LVMH to centralise pan-Euro media

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.

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

centralisation.



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

Germany.



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

supplier.



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

couture houses.



Media spend is concentrated in the women’s and quality press.



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