LVMH’s market cap is north of 300B. There’s plenty of scale in the price insensitive audience!
LVMH is a huge conglomerate of brands. I would argue that most of these brands are in fact not targeting the "price-insensitive" demographic, but those buying "premium goods", which isn't quite the same.
If you did a revenue breakdown, you'd probably see that the bulk doesn't come from Louis Vuitton purses, but rather from products that the middle class can afford - similar to Apple.
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https://en.wikipedia.org/wiki/I_Am_Rich
LVMH is a huge conglomerate of brands. I would argue that most of these brands are in fact not targeting the "price-insensitive" demographic, but those buying "premium goods", which isn't quite the same.
If you did a revenue breakdown, you'd probably see that the bulk doesn't come from Louis Vuitton purses, but rather from products that the middle class can afford - similar to Apple.