What the LVMH attacks reveal about brand resilience

MONTHS after cybercriminals broke into the Asian subsidiary of Christian Dior, Louis Vuitton announced on July 2 that their Korean database had been hacked, and sensitive files stolen.

- SERGE-OLIVIER PAQUETTE

The incident is the third attack against LVMH, which owns Louis Vuitton and Christian Dior, in recent months.

The LVMH-owned brands notified customers that unauthorized parties had accessed parts of their client database, revealing their contact details and shopping preferences.

In both cases, impacted consumers in China and Korea were assured that bank information and credit card data were not stolen as part of the breach.

Under General Data Protection Regulation (GDPR) and many other local cyber laws, companies must swiftly notify authorities and customers if data is compromised, and obey rigid requirements for how data is collected, stored, and used.

Even though Dior, headquartered in Paris, complies with these policies—which should help lessen any legal trouble—the brand is still facing a public relations crisis in China, one of its most important and digitally advanced markets. The incident spotlights just how integral local compliance and data governance infrastructure have become to the brand experience.

Consumers rely on brands’ digital prowess as they interact with ever-so-sophisticated online channels, and the handling of one incident could unravel long-term trust.

How data breaches affect consumers

Today, 81% of consumers believe data protection reflects how much a brand values them, and more than 80% would cut ties after a cyberattack.