However, as markets began to globalize, the small luxury players struggled to compete. When Arnault set about acquiring smaller luxury brands, he had three goals in mind. First, he hoped that the portfolio approach would reduce the risk exposure in fashion cycles. According to this logic, if demand for watches or jewelry declined, clothing or accessory sales would offset any losses. Second he intended to cut costs by eliminating redundancies in sourcing and manufacturing. Third, he hoped that LVHM's stable of brands would translate into stronger bargaining position when managers negotiated leases for retail space or bought advertising.