LVMH Operations in Romania: dominating the luxury market locally.

LVMH Operations in Romania: dominating the luxury market locally.

LVMH Operations in Romania: dominating the luxury market locally.

The largest Romanian manufacturer of bags and shoes is Somarest, owned by the LVMH (Moët Hennessy Louis Vuitton) giant, the world leader in the luxury market, which also includes the Louis Vuitton brand in its portfolio.

Somarest – The Story of a Leader Founded in 2002, Somarest represents a crucial piece in LVMH’s global puzzle. Located in Cisnădie, the company produces essential components for the famed Louis Vuitton bags, thereby strengthening the close ties between the luxury brand and Romanian manufacturing.

With over 900 employees and business exceeding 350 million lei in 2023, Somarest stands out as the absolute leader in the local market for bags and shoes.

LVMH Expansion in Romania In addition to Somarest, LVMH directly controls five other companies in Romania, divided between production, retail, and distribution. A notable example is Rossimoda, located in Cluj, specializing in footwear production for the Italian brand Rossimoda, part of the LVMH portfolio since 1947.

The State of Luxury Retail in Romania The most visible presence of LVMH in Romania is through the Louis Vuitton boutique at the five-star JW Marriott Hotel in Bucharest.

This store is one of the few opened directly by LVMH on the Romanian market, where franchising is the predominant model.

In the retail sphere, Sephora represents a success story. The cosmetics store network, taken over by LVMH from a franchisee a decade ago, has become the group’s largest business in Romania, with a turnover of nearly 500 million lei in 2023.

Direct Distribution as LVMH’s Strategy LVMH continues to expand its influence by taking direct control of the distribution of top brands.

In 2022, the giant took over the direct distribution of the Guerlain brand, replicating the model also applied in the case of Dior cosmetics. The Dior store in the northern mall of Bucharest was reopened in 2023 after a complete renovation, emphasizing LVMH’s commitment to the local market.

LVMH’s presence in Romania perfectly illustrates its global strategy of vertical integration and direct control over operations. Through manufacturing companies like Somarest and Rossimoda, and extensive retail and distribution networks, LVMH dominates the local luxury market.

This combination of manufacturing tradition and modern expansion confirms LVMH’s status as the undisputed leader of luxury, both globally and on the local scene.

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