Case Study Of LV

When examining competitive advantage, it is also important to consider the market and take into account the existing competition against larger firms.

Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality. The situation of LV in Japan seems to be fierce, however, with effective solutions, LV can also seize the opportunity to sustain profitability in Japanese market rather than just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Vuitton. Therefore, to solve this problem and attract more customers, LV should strive to make “inexpensive” products by increasing the value of products, lowering the costs and prices, and finally creating high value for the consumers. As the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.

This report presents data describing the differences amongst the two department stores, their fundamental visions, and comparative statistics. Macy’s or Dillard’s: Differences amongst these competitors There are several aspects you can analyze from each department store. Major pieces do set each one apart from the other. Brand names carried by Macy’s and Dillard’s from an average shoppers point of view can go completely unnoticed unless price is involved. For trend shoppers brand names can either make or break a retail store. It can easily determine if he or she will walk to Macy’s or Dillard’s because they already know the store does or does not carry that brand. This is consistent with each department throughout both stores and

Fashion and luxury, always have been one of the biggest topics to discuss. When to ask: What is luxury, what does it really mean in history and today at the time of materials access. We may not have an exact answer, because the word of 'luxury' has so many meaning, due to questioning: who, what, when, where, etc...Simply asking these questions, we can find out that this word exceeds to different fields in our society, such as the hiararchy of possession, can be defined by ethical difference of wealthy and poverty between layers of people, who have compeletely different life conditions. Everyone can judge it differently, which depends on how personally we take it. Do we a material people, who live live in material world? Do we need that much from in and out all polished with the Swarovski crystal? To get to todays, we must understand how the systems in the past worked. Does contemporary luxury fashion industry satisfying consumer's need, if on the high street market is full of fast fashion company who are trying to persue people that their goods is shorter uses, but promises up-to-date with latest trendy, mainly lowest price tag. What is the future for young creatives after graduations, luxury promises them to make-end-meet, what about their creativity fashion dream or just end up with basic luxury brands like they used to exists before.

The Louis Vuitton Brand – LMVH is world renowned and is easily identifiable although care and attention has been taken to maintain the integrity of the brand of each of its subsidiaries transparently. LMVH has consistently outperformed earnings forecasts each year in the last two earning quarters with the United States being the largest consumer of luxury goods at 22%, just behind the rest of Europe at 27% (www.Mornigstar.com, 2012). The 2011 biggest revenue group was leather goods and fashion at 27% and 37% attributed to selective

and impaired LV function)succumbed in the first week after diagnosis.83% of the survivors recovered completely and the rest had residual LV dysfunction after 6 months.

A luxury brand may have profound influence on an overall product strategy since its position may determine how the company is going to make its next step. A luxury brand like Coach epitomizes elegance and combines classic beauty with modern design. According to John E. Gamble, not only has Coach become one of the most respected and known brand names in the ladies’ handbags and leather accessories luxury brand industry, it is also one of the most best-selling luxury brand companies in the world, with net sales reaching 2.1 billion in 2006 (Gamble). When a company like Coach decides to set up a product strategy for the next season, the

Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of products in Asia compared to France.

First, as a famous brand in the world, LV always chose the new market for luxury goods. For example, now China was its new and important market. Before it opened its shops in China, many Chinese customers had already bought LV product when they were in western countries, which provided a good foundation for Chinese market. Now, LV also entered into the Indian and Russian market. Second, shift in consumption concept and rapid global economic development provided a better development platform for luxury goods.

LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]

Thereby, LV attains the position of becoming the leader of luxury leather and fashion accessories in the industry.

It is very popular in Japan, Europe and US, supported by many loyal customers. It has some famous persons to help advocating its goods. For example, Jennifer Lopez and Madonna. On the other hand, for the weaknesses of Louis Vuitton, most people cannot afford its luxury products. Only rich people that want to be distinctive from others can afford it. Moreover, it is not like other luxury brands, which can sell their products through different ways. It only sells products through its own stores. Basically, large businesses are more depending on the economic condition. For instance, in 2002, the economic recession or depression has a heavy effect on the demand of luxury goods, which will lead to decline the sell. For the opportunities of Louis Vuitton, movie stars or famous person can advertise their goods by using its products in the movies. LV needs to create their new image and style based on the trend of contemporary, catering to its loyal customers. Also, LV joined the Universal Exhibition at the World’s Fair in Paris and won the bronze medal, which can attract more potential customers. And its brand had been expanded in the world. The development of internet will help its goods to get more customers that maybe never know about this brand before. There are some problems of stakeholders. Such as in the capital markets, they want to increase profits and grow the brand while maintaining the essence of the brand.

Hermès’ retail strategy is designed to ensure both exclusivity and the highest perceived value. Hermès targets men and women aged 18 and up who are demand inelastic relative to price and are interested in purchasing high-end apparel, accessories, and other goods. Hermès positions itself as an ultra premium and highly exclusive fashion company doing everything they can to reduce access and to prevent brand dilution. While Louis Vuitton has 1,536 retail outlets (LVMH “2015 Annual Report”, 11), Hermès only has 307 stores (Hermès “2015

Before considering the behavior of consumers when purchasing luxury brands and defined the three headings, it is important to examine a definition of what luxury brand marketing and what luxury brands. Nowadays, the luxury brand marketing is a controversial topic and so many writers discussion in the literature. According to Nueoo and Quelch define luxury brands as, “those whose ratio of functional utility to price is low while the ratio of intangible and situational utility to price is

The objective of this study is to verify the positioning of the new luxury brands in relation to traditional luxury brands and middle range brands, and to draw implications for both academics and practitioners. In other words, to show that in terms of perceived prestige new luxury brands are substantially closer to traditional prestige brands than middle-range brands. In terms of price, however, they are substantially closer to middle-range brands than traditional luxury brands.