Company Analysis Of LVMH: A Star Brand

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the firm’s brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14-18). Moreover, “the after-shocks of the global recession were a threat to Louis Vuitton’s luxury business in Japan”, and Japanese women became less interested in the brand’s products (Pearce & Robinson, 2013, p. 14-18). Alternatively, Louis Vuitton could “reinvent itself and regain what used to be its well-attested

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.

1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in

Most luxury brands have been family-owned or -controlled and, consequently, were single-brand firms for the most part. However, mergers and acquisitions have been growing in the industry, with LVMH leading the way. Our strategic recommendation is to follow LVMH’s lead and acquire a multitude of diverse companies to build the Gucci portfolio.

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20

Product diversification is a feasible way to obtain growth through new products. The company can use existing product knowledge to develop the brand into new lines to increase exposure and use similar technology to increase synergies. Leveraging off an existing well-known brand to a market that is familiar with the brand will also increase the possibility of success while maintaining lower marketing costs in

Bulgari could provide strong support for Louis Vuitton Moet Hennessy Group to grab emerging market. Bulgari’s product has established the market abroad and held a place in emerging markets. Bulgari entered the Chinese market in 2003 and captured the largest market share rapidly, the selling condition ranked fourth in 2011. Bulgari owns a positive market foundation in the Chinese market that will assist Louis Vuitton Moet Hennessy Group to capture Chinese luxury market, especially the rapid growth of the watch and jewelry business, and as a fulcrum, leveraging the Group's overall business, and to this effect to enlarge the global competition with other luxury brands.At the same time, Louis Vuitton Moet Hennessy Group offer Bulgari more selling distributions and channels.On the other hand, in combination with Louis Vuitton Moet Hennessy Group greatly enhanced Bulgari’s watch and jewelry business, significantly improved its cosmetics and perfume

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.

Louis Vuitton redefines luxury. The Louis Vuitton Moet Hennessy (LVMH) group is a global leader in a variety of luxury industries spanning across various categories including: fashion and leather, wines and spirits, perfumes and cosmetics, and watches and jewelry[1]. The LVMH group has thrived in conventional markets such as Europe and the United States because both markets are characteristically and densely populated with high-income individuals. However, given that India is a developing economy, the success of Louis Vuitton in India is dubious. The analysis of Indian luxury goods’ market with respect to Louis Vuitton is essential for uncovering this case.

What are the factors that contributed to LV’s exceptional success in the Japanese market? Let us carefully assess the brand’s four P’s before we look at more specific strengths and weaknesses. In general, marketing seeks for average quality, one that conforms to usability and functionality standards (Nagasawa, 2009). For an average 1000 Japanese Yen handbag, it means that the bag simply needs

The last problem we highlighted concerns how to increase the number of customers in the mainland China market . First, we believe that the most relevant issue is a survey amongst customers on the Shanghai Tang brand perception and the 5 luxury brands in their top-of-mind, in order to analyze the competitors that the company has to face in the future.

The objective of this report is to understand the manner in which the global luxury brands are residing or extending their reach worldwide. It is also focused on the manner in which the brands are creating a deeper brand value and making the customers to engage with their brand. The other aspect that is being focused is regarding the company B&O which has managed to expand its business by adapting to varied cultures of the markets in which it has diversified its business. It has also focused on the manner in which the various brands have diversified into various markets. The prime comparison has been drawn between B&O,Harman House and Apple and it is observed that the products of B&O are considered to be more technologically superior to Harman House.

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.