Can you provide an update on LVMH’s international assignments strategy, using materials available on the Web? Case 10.1 Managing expatriates at LVMH Think for a moment about the brand names of high-end fashion and leather goods – names such as Louis Vuitton, Donna Karan, Fendi, Loewe, Céline, Marc Jacobs, Berluti, Rossimoda and StefanoBi; alcoholic beverage brand names such as Moët et Chandon, Hennessy and Dom Perignon; perfume brand names such as Christian Dior, Guerlain, Givenchy and Kenzo; and watch brand names such as TAG Heuer, Zenith and OMAS. The world’s largest luxury goods group, France-based Moët Hennessy Louis Vuitton (LVMH), controls all of these brand names.

LVMH was created in 1987 as the result of a merger between Moët Hennessy and Louis Vuitton. As of 2006, the company was a highly internationalized conglomerate with annual revenue of 15.3 billion euros and an international retail network of more than 1,800 stores. Geographically, 15%

of its revenues came from France, 22% from the rest of Europe, 26% from the US, 13% from Japan, 17% from the rest of Asia and 7% from other markets,18 making it one of the world’s few truly global companies in terms of geographic sales dispersion.

With a presence in 62 countries and 69 per cent of its 61,000 worldwide employees based outside of its French home base, LVMH has had to carefully design its international human resources management. A crucial component of international human resources management at LVMH is the management of international assignments, with expatriates occupying key strategic positions.

Such assignments are often a stepping toward even more important jobs in the future.

In 2001, LVMH had 260 expatriates, and the number of expatriates is rising.

What is the current approach to expatriate management at LVMH? How can LVMH improve further its expatriate management approach to facilitate its international expansion?