What Is The Pestel Analysis Of Louis Vuitton

Hennes and Mauritz AB is a Swedish retail-clothing company, which has expanded enormously in the past years. H&M has grown from one single store in a small town in Sweden to a multinational ranked as the second largest global fashion retailer with its 3,600 stores in over 58 countries and $22 billion in annual sales (The World’s). This incredible story of success makes us wonder about their strategies and how they managed to get where they are today.

Victoria’s Secret goal is to increase its profits by 10% and also to maintain and gain customers’ loyalty and their satisfaction. Company’s main goal is to maintain existing customers and gain new ones. Victoria’s Secret is very profitable and well-known brand all over the world and especially in US. Therefore, by launching this new line, Victoria’s Secret does not necessarily aims for enormous increase in profitability but increase in customer-company relationships.

Political –how changes in government policy might affect the business, like a decision to subscribe building new houses in an area could be good for a local brick works.

(3) Political and legal environment, factors related to policy and law that influence company’s operation.

Louis Vuitton “was established in France in 1854 by Louis Vuitton and became known as one of the oldest French luxury fashion houses” in the industry (Pearce & Robinson, 2013, p. 14-2). The firm’s products range from high quality “leather goods, handbags, trunks, shoes, watches, jewelry, and accessories”; manufactured by highly skilled and expensive laborers in France (Forbes.com, 2016). In addition, Louis Vuitton market their products “in 50 countries with more than 460 shops and generates more than €7-billion ($9.5-billion U.S.) in annual sales” (Wendlandt, 2013).

Another challenge for Louis Vuitton is the market and brand dilution as it has already entered and successfully fit in the Japanese market. The products have already maintained the “acceptable” group, and the company has become to feel difficult to increase the revenue. The figure provided in the case showed that nearly half of the Japanese have Louis Vuitton-monogrammed items by the time of 2007. This seemed to make LV prevalent but not luxury any more. To maintain its brand image, it is

It is clear from the list above that political factors often have an impact on companies and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and alter their marketing policy appropriately.

Brands Inc. are successful corporations that were both founded within the U.S. and are both listed on U.S. exchanges. While they share the same industry (clothing/fashion), they serve the needs of different customers. Whereas Urban Outfitter focuses on young adults, L Brands focuses heavily on woman of all ages. Additionally, L. Brands’ products tend to carry a premium price over those sold by Urban Outfitters. Sizewise, L. Brands is the larger and more established company, both in terms of locations, employees, and market cap. Nevertheless, both companies are at risk due to the dwindling amount of shoppers who visit retail

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.

LVMH, known as Moët Hennessy • Louis Vuitton, is a French conglomerate and the largest producer of luxury goods in the world. LVMH was formed in 1987 with the merger of Moet et Chandon a champagne manufacturer, Hennessy a cognac manufacturer, and Louis Vuitton a fashion house.

The H&M guarantees value for their low pricing. This strategy of low prices has made the company very successful in emerging markets, according to Jepeson (2014). From the research conducted H&M seems to be practicing a cost based pricing model. The two major constituents of the brand pricing is the high fashion and the lower cost. The company collaborates with renowned designers in order to offer innovative product design but manages to keep prices low through the manufacturing

Louis Vuitton is considered under the luxury goods industry. The luxury goods industry is a high profitable industry with low outside threat. There are only few large players in the industry and they server to the wealthiest people in the world. The luxury companies have high power to control the price so they have ability to grow sustainably.

Political environment – The processes of national, regional and local governments, as well as various power groups that can affect the rules for doing business. This can include government intervention in particular industries, tax policies at all levels, government expenditures for certain causes, legislation aimed at implementing social policy, and regulation of various industries and trade practices.

LVMH has a diversified source of revenues from all of its different product lines. “Due to its high brand value perception, the company will be able to cross sell its products to increase revenues, primarily because all its products have high end positioning and the customer segment it caters to is uniform across the product

So let’s start with political environment. Political environment may mean some kind of regulation or legal issue made by the government. Fair-trade and minimum wage will be a good example. For IKEA, we can see any significant impact from the political environment.