louis vuitton value chain essay

Louis Vuitton and the Indian market for luxury goods 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

directly such as Louis Vuitton and Chanel but also indirectly such as Ralph Lauren and Calvin Klein which both having the same collections in lifestyles (Appendix 4). Louis Vuitton is one of the Burberry’s biggest yet strongest competitors in the field of fashion. It formes up its strategy by focusing on the customer trends, concentrates customer taste and build a effectively responsive supply chain before the trend emerge. In order to well served the customers, Louis Vuitton hired expert and specialized

Georges Vuitton, Louis Vuitton’s son, created the “Toile Monagram” pattern which is formed of initial LV and 3 design elements as the original trademark, and it has successfully protected the brand from unlawful imitators in the 1890’s. From that time, all products

by Channel The size of the global industry is over 1,002,522 companies, while the US clothing stores industry includes about 100,000 stores with combined annual revenue of about $150 billion. Globally, the top companies are Christian Dior, Louis Vuitton, PPR, TJX, and Industria de Diseño Textil.[6] In the US, large companies include TJX Companies (TJ Maxx, Marshalls); Gap; Limited Brands; Ross; and Abercrombie & Fitch. Personal income and fashion trends drive demand for clothing thus the profitability

resold through unauthorized dealers, are a significant problem. In Japan, handbags cost more than 40% more than they did in France (Nikoemeran). This difference in price created a gray market where groups from Japan would fly to France to purchase Louis Vuitton handbags for resale through parallel channels in Japan. These gray markets can create a number of problems for LVMH. The first is the dilution of the exclusivity, where the exclusive rights of distributors are watered down due to the influx of

Mutang Beili Yin 10130350 10153456 10095036 Sekit Chubuppakarn Xu Yang 10095786 10136050 Mahsa Tolou Sharifi 0 Executive summary LVMH, the world s largest luxury group, came into being with the mergers of Moët Hennessy and Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather & fashion goods, other three are perfumes & cosmetics, watches & jewelry and selective retailing. In the external environment of part two, the report analyzed the relevant

1. Introduction a. Company Background of LVMH LVMH Moët Hennessy or famously knows as LVMH is a leading luxury goods provider based out of France. Formed after merger of Louis Vuitton and Moët Hennessy in 1987, LVMH has plethora of small and renowned brands under its portfolio with products ranging from clothing, to cosmetics to jewelry to perfumes to watches to wines. Bernard Arnoult is the CEO of the company and the company was able to generate revenues of over $28 billion USD in 2012. Their products

strategy. This is where the luxury industry comes into picture. The brand industry can absolutely impact social orders and our society. It promotes our culture, history, and nurtures talent of the young. Thus, supports long term growth chain of luxury value chain. The global luxury goods industry has been on an upward trend since the past few years. Even though the

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

online where locals and people nationwide will have access to Breezy’s Leather Goods. This type of distribution is known as direct distribution. Direct distribution is where the vendor is the owner and manages all of the company’s resources in the value