2007 - brand premium of louis vuitton original bag and counterfeits
TRANSCRIPT
LOUIS VUITTON
Brand Premium of Luxury Goods and the Counterfeit Market:
A Look at Louis Vuitton Handbags
Natalie PowersDr. Marc Fetscherin
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AGENDA• Objective• Hypothesis• Existing research• Data collection• Results• Conclusions
OBJECTIVE• Understand the effect of high
prices of luxury handbags on buying patterns of consumers – Retail channels– Online discounted stores– Counterfeit sellers
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HYPOTHESIS• Greater availability of counterfeit
products, and the increased quality in their similarity to originals, consumers are willing to pay less money for a knockoff item than for an authentic product
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EXISTING RESEARCH• What drives consumers to buy
counterfeits– Brand recognition without high
cost– Increased quality– Availability
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DATA COLLECTION• Consumer
survey• Price collection
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CONSUMER SURVEY
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How many Louis Vuitton handbags do you own? 0 1 2 > 3
How many of these were purchased at an authorized Louis Vuitton retailer? 0 1 2 All
How would you rate the quality of the handbags purchased from this venue? Poor Middle LowMiddle High Very High
How would you rate your satisfaction with the price paid for the handbag?Very
UnsatisfiedReasonably
Satisfied SatisfiedVery
Satisfied
How many of your handbags were purchased at an online discount store? 0 1 2 All
How would you rate the quality of the handbags purchased from this venue? Poor Middle LowMiddle High Very High
How would you rate your satisfaction with the price paid for the handbag?Very
UnsatisfiedReasonably
Satisfied SatisfiedVery
Satisfied
How many of your handbags were purchased from a counterfeit dealer? 0 1 2 All
How would you rate the quality of the handbags purchased from this venue? Poor Middle LowMiddle High Very High
How would you rate your satisfaction with the price paid for the handbag?Very
UnsatisfiedReasonably
Satisfied SatisfiedVery
Satisfied
Does the quality of your handbag lend itself to be recognized as a counterfeit product? Yes
Upon Close Inspection Not Often Never
Which of these would persuade you to buy an authentic Louis Vuitton handbag most?
Lower Price
Increased Quality
More Exclusivity
Inability to Counterfeit
CONSUMER SURVEY
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LV
Discou
nter
Count
erfei
ts
Quality
Pri
ce S
atis
fact
ion
Hig
h
Low High
Low
PRICE COLLECTION
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PRICE COLLECTION
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Retail Store Online- Discounted Replica (Counterfeit)
LouisVuitton
NeimanMarcus
Saks 5thAvenue LaPerle SacBelle Balenci Bagways
LV-Designer
Bags eHandBagz
Monogram Canvas
Looping Mini 725 795 725 475 287 285 130 145 190
Speedy 30 620 620 620 450 299 299 125 155 200
Babylone 1,110 1,110 1,110 450 309 319 N/A 165 199
Monogram Multicolor
Alma 1,450 1,450 900 700 468 468 145 185 219
Pouchette 590 590 285 275 290 290 99 N/A 149
Trouville 1,400 1,400 900 775 496 496 195 185 269
PRICE COLLECTIONPercent Change in Price
Retail Stores Online DiscountCounterfeit
SellersProduct
Overall
Monogram Canvas
Looping Mini 10% 67% 46% 512%
Speedy 30 0% 51% 60% 396%
Babylone 0% 46% 21% 573%
Monogram Multicolor
Alma 61% 50% 51% 900%
Pouchette Accessoires 107% 5% 51% 496%
Trouville 56% 56% 45% 657%
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CONCLUSION• Prices for the same product vary the
least in retail stores
• All but two bags demonstrated an overall difference in price of over 500% – Highest was Alma with 900% increase
from counterfeit to retail
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CONCLUSION• Counterfeits owners who rated quality
low to middle, had price satisfaction ranging from moderate to high – Indicates they believe they got a good
value for their money
• Authentic owners rated quality very highly but price satisfaction was lower than that of the counterfeit buyer– Comfort with the quality knowing it is
authentic, but had to pay a lot of money for it
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CONCLUSION• Counterfeits offer lower quality, but
with their low price provide an attractive value proposition for consumers– If consumer satisfaction with the quality
of the counterfeit handbag is moderate to high, but price satisfaction is even higher, consumers are willing to forgo the absolute quality of an authentic handbag for a more satisfying counterfeit
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RECOMMENDATIONS• Survey population size• Additional brands
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