Fresh off its well-heeled second-quarter sales results, LVMH Moët Hennessy Louis Vuitton has a new media agency. The luxury goods conglomerate has chosen Dentsu Aegis Network to handle its media buying and planning in North America following a review.
The review kicked off in April and was handled by ID Comms, a U.K.-based media consulting company. ID Comms deferred comment to the client. The incumbent on the account, Havas Media, participated in the review. Its media relationship with LVMH dates back nearly a decade.
"Our 9-plus years working with the LVMH brands in North America has been an honor and a huge point of pride for our organization, with their brands delivering significant business growth during our partnership," a Havas spokeswoman said in a statement. "We're grateful and wish LVMH all the very best in the future. We're focused now on our recent growth in the US and Canada and LVMH remains an important Havas Group client around the world."
LVMH declined to comment.
The French luxury conglomerate houses a stable of upscale fashion, cosmetics and alcohol brands including Dom Pérignon, Benefit Cosmetics, Marc Jacobs and Céline. It also owns beauty chain Sephora.
Late last month, LVMH reported an 11 percent rise in second-quarter sales compared with the year-earlier period. For the first half of 2018, the company generated revenue of 21.8 billion euros, a 10 percent rise over the first half of 2017. LVMH also cited strong growth in Asia and U.S., throwing cold water on industry fears of a slowdown in Chinese consumer demand.
On a recent conference call with analysts, company executives stressed that LVMH will continue to invest in strong marketing with a focus on digital.
"The focus across the business group is on product innovation and finding new ways to consume, which is supported by innovative marketing and digital advertising while enhancing the desirability of the brands, notably at that point of sale," said Chris Hollis, head of financial communications, on the call. The company also said that marketing and selling expenses increased 8 percent in the quarter.
Last year, LVMH debuted a new digital site, 24 Sevres, and executives said it has been progressing well; jewelry was recently added to the platform. Meanwhile, Sephora is continuing to open smaller format stores around the U.S.
The company reportedly hired GroupM in Asia Pacific following a media review in the region last summer.
In May, Dentsu Aegis Network retained global media work for Microsoft after a review. But big changes could be in the network's future — last week parent Dentsu Inc. said it was considering becoming a pure holding company.
LVMH Moët Hennessy Louis Vuitton SA spent $405 million in measured media in the U.S. in 2017, according to Kantar Media.