5 ways LVMH supports innovation and the luxury industry transformation

The luxury sector is constantly evolving, and LVMH, the world leader in this market, plays a crucial role in this transformation. Since the group was founded in 1989, LVMH has never stopped pushing back the boundaries of innovation, as Bernard Arnault reminded us in his speech at the last LVMH Awards in May 2024: "We have 75 highly developed start-ups in the group, which we call Maisons. These are companies that all started out as family-run start-ups. With LVMH we have always supported and invested in innovative companies. Some have done well, others less so (...) There are reasons for success. The first is creativity and innovation. But that's not enough. For a luxury brand as for a start-up, the quality of your product is paramount. The third point is the presence of entrepreneurship and efficiency."

Levita had the honor of being one of the finalists for the LVMH Innovation Awards in 2021, and has been closely observing for the past three years the structure that the LVMH group has set up to forge privileged links with innovation and startups.

1. LVMH Innovation Awards: a Springboard for innovative startups

Since 2017, the LVMH Innovation Awards have rewarded the most innovative startups shaping the future of luxury. This annual event is a veritable incubator for new and revolutionary ideas. By highlighting disruptive technologies and innovative approaches, LVMH encourages young companies to propose solutions that transform the luxury experience. For the 2024 edition, over 1,500 companies had applied for 18 startups selected as finalists.

For a behind-the-scenes look, we were followed by the Belgian 'StartupVie' channel in 2021: 

2. Station F: An Ecosystem Supporting Global Innovation

LVMH is a strategic partner of Station F, the world's largest startup campus located in Paris opened in 2017. Station F, founded by Xavier Niel and led by the dynamic Roxane Varza, has become a comprehensive international ecosystem in just a few years, hosting more than 1,000 startups, as well as investors, business service providers, utilities and event spaces. For foreign startups, Station F offers more than 30 different incubation and acceleration programs, with partners such as LVMH, L'Oreal, Microsoft, Meta and many others. In its first five years, it has supported over 5,000 French startups, 92.4% of which are still active.

By collaborating with Station F, LVMH has created an environment conducive to innovation by providing resources, mentoring and networking opportunities for startups. This collaboration helps accelerate the development of new technologies and creative approaches in the luxury sector, and we had the opportunity to participate in the acceleration program, dedicated to the finalists of the LVMH Innovation Awards in 2022. Thanks to this program, we accelerated our understanding of the luxury industry, our contacts and partnerships with the Houses and above all created a network with the other startups and entrepreneurs in the program to share our experiences.

3. Innovation Teams Within the LVMH Group

In addition to the ecosystem offered by Station F, LVMH has also developed in-house teams to support innovation within the group:

The LVMH Retail Lab team is dedicated to transforming and optimizing the customer experience in the retail sector, LVMH's main distribution vehicle. Their core mission is to integrate cutting-edge technologies and creative strategies to help the group's stores better understand and meet the needs of their customers. Their expertise ranges from data analysis and UX/UI design to the implementation of advanced technological solutions.

The Open Innovation team unites the expertise and passion for excellence within the LVMH group in two particular ways: intrapreneurship via its DARE program, and external innovation via startups noted for the Innovation Award held each year during the Vivatech trade show. Based on the values of creativity and quality, the LVMH team develops bold, visionary strategies that reinforce the group's leadership position in the global luxury market. As Laetitia Roche-Grenet, Director of Open Innovation at LVMH, would say, values are important, but they need to be translated into action. That's where the entrepreneurial spirit comes in. Employees are encouraged to propose and develop innovative ideas, fostering a culture that brings new perspectives to the company.

4. LVMH's Commitment to Sustainability and Circular Innovation

LVMH is committed to integrating sustainable and ecological practices into its operations. In 2021, the Group launched "LIFE 360", an ambitious program aimed at achieving strict environmental targets by 2030. This initiative highlights the importance of innovation in developing eco-friendly solutions, such as using recycled materials, improving energy efficiency and reducing carbon footprints.

Levita is also committed to meeting environmental targets and reducing our carbon footprint. For example, for short trips, our team prefers to travel by train rather than by plane or car. We also pool travel, have adopted a four-day working week since January 2023, and promote local production in short circuits, with 85% of our partners located in France and the Benelux countries. For us, innovation must never be at the expense of our planet or the well-being of our teams.

5. Embracing Digital Technologies and Artificial Intelligence

LVMH invests heavily in digital technologies and artificial intelligence to enhance the customer experience and optimize its operations. From advanced e-commerce platforms to AI-based personalization tools, LVMH uses these technologies to offer unique, tailored experiences to its customers. This early adoption of cutting-edge technologies puts LVMH at the forefront of innovation in luxury. 

In the field of immersive experiences, the use of screens is often favored. However, Levita's technology stands out for its resolutely immersive approach, without recourse to digital media.

The secret of our success lies in our ability to capture visitors' attention and transport them into a captivating brand universe. Thanks to our innovative technology, customers find themselves fully immersed in the brand's storytelling, creating a deep and lasting emotional bond.

Authenticity is also at the heart of our approach. We work with real products and objects, without any modification, to guarantee an immersive experience of striking truth. This unique approach allows customers to connect with the brand on a deeper, more memorable level.

In short, Levita offers an authentic and captivating immersive experience that goes far beyond screens, transporting customers into an unforgettable brand universe.

Conclusion

LVMH demonstrates its commitment to innovation and the transformation of the luxury goods industry through a variety of strategic initiatives and partnerships. Whether through support for startups, integration of cutting-edge technologies, or commitment to sustainability, LVMH continues to shape the future of luxury. These efforts reinforce not only LVMH's position as an industry leader, but also their ability to inspire and transform the luxury sector for generations to come.