Lecturer: Dr. Urs Bumbacher Group 1Mr. Tuan NamMr. Quang LinhMr. Minh DucMs. Le HangMs. Lien Pham
LOUIS VUITTON Background One of the worlds leading international fashion houses Headquartered in Paris Divisions: Ranging from luxury trunks and leather goods to ready-to- wear, shoes, watches, jewelry, accesso ries, sunglasses, and books.
HistoryEarly Days (1854-1892) 1854 - Louis Vuitton opens first store in Paris 1876 – Became the supplier of luggage of many famous people in that era King Alfonso XII of Spain, Czar Nicholas II of Russia, Ismail Pacha – viceroy of Egypt 1885 - first LV store opens in London, on Oxford Street 1892 - Vuitton dies; the Vuitton company begins selling handbags. Louis Vuitton
HistoryGolden Age of Louis Vuitton (1893-1936) 1893 - Georges (Louis’s son) begins his campaign to make the company into a worldwide corporation. 1936 - The golden age of Louis Vuitton ends as Georges Vuitton passes away. Estimates attribute Georges Vuitton with over 700 new Vuitton designs.
History• Modern Age of Louis Vuitton (1937-1996) – 1978 - Vuitton opens its first stores in Japan, in Tokyo and Osaka. (Sales in Japan would come to account for nearly half of the companys total revenue by the 1980s.) – 1984 - Vuitton expands its presence in Asia by opening its first store in Korea, in Seoul. – 1987 - Moët et Chandon and Hennessy, leading manufacturers of champagne and of brandy, respectively, merges with Louis Vuitton to form the worlds largest luxury goods conglomerate, LVMH. The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies. – 1992 - The first store in China is opened at the Palace Hotel in Beijing.
History• Millennium Age of Louis Vuitton (1997-present) – 1997 - hires designer Marc Jacobs to be the labels artistic director – 2006 - opens its first store in Norway
Target MarketLV uses demographic targeting strategy to targettheir customers Both men and women Age: ranging from young adults to seniors (22 – 65 yrs old) Income: around $5,500 or above per month
Why go international? • Became supplier for aristocracy • Exclusive handmade trunk for noble families • Using reputation from word of mouth of the small circle of royal families
EntryOwnership mode• First direct Export• Complete branches
Success Story in China• High penetration in Asia• A growing company and internationally oriented• The flagship product: the Bag• Exclusive distribution• The communication by LV
Success Story in China• The brand represent the discovery, refinement, French elegance and creativity.• The Vuitton’s Events• Staring• Made in France• Premium positioning• The mass effect.