Givenchy
LVMH Tier 2 brand using costly creative leadership (Sarah Burton) to signal coalition commitment during market contraction.
In September 2024, LVMH appointed Sarah Burton—former creative director of Alexander McQueen—to lead Givenchy. Her debut collection launched in March 2025 as LVMH's fashion division posted a 7% revenue decline to €19.1 billion in H1 2025. The timing reveals the coalition dynamics of Tier 2 positioning: Givenchy cannot command resources like Louis Vuitton, but must signal ambition loudly enough to avoid relegation while market conditions deteriorate.
Tier 2 brands within LVMH's hierarchy face the beta wolf's dilemma. They receive departmental autonomy and sufficient resources to execute strategy, but lack veto power over corporate decisions. When total fashion revenue contracts—as it did throughout 2024-2025—Tier 1 brands (Louis Vuitton, Dior, Fendi) absorb first claim on capital, creative talent, and flagship retail locations. Givenchy competes for what remains, alongside Celine, Loewe, and Kenzo.
The Sarah Burton appointment represents costly signaling: her 13-year tenure at Alexander McQueen (2010-2023) proved she can elevate heritage houses, but recruiting her required outbidding multiple suitors and granting creative control that constrains merchandising flexibility. This parallels African wild dog packs, where beta pairs signal coalition commitment through coordinated hunting that costs immediate calories but maintains pack position. If Givenchy attempted to execute with less expensive creative leadership, it would signal Tier 3 trajectory—the rank where brands face consolidation or divestment during downturns.
Parfums Givenchy demonstrates how coalitions within conglomerates compound advantages. The fragrance division grew throughout 2024-2025, driven by L'Interdit and Prisme Libre makeup. Fragrance success grants the fashion house negotiating power: LVMH's perfume infrastructure (LVMH Fragrance Brands) generates 13% operating margins and cross-subsidizes fashion during slumps. Givenchy's access to this coalition benefit separates it from independent luxury houses that must fund creative director appointments and market downturns from fashion revenue alone.