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Chapter 1- Introduction
The Louis Vuitton Company (more commonly known simply as Louis Vuitton) is a luxury
French fashion and leather goods brand and company, headquartered in Paris, France. It is a
division of the French holding company, LVMH Louis Vuitton Mot Hennessy S.A. The
company is named after its founder Louis Vuitton (August 4, 1821-February 27, 1892), who
designed and manufactured luggage, as a Malletier during the second half of the nineteenth
century.
The company manufactures and markets luxury leather goods, fashion accessories, prt--porter,
and jewelry. Many of the companys products utilize the signature gray Damier and Monogram
Canvas materials, both of which were first used in the late 19th century. All of the companys
products utilize the eponymous LV initials.
The company only markets its product through its own stores throughout the world, which
allows it to control product quality and pricing, and to prevent counterfeit products entering its
distribution channels. In addition, the company added a single online retailer to sell some of itsproducts (along with some of its sister companies such as Christian Dior).
One hundred and fifty years after its eponymous founder began creating and selling trunks in
Paris, Louis Vuitton's signature leather goods are considered a status symbol around the globe
and are highly regarded in the fashion world. The company's iconic Monogram Canvas design
can be considered the first designer label in contemporary history; the design was created in
1896 by Vuitton's son Georges and was intended to prevent counterfeiting. Ironically, Louis
Vuitton has become the most counterfeited brand in fashion history, with just over 1% of allitems branded with the Vuitton logo not counterfeit.
Reputation The Louis Vuitton Company carefully cultivates a celebrity following and has used
famous models and actresses in its marketing campaigns, most recently Uma Thurman and
Scarlett Johansson. Other models and actresses who have lent their name to the Louis Vuitton
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line include Jennifer Lopez, Chloe Sevigny, Christina Ricci, Gisele Bundchen, Kate Moss, and
Naomi Campbell. Hayden Christensen has also appeared as model for the company's luggage
and prt--porter lines. The company commonly uses print ads in magazines and billboards in
cosmopolitan cities.
Vuitton bags and purses have a considerable list of celebrity adherents who are frequently seen
in tabloid and magazine photographs carrying the brand. The Vuitton collection has also created
a cult-like following among male and female consumers throughout the world. Owners of the
bags and accessories often refer to the products as their Louis. This cult following by both
celebrities and wealthy consumers has elevated the Vuitton brand to the foremost position in
accessory design alongside houses such as Gucci, Prada, Fendi, and Herms.
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History
Early days (1854-1892)
Louis Vuitton was born in Jura, France (now part of the commune of Lavans-sur-Valouse), but
moved to Paris in 1835. The trip from his hometown to Paris was over 400 kilometers, and he
traveled the distance by foot. On his way there he picked up a series of odd jobs to pay for his
journey. Two years later, at the age of 16, he apprenticed for the luggage manufacturer Monsieur
Marechal. In 1854 he founded the company, which is now owned by LVMH, a French holding
company helmed by Bernard Arnault.
In 1854, Vuitton opens his first store in Paris on Rue Neuve des Capucines, founding Louis
Vuitton Malletier a Paris. Before his quality trunks, French philosopher, Denis Diderot & Jean
Le Rond d'Alembert makes mention of a Malletier and his techniques about 140 years earlier.[3]
In addition, Vuitton began by selling flat-topped trunks that were lightweight and airtight. All
trunks before this had rounded tops for water to run off and thus could not be stacked; it was
Vuitton's gray Trianon canvas flat trunk that allowed the ability to stack for ease with voyages.
By 1885, the company opens its first store in London, beginning its international growth and
reputation. Soon thereafter, the Damier Canvas pattern is created by Louis Vuitton and bears a
logo that reads "marque L. Vuitton depose," which translates to "mark L. Vuitton deposited" or,
roughly, "L. Vuitton trademark".
Vuitton introduced a trunk in a beige and red striped canvas in 1872. The design appealed
to the new Parisian elite and helped secure the brand's position as a luxury offering.
Golden Age of Louis Vuitton (1893-1936)
After the death of Louis Vuitton, his son, Georges begins a campaign to build the company into a
worldwide corporation by exhibiting the companys products at the Chicago Worlds Fair in
1893. In 1896 the company launches the Monogram Canvas. Its graphic symbols, including
quatrefoils and flowers, are based on the trend of using Japanese and Oriental designs in the late
Victorian era. This can be considered the first contemporary designer logo, as Georges is driven
to create the pattern to prevent counterfeiting, which has already begun. The same year, Georges
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sails to the United States, where he tours various cities such as New York, Philadelphia, and
Chicago. He sells Vuitton products during the visit.
In 1901, the Louis Vuitton Company introduces the Steamer Bag, a smaller piece of luggage
designed to be kept inside Vuitton luggage trunks.
By 1914, the Louis Vuitton Building opens on the Champs-Elysees. This is the largest travel-
goods store in the world at the time. Stores also open in New York, Bombay, Washington,
London, Alexandria, and Buenos Aires as World War I begins.
In 1932, Louis Vuitton introduces the No bag. This bag was originally made for champagne
vintners to transport bottles, and is currently sold as a handbag. Soon thereafter, the Louis
Vuitton Speedy bag is introduced. Both are still manufactured today. In 1936, the golden age of
Louis Vuitton ends as Georges Vuitton passes away. Estimates credit Georges Vuitton with over
700 new Vuitton designs. Gaston-Louis Vuitton, his son, assumes control of the company.
Anti-Semitism of Louis Vuitton (World War II)
The luxury goods company Louis Vuitton collaborated with the Nazis during the German
occupation of France in the second world war.
The French book "Louis Vuitton, A French Saga", authored by French journalist StephanieBonvicini and published by Paris-based [4] tells how members of the Vuitton family actively
aided the puppet government led by Marshal Philippe Ptain and increased their wealth from
their business affairs with the Germans.
During the Second World War, a sign at the entrance of the main Louis Vuitton storefront in
Paris read "No dogs. No Jews."
The Louis Vuitton building, the largest travel-goods store in world, was opened on the Champs-
lyses in 1914 and counted Coco Chanel as a patron.
Bag shapes that remain popular fashion staples today were introduced throughout the 1900s. The
Steamer bag, a smaller piece designed to be kept inside the luggage trunks, was introduced in
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1901. The Keepall bag was debuted in 1930 followed by the No bag, which was originally
designed to carry Champagne, in 1932, and, in 1966, the cylindrical Pappillon bag.
Thanks to advances in technology and a new coating process, a supple version of the monogram
canvas was created in 1959. This allowed it to be used for purses, bags and wallets.
Responding to the book's release in 2004, a spokesman for LVMH said: "This is ancient history.
The book covers a period when it was family-run and long before it became part of LVMH. We
are diverse, tolerant and all the things a modern company should be."
LMVH said that period in the Louis Vuitton history does not warrant 50 pages of the book.
An LVMH spokesman told the satirical magazine Le Canard Enchain "We don't deny the facts,
but regrettably the author has exaggerated the Vichy episode, That publication was the onlyFrench periodical to mention the book.
Modern Age of Louis Vuitton (1937-1996)
In order to broaden its line, the company revamps its signature Monogram Canvas to make it
suppler, allowing it to be used for purses, bags, and wallets. Further cementing its celebrity
cachet, Audrey Hepburn is seen carrying the bag in the film Charade in 1963.
The company launches, in 1966 the classic Papillion, a cylindrical bag that is said to resemble abutterfly. The design is still popular today.
By 1978, the company opens its first stores in Japan, in Tokyo and Osaka. Vuitton products were
popular in Japan, and its sales in Japan would come to account for nearly half of the company's
total revenue by the 1980s.) Later, the company would expand its presence in Asia by opening its
first store in Korea, in Seoul in 1985.
In 1983, the company joins with America's Cup to form the Louis Vuitton Cup, a preliminary
competition (known as an eliminatory regatta) for the world's most prestigious yacht race.
In 1987, Mot et Chandon and Hennessy, leading manufacturers of champagne and of brandy,
respectively, merge with Louis Vuitton to form the world's largest luxury goods conglomerate,
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LVMH. The group is partly owned by the Christian Dior group, and Bernard Arnault is chairman
and CEO of both companies.
During this time, the company broadened its product lines by introducing Epi and Taiga leather
products. The unique looks of the leathers are utilized in everything from small purses andwallets to larger pieces of luggage.
Millennium Age of Louis Vuitton (1997-present)
In 1997, the company hires designer Marc Jacobs to be the label's artistic director. In March of
the following year, he designs and introduces the company's first prt--porter line of clothing.
By 2001, Stephen Sprouse, in collaboration with Marc Jacobs, designs a limited-edition line of
Vuitton bags that feature graffiti written over the monogram pattern. The graffiti says LouisVuitton and, on certain bags, the name of the bag (such as 'Keepall' and 'Speedy'). Certain pieces,
which feature the graffiti without the Monogram Canvas background, are created and only
available to the customers on Vuitton's V.I.P. customer list.
In 2003, Takashi Murakami, in collaboration with Marc Jacobs, masterminds the new Monogram
Multicolored canvas range of handbags and accessories. This range includes the monograms of
the standard Monogram Canvas, but in 33 different colors on either a white or black background.
(The classic canvas features gold monograms on a brown background.) Murakami also createsthe "Cherry Blossom" pattern, in which smiling cartoon faces in the middle of pink and yellow
flowers are sporadically placed atop the Monogram Canvas. This pattern appeared on a limited
number of pieces, which sold out quickly; the production of this limited-edition run was
discontinued in June 2003.
On the 19th September 2006, Louis Vuitton opened its tenth store in the UK in the Leeds
Victoria Quarter. This is the only Louis Vuitton store outside London to have its own VIP
shopping area. Counterfeiting A genuine Louis Vuitton purse from its new line.
The brand is highly counterfeited, and just over 1% of the items bearing the trademark
monogram are authentic. Ironically, the signature Monogram Canvas was created to prevent
counterfeiting. In 2004, Louis Vuitton fakes accounted for 18% of counterfeit accessories seized
in the European Union. LVMH, Vuitton's parent company, said that it employed "some 60
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people at various levels of responsibility working full time on anti-counterfeiting, in
collaboration with a wide network of outside investigators and a team of lawyers."[7]
In an effort to prevent counterfeiting, the company closely controls the distribution of its
products. Until the 1980s, Vuitton products were widely sold in department stores, such asNeiman Marcus and Saks Fifth Avenue. Today, Vuitton products are primarily available at Louis
Vuitton boutiques, with a small number of exceptions. These boutiques are commonly found in
up market shopping districts or, less commonly, inside high-end department stores. The
boutiques within department stores operate independently and have their own managers and
employees. In addition, to control the online distribution of its products, the company has
authorized eLuxury.com to market some of its products.
Louis Vuitton's biggest stores are in New York, Beverly Hills, Waikiki, Guam, Hong Kong,Tokyo, Boston, San Francisco, Chicago, London, Kuala Lumpur and their flagship location in
Paris. Mikhail Gorbachev in Louis Vuitton ads
On August 2, 2007 the company announced that the former USSR leader Mikhail Gorbachev is
to appear in an ad campaign for the French luxury label, along with Steffi Graf, Andre Agassi,
and Catherine Deneuve
Louis Vuitton began manufacturing trunks in Paris in 1854, and the company he started went on
to become one of the world's most famous makers of luxury goods, known especially for its
designer luggage pattern: a beige-on-chestnut monogram, "LV." Vuitton's high-quality travelling
trunks were such a hit that he had to expand his factory within a few years, relocating to Asnires
in 1860. As the years went by the Vuitton line gained international recognition, thanks in part to
a bronze medal at the 1867 World's Fair and a gold medal at the 1889 World's Fair, both held in
Paris. After Louis died in 1892, his son, Georges, took the company to new heights, developing
what is recognized as the first "designer label" on a product. (Widespread copying of Vuitton
patterns pushed Georges to design the distinctive "LV" monogram.) Vuitton's luggage company
has since become a world leader in luxury consumer goods, with products that include travel
books, perfume, distilled spirits and designer clothing.
Extra credit: Georges Vuitton is also credited with developing Vuitton's unique five-
combination lock... In 1936, after Georges died, his son, Gaston-Louis, took the helm of the
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company... In 1983 the Louis Vuitton company joined with America's Cup to form the Vuitton
Cup, a preliminary competition -- called an eliminatory regatta -- for the world's most prestigious
yacht race... In 1998 Vuitton entered the world of high fashion with the designs of Marc Jacobs.
Louis Vuitton handbags, Louis Vuitton bags and Louis Vuitton leather goods are the mainproducts of the company, and the price of these products also are very expensive, ordinary
people generally cannot afford them. We often see news reports that a star holding LV bag. At
the same time, we often can see people carrying LV handbag on the street, however, most of
these bags are fake or replica LV. Because not everyone can afford real designer handbags.
Louis Vuitton the name has now spread throughout the world as the travel goods of the most
exquisite symbol.
In 2012 the house won a landmark ruling in the US protecting it from large-scale international
counterfeiting. The ruling helps stop the import of goods into the US that illegally bear the
brand's trademarks, and penalizes companies that facilitate the trade of those goods.
In the same year Louis Vuitton was named the world's most valuable luxury brand for the
seventh year in a row in a study conducted by Millward Brown Optimor. Valued at $25.9
billion (16.5 billion) it beat Hermes, valued at $19.1 billion (12.1 billion) in second place
and Rolex, at $7.17 billion (4.57 billion) in third place.
Louis Vuitton
Parent company Mot Hennessy; Louis Vuitton
Category Apparel and accessories
Sector Lifestyle and retail
Tagline/ slogan Louis Vuitton
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USP The brand is known for its stylish elegant luxurious bags
STP
Segment
Rich working women having a taste for clean cuts n designs in bags and
apparels.
Target group Premium segment urban men and women
Positioning Elegant and modern apparels and accessories
SWOT analysis
Strength
1. The brand is one of the oldest fashion houses with more than 150 years
of history
2.The brand is easily recognizable because of its logo and monogram
canvas on most of its products
3. The brand has its presence in most of the large shopping hubs of the
world
4.The brand is available exclusively in its own stores.
5.The brand also makes custom Tailored products for its few elite
customers
6. The brand has a clientele including international celebrities
7. Extremely high brand recall and global presence
Weakness
1.The brand is available only in its exclusive stores making it difficult for
people all around the world
2. Fake imitations affects brand and sales
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Opportunity
1.The company needs to adopt the current fashion trends to stay in
business
2. The company can offer once in a year discounts for its customers.
Threats
1. The brand is counterfeited all around the world
2. Economic crisis can hurt the brand sales in a negative way.
Competition
Competitors
1 Prada
2. Gucci
3. Jean Paul Gaultier
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Chapter 2 - Marketing Strategies
Marketers are moving from the traditional marketing mix approach towards greater use of
experiential marketing. This is where customers are treated as both rational and emotional
individuals that seek experiences from products. The key is to engage customers in a
memorable experience around the product/service, developing a relationship with customers,
creating an affinity with them. The central aim of experiential marketing is to create an
emotional attachment between the brand and the customer. Louis Vuitton provide this experience
through their unique product image and features, their outstanding service, their exclusive retail
environment, their pricing, their selective channels of distribution and complete with their
distinct packaging. But above all the benefits associated with their unique brand images. To
promote a product to the high-market it is important that the customers have the right experience
so that the desired feelings, images and perspectives become linked with the product/service and
their marketing programme.
It is necessary for the brand to convey a personality that the customer can relate to, or wishes to
aspire to. Consumers then try and communicate this to others. Consumers of these brands feel
that they too are fashion and design conscious, that they too are wealthy, and that they are part of
the in-crowd. In many cases, luxury brands are tapping into inspirational buyer market.
These are individuals who seek out access entry-level products with luxury brand names. Some
brands are targeting both ends of the market .Luxury brands are offering products at different
price points. These brands hope that sometime during the customers lifetime that they will trade
up to their more exclusive ranges. The risk of democratising the brand is that they may lose
their aura of exclusivity as it can be obtained by anyone.
The famous brand started out back in the 1850s. The founder was made famous for crafting the
luggage for Napoleon. From theses roots the brand has become synonymous with luggage and in
particular handbags. Louis Vuitton is very much the envy of the industry, recording an operating
margin of 45%, whilst the industry average is only 25% for luxury accessories. The company is
famous for its handbags, but also sells a range of wallets, briefcases, eyeglass cases etc. Over
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recent years, the brand has tried to modernise its image by utilising the talents of young
designers and artists in rejuvenating the image of some of their products, whilst maintaining the
classic designs. This reinvention has attracted younger buyers into the brand. However no one
designer for Louis Vuitton has eclipsed the powerful brand image of Louis Vuitton itself, unlike
other design brands.
Louis Vuitton stands out from their peers through their relentless focus on product quality. All
products are extensively tested to make sure that they can withstand wear and tear, and that there
are no imperfections. The company has blended mechanisation and handmade craftsmanship
into their products, boosting their productivity, maintaining that high level of product quality,
whilst still holding onto the allure of handmade quality. In an effort, to maintain the prestige
image of a Louis Vuitton product, the company operates a pricing integrity strategy amongst its
entire distribution network, a Louis Vuitton bag is never reduced in price, there are no sale
periods. The company offers customised products such as personal engraving on hand luggage
pieces, boosting its appeal further. Furthermore, the company sponsors elite sporting events such
as yachting and motorsport events. This is in effort to match the audience of sponsorship
property with the target audience of the brand itself.
Louis Vuittons Quality Emphasis
Extensive laboratory equipment test products (e.g. opening and closing zippers 5,000 times). Leather is sourced from Northern Europe, as they tend to have fewer insect bites, thus are
less blemished.
The company offers a lifetime repair guarantee. Integrate manufacturing initiatives such as quality circles in the production process.
Some brands like Hermes, a key rival, create even greater exclusivity by having a three-yearwaiting list before one of their bags can be obtained. These bags are handcrafted, adding to the
appeal. Again, China and India are seen as the next big growth markets for the Louis Vuitton
brand. At the moment, 55% of its sales are from Japanese sales alone. It has found itself
particularly over reliant on the Japanese market, and seeks greater presence in other foreign
markets.
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Louis Vuitton
Established 1854
Sector Luxury Goods
Products Leather goods, ready-to-wear, shoes, watches, jewellery, textiles, writing instruments
& accessories.
Famous for its handbags
Average
Pricing
$600 $2,000 (Handbag)
Typical
Locations
Paris, New York, Tokyo, Dubai, Las Vegas, Los Angeles,Asia.
300 Store Locations
Retail
Environment
Products prominently displayed. Stores vary in product stocked. Uses concessions in
department stores such as Harrods and Selfridges. Very contemporary in design and
feel.
Business
Strategies
Located in high street locations or exclusive shopping malls with other designer
brands.
Online purchasing in the US only. Have used Uma Thurman and Jennifer Lopez in ad
campaigns.
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India
Louis Vuitton Mot Hennessy, the worlds leading luxury brand, made the decision to formally
enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled
custom orders from maharajahs since the late 19th century. However, the Indian market wasunlike any in which the company was currently operating. The changing socio-economic
conditions of the developing nation opened up opportunities for the brand but also posed unique
challenges such as changing customer profiles and concepts of luxury.
In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster
spread over several blocks, usually in a citys downtown core. In cities that did not have luxury
retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premiumretail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had
plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuittons first two
stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had
shopped abroad and were familiar with the brand. The company was now looking to increase its
reach and teamed up with other global brands to develop luxury malls in five Indian metros.
According to the National Council of Applied Economic Research, in 2001-02 there were 20,000
families in India with annual incomes greater than INR100 million. This number is expected to
grow to 140,000 by 2010. Although 87% of the Indian population lives on an income of less than
$2.50 per day the high net worth consumers, which are the primary target of high-end brands, is
growing. Although the maharajahs had lost much in 1956 and 1971, they were still significantly
influential and formed the new elite that would be the new generation of customers for Louis
Vuitton (LV) along with Bollywood actors, politicians, and bureaucrats. Exclusivity is a main
factor in maintaining the gap between the super-rich and other consumers. Since LV caters to
this need, they have an edge that allows them to charge the premiums on their goods. Every
market in the world will have consumers that desire to stand out, be recognized as special, andfeed their egos. Whether they are looking for superior functionality and quality, a status symbol
that shows they have arrived, or self-indulgence, every free market seeks to satisfy these needs
and, as such, there will always be a desire for luxury goods.
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For centuries the maharajas of India held vast amounts of disposable income and enjoyed
spending their money on luxury items as a show of class distinction. These maharajahs and their
families knew LV very well and continued to buy LV products up until they finally lost power in
1971 following the States Reorganisation Actof 1956. From that point forward LV tried to
connect with the countrys new rich: owners of businesses, CEOs of companies, and Bollywood
actors. In India, the super-rich sought to make statements about their status. One way to show
it was by buying expensive products that were out of reach to the vast majority of the population.
Today, India is one of the fastest growing economies in the world, second to only China, and has
seen an exponential increase in the number of middle and upper class families with high net
worth (HNW) or liquid assets in excess of $100 million. Indias economic boom continued to
add families to this class. These newly-rich had extra disposable income and were starting tosample the good life by purchasing luxury items for the first time. The idea was that these
consumers would get a taste of the finer things and would hopefully become customers for life.
These consumers are exactly who LV was targeting with their expansion plans.
Louis Vuitton decided to target these consumers directly by moving their stores out of the safety
of luxury hotels and into luxury malls. Luxury malls were new to India and LV desired to be
involved in their design so as to avoid any cheapening of the malls by adding tenants that
didnt fit the luxury brand status. LV traditionally enjoyed the retail ambiance of the luxury retail
cluster. However, as noted earlier, if a luxury retail cluster wasnt feasible, the luxury mall was
the next best option. LV had the advantage of more than one luxury brand under the LVMH
umbrella with different product offerings including Fendi, TAG Heuer, Christian Dior,
Givenchy, etc. These offering allowed LVMH to place multiple products into the malls so they
could enjoy the spillover from browsing shoppers.
Luxury brands struggle to gain footing in India even today due to a poor retail infrastructure and
high import duty taxes.i The HNW Indian consumer likes to spend money and buy expensive
items but also is price conscious. This means he wont buy the same item in India if he can get it
cheaper outside of the country. Also, the buying experience is apparently much better in foreign
countries between the selection and customer service. There has been an effort by some luxury
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retailers to clear those obstacles by adding more of a local flavor in their offerings and customer
service and LV would be wise to do the same. Having a customized India-specific product
may create the sense of exclusivity that wealthy Indian consumers desire and could help drive
sales up locally.
In the past, luxury brand companies such as Louis Vuitton, Bentley, and Prada have never had an
issue trying to market their products for their targeted HNW customers. In fact, a company like
LV seemed to follow a basic strategy to attract customers ranging from the nearly rich to the
super-rich with the slogan, If you build it, they will come. Simply put, the name speaks for
itself and creates demand. In India, however, the customer profile is entirely different - the super-
rich are also interested in looking for the best deal, not just the highest priced one - and LV was
now forced to make changes in order to better market their goods to the respective target
population.
It is apparent that LVs target group was going to be wary of the cost, as their consumers also
shop at discount stores like Target and Walmart, and this concept is illustrated by the tendency of
the wealthy to not buy premium cell phones since, other than the name, there was no inherent
superior value. Therefore, anything that LV puts out in an attempt to reflect itself as a luxury
brand must be seen as the crme de la crme offering a unique value proposition.
In this, LVs customer base must be shifted to the next lower level, rather than focusing only
on the super-rich in order to maximize profits and buy into anything with a luxury brand logo
on it. Instead, as Singh, Booker, and Barasia put it, Louis Vuitton can acquire a less expensive
brand, price products more carefully, and launch new value-focused brand extensions. ii In the
case of LV, since a less expensive brand is contradictory to that which they are trying to
emphasize, and LV has stated that it is not a discount luxury brand (and therefore has never once
been discounted in price), the best option would be to open up a new line of products focusedsolely on Indian consumers and their buying behaviors. In doing so, LV can sustain their brand
image as a high-end luxury brand for the super-rich, while also redirecting focus geared towards
their more appropriate customer profiles in India.
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Louis Vuitton not only faces a different customer profile than before, but their consumers
concepts of luxury are also changing. Considering the fact that the luxury market in India is
expected to grow and reach $30 billion by 2015, while the market for luxury products is
expected to grow 20 percent annually, it is apparent that in order for Louis Vuitton to be
successful in India, they must carefully define, target, and market to HNW consumers.
Customers of luxury consumer goods fall into three basic categories. The first category consists
of older, wealthier, buyers that want to buy products for their superiority and quality. The second
category includes consumers that feel they deserve to pamper themselves by purchasing
exclusive products. The third category consists of young consumers, predominantly male, who
want to indulge themselves in luxury goods.
According toInside the Affluent Space, an American Express study that examined Indian
consumers, most fell into the second category and were predominantly affluent women. The
target market of Louis Vuittons product is Indian women who wanted to prove to themselves
and their peers that they had made it. They were successful and driven women who wanted to
make intelligent, exclusive choices and feel good about their purchases.
Using a different marketing strategy, Louis Vuitton should focus on the exclusiveness of their
products. Limited editions, products that make statements, and items that say I made it! Since
Louis Vuitton does not mark down their products, this helps to retain the products value. Special
or customized orders add to LVs exclusiveness, and can be encouraged even further by
identifying the brand with Bollywood actors. And with the brands unique design, color,
embossing, and packaging, Louis Vuitton can stand out amongst the rest and appeal luxury
consumers.
The Indian culture is based on social hierarchy and buying luxury goods like Louis Vuitton
makes the consumer feel that they are in a higher class with their prestigious purchase. Measures
of success in India are money, wealth, and consumerism. Therefore, the prestige of the LV brand
must be upheld by limiting the areas and businesses that sell their products to those which reflect
the high-end and luxurious image of Louis Vuitton, as a means to reduce the risk of being
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viewed as common.
The DLF Emporio opened in New Delhi and houses Louis Vuitton as well as 73 other
international brands including Cartier, Versace, DKNY, Dior, and Gucci. In addition to the
Emporio, only one other luxury mall in Banglore has opened to date. Hermes opened Indias
first stand-alone luxury retail store in Mumbai in July. Louis Vuitton currently has five stores
in India: three in hotels in Mumbai and New Delhi, and one in each of the nations two
luxury malls. Donna Karen, another member of the LVMH group, has also entered India.
Despite growing wealth in Asias third-largest economy, conversion of potential demand into
actual sales has been slow. Most of Indias rich prefer buying their luxury items abroad where
goods are cheaper, service is better, there is greater variety and a superior shopping experience.However, the opportunity remains and luxury brands like LV continue to vie for the HNW
Indian market.
Tikka Shatrujit Singh, chief representative in Asia for French multinational LVMH (Moet
Hennessy-Louis Vuitton) and advisor to the chairman of Louis Vuitton, has spearheaded the
development of Louis Vuitton's business in India. The high-end leather goods and fashion house
currently has four stores in the country.
According to Singh, affluent customers in India are very similar to, and have the same needs and
wants as, wealthy customers worldwide. The real game changer in the luxury market in India, he
said, is the aspiring middle class. "We have to be careful that the brand is always positioned at a
level they are aspiring to reach," Singh told India Knowledge@Wharton. He added that India is
very strong in the premium hospitality sector and that there is a huge opportunity for
players to make a mark in this space.
Mr. Tikka Shatrujit Singh -The strategy is simple: To get the message across throughdifferent media, different avenues of communication; to do very select events that are
unique; to always make the consumer, and this middle class, feel that here is a brand that is
always thinking out of the box and [that] any experience with Vuitton is a surprise.
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China
China is one of the hottest markets on the globe, producing the youngest millionaires out of any
other country. However, the nation is vastly different from other demographics and tapping into
it is not a simple feat. The crucial component is remembering that multicultural marketing is
crucial and requires in-depth knowledge of the local culture. However, rather than thinking of
China as one country, brands need to recognize that each section of China presents different
challenges, demographics and reactions to marketing.
Chinese speak to Chinese dont underestimate the power of marketing adaptation when
targeting Chinese wealthy consumers, said Florent Bondoux, strategy and intelligence business
unit manager at Digital Luxury Group, Geneva.
Therefore, multicultural codes in luxury marketing are crucial and require in-depth knowledge
of the local culture, he said. Demographics in China must be carefully examined to set up a
strategy. Digital Luxury Group has clients such as LOreal, Longines, Piaget, and Tag Heuer.
The company has helped a number of them break into the Chinese market. Similarly different
Because the country is so large, China has certain areas that are more economically developed
than others. The nation is divided into three major regions : West, North-Central and East China,
which is the most advanced, per Ms. Bondoux.
However, the country is globally formed into 56 ethnic groups, more than twice the size of
Europe. This stresses the need for an in-depth understanding of Chinas diversity to succeed, Ms.
Bondoux said. Luxury brands should also recognize the differences in culture and consumer
behavior within regions of China, and then tailor strategy campaigns to their individual needs,
according to David Langton, global marketing manager at ICLP Loyalty, London. This is similar
to countries in Europe they are somewhat of a unit, but are each very different.
Experts stress the importance of brand consistency from tier-one to lower-tier cities such as
Shenzhen and Hangzhou. Cities such as Hong Kong and Beijing are relatively mainstream, but
there are challenges with managing operations in lower-tier cities, per Mr. Langton. Therefore,
CRM is a must. Brands must also be willing to better-adapt to the ever-changing Chinese
consumer, which will help retailers to grasp future sales opportunities.
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With consumer expectations increasing in terms of quality, exclusivity and uniqueness, this
places more pressure on brands to provide extremely high standards of service in-store, Mr.
Langton said. This in turn places an important emphasis to deliver exceptional in-store
experiences, which need to be created by providing extensive staff training and motivation
mechanisms. Furthermore, there is a talent war for professional, well-educated and
commercially-aware Chinese-speaking employees, which can be difficult to find, he said. For
this reason, there has been a trend of employing foreign senior management who have a good
appreciation of corporate culture, structure and strategy and come with significant commercial
and business experience.
Socially awkward another obstacle is the absence of key social media platforms such as
Facebook that brands typically use to connect with European and U.S. consumers. Instead,
luxury brands are migrating towards services such as YouKu, Baidu and Yanex. For instance,
brands such as Louis Vuitton, Dior, Burberry, Cartier, Gucci and Omega are taking advantage of
the burgeoning Chinese market by using Youku, a Chinese video service similar to YouTube.
Companies that have branded channels on Youku often choose to divide the content into
different sections.
For instance, Louis Vuitton has six sections including LV Voyage, LV Recommended, LV
Travel, LV Tradition, LV Fashion, LV Art and LV Story. Burberry experimented with a live-
streaming fashion show in February, and its page has since seen over 1 million views, per
Youku. On the other hand, Cartiers more simple strategy consists of three sections on different
product lines and a section for announcements.
Ranging from search engines, media sites, social networks, blogs and forums, the typology of
websites in the Chinese digital landscape is, technically, pretty similar to the one in the West,
Digital Luxury Groups Mr. Bondoux said.
Nevertheless, what drastically differs is the significant higher impact of digital media in
targeting a wealthy clientele notably due to the fact that the print media market is
constantly evolving and erodes any coherent or lasting image, he said.
The luxury business in China is facing a natural evolution. Conspicuous logos are no longer a
must for social recognition, at least in top-tier cities like Beijing and Shanghai, while for
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major brands retaining a luxury image is becoming increasingly difficult. As some top luxury
players (e.g., Louis Vuitton) continue to invest in opening physical locations and branching out
into new luxury segments, others (e.g., Herms) have made retaining their uniqueness and rarity
a key strategy. Regardless of overarching China strategy, for both sides the critical aspect is
legitimizing a (very) high price point to a nebulous Chinese consumer in a still-young Chinese
luxury market.
At the moment, many in the China luxury industry are keeping an eye on the divergent branding
techniques used by the likes of LV and Herms to maintain vitality and exclusivity, but also the
emerging trends that see these brands fighting a common enemy: trivialization due to changing
consumer trends. Here are three of the main trends and macro-level marketing strategies playing
out in China at the moment.
New Store Openings and Branching Out: The Louis Vuitton Strategy
Currently, Louis Vuitton has 40 stores in China and, amid continued expansion into inland areas,
the brand is looking for new ways to connote exclusivity. After branching into high-end jewelry
and perfume, Louis Vuitton has recently moved into the luxury writing instruments and
stationery market, competing with established brands such as Montblanc and S.T. Dupont. At
first, these items will only be sold in Paris at LVs landmark store on Boulevard Saint Germain
an area of the city frequented by writers and philosophers in the 1940s and 50s. (And, now
by Chinese outbound tourists.) Some analysts have forecast that Louis Vuittons new luxury
items, such as Baccarat crystal ink wells, combined with the fact that the range will only be sold
at one store, may help the brand gain back a more exclusive image. However, as usual it will be
the consumer who will decide.
Rarity and Uniqueness: the Herms Strategy
Unlike Louis Vuitton, Herms (now with 21 locations in mainland China) has always preferredendogenous growth. Last September, Herms Chief Executive Patrick Thomas announced that
he planned to reduce the outlet openings and focus more on their extension and renovation.
This very conservative approach reflects the philosophy of the group. When supply of the
brands iconic Kelly bag, for instance, cant reach demand, Herms prefers not to expand
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production. This has been instrumental in the brands success even as competitors showed a
marked slowdown this year in Q2 2012, Herms sales rose some 13.4 percent.
Part of this more deliberate approach may come down to the fact that Herms is still a family
business, which partly explains the brands current strategy of reactivity and adaptation.
The Decline of Logo Social Recognition and the Emergence of Boutique Labels
Maison Martin Margiela's first Beijing boutique opened last year
In top-tier mainland Chinese cities, Louis Vuitton faces a first-mover disadvantage and a
challenge to its very expensive branding efforts. To more sophisticated consumers, the LV logo
has started to lose its attraction. The old look at my logo attitude becomes, to top-tier
consumers, less important for social recognition, particularly when the brand can easily be foundin every large Chinese city. As such, reaching and retaining these seasoned consumers has
become a much more complicated task for luxury brands. What was in and luxurious just
five years ago has become, to these shoppers, commonplace, and now we see major high-end
brands fighting it out with smaller boutique labels. If pricing and prestige still involve specific
demand for social recognition and status, this doesnt mean a Shanghainese consumer will have
the same psychological and purchasing behavior as an entrepreneur from Wuhan.
As several converging trends take hold in China, two 150-year-old heritage brands, LouisVuitton and Herms, battle it out in one culturally diverse and economically unique market:
China. At the end, both have one common goal exclusivity and one common fear
trivialization.
Zoo Display In Wuhan Playfully Highlights Brands Iconic Emblem
Although Louis Vuitton has been responding to Chinese first-tier consumers growing shift away
from purchasing items with prominent logos, a new zoo display at the labels store in Wuhan
featuring animal sculptures crafted out of its iconic logo handbags shows that highlighting the
brands classic emblem is still alive and well in its lower-tier marketing efforts.
Since seeing disappointing first-quarter China growth numbers, the company has been making a
quick response to Chinese consumers rising propensity toward stealth wealth. Recent efforts
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have included marketinganewlineoflogofreehandbags to Chinese customers as well as
expressing plans to avoidoverexposurebycuttingbackonstoreexpansion.
However, this new exhibition of 23 animals demonstrates that the company remains aware that
logos remain popular in Chinas second- and third-tier cities. Designed by British artist BillieAchilleos, the menagerie includes a giant panda, cricket, armadillo, and beaver, which are
featured with their companions in the brands Wuhan International Plaza Atrium store location in
Hubei province.
As part of a celebration of the companys 100th anniversary of its SLG Savior Faire bag
collection, the works are part of the increasingly popular practice among luxury brands in China
to fuse art with retail in order to stand out among competitors in the countrys crowded luxury
market. As lower-tier cities continue to become Chinas new luxury marketing battleground,
Wuhan is experiencing fast luxury expansion, with Prada and Fendi planning openings there next
year.
Louis Vuitton has always transcended barriers across artistic, technical, and intellectual
disciplines. Inaugurated in 2006 on the seventh floor of the Champs-Elysses Maison, the Espace
Louis Vuitton is a space of artistic and cultural expression. Opening with [an exhibition by] the
artist Vanessa Beecroft, the Espace has also presented the work of contemporary artists and
designers, [including] Shigeru Ban, Andre Putman, and James Turrell. In the future, we will
open several Maisons Louis Vuitton, a truly unique concept that allies shopping, luxury, leisure,
art, and culture.
Mr. Arnault said Louis Vuitton, which recently launched a major television ad campaign,
was not planning to open boutiques in second and third-tier cities in China to avoid
becoming too commonplace.
Analysts said Mr. Arnaults comments mean Louis Vuitton would probably not open shops forsome time, a strategy that helped boost revenues in the past.
This means that short-term growth should be more moderate, as we have started to experience
for a few quarters, said luxury analyst at Exane BNP Paribas Luca Solca.
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But the good news is that their expectations on China are good, and that the fourth quarter has
started to show acceleration on the third quarter, albeit a modest one.
Mr. Arnault warned that an appreciation of the euro in 2013 could hurt the groups business and
implied Louis Vuitton could raise prices. Louis Vuitton increased its prices in Europe in October.Mr. Arnault said he was confident LVMH would increase its turnover despite Europes uncertain
economic environment.
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United States Of America
Recently, the Wall Street Journal reported that LVMH Moet Hennessy Louis Vuitton SA plans
to target the pricier end of the luxury market, as sales growth in its flagship leather-goods
division has slowed; this reported in an article entitled "At LVMH, Sales Cool Off in LeatherGoods.
Unity Marketings latest Luxury Report 2013: the Ultimate Five-Year Guide to the Luxury
Consumer Market finds that the Louis Vuitton brand may one of many global luxury brands
rudely awakened to the new normal in the market for luxury goods. The core customers of
luxury goods brands are looking to maximize their investment buying branded goods, and too
many luxury brands today arent measuring up to their demand for true, lasting value.
Going forward, the key challenge for LVMH Chief Executive Bernard Arnault and his team is
whether Louis Vuitton can get its luxe back after putting so much emphasis in its entry-level
priced canvas bags and widening distribution by opening new stores?
It just isnt enough anymore to have a storied brand name, like Louis Vuitton. Luxury
brands have to deliver important values to their affluent customers, who have the means to
purchase across a wide range of choices, says Pam Danziger, president of Unity
Marketing and author of the book, Putting the Luxe Back in Luxury: How new consumer valuesare redefining the way we market luxury.Luxury marketers must realize that while these
customers have plenty of cash to spend, they arent about to pay high prices for goods that dont
measure up to their exacting standards for quality, workmanship, materials and design. They
especially want goods that speak their personal style language. Brands like Louis Vuitton
which has grown ubiquitous lately, have gone off point with these ultra-affluent customers who
perceive too-popular luxury brands as just not sophisticated enough anymore.
This may well signal the new normal in the luxury market. Louis Vuitton isnt alone in thisstruggle, Danziger says. In our latest annual state of the luxury market report we found that
ultra-affluents, the most important customer segment for high-end luxury brands, severely cut
back on purchases of luxury brands in 2012 from 2011 levels in key categories Watches,
jewelry, clothing, fashion accessories, and luxury/premium beauty brands. Along with
purchasing fewer luxury brands, they also cut back their spending on luxury by 18.8 percent.
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Danziger notes that their shopping patterns show ultra-affluents demand for luxury goods and
services remains strong, but that they are trading down to less premium brands and shopping
more strategically to find bargains and so spend less overall.
The new normal in the luxury market is that ultra-affluents are finding that high-end brandslike Louis Vuitton arent measuring up any longer and that acceptable substitutes that meet their
needs can be found in other, sometimes less expensive or well known brands, Danziger
explains.
Unity Marketings Luxury Report 2013 will help luxury marketers understand the current trends
and shifts in affluent consumer purchases and identify strategies for brands to maximize success
in the changing luxury landscape.
Masses-as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) and Why People
Buy Things They Don't Need.
French fashion house Louis Vuitton unveiled its new mobile commerce Web site July 1
2013 that offers consumers in the United States the opportunity to shop on the go.
LVMH Moet Hennessy Louis Vuitton SA said it will adjust its strategy at Louis Vuitton, its
biggest brand, after reporting no improvement in the pace of sales growth at its fashion and
leather-goods unit.
Organic sales at the business rose 5 percent in the fourth quarter, the company said, the same
pace as the previous three months when a weaker performance at the unit caused LVMH to
report the slowest quarterly revenue advance since 2009. Operating profit from recurring
businesses climbed to 5.92 billion Euros ($8.04 billion), LVMH said yesterday, in line with
analysts estimates.
Thomas Mesmin, an analyst at Credit Agricole Cheuvreux, talks about LVMH Moet Hennessy
Louis Vuitton SA fourth-quarter sales and business outlook. He speaks with Francine Lacqua
and Manus Cranny on Bloomberg Television's "On the Move." Vuitton, which generates the
bulk of the fashion units sales, wont seek revenue growth at all costs, LVMH Chief
Executive Officer Bernard Arnault said. The brand will improve existing stores and open far
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fewer new ones as it seeks to control its growth. The bag maker will also focus on service and
increase the penetration of leather goods and non-logoed products.
We continue to question the longer-term growth outlook for Louis Vuitton and see better value
elsewhere, said Allegra Perry, an analyst at Cantor Fitzgerald who recommends holding theshares. She prefers Gucci-owner PPR SA. (PP)Arnault said he remains confident for the overall
business climate in 2013 because the world is growing, while cautioning that currency trends
are the only shadow to that outlook. LVMH will raise prices, starting in Japan, if the euros
appreciation against the dollar and the yen hurts exports, he said. Pretty Reassuring
The fashion and leather goods division is definitely the main source of disappointment, said
Thomas Mesmin, an analyst at CA Cheuvreux. Still, Mr. Arnault was pretty reassuring
regarding the outlook for 2013. The shares gained 0.5 percent to 139.50 Euros at 11:27 in Parisafter earlier falling as much as 2.1 percent. The stock is little changed this year, giving the
company a market value of 70.8 billion Euros.
Of course it would be easier for Louis Vuitton to boost its revenue, all it would take would be to
launch 10 new products with the monogram product, but down the road its not a good strategy,
Arnault said. There is no real change, just an adjustment to the strategy, but Louis Vuitton
wishes to focus on the long term. Hennessy Cognac
All divisions boosted earnings as wealthy consumers continued to increase spending on items
such as Hennessy cognac, Tag Heuer watches and Christian Dior perfumes. Organic sales
growth improved to 8 percent in the fourth quarter from 6 percent in the third quarter.
Its reassuring for the sector to see organic growth picked up a bit, Rahul Sharma, founder and
managing director of Neev Capital in London, said by phone. Every division other than fashion
& leather goods has done well. Growth in fourth-quarter organic sales was led by a 13 percent
increase at the selective-retailing unit, which includes DFS duty-free stores and the Sephoracosmetics chain. The wine & spirits and perfume & cosmetics divisions both showed 9 percent
increases, the company said, beating a 6 percent gain at the watches & jewelry unit.
The U.S. was the best performing region in the quarter, boosting organic sales 11 percent.
That exceeded gains of 8 percent in Asia, 5 percent in Europe and 3 percent in Japan.
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The luxury-goods maker expects continued growth this year. Despite an uncertain economic
environment in Europe, LVMH is well-equipped to continue its growth momentum across all
business groups in 2013, the company said. The group will maintain a strategy focused on
developing its brands by continuing to build up its savoir-faire, as well as through strong
innovation and expansion in fast growing markets. Full-year sales climbed 19 percent to 28.1
billion Euros, or 9 percent excluding acquisitions and currency shifts. The company said it plans
to raise its dividend 12 percent to 2.9 Euros a share.
More and more companies are using celebrities to boost up their brand image and they are
doing it for a good reason. It seems like celebrities are invading the fashion world, smiling at us
from the covers of the fashion magazines, posing stunningly on huge billboards while seducing
us with their newest perfume commercial on TV.
Moreover, celebrities can be found increasingly more often in advertisement campaigns of
successful luxury brands like Louis Vuitton.
In fact, judging from the vast usage of public faces in its campaigns, Louis Vuitton seems to
believe in the effectiveness of this marketing tool and because according to Millward Brown,
LV is currently worth $25.9 billion and has been named to the worlds most valuable luxury
fashion brand in 2012, there is no denial that the Marketing strategy of the French fashion house
has proven to be quite successful so far. So what is their secret?
Using such multifaceted personalities for its campaigns, the fashion house clearly tries to appeal
to a broader audience. Moreover, it is focusing on its core values which are travelling and
craftsmanship. All the selected brand representatives have achieved something special in their
life and can be brought in connection with journeys at the same time Achievers who changed
things, so LVs head of communication, Antoine Arnault.
Athletes are travelling to their competitions, actors and film directors are always on a move
between the film sets, astronauts are travelling into the space and musicians go on tours. Each of
the LVs featured stars have a story to tell their life is a journey of success and they are being
followed by a big crowd of admirers.
However, there is more to it Louis Vuitton is also stressing its environmental commitments
with this campaign, supporting Al Gores Climate Project with donations in order to fight the
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global warming. Some of the endorsed celebrities like Angelina Jolie and Keith Richards have
even donated their fees for the campaign to charity, which certainly supports its message.
The U.S. fine jewelry market captures almost half of all revenues in the international market:
both specialty and branded jewelry enjoy the lead position. Top companies profiled in the finejewellery market include Signet Jewelry, Tiffany, Blue Nile, as well as Zale Corporation and
others. The industry is characterized by cutthroat competition from fine jewelries from other
countries. Among the key raw materials used in this industry, there are gold and diamond. Being
beautiful in appearance and rare in occurrence, diamond is largely used across the fine jewelry
market because of its exceptional properties.
In the USA, fine jewelry prices are deeply affected by international macroeconomic conditions,
which are the main factors causing a driving demand for fine jewelry and supply. There is astrong correlation between U.S. fine jewelry and macroeconomic factors. This was particularly
evident during the 2008 financial crisis, although the market recovered at a very fast pace.
Almost all public companies reported increased profits or a very small loss in 2010 relative to
2009; almost each company generated a margin improvement (Patseva 2012). The main trends
going across the fine jewelry industry include customers preference of online jewelry shopping
and changes in buying behavior and consumer preferences.
The key growth drivers overhauling the growth of the fine jewelry industry in the USA are the
ease of shopping, because information is available at a click, an increase in global national
incomes, and Internet penetration. Nevertheless, various key risk factors, such as online/cyber-
crime, fraud, as well as the lack of expert professional advice and real product assessment, are
bringing forth heightened challenges in the industry. As a result, the key players combine value,
creativity, and attention to details to capture customers. National chains, local independents and
numerous retailers, such as retail jewelrys distribution channels, namely discount chains,
Internet auction sites, Internet jewelry sites and TV shopping, characterize the fine jewelryindustry. This makes the retail market very competitive and highly fragmented. There are about
32,000 retail locations, which specialize in fine jewellery in the USA (Profile America 2008).
Thus, specialty jewelers face competition from retail stores, which sell fine jewelry. They offer
basic high-priced, mid-priced, medium quality gold, diamonds, as well as other fine jewelries.
The industry comprises stores offering a greater selection of styles, as well as higher quality,
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high-priced merchandize, including collections from local artisans and well-known national
designers.
In the fine jewelry industry, diamond accounts for over 50%, followed by gold and gemstone
jewelry. The industry products consist of fine diamond jewelry, fine silver jewelry, fine goldjewelry, and fine platinum jewellery. Thus, gold is one of the most popular metals for almost all
forms of fine jewelry, as it is a finite resource or a rare metal, and it is beautiful to look at. Most
fine jewelries are made from white and yellow gold, and as a result, customers personal
preferences normally dictate the color they opt for, and at times, they even find fine jewelry,
which combines an unusual and stunning appearance or look.
The industry products include rings, bracelets, pendants, necklaces, earrings, watches, clocks,
and jewelry made from precious metals. This means that there are numerous types of finejewelry available for players in the industry. The purity and clarity of stones, metal purity, cut
quality, and the style of design determine how much customers pay for fine jewelry, and how
they choose retailers or specialty stores. The fine jewelry market caters for both men and women.
Mens jewelry includes such items as rings, cufflinks, bracelets and watches. The mens
selection is much limited and it is not wide-ranging, as jewelries are designed for women with a
wide array of items to choose from. The fine jewellery industry is expected to grow in the
future enlarging the market share of fine jewelry in the USA, since Louis Vuitton will be a
good move considering the well-known and established brand name and a wide range of
fine jewellery products to be offered to the customers.
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Promotional Strategies
Wonderful successes of Louis Vuitton, gorgeous brand from French, maintain popular morals
ladies around the world. Behind the scenes of success, is from promotion strategies;
- Ordering Ease: University Of Management and Technology Lahore 7 of 12 Louis Vuitton is
also adopting customization; customers can come to the outlets of Louis Vuitton and place the
special orders. The company doesnt provide the facility of ordering through website but they
prefer the self appearance of the customer as it is more suitable. The made to order and custom
made facility is only available on luggage bags and leather goods.
- Delivery: Louis Vuitton delivers the customized products door to door. But if anybody has
standard size or willing to buy any accessories like wallets, belts, they can visit the Louis Vuitton
outlets and find the products.
- Customer Consulting: Louis Vuitton gives the complete care details with every garments or
product what they deliver to customers.
- Personnel Differentiation: Louis Vuittons staff is one of the highly paid staff who is
motivated to produce the products with highest standards of quality. Louis Vuittons
management gives the complete training time to time to all the staff members to meet thestandard which is making Louis Vuitton the well known luxury brand of the earth.
- Channel Differentiation: The Company markets its product through its own stores, high end
departmental stores throughout the world, which allows it to control product quality and pricing.
It also allows LV to prevent counterfeit products entering its distribution channels. Louis Vuitton
has neither discount sales nor any duty-free stores. In addition, the company distributes its
products through a single online retailer, eluxury.com. Louis Vuitton outlets are located in
several countries around the globe. Currently Louis Vuittons outlets are in more than 60countries including USA, UK, Canada, Vietnam, Japan, Kuwait, India, Bahrain etc
- Image Differentiation: University Of Management and Technology Lahore 8 Of 12 Louis
Vuitton has the strong reputation as it is the company of LVMH group owned by Bernard
Arnault. The Louis Vuitton Company carefully cultivates a celebrity following and has used
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famous models and actresses such as Jennifer Lopez and most recently Madonna in its marketing
campaigns for creating the image of brand of celebrities and high class people. The company
announced that the former USSR leader Mikhail Gorbachev would appear in an ad campaign
along with Steffi Graf, Andre Agassi, and Catherine Deneuve. University Of Management and
Technology Lahore.
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SWOT Analysis
StrengthLouis Vuitton is one of the oldest fashion houses in the world, easy recognizable by its logo LV
and monogram canvas. The exceptional high quality, innovation, craftsmanship, the association
with art and architecture define the strength of Louis Vuitton. The brand has an international
wealthy clientele, including celebrities and VIPs. Its products are available in its own exclusive
stores and through Luisvuitton.com, accessible anywhere in the world. LV offers also services
for custom made products.
The world of luxury is not just exclusive, it is highly secretive too. Several of the very largeluxury brands are privately held like Chanel and Rolex and therefore do not need to report their
annual or quarterly results. Even when the companies are publicly listed, like Louis Vuitton or
Gucci, they are part of much bigger companies which makes assessing the individual
performance of the brands very hard to do with any accuracy.
So the power and value of the Brandz top 10 Luxury brands league table is particularly
pronounced. Millward Brown interviews more than 600,000 consumers for this research each
year and the results provide arguably the single most insightful peek inside the golden robes ofthe luxury industry. The 2010 data provides many insights. First we must stop and simply marvel
at the size, scale and domination of Louis Vuitton. The range of Vuitton products combined with
its global appeal and strong price premium make it, by far, the biggest name in luxury.
It also plays a near perfect game in terms of brand management with its products only being sold
through its own superbly run boutiques and with a no discounting policy that saw it last run a
sale in 1986. And Millward Brown more than captures this power and scale in its ranking. Louis
Vuittons brand is worth more than Tiffany, Fendi, Cartier, Rolex and Chanel combined.
There is no greater skill in luxury branding than to sell in the billions but present oneself
as making each product with exclusive, singular devotion
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One of the biggest surprises to non-luxury experts will be the brand ranked second in the list:
Hermes. Even devotees of Hermes like to portray it as small, private and extremely high end.
And yet despite this image Hermes is the second biggest brand in luxury. There is no greater skill
in luxury branding than to sell in the billions but present oneself as making each product with
exclusive, singular devotion. Hermes manages to achieve both feats perfectly.
For Chanel there is a challenge ahead. Despite an almost maniacal following the brand is getting
dusty. The average age of clients is increasing and the all-important runway collections are
starting to lose their vigor and impact. The mighty Karl Lagerfeld has served Chanel well as
creative director for almost thirty years but with his contract up soon there is a significant
possibility that Chanel will opt for a younger and more up-tempo mastermind to take them into
their next chapter. All the smart Euros are on Alber Ebaz the current artistic director of Lanvin
to take over.
There has been a double disaster at Cartier which dropped by almost a fifth in value in 2010.
First there was an unavoidable focus on watches and jewellery the one sector of the luxury
market that was hit hardest by the global financial crisis. And second was the lack of creativity
and progression within Cartiers designs. Gaze into the window of Cartier today and one sees
pretty much the same collections and codes that would have been there in 2001. In the world of
luxury an inability to move on and constantly revitalize your offering is the ultimate sin, and
Cartier is paying the wages of it now with its brand equity.
An inability to move on and constantly revitalize your offering is the ultimate sin, and
Cartier is paying the wages of it now with its brand equity
A last observation from the top 10 is not who is there but who is not. Gaze down the list of
luxurys biggest brands and you will have to go all the way to number 10 before uncovering an
American brand in Tiffany. In contrast, the list of consumer goods brands and the overall Brandz
top 100 is dominated by American brands. Why is it that the all powerful American approach
that has dominated branding for so many years cannot stretch to luxury?
Some would cite history as the reason and Americas relative youthfulness. Personally I think it
runs much deeper. The American dream is built from a belief that anyone can make it. Its a an
entirely inclusive as meritocratic philosophy and one that lends itself well to consumer goods
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where everyone is in the target market. But luxury is a different beast one that celebrates the
principle of exclusivity and an ideal that not every consumer can or should be part of a brands
clientele. The French dominate luxury because they have a culture that is comfortable with
artistic development and one entirely at ease with the idea of excluding most to include the few.
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WeaknessLouis Vuitton is the number one world's most counterfeit brand, imitations affect brand's sales.
Another weakness is restricted retail opportunity; the company distributes its products through its
own stores and doesn't have discount sales, which makes the business dependable on economicconditions. If a depression occurs, the sales growth slows down sharply.
Louis Vuitton Outlet Since requirements are objectively defined in the form of competencies,
you need not worry about any subjective disadvantage that you can do nothing against.
Multimedia resources Louis Vuitton Womens Top Handles, sometimes related to television
series or course books Louis Vuitton Womens Sunglasses, are available from commercial
providers, and contain activities relevant to specific skills and Key Stages. There are essential
differences between using mother tongue Hindi and trying to use English which students do notknow well. Do not get confused or overwhelmed if you take some time to find scholarships
international students. Another important consideration is to conduct comprehensive industry
research prior to applying to jobs so that you are aware of the key job-specific requirements that
employers are seeking. also included should be methods of minimizing or reduce the visible dust.
According to the Pediatrics journal, there is also a risk of hallucinations. Magazines have always
been a great source of knowledge, but in recession, they are truly acting as guides and helping
you in your tough times. Regarding government spending Hyman also states that government
role in recession is to run into budget deficits in order to fine tune the economy, he also
acknowledges that this may lead to inflation, by stating this he does not provide a clear
indication of what should guide government spending, there are certain methods that government
should use in order to determine the level of spending that is appropriate to fine tune the
economy that are not highlighted in this article. Here's why: Diffusion Of Responsibility or "The
Bystander Effect" - One person is likely to assist someone who clearly needs help. You'll need
freshly polished matching dress shoes to wear with your suit. Check the key tasks of the position
in the job posting and see which qualities and experience would be necessary for performing
these tasks - for example, if "scheduling" is a key activity then the successful candidate would
need to be organized and able to plan and prioritize properly using appropriate scheduling tools.
When it comes to historical or geographical topics you can make them interesting to understand
and remember by visiting these places or museums and so on. Why go to college though? Most
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people would say that college is just something you do after high school; It is just the next
logical step to a successful life. There are various things to consider when you are trying to
obtain ski lodging. Groups of community are assembling to stand for their interests to authorities
that are poignant toward greater egalitarianism. As much as you try to learn how to write a
winning cover letter, hiring managers also put a lot of weight on your level of professionalism.
Try and understand all aspects, be it your appearance, personality, likes, dislikes, strengths or
weaknesses. For example Louis, one part may take into account your ability to reason with
numbers or read diagrams, whilst another section is likely to concentrate on your interpretation
of text. On the other hand how to perceive or how to look into the world is a great thing, it is also
understood from within one's self. Because Pakistani authority, leaders, academia Louis Vuitton
Official Website, intellectuals Louis Vuitton Womens Wallets, and media for the last 61 years
twisting Balochistan true history by labeling Baloch leaders separatist such label is false andirrelevant to the Baloch leadership. Refrain from asking your child "closed" questions that
require a one-word answer. Any town, city or village that has people, potentially has tutoring
jobs. Your job may just be a terrible misfit for your personality type. Is it better to list your
education first or your professional experience? Like most answers, the answer to this question
depends entirely on you. Furthermore 5 (48), the English language used in his translation, The
Holy Quran English language translation of the meaning of the Quran, is especially suitable in
style for the teaching of imagery because it is considered more poetic than others.) rather it is
more helpful to them to train how to be sensitive to number patterns. In their attempt to design a
method of translation that can offer a systematic approach to the task of translation, Hervey and
Higgins (1992: 22-24) reject the principle of equivalent effect and criticize it as misleading and
unhelpful for several reasons. Nouns, personal pronouns (promos personnels), articles (dfinis
and indfinis), verbs, adjectives, clauses, adverbs are all used in French like in English.5 million
dollars; West Germany-0.Recent articles
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OpportunitiesExpansion in emerging markets, such as China, Russia, India, Taiwan, Singapore etc. Luis
Vuitton has been focusing on increasing its investment in such emerging
economies where high growth rates can be experienced. Louis Vuitton World's cup comingup in 2013 is also an opportunity for brand's exhibition.
Louis Vuitton is always looking for new growth opportunities. Whether it is within their retail
sector, human resources, or their commitment to giving back to society. All of these
improvements help to expand the company name making them more profitable year by year.
Louis Vuitton's retailing activities are kept to a minimum. With the lack of sales and promotions,
the store never changes or falls into disarray. Their target market is those of affluence and/or
those who seek it. With this type of clientele customer service must be top notch. Salesassociates work to keep personal relationships with customers greeting by name and sending
follow up mail to ensure the product is being enjoyed! The locations of Vuitton stores are in
areas of wealth. Throughout the United States, Vuitton is located in precise areas that attract a
wealthy crowd. Shopping malls and stand alone stores are among their locations. Their global
Flagship store is located on the Champs-lyses in Paris.
Louis Vuitton is known for using high quality raw materials in all of its products, the company
has an empowering position to observe its products quality by marketing them through its own
stores all over the world . Since the founding, the products are made by hand which differentiate
the brand among its competitors in the industry. Before 2005, it took 20 to 30 craftsmen to put
together each Louis Vuitton bag. Over the course of about eight days, separate workers would
sew together leather panels, glue in linings and attach handles. For years the company paid far
more attention to product design, craftsmanship and image than to the mechanics of keeping
their stores stocked. With help from management consultants at McKinsey & Co., Vuitton set
out to make its manufacturing process more flexible, borrowing techniques from car makerscompanies. Today, clusters of six to 12 workers, each of them performing several tasks,
make LV-logo bags in a single day. The new settings improved company's production and the
sales rose to 9% from the previous method of manufacturing.
The reorganization extended beyond the factory floor. A distribution center in France used to
send products directly to Vuitton's stores around the world. Now, the company is building a
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global distribution hub outside of Paris that will ship to six regional distribution centers: two in
Japan, two elsewhere in Asia, one in the U.S. and one near Paris for European orders. Within a
week of a product launch, stores around the world feed sales information to France and
production is adjusted accordingly. Factories work on a daily schedule, compared to a weekly
one before the reorganization.
The final stage of the reorganization expanded to the boutiques and the stores for a better
customer service and more efficiency in employees performance . In the past, salespeople
advising customers would disappear into stockrooms when products weren't available on the
shop floor. Now, Vuitton assigns a few employees at each store to the stockroom. At a large new
store on Paris's Champs-Elysees, items are sent via service elevator from a basement stockroom
to the cash register. They arrive wrapped in tissue paper.
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ThreatsIncreased counterfeit crime will hurt the brand image .The abundance of counterfeit goods is
affecting the sales. It is estimated that a loss due to counterfeit products converts in 6 billion
Euro ($8.5b). The global economy; economic depression or recession, affects the sales ashappened in 2002 and 2008.
Being one of the most counterfeited brands in the fashion industry due to its image as well as
status symbol, Louis Vuitton not only faces a threat of loss revenue, but that of dropping brand
reputation as the technology used to counterfeit its products increases and the difference between
a genuine Louis Vuitton and a counterfeited item decreases.
With the advent of environmental protection and considerations in business, the number of
groups protesting against the use of animal skins on fashion and leather goods (i.e. campaigners
staged a noisy protest in 2006) is likely to increase, and with it, their voice and influence over
law makers, making this a threat to Louis Vuitton and its products.
The fashion industry is a highly competitive and dynamic one, and Louis Vuitton though being a
market leader is not immune to this threat. In each region of its global market, Louis Vuitton
faces significant competition from other strong brands like Gucci and Herms. Such a high level
of competition in the market place no doubt poses as a threat to the company and its market
share.
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Recommendation
Target Market
LV targets high-income costumers of both genders.
The four Ps.
Product
Louis Vuitton does not only offer to its customers unique designs and high controlled quality
products but also inducts them to form attachments by giving to each product a name instead of
a serial number. The company has a special orders service for custom made products.
Place
Louis Vuitton retains immensely tight control from production to distribution to sales. It
distributes its products in its own stores located throughout the world, which allows it to control
product quality and pricing. It also allows LV to prevent counterfeit products entering its
distribution channels. In addition, the company distributes its products through
LouisVuitton.com
Price
The core of Louis Vuitton pricing strategy is to sell its products to the same price no matter the
location. Discounted and bargain sales are prohibited, once a product is taken out of production,
it retires and does not go to a discount outlet or online discounter. Louis Vuitton has not had a
sale in 156 years.
Promotion
Louis Vuitton promotes his product through multiple channels. In store promotion - trains the
staff to tell the story of each product. It has also been trailblazing in the use of social media,
online and mobile, while maintaining the highest standards in print advertising. The Louis
Vuitton company carefully cultivates a celebrity following and has used famous models,
musicians, and actors. Involvement in events such as Louis Vuitton's cup gives the brand a
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global visibility and recognition. The commercial (90 seconds) "Where will life take you?" and
translated into 13 different languages, was the first Vuitton commercial ad ever and was directed
by renowned French ad director Bruno Aveillan.
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Conclusion
Louis Vuitton took the second place as the luxury marketer of the year, in 2010. The brand has
continued its expansion in Asian markets as well as in emerging markets. Its sales growth
increase it's steady at 15%.
"The fine equilibrium between tradition and innovation reflects the DNA of Louis Vuitton.
Products such as the Multicolored Monogram bags, the fruit of collaboration between Marc
Jacobs (LV's artistic director) and the contemporary artist Takashi Murakami, received a
fantastic welcome. LV will continue working with this same creativity and respect for quality.
As a leader of the sector, the challenge is to continue growing and still preserve the exclusivity
and great quality the company has always offered." - Yves Carcelle CEO at LV.
The fashion industry is a highly competitive and dynamic one, and Louis Vuitton though being amarket leader is not immune to this threat. In each region of its global market, Louis Vuitton
faces significant competition from other strong brands like Gucci and Herms. Such a high level
of competition in the market place no doubt poses as a threat to the company and its market
share.
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