Google Cloud lands 6-year deal with LVMH
Google Cloud on Tuesday announced a 6-year strategic partnership with LVMH, giving it a major customer in retail -- one of six key verticals the cloud company is targeting.
The luxury goods conglomerate will leverage Google technologies for a range of purposes, from updating its IT infrastructure to creating personalized customer experiences through AI. The two companies will also explore co-innovation opportunities, even launching a Data and AI Academy in Paris together.
"This new, unprecedented and significant partnership with Google Cloud is the reflection of our high ambitions in this area," Toni Belloni, Group Managing Director for LVMH, said in a statement. "By combining our best-in-class approaches in our respective industries, it will take us a step forward in the use of data and AI. For us, privacy, personalization, and luxury are synonymous, and that will always remain true."
Since 2019, Google has focused on growing its cloud business by focusing on core industries. Along with retail, that includes the public sector, financial services, healthcare, manufacturing, and communications/media.
Retail is a logical sector for the cloud giant to pursue, given the industry's aversion to working with its e-commerce competitor Amazon. With LVMH Moët Hennessy Louis Vuitton, Google is getting a new customer with some of the world's best-known brands and a global footprint. It comprises luxury brands across wines and spirits (including Moët & Chandon and Dom Pérignon), fashion (including Louis Vuitton and Christian Dior), perfumes, watches, and jewelry. It also includes retail brands like DFS and Sephora.
As part of the partnership, LVMH will also use Google Cloud to modernize components of its IT infrastructure. The company plans to improve business operations by improving its demand forecasting and inventory optimization. It will also elevate customer experiences through personalization while meeting LVMH's privacy and security requirements.
LVMH will also get personnel support from Google Cloud. That includes the creation of dedicated, inclusive upskilling and certification programs for LVMH teams. They will explore co-innovation opportunities and launch a Data and AI Academy in Paris to accelerate their expertise and innovation.