Louis Vuitton marketing strategy and the emerging luxury market in China

Résumé du document

Louis Vuitton (LV) is the world 1st luxury brand and the leading brand of the LVMH group created in 1987, which was the 1st world group for luxurious goods' production and distribution. LVMH, ?16.5 billion sales worldwide in 2007 (+7.7%), is far ahead of the competition with revenues three times bigger than its close competitor, Richemont Group. The group is split in five core activities with a rich portfolio of over 60brands. Fashion and leather goods, with ?5.6 billion sales accounting for 34 % of the group turnover, are the group's growth engine. LV dominates the luxury segment by far with ?1.659 billion turnover in 2006 (2 times its two main followers PPR and Valentino), and owns 405 stores (+15 net openings 2008).

Extraits

[...] Also, being aware of the human rights and fundamental freedoms internally. Economical: The impact of the 'economic miracle' : In spite of a double digit GDP growth over the last decades ( in 2007), the same was eroded by the financial crisis and a subsequent economic slowdown was anticipated expected by 2008) 2007 was earmarked: China achieved the 4th position from a worldwide point of view in terms of GDP growth. this was $ 3.251 trillion. It also achieved the 2nd position in PPP 7.099 trillion). [...]

[...] However, it does not qualify for being at the top of the luxury market. Its leading position of being the first luxury global brand is also due to its not so high exclusivity and scarcity of its products. It has a well balanced marketing mix which is to be recognised as a luxury brand with the quality, its style, and its unique prestige accompanying it. It should be noted in this regard that it has not been over elitist in nature. [...]

[...] mass production + prestigious marketing strategy). However, it might be an opportunity to enlarge the customer base by increasing sales and by trading down. The after effects could be that the LV brand image might deteriorate. The globalisation of the luxury market: Through globalisation, there is an in international (global and multinational) competition, by the implementation of aggressive entry strategies. It also involves the challenges of the supply chain management and production location choices, which involves integration, relocation, or even outsourcing. [...]

[...] Louis Vuitton's city guides for most cosmopolitan cities. Fashion shows for product promotions Recommendations: o To organise international and local designer competitions o Product placement (through movies): This serves as an opportunistic approach o Increasing Asian ‘egeries' (according to Lucy Liu) People Because most of emerging targets are not educated to luxury consumption, product quality, French design, and LV history; the sales force have a very important and significant role to guide and educate customers on the product and the brand. [...]

[...] Customers are looking for occidental authenticity. Therefore I recommend that one needs to 'secretly' or diplomatically relocate accessories and its production. However, the finest product line and its manufacturing zone needs to be retained within Europe. Diversification? LV's product and its core range is about leather and fashion goods. From this base and grass root,, diversification begins under the LV name. The diversification shall be pursued to the extent to which the line to accessories and accessible products can to expand its scope to the fullest. [...]