How Louis Vuitton Took Social Responsibility To The Next Level (2024)

The art of staying ahead in a time of crisis.

Nicole Sudjono

1) Act now

The government announced that they are in need of assistance from big companies, including Louis Vuitton. If the government needs help, then you know this means serious business, especially since it may impact the locals as well. This was where Bernard Arnault, the CEO of Louis Vuitton, probably put this as his first priority because he was able to make the factory produce hand sanitizers in 3 days after the announcement.

Though further detail wasn’t reported, we can still analyze a few things that were given. A staff who works for Bernard Arnault said that he is quick to make decisions.

“He bombards you with questions, and then goes off to think. It’s a family-owned company with a guy at the top who makes decisions very quickly.”

Although it’s not recommended to do rash decisions, but based on this statement, you can see that he is a very curious man. The fact that he throws a lot of questions basically says it all, that he wants to make things work now and fast. In this case, he wants to respond to this emergency state without further delay.

For us, just like chasing after our dreams, we always hear people telling us to start now and don’t wait. If we wait, then we won’t be staying up ahead in our game and Louis Vuitton is very aware of this. Though it isn’t stated, it’s obvious that they got to work fast to figure out what to do towiththesituation, leading to my next point….

2) Identify your strength

Louis Vuitton has a lot of connections regarding perfume production when it acquired companies such as Givenchy, Guerlain, and Dior made perfumes and cosmetics. So as you can see here, no doubt that there is a big connection going on.

The company has been producing perfumes and cosmetics, their ingredients are somewhat similar to the hand sanitizers. Hand sanitizers need four things: Alcohol Ethanol, Glycerin, Hydrogen Peroxide (These chemicals are usually found in cosmetics), and boiling water (Used to create perfumes). That means Louis Vuitton has about 80 % of the resources needed to create the hand sanitizers.

So as you can see here, Louis Vuitton had the resources to create something else besides fashion: the bottles and the chemicals needed. Their diversification is so great that it helped them to create something that no one ever thought that fashion retail can create. They could have money, sure, but at this point, I am sure Mr. Arnaults realize that money won’t be enough to fight the disease, especially when everyone’s lives are at stake.

Just like us, it’s important to know what your strength is. Obviously, you must also know your weakness, but you must put your strength as an advantage as well. It will help you find a way to make an effective plan to reach your goals faster instead of having a messy plan, just like what Louis Vuitton did, leading to my last point…..

3) Connection

This is really important because you won’t be able to act fast when your business relationship with the other isn’t working, especially when you are making a decision to immediately switch the product.

Luckily, the staff of the company has very strong connections. Marc-Antoine Jamet, the General Secretary of LVMH, has a friend, Martin Hirsch, whom he met from school. He is a doctor and currently working as a high-ranking civil servant, running the biggest hospital systems of Paris. Mr. Jamet contacted Mr. Martin regarding the decision to create hand sanitizers because he wants to make sure that their ingredients are safe to create one, especially since the company has no experience in it.

When Martin sent a scientific advisor to analyze the ingredients, they found that it is slightly different than the World Health Organization’s criteria, so they had to test it and ask for the health ministration’s approval.

Again, Mr. Jamet is also a friend of the health ministration, Olivier Veran. They used to work together about the health of models. Anyways, Mr. Jamet gave Mr. Olivier a call about the situation, and sure enough, he sent someone to look over the test.

By the time they have finished the test, Louis Vuitton has finally earned their approval. The factory was up and ready to create hand sanitizers for hospitals.

So as you can see here if Mr. Jamet didn’t have a good connection with the external parties, there will be no way Louis Vuitton could act upon this decision fast.

What we can take

This act of social responsibility was given a lot of positive comments from the public. Not only were they able to uplift themselves but they already earn their trust, which is important for any business. Louis Vuitton was able to:

Act now
Identify your strength
Strong connections

This act of agile thinking on creating a social responsibility created a huge spark for others to take action and help as well. All because Louis Vuitton was fast to react first that made the initiation of these project happens, a true sense of leadership.

Once when this is all over, I am certain that their sales will rise again from this act of goodwill.

I hope you learn something from here and stay safe!

As a seasoned expert in crisis management and business agility, I find it refreshing to delve into instances where renowned companies, such as Louis Vuitton, showcase exemplary strategies to navigate unprecedented challenges. This particular case, involving Louis Vuitton's rapid response to the COVID-19 crisis, provides valuable insights into effective crisis management.

First and foremost, the concept of "acting now" emerges as a pivotal strategy. In the realm of crisis response, timing is of the essence. Louis Vuitton's CEO, Bernard Arnault, exhibited a remarkable ability to make swift decisions. Reports suggest that he bombarded his team with questions and quickly formulated a plan of action. This proactive approach, especially in the face of a government call for assistance, underscores the importance of immediate response in crisis situations.

Moreover, the article highlights the significance of identifying and leveraging organizational strengths. Louis Vuitton, primarily a fashion retail giant, demonstrated strategic diversification by utilizing its extensive connections in the perfume and cosmetic industry. The acquisition of companies like Givenchy, Guerlain, and Dior equipped them with the necessary resources—alcohol ethanol, glycerin, and other ingredients—to pivot their production and create hand sanitizers. This emphasizes the importance of understanding and capitalizing on one's strengths during a crisis, as Louis Vuitton did with their existing capabilities.

The third critical concept illuminated in this case study is the power of strong connections. Louis Vuitton's General Secretary, Marc-Antoine Jamet, showcased the significance of robust business relationships during a crisis. His connections with individuals like Martin Hirsch, a doctor, and Olivier Veran, the health minister, played a crucial role in expediting the approval process for the hand sanitizer production. This underscores the importance of maintaining strong connections within and outside the industry to facilitate quick decision-making and implementation.

In summary, Louis Vuitton's response to the COVID-19 crisis serves as a valuable lesson in crisis management. The three key strategies—acting now, identifying strengths, and nurturing strong connections—are universally applicable principles that individuals and businesses can adopt to stay ahead during challenging times. This case study exemplifies the agility and leadership required to not only weather a crisis but also to contribute positively to society, earning trust and goodwill that can have lasting benefits beyond the immediate challenges.