life cycle of a product, process or service. It involves evaluating the impacts from all phases of a product life cycle including raw material extraction, production, distribution, usage and end- of-life phases. ancestral savoir-faire. In the vineyards located in the Montagne de Reims, the cellar masters have witnessed the impact of climate change. In 1961, the first day of harvest was October 6. In 2020, the first day of harvest was August 17. Global warming is a reality and it is changing the way Ruinart chooses its grapes and creates its champagne. One of the major challenges in the coming decades will be to mitigate and adapt to climate change.  In order to harvest perfect grapes, Ruinart has been deepening its commitment to preserving the soils that are a source of life. Because the preservation of biodiversity is a top priority, Ruinart has announced that the Maison is dedicating the entire 40 hectares of the historic Taissy vineyard to a biodiversity pilot project carried out with Reforest’Action. It attests to the drive to develop this approach in the years to come and to share it more widely on the scale of the Champagne region.  Faithful to its pioneering spirit, Ruinart also promotes sustainable energy, like choosing LED lighting in its cellars. And in terms of commercial transport, 85% of deliveries are made by sea and 15% by road – not by plane.  With the launch of its Second Skin packaging, Ruinart reinforces its commitment to promoting sustainable innovation.   One of the first reasons to buy champagne is to give it as a gift, therefore packaging is truly important. Since 2015, gift boxes have been eco-conceived, but Ruinart has pushed its limits by challenging its design and development teams to create the second skin case. Two years of research and development were needed to create this sustainable packaging in every aspect, from bottle shape to wine protection. This 100% recyclable paper case reduces the bottle’s packaging carbon footprint by 60%. Its white color and texture are inspired by the Maison’s historical Crayères, the chalk quarries that store Ruinart Cuvées in optimal conditions.  Maison Ruinart strives to create a more sustainable French art de vivre and conscious Luxury at all levels.  The partnership between Christian Dior and Parley for the Oceans Discover how creative  circularity  is  transforming  the creative  process of Maison Christian Dior Couture.  Nature has always held a special place in the hearts of Christian Dior and his successors, who have in turn celebrated the beauty of gardens and flowers in their collections. Perpetuating this deep admiration, the House of Dior today works as a creative laboratory in motion to integrate Sustainable Development into all the Maison’s professional sectors and areas of expertise, organized around three pillars:   1. the protection of natural resources 2. the contribution to the climate effort 3. the daily commitment on the part of all the House's collaborators The encounter between Dior and Parley for the Oceans is a continuation of these virtuous actions, placed under the signs of sharing, transmission and determination to build a better future. For the second year in a row, Kim Jones, Artistic Director of Dior’s men's lines, has teamed up with this environmental organization that takes action against major ocean threats – with the Parley AIR (Avoid, Intercept, Redesign) strategy. Together, they have conceived a Beach Capsule made of 96% recycled f a b r i c s , r e fl e c t i n g t h e M a i s o n ' s  o b j e c t i ve  t o m ove t o w a r d s a more sustainable fashion, thanks to the concept of circularity.  Driven by eco-innovation, in 2019 the two partners initiated  joint research work, which gave life to novel materials made from Parley Ocean Plastic® – created with marine plastic debris and fishing nets recovered from the coastlines of several countries and islands around the world, then reworked in Dior’s Ateliers. A challenge for the artisans who, using this recycled fiber as an alternative to virgin polyester, created high quality fabrics, such as seersucker, silky knit and a technical fabric punctuated with the Dior Oblique motif.  Fusing durability and desirability, the wardrobe designed for this unique capsule is the fruit of a new alliance, inviting us to rethink the fashion of tomorrow by transforming the creative process.  Nona Source, a veritable innovation in sourcing. Created by three experts from the LVMH Group – Marie Falguera, Romain Brabo, and Anne Prieur du Perray, Nona Source is a startup incubated by our DARE intrapreneurial program (Disrupt, Act, Risk to be an Entrepreneur) to accelerate innovative solutions.  With their expertise in material sourcing and digital transformation, they designed a game-changing platform to re-use deadstocks, the “sleeping beauties” stored in the warehouses of exclusive LVMH Fashion & Leather Goods Houses. Pillar 2 Let’s now discover the second pillar: biodiversity Biodiversity 1/3: Fundamental importance of preserving the ecosystem LVMH has been committed to making the protection of biodiversity an absolute priority. The protection of nature’s ecosystems has always been of utmost importance to LVMH, whose activity is significantly reliant on natural raw materials (flowers, grapes, cotton, leather, stones etc.). Therefore, LVMH is taking action and making the protection and regeneration of biodiversity a key pillar of its LIFE 360 environmental strategy. Alexandre Capelli is the Innovation & Biodiversity Director at LVMH, and is leading the environmental creativity and innovation topics linked to products and raw materials within the Group. Let's discover with him how LVMH has structured its strategy around three main objectives to preserve and regenerate the biodiversity. Let’s focus about the most important four pillars: 1. Creative circularity 2. Traceability and transparency 3. Climate 4. Biodiversity Our commitments to biodiversity Biodiversity, for LVMH, means both dependencies and impacts. Firstly dependencies: LVMH had an intimate relationship with the richness and beauty of life, which gave the products of our Maisons, their expectional character. I could mention cotton, grapes, flowers, wool, leather… all our maisons rely on biodiversity. Secondly impacts: our activities are generating some impacts on nature as wastewater, deforestation or the use of natural resources. The aim is to reduce this impact. The protection of natural ecosystems is therefore an imperative for LVMH. We are taking actions and making the protection and regeneration of biodiversity a key pillar of our LIFE 360 environmental strategy. The LVMH group has structured its biodiversity strategy around 3 main objectives: 1. Establish a clear and precise measurement of biodiversity impact: measurement is a potent tool to define priorities, objectives and actions; it remains a complex issue where biodiversity is concerned. LVMH works on the deployment and improvement of measurement tools. LVMH also participates by way of its commitments and actions in the frame of reference defined by Science Based Targets for Nature, whose aim is to align the actions of business with international objectives for the preservation of biodiversity. 2. Avoid and reduce impact on ecosystems: by 2026, LVMH will roll out certification systems corresponding to the most rigorous standards of biodiversity- related criteria and apply them right across its strategic supply network, covering 100% of its supply. In addition, LVMH has set a target of zero deforestation by 2025 across its supply chain. 3. Regenerate and preserve impacts: the objective is to regenerate or preserve the equivalent of 5 million hectares of habitat of flora by 2030, using two main levers. First, implementing regenerative agriculture within our supply chain covering all strategic supplies as grapes, cotton, wool, leather or palm oil. Second, supporting projects outside LVMH supply chain to regenerate or preserve endangered ecosystems. In 2022, we already have positive and concrete outcomes: with regard to raw material certifications, Maisons are achieving a great performance: 71% of the cotton, 94% of grapes and 91% of leather are certified. About the 5 million hectares of ecosystem preserved or regenerated, we already achieved 1.37 million hectares by implementing different programs across the world. I can mention some of them as: the UNESCO Man and Biosphere and LVMH program dedicated to the Amazon where we are supporting local actions to fight deforestation; a program launched around the Lake Chad in Africa with the circular BioEconomy Alliance supported by King Charles that aims at developing sustainable cotton production in a regenerative agroforestry system. Our future challenges are deeply linked to our ability to achieve a full traceability of our supply chains. It will allow us to help both suppliers and farmers to transition through regenerative practices. Biodiversity 3/3: Louis Vuitton partnering with People For Wildlife NGO Louis Vuitton launched in September 2020 its sustainable roadmap, called The Committed Journey, with a social roadmap aiming to impact positively society and an environmental roadmap aiming to preserve natural resources. Learn more about its key pillars with Christelle Capdupuy, Sustainable Development Director at Louis Vuitton, while focusing on concrete actions to protect and regenerate biodiversity with the 5-year global conservation agreement with People For Wildlife NGO. Their environmental goals are: - to responsibly source all their raw materials - Fight against climate change, through an ambitious plan to decrease carbon emissions - Deploy circular creativity processes and we do that through quantified objectives towards 2025 and aligned with LIFE 360 commitments. Our first stake is to responsibly source all our raw materials, so we are aiming to reach 100% of the raw materials we are using to be recycled or environmentally certified by 2025. At the end of 2022, we already reached 78%. Second objective that we have is to erase the use of single-use plastic for our packaging. By 2022, we already decrease by 43% the volume of this plastic in our packagings. Our second stake is to fight against climate change. So in July, we’ve been validated by the Science Based Targets initiative to be part of the pass 1.5 program to decrease our carbon emission. So we’ve got the ambition to limit the global warming to 1.5 degrees and to do that, we’ve got to decrease our carbon footprint by 55%. At the end of 2022, we already reached -25% in this decrease. So we get some targets also for this carbon emission reduction. We are supporting these commitments with two main objectives: the first one is to equip all our stores in the world with LED bulbs, which are emitting less carbon because they are using less energy. Last but not least, we also want to run all our warehouses and workshops in the world with renewable energy. End of 2022, we already reached 70% of the energy used in these workshops and warehouses to come from renewable energy sources. Our third stake is to deploy circular creativity processes for all our products: windows, fashion shows and events in the world. So we are targeting that 100% of our categories of products will be committed to this eco-design process through a lifecycle analysis measurement, meaning that we are going to measure the environmental impact of all our products by 2025. At the end of 2022, we already reached 60% of our categories of product to be committed to this eco-design process. Last but not least, we are also aiming that 100% of the materials we are using for our windows, fashion shows and exhibitions, fashion shows and exhibitions will be whether recycled or coming from environmentally certified processes. And at the end of 2022, already 90% of the materials we are using for our fashion shows are whether recycled or environmentally certified. People for wildlife partnership We have been advancing since 2020 on the path of sustainable development through the objectives of our committed journey and after 2 years, we felt ready to embrace a more ballistic project to strengthen our positive contribution on a global scale beyond our own value chain. That’s why, in line with Louis Vuitton’s objective of preserving natural resources, we have signed beginning of 2023 a 5-year global conservation agreement with a Non Governmental Organization, People For Wildlife (PFW), to work together on protecting and regenerating biodiversity in a 1M acres area, in Queensland, in North of Australia, with its local community. PFW is an Australian-based NGO focusing on the preservation of biodiversity which specifically aims to preserve key conservation lands around the globe. Created in 2020, thin NGO is led by dr. Daniel Natusch, a world-renowned conservationist expert, member of IUCN, who has been living and working there during his PhD. This project contributes to the LVMH target of restoring 5 million hectares of flora and fauna habitats by 2030 and to the recent objective of the COP15 dedicated to biodiversity to protect 30% of the emerged areas in the world. Concretely, we will be directly - supporting scientific research in the field - monitoring wildlife species and understanding how to control invasive species - working on contributing to carbon sequestration by controlling fire and restoring habitats - closely working with local community to create sustainable economic models for nature-based materials In conclusion, we do believe that at Louis Vuitton our absolute priority to contribute positively to the environment, both inside our organization and beyond our value- chain, by fighting against climate change for deploying a regenerative approach of nature. A year after joining the People For Wildlife conservation charity in a five-year partnership to restore and preserve biodiversity in a vast Australian natural reserve, Louis Vuitton has shared the first results of initiatives for a 400,000-hectare area on the Cape York Peninsula in Queensland, Australia.  In order to assess the state of biodiversity in the area prior to project launch, the first year of the People for Wildlife collaboration established baseline metrics, set up robust monitoring systems and deployed operational scientific measurement equipment. This facilitates access to remote and challenging terrain. Effective monitoring has led to the discovery of two new species in the Apudthama reserve, a unique mushroom species likely endemic to the area, as well as a new snake species. The grey and brown python is currently being studied by the scientific community. What’s more, over half a million camera trap images have been collected, documenting the presence of numerous species and attesting to the health of the ecosystem and the diverse wildlife population in the reserve. Pillar 3 Let’s dive deep into the third pillar: climate Climate 1/2: Fight Climate change with Sephora Another pillar of LIFE 360, the LVMH environmental roadmap, is about Climate. Let's meet Katarzyna Wizniewska, Corporate Social Responsibility Director at Sephora, who talks about Sephora's concrete commitments and initiatives on that topic. Key sustainability challenges When you think Sephora, obviously you think about beauty products we sell. The impact related to product ingredients, manufacturing and packaging is the most important part of our environmental footprint. Additionally, to sell those products, we need stores, beauty advisors, we run e-commerce activities, deliveries, marketing and promotions… All those activities we could qualify as retail operation and this is another significant source of our environmental impacts. Sephora sustainability strategy is the response to current environmental challenges: - reduce carbon emissions - reduce waste on packaging and plastic - offer more and more sustainable products and services Our initiatives are aligned with LVMH ambition framed by Life 360 Program. Our climate pillar As we have an important number of stores, it is key to act on energy consumption. We can do it via more efficient LED lighting systems, via more sober use of air conditioning/heating and minimum use of energy beyond opening hours. To reduce CO2 impact we made choice of using renewable energy contracts. Last winter, within couple of months, Sephora reduced its energy consumption by nearly 20%. This performance has been awarded by LVMH as the best energy saving plan within the group. Simultaneously, it has been chosen as the best 2022 green project by Sephora employees. That result and this recognition are very encouraging for our teams, who actually made this plan happen. The same approach can apply to store deliveries. In France 1/3 of stores are delivered by electric tracks and another half by natural gas-powered vehicles. We have also decided to manufacture our major retail elements like shopping bags, uniforms & gift boxes in Europe to limit transportation impacts. If we look at the packaging side, the priority is reduction: for example, a new e- commerce solution is to ship small beauty items in envelopes rather than big boxes. We can also collect our retail decoration and transform that into new resources. Tomorrow, we hope to be able to recycle them to produce our own gift boxes with all collected cardboards. Beyond handling our own direct initiatives, the superpower of Sephora as a retailer is to influence brands and consumers. We can promote less overpacks or more “Give it back”: the future of creativity Our 3rd pillar “Give It Back” is highly valued at Bvlgari. We are grateful for what we have and we have to compensate for our activities. A special project that we just launched is the special sustainable hoarding in Nanjing Deji, China. Bvlgari is no longer interpreting it as a pure commercial space to place brand campaign images, rather we want to give it an additional twist. The back of the graphic is realised with a special fabric capable of filtering pollutants and viruses, also COVID, to give back clean air. In July, we will collect the results of this filter, and we will be able to have an official certificate about the environmental impact we had. We want to start compensating for the construction impact of our stores.   Reach carbon neutrality: a goal for Bvlgari and humanity We know that our last objective for humanity is not to reduce emissions, but to reach carbon neutrality. We trust the new generation of creative people to be able to analyse the impact of our activities and propose compensation ideas to reach this major goal. In our Valenza factory, on top of very high parameter standards in terms of reduction of energy consumption, 100% of green energy will ensure a saving of 7.000.000 Kg of CO2 in 4 years. Additionally, the team also worked in starting an environmental compensation activity, remote from the construction site itself, but still impactful for the area. This is the next border for creativity applied to sustainability, and we will need all the help of the next generation of talents to build a better future together. Pillar 4 Last but not least, let’s talk about traceability and transparency Traceability and transparency 1/3: Focus on Tiffany & Co. At Tiffany & Co. sustainability is not just a commitment but rather an integral part of the House identity. Hear from Victoria Reynolds, Chief Gemologist at Tiffany & Co., how she procures the most beautiful gemstones and diamonds in the world to adorn Jewelry Collections, while respecting the highest social and environmental standards including responsible sourcing and full traceability. “My main mission as Chief Gemologist is to procure the most beautiful gemstones and diamonds in the world to adorn our Jewelry collections all of which are responsibly sourced and have full traceability”. Social & environmental commitments at Tiffany & co At Tiffany & co., sustainability is not just a commitment, but rather an integral part of our house identity, something that lies at the heart of everything we do. With a 185-year heritage, we believe that it is our responsibility to be at the vanguard of sustainable luxury. We pride ourselves on the responsible sourcing of materials and prioritising ethical practices that positively impact both the environment and local communities. Responsible sourcing at Tiffany and co. means supporting: - human rights - fair labour - environmental conservation Tiffany’s social and environmental accountability program (SEA) aims to embed responsible sourcing practices into our supply chain. Through this initiative, we replace the traditional audit approach and directly engage with suppliers, which contribute to high performance across our supply chain. Our dedication to sustainability extends far beyond the initial creation of our pieces. At Tiffany & co. we believe that love, as well as our jewellery, should stand the test of time. About diamond - traceability One of the biggest challenges the diamond industry faced was diamond traceability. Tiffany has been deeply committed to offering the highest social and environmental standards. Transparency and conducting our business in a responsible way is something that our clients expect from us. In 2020, we became the first global luxury jeweler to disclose full craftsmanship journey of our diamond from the region of countries of origin where the stone was mined to where it was cut, polished and graded and then set. As part of our diamond craft journey, we work to ensure that responsible practices take place every step of the way. In communities around the world, mining and trading coloured gemstones is a cultural tradition and source of livelihood passed down for generations. Approximately 80% of the world’s coloured gemstones come from small scales artisanal mines spanning more than 40 countries. And the industry is highly complex, making it difficult to trace the gems’ origins. Tiffany & co. uses strict protocols for sourcing the approximately 60 varieties of gems used in its jewelry. And we are helping set industry standards that account for the realities of the supply chain, while seeking to increase transparency and traceability. Industry collaboration Tiffany & co. collaborates to create standards and share best practices to promote responsible gemstone supply chains. In 2015, Tiffany joined others in the luxury jewelry industry and coloured gemstone mining sector to form the Colored Gemstone working group (CGWG), which has developed: - due-diligence tools - training materials - other resources for the coloured gemstone sector Through industry partnerships and philanthropy, Tiffany and the Tiffany & co. Foundation also support a range of stakeholders, form miners and traders to cutters and polishers, to help the coloured gemstone sector support sustainable livelihoods in places around the world where people depend on it. The subjects regarding sustainability and traceability is continually evolving and it’s one of the most exciting parts about my position. But one thing will remain constant: my mission of finding the world’s most exceptional diamonds and coloured gemstones and leading our industry and sourcing them in an ethical fashion will be even more important in the future —> sourcing diamonds and colored gemstones ethically will increasingly become important. Traceability and Transparency 2/3: Focus on Fendi Explore with Séverine Pinault , Supply Chain, Sustainability & Logistics Director at Fendi, how the Maison develops a more responsible supply chain, with more transparency and traceability. Since the recording of this video, Séverine as been promoted to Supply Chain, Logistics & Sustainability Director of the Fashion Group Division. “I have a true sensitivity to the topic in my personal life and at the same time, I measured the responsibility I had considering the rising awareness and pressure on that topic. Overseeing supply chain & sustainability together is a strength. As Supply Chain Director, I have a key role of interface between all functions: industrial, product, merchandising, logistics, with a wide picture of the business. This role of interface helps me daily to manage more efficiently our global Sustainability roadmap. At Fendi, together with my team and with the support of the Top Management, we strive to build a sustainability strategy aligned with LVMH Life 360 roadmap and characterised by a pragmatic and a transversal approach. As an example, each member of the management committee has a clear objective on sustainability among their annual objectives. As you may know, LVMH Life 360 is based on 4 pillars: 1. Creative circularity 2. Biodiversity 3. Climate 4. Transparency Focus on transparency Fendi is best in class among LVMH Fashion Brands. Why? As we are working every day to build a more responsible Supply Chain, we think we can be confident to be transparent and for example to disclose the full list of our suppliers. What is a Responsible Supply Chain for Fendi? As a Roman luxury maison, as a Maison representing the “made in Italy” worldwide, the preservation of the Italian craftsmanship synonymous with tradition, quality, excellence is at the heart of Fendi commitments. At Fendi, 98% of our products are made in Italy and we are proud to have built a supply chain almost entirely applications we receive. Despite everything, we are always up for a challenge with sometimes difficult targets. We can also deal with anxiety-provoking subjects. This ambition requires collective efforts on a daily basis. Our responsibility of impact and our business objective are to market and offer creations that are both the most natural and the lightest in terms of carbon emissions and footprint in the broad sense, in complete transparency.   “It’s a digital revolution applied to a dual connected requirement of transparency and traceability ” How was the Bee Respect platform launched in 2019 born?  Bee Respect is a very “tech” project. It’s a digital revolution applied to a dual connected requirement of transparency and traceability. We are fortunate with Guerlain to be seen as a house linked to nature. It's even in the DNA of the brand with the bee signature. Our Group has been very committed since 1992, and Bee Respect marks an important step in opening up transparency on our supply chain and whole life cycles of our products. For over 4 years, Guerlain has been committed to a long and rigorous process of mapping the life cycle of its products. In 2019, we launched "Bee Respect", our transparency and traceability platform designed in partnership with Product DNA (architects of traceability). Accessible to all via our website guerlain.com, it is also a valuable tool for internal teams, a valuable tool for continuous improvement (particularly in terms of environmental impact), from the flower field to our customers.   Does Bee Respect demonstrate an evolution of the customer relationship and experience?  We started working on this platform in 2015. This platform Bee Respect, intuitively, is a new relationship with the consumer. It’s a revolution in itself. This requirement of transparency, asked us to go up the value chain and recreate the link with the customer. In a way, this is a way of breaking away a little from the adage that Luxury does not reveal its secrets, its backstage. We felt this need for communication very early on. Regarding the products, we went to look for labels such as third party certifiers as well as the programs of retailers like Sephora. Everyone was put on the same level in terms of “Clean beauty” or Naturalness.   How does this tool guarantee this transparency?  We have a very strong ambition to be exemplary. Engaging in this process of mapping products was very long and required a lot of rigor to meet this expectation and this requirement of details on the information of all the products and all the creations. We mobilized 250 employees, partners and suppliers. Today we are focusing on internationalization: we have recently launched the site for the United States and planned to put online new countries in Asia. It is a rather complex process, each country has its own regulations. It has long been believed that sustainability is not always marketing's best friend. The Bee Respect experience proves the contrary and responds to this need for concrete and precise information to the deep questions on environmental footprint and climate change.  How does the naturalness strategy fit into the LVMH Group's zero carbon objective for 2028?  We are fortunate to have this powerful backbone of the unique connection to nature, this history linked to biodiversity and natural ingredients. We must not forget that Guerlain is also the inventor of synthesis in perfumery. The product must also respond to an essential alliance between its functionality and sensoriality. The equation must be subtle and respond to an ecosystem. This alliance will never be one hundred percent natural. Sustainable innovation is like a healthy mind in a healthy body. At Guerlain, the spirit is the formula and the healthy body is the packaging. Here too, we are completely transparent.   Ahead of each new product development, our Marketing, Development and Sustainable Development teams work together to set ambitious yet realistic goals according to the 3 following indicators: • The Environmental Performance Index (EPI) is a grade out of 20 which determines whether the rules of eco-design are being well implemented. This grade is calculated using a software developed by LVMH for use by all Maisons. As a reporting tool, it measures what eco-design progress is being achieved by the Maison as well as throughout the Group more globally. For each new development we broadly aim for a minimum grade and each re-launch of an already existing product will be re-launched with an improved grade better than its predecessor. • CO2: With each new development we commit to producing less CO2 than its predecessor. This indicator corresponds to the equivalent CO2 created by the product packaging and transportation in the world. • Finally, we follow the 3 Rs: Reduce, Reuse, Recycle, in this precise order. We endeavor to develop products that integrate all three Rs. From an environmental standpoint, the highest performing products are therefore those with a grade higher than 12 and a significantly reduced CO2 impact compared to the product it replaces, while also meeting three R objectives (Reduced packaging, using Recycled materials and designed to encourage Recycling.)   Does the lasting transparency of Bee Respect strengthen the brand's position in its market segment?  I am convinced that sustainability meets performance. I would even say that today it is beyond that, we are condemned if we do not meet these requirements for transparency and traceability and, in essence, the expectations of our consumers. Both certification and traceability are the guarantee of a virtuous circle in our way of sourcing the wonders of nature at the heart of all our creations for nearly 200 years. It is to protect them and to be able to pass them on that we are committed to the quality of the cultivation and the traceability of our sustainable natural ingredients: whether it is orchid, honey but also neroli, ylang, rose, etc. We audit them on both the environmental and social aspects, aiming for continuous improvement. Luxury would not exist without biodiversity and this is a very upstream approach, at the sourcing stage, that improves the quality of our products.   In a more societal angle we connected the dots between bees and society with our latest program developed with UNESCO: “Women for Bees”, designed to train women beekeepers in UNESCO Biosphere Reserves all over the world. Surely, we will rely on the Bee Respect platform to update and visualise all the places we install beekeepers and beehives! “Both certification and traceability are the guarantee of a virtuous circle in our way of sourcing the wonders of nature” © La Maison Noire Go further: Regenerative Luxury - Design in the context of a planetary emergency Professor Carole Collet, Director of Maison/0, the Central Saint Martins LVMH 2 creative platform for regenerative Luxury, discusses design strategies that address some of our critical ecological challenges. She discusses going beyond the idea of sustainability, and transitioning to a regenerative practice that helps replenish our climate, our biodiversity and our communities. “We need to accelerate our environmental actions. We need to beyond the idea of sustainability, where too often the focus is simply on minimising impact. We now need to transition to a regenerative design practice that helps replenish our climate, our biodiversity and our communities. Why are we speaking about a planetary emergency? There are two critical challenges I want to address today: 1. The rapid decline of our biodiversity: in the past 40 years, we have lost nearly of our 60% of our wildlife population. We know that at least 1 million species are at risk of extinction because of human activities. We, as human, depend on other species everyday: think of how insects pollinate the food we eat. Ecosystem services are critical for our own survival and we’ve taken them for granted. It is now urgent that we reverse our biodiversity rapid decline and help replenish our ecosystems. So how do we design to nurture and replenish our biodiversity? It is a new paradigm for us designers. 2. Climate warning: the international Paris agreement treaty requires that we limit our climate warming to 1.5 degree Celsius increase compared to pre-industrial time. We now have eight years left as of 2022 to halve our carbon emission. A very difficult task. The time to act is now and whilst it is a tough challenge, it also opens up new creative opportunities for us. About LVMH partnership with Central Saint Martins: LVMH has a partnership with the Central 2 Saint Martins school in London, which focuses on the topic of regenerative Luxury. The partnership ambition is to harness the power of creative collaboration to confront climate and biodiversity emergency and to empower emerging talents through creative education to design a better future. social and professional inclusion in solidarity with our host regions and communities as we strive to cascade the positive social impact of our activities.  The four pillars of social responsibility are as follows: 1. Respecting the uniqueness of our employees: we endeavour to build an inclusive organization that celebrates what makes each employee and each candidate special. 2. Passing on and developing savoir-faire: the preservation of artisan crafts and design is a fundamental concern, as it guarantees excellence for our Maisons and safeguards our reputation throughout the world. 3. Supporting our employees by improving their safety and well-being: employee well-being requires action in all areas directly and indirectly related to health and safety. 4. Empowering local communities: As a leading company in the global economy, at LVMH we feel a strong sense of responsibility towards the regions in which we operate. Over the next chapters, we will have a specific focus on Diversity & Inclusion and Preserving Savoir-Faire. Diversity & Inclusion 1/3: Focus now on Diversity and Inclusion at LVMH. “At LVMH, Diversity and Inclusion is everyone’s business”. Deep dive with Vanessa Moungar, Diversity and Inclusion Director for LVMH, into the Group's vision and discover how Diversity and Inclusion are cross-cutting all our business to ensure long-term performance. She shares our three action pillars: PEOPLE, PARTNERS and IMAGE. “I lived in a lot of countries and I feel I am a citizen of the world. I worked on women empowerment and fight inequality based on gender and skin colour. Could you explain your role at LVMH? Your key responsibilities? My role is to lead the implementation of our global roadmap to coordinate our actions towards our common goals and to create synergies amongst our Maisons to share best practices. We are committed to fostering an inclusive culture in which all stakeholders, starting with our talents, but also our partners and clients, feel welcome, respected and represented. It’s not only the right thing to do: we strongly believe that it is a source of creativity and performance. Animated by this vision, we have set clear and measurable global objectives, starting with our talents: to achieve parity 50% of women in all key positions and salary equity by 2025, to employ 2% of people living with disability by 2025 and 5% as a long-term goal, and to ensure the representation of people of colour with a 30% goal of Black, Indigeneous and People of Colour in leadership positions in the US by 2026. We work on these targets through the active engagement of our Human Resources community and special initiatives spanning form recruitment and training, to salary equity and career development and we closely monitor progress. Through the EllesVMH program, we aim to accelerate the professional development of women across the Group. In 15 years, the percentage of women in key positions rose from 23% to 45% in 2022. Beyond our targets at Group level, we work closely with our 75 Maisons to stimulate innovation and impulse impactful initiatives aligned with their cultures, their sectors and their DNA. We rely on a vibrant community of experts working in each of our Maisons and driving progress on diversity and inclusion. Each year, we recognise the best initiatives implemented by Maisons through the Inclusion Index, which is our tool to capture our impact and measure the change we operate through all our actions. What is your vision of diversity and inclusion? Diversity & inclusion are interconnected. They need to work together to be real change makers. Diversity is a fact, it refers to the variety of unique individuals that make a team diverse. Differences between individuals can be visible such as gender or skin colour, but also invisible such as our personal background, countries you have lived in, life experiences that shape who we are as individuals and help up bring diverse perspectives to the table. It’s that diversity that makes our business more creative, more innovative and stronger every day. Diversity, however, is not enough to create an inclusive corporate culture that leads to performance. Culture is made up of the daily actions of every one of us in the Group and that is actually captured in one motto: we are diverse by essence, we are inclusive by choice and it’s everyone’s business. Our notion of an inclusive culture is one there everyone feels empowered to contribute and thrive, regardless of their background. Above all, we want to reflect the reality of our markets and offer development opportunities to all, that are based solely on merit and skills. Our pillars of action Diversity & inclusion is cross-cutting to all our business. We are diverse by nature with 190 nationalities operating in more than 80 countries and with 4 generations at work. Our Maisons have a wide breadth of métiers and the Group is represented in all the luxury sectors. So we have three main pillars of action: 1. People, which is about ensuring inclusive practices into the entire employee journey that spans from recruitment processes free of any forms of discrimination to equitable career development opportunities for all. We develop specific training programs for recruiters, of course, but also for all our talents, such as the unconscious bias e-learning that is available to all our talents across the group. We also rely on our amazing employee networks around the world, EllesVMH, our women’s network, or LVMH Pride, our network for LGBTI+ inclusion and lead for LVMH employees of African descent. These groups of talents from these communities and their allies come together to support each other, to learn from each other and they work with us as business partners to further drive a culture of inclusion within the Group 2. Partners: we extend this vision through our entire supply chain, by ensuring that the partners we work with are aligned with our values and principles for impact through our wider ecosystem. We also encourage our Maisons to proactively diversify their supply chains to ensure that underrepresented groups are part of our journey 3. Image: we want to make sure everyone feels represented and respected from our marketing campaigns to our store experience. We also amplify and advocate for the promotion of diversity & inclusion through global communications, putting the spotlight on our engagement and reflecting the diversity of our talents, sectors and métiers. Our Maisons also strive to represent the diversity of our clients and reflect the plurality of the world, while mirroring the local fabric of societies. Which are the stakes or key future challenges? When talking about diversity & inclusion, there is no one size fits all. Our role is to ensure our core values and global commitment resonate around the world, but it is crucial to adapt specific initiatives to local contexts. The past few years have seen a momentum on topics of diversity and inclusion around the world and we must ensure that it is not only sustained but leads to concrete actions and systemic change in terms of equal access to opportunity for all, not only in our organisations, but also in societies around the world. A final word? At LVMH people make the difference. We all have a role to play and to be inclusive is not a luxury, it’s a choice, and it’s everyone’s business. Diversity & Inclusion 2/3: Focus on LVMH commitments in North America Learn from Corey Smith, Vice President of Diversity, Equity & Inclusion at LVMH North America, how Diversity and Inclusion topics have evolved in recent years and the results of LVMH's actions in North America.  “The LVMH notion of an inclusive culture is one where everyone feels empowered to contribute and thrive, regardless of their background.” Diversity & inclusion at the heart of LVMH values 1. Innovation & creativity 2. Excellence 3. Entrepreneurship 4. Commitment to positive impact These values are directly aligned with diversity and inclusion. At its core, diversity & inclusion is about leveraging differences to produce better results. I mean that people with different and unique backgrounds, characteristics, skill sets, experiences and levels of expertise work all together to drive innovation and creativity because they all contribute different ideas. Homogeneous thinking drives sameness not innovation. It’s the diversity of thoughts that allows innovation, creativity and excellence to thrive. , by being inclusive of diverse thought and allowing individuals to be entrepreneurial in their thinking. everyone’s business”. Our notion of an inclusive culture is one where everyone feels empowered to contribute and thrive, regardless of their background. Focus on Disability Inclusion 3/3: Supporting employment of people with disabilities Steadfast in the commitment to integrating people with disabilities into the workplace, LVMH has launched an inclusive program to enhance accessibility, recruit people with disabilities and provide them with the support that enables them to perform their best at work. The Group values the unique contributions of people with disabilities to the legacy of excellence championed by its Maisons. In 2021, LVMH signed the International Labour Organization (ILO) Global Business & Disability Network Charter and fixed a target of increasing the percentage of people with disabilities in its global workforce to 2% by 2025 . We were at 1% in 2020. The target is to double the number of employees with disability globally by 2025. In the following article, you will deep dive into the importance of the Disability Inclusion topic with Jean-Rémy Touze, from LVMH’s Disability Inclusion Office. What are the key roles of Disability Inclusion? Jean-Rémy: Some of the key roles of Disability Inclusion at LVMH are • Ensuring that disability issues are addressed by teams at all levels and in all countries • Improving understanding of the situation in each geography • Identifying local challenges for people with disabilities and facilitate communication among our HR teams worldwide • Helping the Maisons implement global disability policies while also supporting them in the development of local programs   What are the effective actions? Jean-Rémy: Some great programs have been introduced in several countries on an local basis. The aim now is to expand the scope, so we’re trying to provide the Maisons with a methodology for replicating these initiatives elsewhere and widespread the implementation of these programs.   An initiative began at Sephora in the United States in 2017. Over a period of just a few years, Sephora USA increased the percentage of employees with disabilities in its distribution centers to 10%, while also achieving a very good productivity rate.  In France, a work-linked training program was launched to promote the ongoing professional development of people with disabilities. Since 2014, 102  people with disabilities have been offered a work-linked training contract at the Group’s Maisons. How does LVMH create attractive career opportunities? Jean-Rémy: In developed countries, individuals with disabilities have 50% less chance on average, of obtaining a degree. Work study programs can help close that gap and create attractive career opportunities. Another noteworthy initiative, relating to high-level disabilities, is the project undertaken with the French non-profit “Vivre et Travailler Autrement”. The aim is to integrate people with severe autism – who have difficulty with things like speaking and reading – into the manufacturing teams at the Guerlain plant in Chartres.   How do you overcome biases? Jean-Rémy: More than 2,700 employees with disabilities already contribute to the excellence achieved by our Maisons in a wide variety of functions, including customer experience. To change the way people see disability, we need to overcome persistent stereotypes and misconceptions. Some people still believe, for example, that luxury goods and disabilities are incompatible. However, at LVMH, an employee with disability is not limited to a specific area and could work in a store, a workshop or an office, just as they might hold a management position or be at the very start of their career.   How does the Group support the community of people with disabilities? Jean-Rémy: LVMH is committed to ensuring that disability doesn’t constitute a barrier to recruitment, promotion or talent development and should be normalized. The Group is honored to work with impactful partners to support this community. LVMH supports Runway of Dreams, a non-profit organization that works towards the inclusion of people with disabilities in the fashion industry. People with disabilities make up 15% of the global population. Disability is therefore an ordinary part of life – of our lives! Preserving unique Savoir-Faire Passing on our savoir-faire to all generations LVMH and its Maisons are the custodians of an unparalleled heritage of time-honored craftsmanship and creative skills and take great care in protecting and developing savoir-faire that has sometimes been passed on for centuries.   Preserving these métiers and their traditions is essential to the enduring success of LVMH. The skills of our artisans guarantee the excellence that goes into crafting our products and experiences. This savoir-faire constitutes a unique, intangible heritage that lies at the heart of our appeal and aura around the world. This can be professions such as formulation technician, winegrower, seamstress, leather craftsman or Client advisor.  We call these exceptional skills the “LVMH Métiers d’Excellence” that encompass more than 280 professions, that have a very promising future, in which people can grow, pursue fulfilling careers and explore new territories. It aims to create a virtuous circle of initiatives that unites all LVMH Maisons and all generations around the essential goal of passing on savoir-faire. Overview of the 5 Métiers d’Excellence initiatives in detail:  1. Excellent!, a program to build awareness to new generations and awaken vocations in France, Italy, Spain and USA.  The LVMH Maisons, through their Human Resources teams and experts, thus engage students in middle schools by leading practical workshops and show that these métiers offer wonderful career opportunities.  2. The You & ME tour is a vocational guidance and recruiting fair dedicated to the LVMH Group’s array of specialized métiers.  This event occurs every year in As one example of our Atrium program in action, we recently launched the “Breakfast at Tiffany’s” program for those starting out in their careers. It’s behind the scenes tour where early career professionals from underrepresented backgrounds can experience Tiffany & co’s world class service and get to know the teams behind the brand. We also engage with our local communities. We have a long standing relationship with the Lower East Side Girls Club to build a career recruitment pipeline. We work with historically black colleges and universities to provide educational and professional opportunities for students in those communities. To date, more than 100 students have received scholarships totality over $2 million as part of this initiative. We also partnered with North Carolina Agricultural and Technical State University to create a curriculum for students in these creative industries. Craftspeople are a critical part of our business. As such, we’ve developed an apprenticeship program as part of the LVMH Métiers d’excellence Institute, where we focus on recruiting and uplifting women and underrepresented groups to this field of work. The apprentices have received thousands of hours of mentoring by our skilled Tiffany craftspeople to better refine their skills and pass on the savoy-afire of jewelry making. After successful programs in New York and Rhode Island, we’re looking to expand this program to other parts of the United States and eventually globally. Tiffany & co. is: - committed to being a leader in sustainable luxury - proud of our achievements to date - continue to expand our efforts for our planet and for our communities LVMH & Art Our commitment to culture & creativity As the world's leading luxury group, LVMH has a role to play to create exceptional products and share artists’ outstanding works, celebrate culture and offer it to the world, inspire dreams, stir up emotions and raise awareness among all people.    Supporting art and heritage  From the beginning of its history, LVMH has demonstrated a unique commitment to philanthropy. The Group and its Maisons support community-oriented initiatives in France and around the world, promoting and maximizing access to art, cultural heritage, fashion and arts education.  LVMH is a major supporter of initiatives aimed at preserving France’s historic heritage. Thanks to LVMH’s exclusive support, Boating Party – painted by Gustave Caillebotte between 1877 and 1878 – has been added to the Musée d’Orsay’s permanent collection. The painting – a major work of the artist and of the Impressionist movement as a whole – was recognized as a National Treasure by France’s Ministry of Culture in 2020. Its acquisition enriches the Musée d’Orsay’s collection of Impressionist paintings with a masterpiece without equal in France’s public collections.  Fondation Louis Vuitton : A heaven for art and culture  Since it was opened in 2014, the Fondation Louis Vuitton has become one of the world’s leading institutions on the international arts scene. In nine years, it has already welcomed nearly 11 million visitors, reflecting its immense success with French and international museum-goers.  The Fondation Louis Vuitton’s core missions are supporting artists and building dialogue between key figures in modern art, leading lights of the international contemporary art scene and a wide audience, especially young people. Two flagship exhibitions were held in 2023: Basquiat x Warhol: Painting Four Hands, from April 5 to August 28, and Mark Rothko, starting October 18.    Test 1. How is Sephora reducing CO2 impacts? Choose at least one answer. - by using renewable energy contracts - by making deliveries via drones - by reducing the packaging - by promoting "Good for" sustainable product selection 2. Which of the following are part of LVMH's LIFE 360 Program to positively impact the environment? Choose at least one answer - Protect Biodiversity - Fight Climate Change - Foster Creative Circularity - Implement Traceability and Transparency 3. Since it was opened in 2014, the Fondation Louis Vuitton has welcomed ... Choose one answer - Nearly 5 million visitors - Nearly 7 million visitors - Nearly 11 million visitors 4. Louis Vuitton launched in 2020 its Committed Journey program, with an environmental roadmap based on three pillars. Select the proposal that is NOT a pillar of this program. - Responsibly source all raw materials - Fight against climate change through ambitious actions to decrease carbon emissions - Foster sustainable viticulture - Deploy circular creativity processes 5. What are the talent-centric objectives to foster an inclusive culture at LVMH? Choose at least one answer. - 50% of women in key positions by 2025 - 5% of people with disability as a long-term goal - 30% of Black, Indigenous and People of Color in leadership positions in the US by 2026 6. According to Victoria Reynolds, responsible sourcing at Tiffany & Co. means ... Choose the correct answer(s) - Supporting human rights - Supporting fair labor - Supporting environmental conservation 7. The circular economy is a model of production and consumption which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. Choose one answer - True - False 8. Through the Living Soils Living Together program, Moët Hennessy wants to reduce by ... its water consumption worldwide by 2030. Complete the sentence with the good answer. - 20% - 30% - 40% 9. How can you help your (future) organization harness diversity in a way that promotes greater inclusion? Choose one answer only - Being aware that out-group bias exists and we are all prone to it - Being open to difference and learning helps counteract exclusion - Acting as an ally when you see inequity or exclusion - All of the above 10. The goal of the IME (Institut des Métiers d'Excellence) is to... Choose one answer. - Protect Biodiversity - Transmit savoir-faire