louis vuitton - im

7/27/2019 Louis Vuitton - IM

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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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