LVMH dives into Hollywood with new venture, 22 Montaigne Entertainment

French conglomerate LVMH is already the largest player in the luxury sector, with 75 brands under its belt.

But this will not stop him from focusing on other profitable prospects, such as Hollywood.

The owner of Louis Vuitton and Dior plans to foray into the billion-dollar entertainment sector in a venture called 22 Montaigne Entertainment, a nod to the address of LVMH’s Paris headquarters.

Led by CEO Bernard Arnault’s eldest son, Antoine Arnault, and LVMH head of North America, Anish Melwani, the new platform will aim to market and place the French fashion group’s products in films and TV shows in a partnership with US-based Superconnector Studios.

“We are excited to formalize our approach to promoting our brands across entertainment formats. . . complementary [their] direct engagement activities,” Melwani said in a statement, according to the Financial Times.

This collaboration is the first of its kind for LVMH, which will contribute to the development and financing of Hollywood projects. But crossovers between luxury and entertainment have become more common lately.

Last year, Francois-Henri Pinault, who owns Kering and Gucci owner Puma through his holding company Artemis, bought a majority stake in talent management company Creative Artists Agency. CAA is among the best agencies in Hollywood and manages giants such as George Clooney, Brad Pitt and Scarlett Johansson.

Arnault’s LVMH, for its part, has worked with pop stars before: for example, the company brought on board Pharrell Williams as head of menswear and has also struck deals with the likes of Zendaya and Beyoncé.

The Arnaults in Hollywood

The goal of LVMH’s new venture is to help connect its various luxury houses to film, television or audio projects that could help amplify individual brands, North America group head Melwani said in an interview with Expiration earlier this week.

“It’s more of an evolution than anything because luxury and entertainment have been linked for a long time. Both are about culture,” Melwani said, adding that 22 Montaigne Entertainment’s financial returns were difficult to assess since it was still “early in the development cycle.”

“This isn’t about LVMH coming to Hollywood with a big checkbook to say, we’re going to go make movies,” he said. “That’s not the intention.”

Antoine, LVMH’s president tasked with leading the new entertainment effort, is responsible for managing the image and sustainability of the entire company. He was also credited with sealing the high-profile sponsorship for the luxury giant with the upcoming Olympic Games in Paris this summer.

Last month, Antoine stepped away from his role at the helm of high-end men’s fashion house Berluti, a move that left industry watchers wondering what his next role would be.

He now runs the family holding company Christian Dior, listed in Paris and which owns much of the Arnaults’ LVMH stake.

LVMH’s moves are being closely watched by the luxury industry as its portfolio is large and diverse in the luxury sector as well, from clothing to beauty and spirits. The group posted a strong annual performance in 2023 as appetite for high-end goods remained resilient, although it is yet to see demand fully recover to pre-pandemic levels.

LVMH representatives did not immediately return Fortunerequest for comment.

Sign up for the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up for free.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *