Creative circular economy: How LVMH turns recycling and repair into a revenue stream

500 million euros in revenue from recycling and repairs: This corresponds to ten million repaired, refilled or returned products in 2025 for the brands belonging to the luxury goods group LVMH. This is the first quantified balance sheet of the profits achieved through the Group’s Corporate Social Responsibility (CSR) and its Life 360 ​​program.

These figures were announced at a conference at the Hotel Cheval Blanc at the end of April. Present were Hélène Valade, director of environmental development at LVMH, and Christelle Capdupuy, director of sustainable development at Louis Vuitton.

The 500 million euros from repairs and refills are modest compared to the group as a whole. They make up 0.6 percent of sales. However, symbolically they are powerful because they illustrate the transition to a circular model and show that creative circular economy and profitability are not mutually exclusive.

Additional revenue from repair, refill and return services

LVMH is now quantifying exactly what it earns from repairs compared to selling new goods. In 2025, the repair, refill and return services alone generated 500 million euros in additional revenue from ten million products processed. Specifically, these ten million products were either repaired in ateliers, equipped with a refill system or taken back from homes. At Louis Vuitton, customer advisors are trained to actively provide information about repairs. Information about the origin of raw materials is accessible on the website or in store.

Refilling has a special place among the levers of this profitable circular economy. The example of a cream with a patented design presented during the conference illustrates the strategy: the refillable item can be as aesthetic – or even more aesthetic – than a new product.

“New does not mean brand new,” summarizes Hélène Valade, director of environmental development at LVMH. “It can be a beautiful bag that has been completely redesigned to give it a new look. I think there is a real need for this new service among some consumers.”

When the finance department contributes to the creative circular economy: A gradual change in the business model

Valade explains that Finance has become an important ally. LVMH’s 75 finance directors now work closely with those responsible for sustainable development. At Céline, the cost of carbon emissions is factored into investment decisions. At Dior, the transition plan is subject to financial planning. This convergence enables the collection of environmental data that covers 99.9 percent of the group’s financial area.

LVMH is also learning to quantify the costs of inaction. Lower water and energy consumption leads directly to savings.

In addition, the group states that 41 percent of the materials used in products and packaging now come from recycling.

Items made from unused or recycled materials do not sell cheaper, but sometimes sell faster. A cotton bag made from unused stock of 3,000 linear meters was offered as a limited edition. Its rarity made it “extremely desirable.” Likewise, a fashion show where unsaleable items were recycled showed that circular economy can be a profitable source of creativity. The implementation was carried out by Kevin Germanier.

Creative circular economy: A tool for customer loyalty and securing brand value

One advantage that LVMH has not yet quantified in euros remains the strengthening of trust in its brands. “That’s the bet I’ve been making for 20 years,” Valade explains. “There are very strong social developments behind this. If a company does not address these, it cannot embody this responsibility at the product level.”

“The circular economy thus becomes a component of customer loyalty. A customer who has trust will return for another purchase. So repair is not a cost center, but a lever for brand preference,” concludes Christelle Capdupuy, Director of Sustainable Development at Louis Vuitton.