The world’s largest luxury goods company, LVMH of France, is poised
to centralise its entire European media planning and buying account into
a single European media network, and is talking to a number of agencies
about the business.
Although LVMH’s media business is currently centralised on a
market-by-market basis in most European countries, the company is
seeking a single media supplier for its entire business. LVMH’s European
media task is thought to be worth around pounds 115 million.
The company has already kicked off talks with its roster European media
agencies and is sounding out their senior executives about the
advantages and opportunities to be gained through a pan-European
Although there is no formal pitch in play, sources believe that is the
likely outcome of the review.
The pounds 9 million UK business is handled by CIA Medianetwork, while
Initiative Media is the incumbent on the account in the crucial French
home market - where adspend is more than pounds 40 million - and in
Mediapolis has the business in the Italian market, the second largest in
Europe for LVMH. At least one other network is also understood to have
been approached in recent weeks.
LVMH began local market media centralisations in the early 90s, and is
said to have been pleased with the benefits of a single market
It is examining the benefits of a single European supplier in terms of
the potential for cost efficiencies and greater strategic coherence.
The LVMH portfolio includes Louis Vuitton luggage and leather goods,
Moet & Chandon, Dom Perignon and Veuve Clicquot champagnes, and the
Givenchy, Christian Dior, Guerlain and Kenzo fragrance, cosmetics and
Media spend is concentrated in the women’s and quality press.