louis vuitton case study

makes them add value to reputation of their brand. Their main strength is an ingenious

everyone already likes their brand, so they do not need to try as hard. They also target peoples affective social identities. This is when a brand targets your true, inner identity. They aim to use peoples personal ideals, and personalities to get them to buy products. Then again they can

Philips-Van Heusen (PVH) is Polo Ralph Lauren’s another big competitor with a market cap of $4.6 billion. The company is headquartered just a few blocks away from Polo Ralph Lauren and operates in a similar fashion. Its portfolio of brands includes the well-recognized Calvin Klein collections, Van Heusen, and IZOD. It also has a huge portfolio of licensed brands including Donald J. Trump Signature Collection, Kenneth Cole New York, Michael Kors, DKNY, Tommy Hilfiger, Nautica, and Timberland.1 The company’s revenue is more relied on its licensed brands, which is a bit different from the other three companies.

LV was conceived in 1854 with the opening of the shop in Paris. Since then, the company has seen huge amounts of growth and has attracted world markets, also enjoying the celebrity appeal including its amazingly successful campaign with Audrey Hepburn (Travel and Leisure). Incredibly, LV has been most popular in Japan. It entered the Japanese market in 1978 with its own stores in Tokyo and Osaka. Its revenues increased 50-fold in the following 10 years. (Official blog)

Louis Vuitton is an international luxury French fashion house specialized in trunks and leather goods, founded by Louis Vuitton in 1854.

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).

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.

lululemon’s mission statement is to help people live long, healthy, and fun filled lives. They focus on ensuring that their products are of the highest quality and that their store experiences are one of a kind. lululemon invests money in training to educate their staff on effective and creative ways to create a unique experience in each individual store.

Through this high quality and lack of flawed parts they have gained a good reputation, which was something that was normally reserved for American companies. The continuous inspections, replacement or worn parts and the high level of maintenance of the equipment allowed the factory to run smoothly. The focus on fixing problems before they happened has led to fewer problems encountered on the production line.

The LVMH group is comprised over five sectors: Fashion & Leather Goods, Wine & Spirits, Perfumes & Cosmetics, Watches & Jewelry, and Selective retailing. This external analysis will focus on the fashion and leather goods sector, which accounts for 30% of the company’s total revenue.

Their brand and how loyal their customers are is what they are known for. They have a very unique operating strategy where they offer premium choices made by the customers themselves. They eliminated the middleman of Fresh Direct and suppliers. They can provide high quality at lower costs which has positively affected the revenues.

Louis Vuitton started off as a trunk maker in the 1800s for traveling as at this point in history traveling was considered a luxury that the rich had. Vuitton founded his brand in 1854 but it was after he died in 1894 that his son Georges took over and really expanded the brand and made it what it is today. In fact, Georges was the one who created the classic Louis Vuitton monogram with the LVs in order to prevent counterfeiting. This brand was really popular during this time era as it was one of the first luxury brands to be founded that would later lead up to other famous designers later in the 1900s. Another very famous brand from this time era is Hermès that was founded by Thierry Hermès. This brand was originally for horse riding gear but then became a handbag luxury brand. ¨Thierry Hermes started handcrafting horse harnesses for caliches and carriages in 1837¨(Said 1). This brand nowadays is known for its ridiculously high prices and it is infamous for its Birkin & Kelly bags that can cost anywhere from $10,000 to a ridiculous $200,000. These are two examples of two luxury brands founded in the Victorian Era that we know of

Easy visibility of the company and recognition of its brand name, due to unparalleled marketing strategies

Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and

quality, and recognized by the consumer as such. The brand is seen as expensive, but