Luxury Goods Industry

Luxury Goods Industry
Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable?
1. What are the defining characteristics of the luxury goods industry? What is the industry like?
2. What is competition like in the luxury goods industry? What competitive forces seem to have the
greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to
try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming
more intense? Why or why not?
3. How is the market for luxury handbags and leather accessories changing? What are the
underlying drivers of change and how might those driving forces change the industry?
4. What key factors determine the success of makers of fine ladies handbags ... Show more content
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6. What should Red Bull's competitors do? Coke? Pepsi? Anheuser–Busch?
7. If you were an investor in Red Bull, would you take your money and run or stay for the long
haul?
IKEA's Global Strategy: Furnishing the World
1. What are IKEA's firm–specific advantages? Country–specific advantages?
2. What are the cultural factors which make expansion abroad in retailing difficult? What has made
it possible in IKEA's case?
3. Describe how IKEA'S expansion has re–energized mature markets around the world and changed
the competitive situation.
4. How does the TV advertising campaign initiated by IKEA overcome the entry barrier of high
advertising expenditures?
5. Should IKEA expand further in the United States or focus on other countries?
Wal–Mart Stores, Inc.–A New Set of Challenges
1. What impresses you about this company? What aspects of Wal–Mart do you find unimpressive?
What accounts for Wal–Mart's success? Is it a great strategy, superb strategy implementation and

execution, or great leadership?
2. How would characterize Wal–Mart's strategy? What are the chief components of its strategy?
3. What has Wal–Mart management done to implement and execute the strategy? What policies,
practices, support systems, and management approaches underlie Wal–Mart's strategy execution
efforts?
4. What is your assessment of Wal–Mart's culture? What are its chief elements and characteristics?
Why does the culture seem to be so
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Lvmh: Diversification Strategy Into Luxury Goods
LVMH: Diversification Strategy into Luxury Goods
Strategic Issues By 2002, Moet Hennessy Louis Vuitton was the world's largest luxury products
company, enjoying annual sales of 12.2 billion euros. LVMH carries the most prestigious brand
names in wine, champagne, fashion, jewelry, and perfume. Upon entrance of this luxury product
industry, LVMH was aware that they produced products that nobody needed, but that were desired
by millions across the world. This desire in some way fulfills a fantasy, making consumers feel as
though they must buy it, or else they will not be in the moment, and thus will be left behind. The
LVMH business portfolio began to take shape in 1987 with the merger between Louis Vuitton and
Moet Hennessy which was a ... Show more content on Helpwriting.net ...
In regards to product quality, LVMH has acknowledged, "the quality of timelessness takes years to
develop, a company must pay their dues." This meaning the company must come to stand for
something. There are torturous processes through which the products go through to ensure that they
are of a quality and standard above all the rest. LVMH also employs only dedicated people, and
keeps them for a long time. This is all in an effort to contribute to longevity, timelessness, and
authenticity. As for innovation, this is sometimes harder to guarantee than quality. It is important to
merge the old with the new; it is important to honor the past and invent the new at the same time. It
takes a special person to work for LVMH, especially in regards to management. Management must
discover talented artists and designers and trust them enough with the privilege of complete creative
freedom without any limits. LVMH uses a decentralized approach to allow great work to be
accomplished. The central headquarters for LVMH, located in Paris, is very small. Growth is
considered the right balance between timelessness and fashion. Growth was available in new
markets developing countries, and products, of high desire. It is important that advertising projects
brand image. LVMH has all advertising done by the design team, as opposed to the marketing team.
This is in effort to keep proximity between the

Swot Analysis Of Chanel
E. Market, industry and competitive analysis by company Target Audience Majority of Chanel users
are female that represents modern, simplicity, elegance and class, especially from generation X and
Y, but they still retain "classic" market, which is their forte. Since 2002, with the launching of
Chance perfume, Chanel is targeting women between the ages 18–39. Market and Industry analysis
by company In year 1999, Chanel changes its historical attitude which represented elegance and
luxury. Chanel cosmetics aims to reach younger customer group through youth strategy that was
introduced that year. Firstly, they introduce youth to Chanel family and targets getting potential
customer lifetime value by gaining more customer value by treating perfume & cosmetics product
line. Second, ... Show more content on Helpwriting.net ...
In details, Chanel No.5 has a strong brand image as "fashion passes but the style remains" quoted
from Coco Chanel, conveys a message of Chanel's timeless elegance style. Secondly, Chanel
produce high–quality product. With the quality of the product, it gained the consumers' loyalty. In
the other hand, this company also has a great management structure. There are many training for
Chanel's associates. Consultants are sent to Paris to understand the heritage of the house and
gathered for a conference for updates, acknowledgement and training for new products. The
weakness for this Chanel No.5 is the company official website is not outstanding enough compare
with others promotional website, because the website of Chanel does not provide prices for their
products. So, customers need to make a call or personal trip to find out the prices of the product they
want. And, they might also face the issue like some of the place markets are not familiar for the
country. Next，the brands like Dior and Burberry are strong competitors to

Identification Of The Problem Concerning Second Hand...
1. Identification of the problem concerning second–hand luxury goods The third–party service
sector concerning luxury goods, especially the luxury goods maintenance shops, exhibit a lot of
room to grow. Growth in luxuries market has contributed to the expansion of outlets selling branded
products, including Burberry, Hugo Boss, Louis Vuitton, Cartier and Versace. Behind this, many
consumers have ignored an important issue: how to deal with these extremely expensive goods
when they show no interest in them and want to buy new ones only after a short period of time? Just
lay them on the shelf without doing anything? Isn't it a waste of money? Wouldn't it cause resources
idleness? The contradictions between the luxury goods nature and consumption features have
become increasingly striking (Richins, 1994). To begin with, durable luxury goods with excellent
quality tend to place an emphasis on physical purposes rather than cultural consumption. The idea of
buying new products again has arisen even when product properties have not been completely
consumed. Therefore, the question is how to enjoy a diverse set of luxury goods in a short period of
time? And then, luxury goods are apt to be experienced by a small group of consumers who are in
possession of a solid economic foundation. However, an increasing number of individual have
shown interest in such consumption of luxury goods. Thus, it is necessary to ponder over the issue
of how to enable the cash–strapped consumers to

Coach Inc.
Case Analysis: Coach Inc. Executive Summary The following is an analysis of Coach Inc. The
company designs and markets both men and women bags, apparel, and accessories. Coach was
founded in 1941 by Miles Cahn and was sold to food and consumer goods producer, Sara Lee, 44
years later. Today, Coach is among the best–known luxury brand that focuses on matching key
luxury rivals in quality and styling while beating them on price (Thompson A., Peteraf, Gamble, &
Strickland, 2014). Within this analysis, five questions will be answered regarding Coach's
characteristics, competitive forces, strategies, strengths and weaknesses, and a recommendation on
how the company should improve their ... Show more content on Helpwriting.net ...
Two threats that Coach and other luxury goods industries face are counterfeiting and the growing
demand for luxury goods in emerging markets. An estimated amount of $300–$600 billion worth of
counterfeit goods has been sold throughout the world (Thompson A., Peteraf, Gamble, & Strickland,
2014). Fake and knockoff brands have been an ongoing threat for the luxury goods industry since
the mid–2000s. Many companies have been teaming up to develop practices for measuring and
implementing piracy enforcement. Because counterfeiting has become so prevalent, many luxury
brands have found this strategy to be financially and operationally beneficial. Another threat to the
industry is emerging markets. Both China and India have provided a major boost to the market
because of their increasing wealth levels. Luxury goods have been highly demanded by China's
middle class and spending is expected to overtake Japan and the United States. Along with the rapid
economic and social developments occurring in China, a group of luxury brands such as Chanel,
Prada, and Dolce & Gabbana have entered the market (Thompson A., Peteraf, Gamble, &
Strickland, 2014). With its booming economy, India is another rapidly growing market for luxury
goods. Emerging markets in these areas bring intense competition to the luxury goods industry.
Question 2:

Opportunities And Threats For Louis Vuitton
Case #3
Louis Vuitton:
The environment and market description will be developed following the model of the SWOT
analysis, except for the Strengths and Weaknesses part which will not be included in this
description. To begin with, MarketLine (2015) provides an insight into both opportunities and
threats that affect Louis Vuitton's expansion strategy. Regarding the opportunities, Louis Vuitton has
been recently facing an increasing demand for luxury goods in Asia, especially in China and India;
and there is a positive outlook for the global fragrances market (MarketLine, 2015). Due to the rapid
economic growth in Asia, especially in China and India, customers now perceive a higher disposable
income which makes them potential customers for ... Show more content on Helpwriting.net ...
LV is making a big approach to this strategy trying to create a satisfactory commercial relation with
the clients they are offering a service every day more demanded by the users and also they are
learning more about their own consumers, receiving information of the user updated in real time
essential if a company want to apply the right strategy to an specific market.
Following the steps of searching, contact and shopping the consumers are more enable to understand
the identity of the brand also they feel a direct relation with the brand. Omni channel strategy is now
very common in luxury and LV keep innovating with their online and physical stores as well as the
customer relation

Company Corporate And Business Strategy
4. Company Corporate and Business Strategy
Generic Strategies Model
The generic strategies include cost leadership, differentiation and focus apply in business unit level.
Generally, the cost leadership strategy never applicable in luxury industry. This is because most of
the consumer purchasing luxury goods do not care about price point.
No doubly, LVMH is one of the top world leading luxury products group. Every brand under the
group hold its own brand spirits and produce things different from each others. Those brands must
have few best seller product line with its signature pattern or design implemented on the saleable
goods. For example, Dior has "Lady Dior" bags and Bvlgari has the "Serpenti" collection of jewelry.
These differentiations are unique and perceived by customers as difference. Therefore, the product
value is enhanced. Due to the limited and uniqueness thus consumer willing to pay for a premium
price to buy luxury products.
Strategy Clock Model
This strategy aims to position a product at the higher price levels, whereas customers willing to buy
the product because of its high perceived value as well as high product quality. And this is the
normally practices adopted by the luxury brands. They propose to achieve premium prices with high
targeted segmentation, promotion and distribution etc. Obviously, LV is one of the brand done
successfully in this strategy, it has given a very high profit margin within the group. However, only
the top brand products in

Luxury Good and Gucci
Company Profile
Gucci group is one of the world's leading multi–brand luxury goods companies. Thanks to a clear
strategy and a set of unique competitive advantages, the group has developed and strengthened a
prestigious brand portfolio, broad product range and extensive geographical presence worldwide.
The group well balanced brand portfolio includes prestigious and clearly identified luxury brands
with a distinctive, specific role. Gucci, Bottega Veneta and Yves Saint Laurent are the engines of
organic growth. Boucheron offers complementary expertise in segments like jewellery and watches.
Balenciaga, Stella McCartney, Alexander McQueen and Sergio Rossi are cutting–edge brands with
high potential for long–term growth.
Gucci group ... Show more content on Helpwriting.net ...
This strategic partnership represents the materialization of a shared vision regarding long–term
growth prospects in the Haute Horlogerie Segment.
2009 Feb:
BE dat &co. the niche young mono–product brand is sold to Malaysia based luxury Concepts
Wathes & Jewellery in partnership with brand's current acting–CEO Viviane Fankhauser and will
continue to design, market and sell luxury swiss watches under the Bedat&co brand.
The House of Gucci, better known simply as Gucci (Italian pronunciation: [ɡuttʃʃi]), is an Italian
fashion and leather goods label, part of the Gucci Group, which is owned by French company
Pinault–Printemps–Redoute (PPR). Gucci was founded by Guccio Gucci in Florence in 1921.
Gucci generated circa €2.2 billion worldwide of revenue in 2008 according to BusinessWeek
magazine and climbed to 41st position in the magazine's annual 2009 "Top Global 100 Brands"
chart created by Interbrand. Gucci is also the biggest–selling Italian brand in the world.[2] Gucci
operates about 278 directly operated stores worldwide (at September 2009) and it wholesales its

Case Study
Executive summary Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent
the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not
affected by trends. These brands set seasonal trends and are capable of generating consumers,
wherever they are established. In luxury marketing, there is a delicate relationship between 4 factors
that most strongly influence the purchase of the luxury consumer. They are the exclusiveness of the
brand, the reputation of the brand, forms of distribution and price/value affiliation. Exclusivity
cannot always be ensured due to immense competition. But by consequence, it is not the key
requirement of a luxury consumer. The consumer bases their ... Show more content on
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One of the main issues is counterfeiting. The report discusses many other impending risks and
threats and how the three brands can counter attack them. Furthermore, it suggests theories and
practices on how the three brands can sustain their aura of exclusiveness and fashion status. Finally,
the report is concluded with a conclusion and recommendations on how to solve problems; one of
which is counterfeiting. Introduction Luxury brands are an innovative concept both from the
perspective of a marketer and the consumer. This case study specifically discusses and analyses the
three brands i.e. Gucci, Louis Vuitton and Vertu. It contains information about their histories,
products, business strategies, expansion strategies and more. This report will aim to criticise and
discuss the key factors that help in maintaining their exclusivity, the global Marketing strategies
they have put to practice and its pros and cons, how the three brands can maintain their aura and
fashion status and finally a conclusion with recommendations on areas of improvements. Creating a
luxury brand or product is a complex marketing task. The key success factors that impact on the
exclusivity of a product or service are ; The brand image Quality of service Retail environment The
management structure of the company Product range, Aesthetics and prestigious pricing. (Carrol_

Businesses are always figuring out new trends that can...
Businesses are always figuring out new trends that can help them reach the people who are most
likely to buy their products and services using the most cost–effective method possible. Advertising
is certainly one of the major things that businesses use to influence consumers' behavior since it is
something they can control. Even though some influences are temporary, others are enduring.
However, whichever the case different influences affect the way consumers behave whether they
influence them to make a single purchase, buy more products or purchase nothing.
Louis Vuitton (LV) is a leading fashion brand worldwide. Apparently, the Company uses graphical
advertisements in print, electronic and new media outlets that aims at creating a link ... Show more
content on Helpwriting.net ...
The use of a beautiful landscape in this particular advertisement contains two major elements in
terms of communication. It has a denoted message, that is, the subject in the picture itself and a
connoted message that is either the target audience's understanding of the picture, a visual metaphor,
a coded message or how the subject is presented. Essentially, this advertisement is a denoted
communication because it is presented to the target audience as an advertisement. However,
simultaneously, the name Louis Vuitton (LV), which is a luxury brand of handbags and luggage,
creates a connoted sense of beauty, luxury and high–end status.
Apparently, the landscape setting is a denotation, pictured literally. However, the landscape setting
facilitates selling of the products being advertised because the process of interpreting it is a
connotation. The deliberate use of a clearly beautiful landscape creates a direct link between it and
LV luxury items. The good feeling that is stimulated by beautiful natural sceneries is used to
persuade target audiences to purchase LV luxury items through association of their good feelings
with the LV luxury items. Interpretation of the picture creates a sort of fantasy in the feelings and
emotions of the consumers through the signified message relayed by the landscape found in the
picture. Moreover, the landscape in this particular photograph makes the high–end status people
donning the LV luxury items even more visible and appealing.

Louis Vuitton
Louis Vuitton Presentation of the company Louis Vuitton is an international luxury French fashion
house specialized in trunks and leather goods, founded by Louis Vuitton in 1854. As an emblem of
the French luxury, Louis Vuitton knew how to make way on the international scene, by advancing
an image of quality, elegance and refinement. Today, Louis Vuitton is one of the most recognizable
and powerful brands in the world with more than 300 stores in 44 countries around the world and
2,7 billion of $ of turnover in 2008. With more than 150 years of history and experience, Louis
Vuitton has managed to strengthen its name in the universe of the leather goods by proving itself
innovative, modern and creative, and by advancing its craft, in ... Show more content on
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The risk is that proposing products on the Internet can engender a deterioration of the brand image,
especially in the case of Louis Vuitton, which has based its strategy on exclusive distribution MIX
MARKETING IN JAPAN We are going to analyse why and how this brand has established itself in
Japan as the leading luxury brand. Product: First it is important to say that Japanese people
appreciate brands with long history and tradition and this is one of the reasons why Louis Vuitton is
very successful in Japan. The French know–how in luxury is an argument very important
appreciated by Japanese people. For them, Louis Vuitton is the symbol of French luxury. Moreover,
the Japanese love the high quality products. Indeed, they generally have small houses but they love
to wear quality and luxury items. The main successful product in Japan is the Louis Vuitton bags.
Japanese appreciate Louis Vuitton bag because it is never out of fashion. Indeed, the models are
approximately the same since many years, unlike its competitors who create every year, a new
collection. When Japanese people buy a bag, they are sure that the bag will not be soon out–dated
and that they could keep their product for a very long time. Almost all Japanese have a Vuitton (men
and women). One out of six Japanese has at least one item of the brand; 40 % of Japanese woman
have a LV bag whereas only 1 to 2% of

Attitudes Toward Luxury Goods
Attitudes toward luxury goods Attitude towards luxury goods and services plays a significant part of
consumer's purchase intention. It is a tendency to react positively or negatively towards a specific
idea (www.businessdictionary.com, 2014). It stands for a global and enduring evaluation of an
action, object, person or issue. Attitude is also a "lasting, general evaluation of people (including
oneself), objects, advertisements, or issues ( (M., Bamossy, & Askegaard, 2002, p. 127). The
definitions exemplify that attitude is dependent on how a consumer perceives a brand. Attitude is an
influencing factor for consumer's choice of buying a product. In general, our attitude towards an
object, person or idea is pre– determined by external factors. It is almost impossible to have a
neutral attitude. Our family, friends, society or media are several examples of having an impact on
our attitude towards an object, issue or person. Besides this aspect, attitude has a significant and
highly impact on our purchase behavior. Throughout the following paragraph the attitude towards
the luxury brand Dior will be outlined and explained. Attitude is a component of 3 main categories:
Cognitive, affective, conative. These 3 components are interdependent and are highly influencing
the individual's reaction during the purchase phase. Cognitive represents the component about
consumer's beliefs towards an object. The individual might have a positive or negative belief. For
instance, he or she

Why Chinese Prefer Purchasing Luxury Goods, Especially...
Research Proposal
Student Name
Student Number
Table of Contents 1. Working title 3 2. Introduction 3 3. Research Questions 4 4. Literature Review
5 5. Research Methodology 6 6. Sources of data/Information 8 7. Data analysis Techniques 8 8.
Timetable 8 9. Ethical Considerations 9 10. Reference list 10
1. Working title
Why Chinese prefer purchasing luxury goods, especially dresses, as compared to British people and
what is the role of Chinese's love for luxury in promoting the development of luxury goods
industry?
2. Introduction
The term "Luxury" is not easy to describe as it is the continuously growing, changing and
prejudiced contemplation. The term luxury is usually used to express the most attractive ... Show
more content on Helpwriting.net ...
3. What is the impact of Chinese luxury market on the overall sales of luxury goods?
4. Literature Review
The following readings are important for the literature review to meet the objectives of the current
study. Chevalier and Lu (2011) provided a comprehensive overview of the china luxury market and
its customer base. This reading also provides considerable knowledge about the opportunities and
challenges present in the Chinese luxury market for international and Chinese luxury brands. The
luxury brands are facing problems and complexities in China due to implication of tax and other
regulations of the state. Despite very high growth rate, the luxury brands are facing difficulties of
evaluation and inappropriate organization in the supermarkets and department stores of China. Lu
(2011) explored the consumption of luxury goosd by China's elite and their behavior towards these
goods. The luxury products are purchased for the personal pleasure and comforts. The luxury
products that are used in China are largely imported to the countries of United Kingdom and Spain.
These countries trade in the various luxury brands such as accessories, perfumes, cosmetics,
products, fashion clothes, footwear etc.
Okonkwo (2007) defiend luxury as the necessity that commence when necessity ends. This reading
emphasizes the fashions brands such as clothing and provides some factor that may stimulat the
consumers to purchse luxury fashion brands like Gucci, Dior or Louis

Gucci Executive Summary
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 are sold
through LVMH boutique's, which is controlled by them and is almost 2400 in numbers across the
world (LVMH Financial Report, 2013).
b. Company background of Gucci
One of the most successful Italian fashion and leather brand, Gucci belongs to French Company
Kering and is named after its founder Guccio Gucci. Founded in Florence in 1921, Gucci has since
then shot up to fame owing to its high–end luxury fashion and leather products. It operates through
directly operated stores across the world and also the products are wholesaled through franchise or
upscale departmental stores. The number of directly operated stores is more than 450 and the
company was able to generate revenue of over $4.5 billion in sales in 2013. The brand itself is
valued at over $12 billion USD (Alice Chan, 2011).
2. Brand Overview
Brand marketing is no longer a hub–and–spoke model; it is a kaleidoscope of channels, customer
intelligence, and interactive and social elements. The Web channel is an

Marketing Development Of The Luxury Goods Industry
1. 2.2.4 Regional feature
In the luxury goods industry, the rapid development has brought the market more brands and the
latest design products. Industry matures has caused the accelerated development of a wide range of
luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased
production costs, the large luxury brand of origin will not be transfer. Long cultural history is an
integral part of the luxury brand, and the origin of products have also brought a certain cultural
value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west,
craft superb tailoring and rich cultural history of the western area are the pursue of Chinese
consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), "when customers buy
our products, they expect Western quality. The mystery of the origin of our brand is closely linked
with our brand". Although with the close of trade, many luxury goods in the production and sales
process will cooperation with other country's companies, the final product definitely launch in the
country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the
production done in Tuscany (Italy), to ensure pure and high–quality products (Gucci, 2015).
Therefore, a regional feature has brought an intangible value and more local cultural characteristics
to the luxury goods.
2.2.5 Cultural feature
Luxury is not only a product of socio–economic

Luxury Good and Burberry
3.2.1 Brand Equity
Earning the royal seal of approval and outfitting the Royal Army placed Burberry on the map as "the
original British luxury brand" but somewhere along the line, it became the raincoat brand known
more for outfitting stuffy elder statesmen than the cloth of choice for the glamorous rich and
famous. Burberry revamped its brand image, hiring new designers who took the signature plaid from
raincoats to bikinis. Recent ads featuring British fashion icons like Kate Moss and Stella Tennant
embody the essence of the new Burberry, depicting a modern edginess merged with a classic British
elitism. Though they faced alienating loyal customers, Burberry balanced innovation with tradition
to create an authentic, yet altogether more ... Show more content on Helpwriting.net ...
3.2.6 Retailing
Burberry's retail distribution is through DOS (comprising flagship and regular price stores),
concession, designer outlets and factory shops. The flagship store are important since they act as a
showcase for the brand creating a sense of theater through Burberry can promote a lifestyle and its
product ranges . The store are also used to trial new products and concepts, and they carry exclusive
lines. Burberry flagship stores are normally require upwards of 10,000 square feet of space and are
specifically located in exclusive areas of key cities around the world like London, Tokyo , Barcelona
, new York etc. A part of its repositioning a number of stores were closed , renovated or relocated
according to image and performance. Burberry continues to move from a relatively static,
traditional, wholesale structure to a more dynamic, retail culture and mindset. Burberry became
more consumer–centric, responsive organization. This move positively impacted on directly
operated stores, franchise partners, wholesale customers and licensing partners worldwide.
3.2.7 Wholesaling
The Wholesale channel includes independent retailers. The wholesale customer include leading
department stores and specialty store , including duty free retailers and free standing Burberry store
operated by wholesale customers. Burberry selects wholesale customer on the basis of reputation
and market

Market Opportunity Analysis: Coach Inc. Essay
Case Analysis1
Market Opportunity Analysis: Coach Inc.: Is its Advantage in Luxury Handbags Sustainable?
These days, the relative hot discussion never fails to fascinate people whether Coach Company's
advantage in luxury handbags is sustainable. Considering the current situation that Coach is in and
the new strategy that Coach will take, we believe that Coach's advantage in Luxury handbags will be
sustainable. Coach is a large, American luxury handbags–made company. In this article, we will first
tell some beautiful stories on the background of coach. For another, we will analysis the reason why
its advantage is sustainable depending on 4Ps theory. In the end we feel obliged to give some
recommendations based on our analysis. ... Show more content on Helpwriting.net ...
But now, there are some of the luxury goods called accessible luxury, this kind of luxury specifically
targeted the middle income consumers. Coach is one of these companies. There is no denying the
fact that 4Ps theory is really important in marketing. The luxury goods industry also has
competition. If we want to analysis the advantage in this industry, the Price, Place, Product and
Promotion are the key words. The price can choose the different income class. The place directly
determines the net sale. The product is the basically point for consumers to decide their purchase.
The promotion is the basically way to increase the net sale. In luxury goods industry, the product
was the most critical competitive advantage, but now the place and price has become increasingly
important.
Product: Just like Coach's handbags, Coach had famous for produce luxury leather products in the
past, but now, the leather accessories by matching key luxury rivals on quality and styling is the key
point to get the advantage in product.
Price: Starting at the new CEO Lew Frankfort came, Coach tried to position in the accessible luxury
and use more outsourcing agreements to cut the cost. So another "P"， price become much more
important. The price neither expensive nor cheap is suitable for middle–class consumer. Not only
did Coach's $200–$500 handbags appeal to middle income consumers wanting a taste of luxury, but

Fashion: Branding and Luxury Brands
luxury brands and industries in step with lifestyles, values and attitudes of modern society and
culture?
"Luxury is a necessity that begins where necessity ends" Coco Chanel
The display of luxury signifies individual power and achievements. The manner which people dress
reflects economic, political, social standing and self worth. Christian Dior quoted "it seems to me
that women and men instinctively yearn to exhibit themselves". Luxury in the fashion industry is
usually defined in elements as: silk, gold, silver, and precious stones. Luxury products are usually
identifiable through exceptional quality and high aesthetic appeal and value, and often belong to the
range of products which can be clearly identified either through ... Show more content on
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These companies are expanding into India, Dubai, Russia, and China which is expected to be the
world's most important luxury market.
Globalisation has been a significant factor towards to increase in consumer demand towards luxury
brands. Increased travel and greater technology such as the internet, and the media are all driving
forces which has lead to increased consumer demand, and contributed towards homogonised
customer needs. Expansion of luxury brands globally has significantly been driven by increase of
wealth in emering markets, such as Asia and India. (Nueno and Quelch (1998). Furthermore due to
recession of population growth in Europe, which holds a large percentage of sales of luxury brands,
many of these brands are rapidly expanding their operations to cater to affluent Asian consumers
who regard Western luxury brands as a statement of good taste (Nueno and Quelch, 1998).
Luxury brands are no longer targeted at the traditional middle aged consumer but are now
recocnised that its most significant consumers are in their twenties. (Moore, C & Birtwistle, G 2005)
Hence, marketing efforts particularly in Asia have been emphasied on attracting young consumers
with a middle income. Such efforts include providing a "clear and effective brand message
worldwide, in all areas of communication including: fashion shows and special
events/advertising/public relations, visual display and internet web sites" (Moore, C &

Burberry Analysis
Burberry is an international luxury brand with differentiating brand values that resonate across a
multi–generational and dual–gender audience. Burberry's wide range of luxury products represents
accessibility, style, aspiration and functionality. The two main categories of products that Burberry
sells are fashion and continuity. Fashion products are designed to be responsive to fashion trends
and are introduced on a collection–by–collection basis. Continuity products have life cycles that are
expected to last for a number of years. Burberry also has three primary collections: womenswear,
menswear, and accessories. Burberry is positioned in the market with one overwhelming theme
–"Functional luxury". Burberry products are targeted at a ... Show more content on Helpwriting.net
...
The Prorsum line allowed Burberry to enter and compete with the higher end fashion markets,
further propelling the image of Burberry as a luxury item. 5. New licensing
Older licensing agreements that had been in place that churned out sub par products were
eliminated, Bravo did this to eliminate the risk of looking cheap, and diminishing the brand's
reputation. The consistency help Burberry eliminate the risk of losing brand credibility. 6. Pricing
Pricing, in the fashion industry, is very tricky. Burberry and Bravo decided to raise the prices of
Burberry's products in line with the positioning of Burberry's products. The major target customers
of Burberry were not particularly cost conscious but cared greatly about quality, functionality and
luxury. 7. Ad Campaign
Bravo launched a consistent advertising campaign that helped to realize Burberry's new strategy.
The new ads symbolized their push toward the trendy, while staying true to their classic heritage.
The radical changes that Bravo made transformed Burberry into a "luxury lifestyle brand that was
aspirational, stylish, and innovative."
Key Take Aways: * Brand Management – Hard work & Attention to detail :Managing a brand
takes a lot of commitment and discipline. It is not something trivial and requires adapting to
constant change. * Ensure Brand Consistency : Any brand needs to make sure that

Case Study LVMH, Strategy and future: Diversification.
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background
to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL
(External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM
IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2
Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0
APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top
Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix
6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry
Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness–
Competitive Matrix20 ... Show more content on Helpwriting.net ...
Key managers that can run each business independently but with a group vision are also part of the
equation. Additionally the luxury industry is strongly dependent on tourism which is influenced by
economy trends. The 9–11 events and the global economy slowdown have had a great impact on the
industry. Finally huge investments were done to win strategic position, having an important impact
on revenues. Appendix 5 is an example of the proportion of cost and impact on revenues and the
stock performance.
New entrants The risk coming from new entrants is low, except perhaps, for the development of
niche brands that can slowly earn a position. The strong financial resources and the "story" of the
brand that is needed to succeed are two elements that create a barrier. Bernard Arnault explained that
a brand needs a heritage; you can not cross cut and succeed (Thompson, Strickland & Gamble 2005
and Antoni 2003). Furthermore financial resources are very expensive since lenders perceive that the
expected margins are difficult to get; thus it is hard for smaller companies to access financial
markets (Colonna 2003). The "entrepreneur / designer" will need to look for a "godfather"the
support from one of the big groups. As Muriel Zingraff, Harrods' director, observed, "We may have
more patience with smaller brands if they are owned by a parent company, such as LVMH or the
Gucci Group."(Sherwood 2001, p. 6) Additionally the

The Collectivism And Its Impact On Society
Apart from Western's individualism, East Asian, particularly Chinese people whose traditional
culture has been mainly shaped by Confucianism, Buddhism and other for thousands of years (Fan,
2000; Pecotich and Yang, 2001), are more focus on collectivism. Based on the definition of
Merriam–Webster, individualism means "the actions or attitudes of a person who does things
without being concerned about what other people will think." Individualists are more self–centered
and their ways of consumption are mainly according to their self–expression. However, collectivists
tend to present themselves in order to conform to their hierarchical culture and society (Sun, D
'alessandro, & Johnson, 2014) and focus on group thinking and group acting. ... Show more content
on Helpwriting.net ...
The invisible competition will appear between families due to the conformity as well. Notably,
family dinners are occurs often in China. Chinese like gathering together in a big hotel restaurant,
where there are large round tables which can hold 10 to 20 people in a great amount of individual
rooms. In these kind of dinner, it is usually the time for family members and relatives to show their
"face" by ways of dressing or brand–carrying. The same norm applies to the circle of friends as well.
When a rich person first buys luxurious products, his/her rich friends will then start to pay attention
to luxurious consumption as well. The invisible brands competition thus exists. Those friends who
may not afford the luxury, probably try every means to get a real one in avoid of being excluded
from the group. Therefore, it is easy to see different groups of Chinese gather together and each
group share their own similar fashion taste and dressing codes. For instance, Yang (1998) mentions
that the main motivation for young people's trend to dress in the latest fashions, drink imported
alcohol and drive luxurious brand cars especially abroad, is not to express their own uniqueness, but
to conform to the "contemporary mainstream norms". (Yang,1998). What's more, collectivism also
means group caring. Notably, survey shows that the Chinese luxurious consumers

Luxury Goods Industry Essay
Luxury goods & Jewellery in India. ABSTRACT The Luxury goods industry is a very wide industry
comprising of products from watches, jewellery, perfumes, expensive wines to yachts, expensive
pens, and clothes. Goods for which demand increases more proportionally as compared to income,
are known as 'Luxury goods', in contrast to a "necessity goods", for which demand increases less
proportionally to income. Some luxurious goods are bought due to the tag implied of a status
symbol, such goods tend to signify the purchasing power of those who buy them. These goods are
not always better in quality or appearance than their less expensive substitutes. The main purpose of
purchasing these goods is to display the wealth of their owners. The ... Show more content on
Helpwriting.net ...
If the road can be cleared of challenges and impediments, luxury retailing in India will have a
smooth drive ahead. THE EXPECTED IMPLICATIONS OF THE RESEARCH PROJECT FOR
ORGANIZATIONS My research on luxury goods and jewellery is innovative because it brings
together analysis of national discourses about Indian market with a study of the practices and
choices of the Indian government and the luxury goods and jewellery sector. I believe this research
can be helpful to the nation, development agencies, and indigenous organizations. I am particularly
committed to sharing the results of my analysis with the Jewellers Association in India and hope that
my work will not just be an extraction of truths, but will give them information with which they can
help make the sector more organized. PRELIMINARY LITERATURE REVIEW Attempting to
break into markets overseas is generally more challenging than trying to expand into new domestic
markets. Globalization is the process of social, political, economic, cultural and technological
integration among countries around the world. (Hodgetts / Luthans / Doh, 2006:pg. 7). Evidence of
growth is seen by increased levels of trade, capital flows and migrations; a lot of changes in the
environment have taken place. India is the world's second most populous country; it has traditionally
had more than its share of political and economic problems. The per capita GDP remains low, but
the recent environmental trends have boosted

Business Analysis : Global Luxury Brands
Executive Summary
The objective of this report is to understand the manner in which the global luxury brands are
residing or extending their reach worldwide. It is also focused on the manner in which the brands are
creating a deeper brand value and making the customers to engage with their brand. The other aspect
that is being focused is regarding the company B&O which has managed to expand its business by
adapting to varied cultures of the markets in which it has diversified its business. It has also focused
on the manner in which the various brands have diversified into various markets. The prime
comparison has been drawn between B&O,Harman House and Apple and it is observed that the
products of B&O are considered to be more technologically superior to Harman House. Section –
One
When you consider global luxury brands, how does the physical space they 'reside' in extend and
exemplify the brand and create deeper brand value and engagement for the consumer?
There are several definitions for the term luxury. It is a matter which has now become more complex
as there are several organizations which have now taken up the ownership of the luxury brands. It is
with the recovering of the global economy that the global luxury industry is expanding at a fast
pace. As a surprise this growth has been observed more in the Asia Pacific region as there has been a
change in the customer perspective towards global luxury brands owing to the increase in the
disposable income and

LVMH Case Study PIRSOI TEODORA
LMVH in China: building its empire of desire
1. Why is LVMH so successful in China?
In my opinion LVMH is so successful in China first of all because their prices and glamorous
prestige is reflected onto its customers and the Chinese luxury customers value being recognized as
wealthy elites having a high social status. Secondly, ever since their opening LVMH had an
exclusively unique heritage and craftsmanship, that made the brand so attractive for the customers.
Another reason why the Chinese people love Louis Vuitton is the fact that having an overcrowded
and communist society they feel the need to be noticed, to be perceived as different. That is the
point that Louis Vuitton knew how to exploit in order to make them feel unique and ... Show more
content on Helpwriting.net ...
4. How does LVMH encourage Chinese customers to purchase LVMH products in China rather than
abroad? Do you think that these strategic initiatives will be successful? Why or why not? What other
ideas do you think LVMH should pursue to encourage Chinese customers to purchase LVMH
products in China?
One of the main reasons why Chinese customers prefer to shop abroad is the fact that it is seen as a
better show off and also the prices tend to be lower due to the taxes that are applied for luxury
products in China. No matter the fact that the sales of their products in other locations than China
bring them important profits in Europe, LVMH is still trying to redirect the Chinese people to buy
their products in China. One of the measures they took in this aim was to limit the number of leather
products available on the LVMH European market and also limit the working hours in their stores in
certain European locations such as Paris, which is one of the most wanted and perceived as the most
preferred shopping destination.
On the other hand, they are doing all their best to assure premium services in the Chinese stores, so
that no matter the price differences that may interfere, the customers would still be satisfied with the
special treatment and attention they receive in the stores and also

International and Global Marketing
Introduction:
Introducing a new product or service into a foreign market is a significant business achievement. As
a matter of fact, there are a few things that companies have to face when it comes to globalization.
This essay will deal with luxury products, and more particularly with high–end jewellery from the
French brand Cartier. These products will be launched within the Chinese market, as it is close to
become the largest luxury market in the world. In order to make this project as successful as
possible, this essay will be divided into two parts. On the one hand, we will be analysing the
marketing environment of the Chinese market by identifying major market opportunities. Also, the
selection of a suitable target market for ... Show more content on Helpwriting.net ...
Thus, many Chinese parents have a desire to protect their children from the suffering they
encountered . They see their child as a "second chance to live a happiness which they themselves
had not experienced" (Croll, 1985). Nowadays, these only children came to adopt the nickname
"Little Emperors" because of the large portion of time and money their parents devote to them.
Families provide their children with a first world lifestyle and spend a lot of money in luxury
products; they need to have the best things to succeed. Young Chinese consumers are then seen as a
big opportunity for many global marketers. The one–child policy created a large middle class with a
large amount of disposable income that would never have been possible to obtain if these couples
had bore multiple children.
Booming / Expanding market – Great demand for luxury goods. Many marketers look at China as
their favourite bright spot and this is particularly true for luxury brands. By 2015, China will be
home to the world's fourth largest population of wealthy households and will become the world
largest market for high–end goods. Like Japan 20 years ago, the people in China are exposed to a
massive amount of high–end goods and services through the Internet, by overseas travel, and from
first–hand experience. Chinese luxury good buyers' interest started with Gucci handbags, fashion,
and Swatch watches and it extended to other

Brand Identity Of Gucci
Brand Identity / Awareness
Gucci is a well known, international luxury fashion brand which is easily recognizable with its
famous icons such as the double G logo, horsebit and the red & green stripes (web) especially after
Guccio's sons succeeded in promoting the brand as luxury which attracted many rich customers. (
https://www.pearson.pl/wrap.php?
data=files/sample_pages/INTELLIGENT%20BUSINESS/9780582848092.pdf ) Many of Guccio's
clients were horse–riding aristocrats, and their demand for riding gear led Gucci to develop its
unique Horsebit icon which soon became the symbol of the fashion house. In the mid–60s, Gucci
adopted the legendary interlocking double G logo which was Aldo Gucci's idea representing the
initials of his father's ... Show more content on Helpwriting.net ...
He is currently an employee in a huge investment bank and his salary is very high. He is in a 4 years
relationship. He is very hard working but when he has some free time he enjoys to go to the gym
and to play soccer with his friends. He is very good towards his friend and his relationship as he
always support them and he is the first person in their mind to go for help. He loves spending his
money for presents for his girlfriend as well as himself. he buys always something that he needs so
when he goes shopping he doesn't spend so much time but he is a loyal customer to the brands that
he goes to. Brand Positioning The Positioning Diamond
What ?
Why ?
For Whom ?
Against Whom ? What ? : High luxury brand, with a great quality. Why ? : Its quality stands out
and lasts for way too long after the purchase.
For Whom ? : Fashionable people who can afford such luxury products.
Against Whom ? : Greatest competitors are Louis Vuitton, Prada and Hermes.
Competitor Analysis
Gucci has a lot of competitors in the luxury market where each one provides unique items but the
competency between them is high as there is always the chance of the threat of new entrants.
Pestle

Luxury Goods Serve A Purpose
Introduction Luxury goods serve a purpose that extends way beyond functionality and need. A bag
that costs $15,000 or a pair of shoes priced at $500 does not necessarily signal that they perform
better than goods priced significantly lower. The disproportionate prices of luxury goods reflect so
much more than the eye can see, the history behind the brand, the story that it tells, and the scarcity
and exclusivity it aims to achieve in the mind of the consumer. A premium brand, by contrast, can
generally be described as a good that a customer pays more for because they are getting higher
quality product. Luxury brands are not inherently inferior because they do not offer higher
functionality. Sometime signaling the belonging to an exclusive group is important to a person, and
thus worth the monetary cost. A premium product, though, is a good that people are willing to pay
more because they believe they get more, whether that is higher quality or better performance. A
customer does not purchase a luxury product because they know it will perform better, they
purchase it because of the status and appearance that it signals to those around them. The distinction
between luxury and premium is significant because many brands are unsure of where they want to
position themselves. In order for a high–end brand to be successful it needs to position themselves
as either providing some benefit that justifies the price, or as a fantasy that the customer needs to
pay for to be a part of.

Louis Vitton in India Harvard Case
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. However, given that India is a developing economy, the success of Louis
Vuitton in India is dubious. The analysis of Indian luxury goods' market with respect to Louis
Vuitton is essential for uncovering this case.
The 5 Cs The ... Show more content on Helpwriting.net ...
Exclusivity is sought by the super–rich of India.
The 4 Ps The product range includes high–end luxury products such as: leather handbags, ladies'
shoes, chronographs, key–chains, suitcases and belts. These products have a premium price[4].
Louis Vuitton has placed its products in several luxury hotels in the cities of Delhi and Mumbai, and
plans to expand into luxury malls. Louis Vitton has not embarked on a promotion campaign, but
instead relies upon its exclusivity. Novel marketing techniques such as viral marketing have been
used with emphasis on referrals and word–of–mouth publicity.
Dichotomy of Louis Vuitton's High–end Products in Low–income Indian Economy Leveraging
Louis Vuitton's pre–existing patronage from the Maharajas and the Indian elite that travel to Paris
for luxury brand purchases, the company decided to enter the Indian market with hopes of
capitalizing on their existing brand name and maintaining double–digit growth rate. The company
believed that India had the desired potential to assist the company in achieving its sales target while
establishing sustainable enterprise within the Indian Market. The business model of Louis Vuitton
has focused on targeting high–income individuals who value the crème de la crème products,
because those individuals have the capacity to buy Louis Vuitton's high–end and exclusive products.
India has approximately 83,000 millionaires and the fastest growing population of High Net–Worth

The Influence of Logo Exposure in Purchasing Counterfeit...
The Influence of Logo Exposure in Purchasing Counterfeit Luxury Goods
Focusing on Consumer Values
Jung–Min Han, Hyeon–Jeong Suk, Kyung–Won Chung Department of Industrial Design, Korea
Advanced Institute of Science and Technology
Abstract: This study attempted to identify differences in consumer's pursued values when
purchasing counterfeit luxury products using questionnaire and interview data. As brand names and
brand logos of luxury goods significantly influence to customer buying behavior, this study focused
on logos, an important element of brand and design. The hypotheses concern four value factors
pursued in purchasing luxury products: conspicuousness, aesthetic appeal, durablility, and
conformity. Data were analyzed using both ... Show more content on Helpwriting.net ...
These goods are often expensive and exclusive: some examples include Cartier, Rolex, Hermes,
Mercedes Benz, Louis Vuitton, Tiffany, and Chanel. As there are many definitions of fashion luxury
goods, this study focuses on Moore's definition. An international fashion design retail market is
identified as follows (M. Moore, Fernie, & Burt, 2000): They have an international profile in the
fashion industry as evidenced in their having a bi–annual fashion show in one of the international
fashion capitals (i.e. Paris, Milan, London or New York); They have been established in the fashion
design business for at least two years; They retail merchandise either through outlets bearing the
designer 's name, (or an associated name), and/or within other outlets within two or more countries;
And they market their own label merchandise. At the outset, it is imperative to clarify about the
concept of non–deceptive counterfeit products. Nondeceptive counterfeit refers to counterfeit
products that consumers know or strongly suspect to be counterfeit at the time of purchase. It has
been found that consumers are actively participating in nondeceptive counterfeiting especially in the
luxury brand market (M.Grossman & Shapiro, 1988b). 2. Consumer values in purchasing luxury
goods Consumer value refers to an acquired value that becomes part of an organized system of
values. This value system works as a general plan for

Luxury Good and Gucci
Company Profile Gucci group is one of the world's leading multi–brand luxury goods companies.
Thanks to a clear strategy and a set of unique competitive advantages, the group has developed and
strengthened a prestigious brand portfolio, broad product range and extensive geographical presence
worldwide. The group well balanced brand portfolio includes prestigious and clearly identified
luxury brands with a distinctive, specific role. Gucci, Bottega Veneta and Yves Saint Laurent are the
engines of organic growth. Boucheron offers complementary expertise in segments like jewellery
and watches. Balenciaga, Stella McCartney, Alexander McQueen and Sergio Rossi are cutting–edge
brands with high potential for long–term growth. Gucci group has ... Show more content on
Helpwriting.net ...
At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though
Rodolfo contributed less to the company than Aldo and his sons did.At this time Aldo initiate his
grandson Uberto Gucci to join the family company , where in the 1984, takes the leads as
VicePresident in the GUCCI PARFUMES BRANCH. In 1979, Aldo developed the Gucci
Accessories Collection, or GAC, intended to bolster the sales for the Gucci Perfumes sector, which
his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens,
which were priced at considerably lower points than the other items in the company's accessories
catalogue. Aldo relegated control of Perfumes to his son Roberto in an effort to weaken Rodolfo's
control of the overall operations of the company. Though the Gucci Accessories Collection was well
received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few
years, the Perfumes division began outselling the Accessories division. The newly–founded
wholesaling business had brought the once–exclusive brand to over a thousand stores in the United
States alone with the GAC line, deteriorating the brand's standing with fashionable customers. "In
the 1960s and 1970s," writes Vanity Fair editor Graydon Carter, "Gucci had been at the pinnacle of
chic, thanks to icons such as Audrey Hepburn, Grace Kelly, and Jacqueline Onassis. But by the
1980s, Gucci had lost

Why Do Chinese People Like Luxury Goods So Much?
Why do Chinese people like luxury goods so much? There are two sides to explain, the first side is
customer, and another side is luxury brands marketing strategy. For customer side, Chinese people
purchase power is increasing year by year. China implemented the reform and opening policy at
1978, this policy accelerated China's urbanization and industrialization, and then promoted China
economic upward flourish; and because of the reform and opening policy, which provided more
opportunity to luxury brands to get into China's market, so Chinese people was given a chance to
touch with luxury goods. Secondly, Chinese middle class or rich people regard owning luxury goods
as a symbol of social status and wealth. Thirdly, Chinese people have ... Show more content on
Helpwriting.net ...
In Chinese people 's heart, expensive stuff means high quality, so they are willing to spend more
money on buying luxury goods. In some aspects, Luxury goods definition might be different among
countries. For example, a Calvin Klein man's T–shirt just sells about $40 in US, but it will be sold
about $90 or even more in China; a Tommy Hilfiger women dress only sells $120 in US, but it will
be sold about $260 or even more in China. Therefore, Chinese customer regards Calvin Klein and
Tommy Hilfiger as light luxury goods, which is still being expensive but compared with Prada and
Louis Vuitton, Calvin Klein and Tommy Hilfiger, is less expensive. However, American customer
does not treat Calvin Klein and Tommy Hilfiger to light luxury goods, which is just as normal brand
like Abercrombie & Fitch. So we can clearly notice that same brand has different price positioning
in different countries. The same situation also happens to skin care product. An Estee Lauder
advanced night repair serum just sells $62, about 390 RMB; but it can be sold in 1050RMB, which
means this product price in China is three times in US. Price. For this reason, more and more
Chinese customer likes buying luxury goods overseas, especially in Hong Kong and Macau or other
travel

Essay on Research on Chinese Luxury Outbound Tourism
Research of China Luxury Outbound Travel Market
Tianyi Zhao
10/28/12
Table of Contetns 1 Abstract 2 Market Overview 3.1 Market Size 3.2 Market Value 3.3 Market
Growth 3 Demand Analysis 4.4 Demographics 4.5.1.1 Population 4.5.1.2 Geographic Distribution
4.5.1.3 Gender 4.5 Traveler Profile 4.6.1.4 Trip Frequency and Length 4.6.1.5 Trip Purpose and
Period 4.6.1.6 Travel Spending 4.6.1.7 Planning Preference 4 Supply Analysis 5.6 Overview 5.7
Company Introduction 5.8 Product 5.9 Marketing 5.10 Price 5 Conclusion 6.11 Overview 6.12 ...
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Demand Analysis
3.1 Demographics
3.1.1 Population
We define the luxury outbound market as the population of Chinese citizens who owns 10 millions
RMB (approx. 1.5 million U.S Dollar) total assets that includes real estate, stock, investment and art
collection. In 2011, the 10.3 GDP growth rate of China helped to rise the value of real estate heavily
which resulted in 1.02 million of multimillionaires. Besides, there are 60,000 billionaires and 4000
multibillionaires. And the population of Chinese millionaires is expected to grow steadily by a rate
between 7.3 and 9.7%. However, it should also be noticeable that only 1 of every 1400 Chinese is
qualified to be named by the multimillionaire which is obliviously very rare indeed.
3.1.2 Geographic Distribution
The luxury outbound potential clients mainly concentrates in Beijing and Shanghai, According to
the Hurun Wealth Report 2011, Beijing and Shanghai owned almost one thirds of the riches.
Besides, it also tends that the costal area weights heavily which captured almost 72.2% of the total.
3.1.3 Age and Gender
In general, the average age of Chinese multimillionaires, billionaires, and multibillionaires are 39
years old, 42 years old, and 48 years old, respectively. And general male to female ratios tends to be
about 7: 3.
3.2 Traveler Profile
3.2.1 Trip Frequency and Length
According to the China Luxury Style White Book 2012, the affluent Chinese usually owns 15 days
of oversea vacation per year,

Case Study : Coach Inc. Essay
Coach Inc. targets itself in a challenging position, and it has been at the forefront of the rise of ac–
cessible luxury goods for the past few years. Luxury depends more now then ever on word–of–
mouth promoters who share their taste and experiences with consumers who expect every interac–
tion in stores, on line and on mobile. Brands are investing alot more in top management talent from
strategy to finance the supply chain and the back office operations. The store employee now serves
as brands' direct face to shoppers with brand expending significant resources on training and devel–
opment of people in front of the lines (Bloomberg, 2016). Force Strategic Significance
Internal Rivalry ––> High
Threat of New Entrants –––> Low
Substitutes and Complements –––> High
Supplier Power ––> Low
Buyer Power –––> High
Internal Rivalry (High)
Coach Inc. is one of the dominating brands that are in the leading position of the affordable–luxury
handbag market in relations to the overall annual sales results, but at the same time it faces harsh
rivalry from its competitors. Some of the direct competitors in the North American market, such as
for example Michael Kors or Kate Spade, have seen a drastic increase in popularity as of late, giving
rise of concerns over Coach's future market share. At the same time, Coach has strug–gled alot to
compete against many of the leading European fashion companies such as Salvatore Ferragamo,
Armani, Versace, Louis Vuitton, Gucci, and Longchamp. The

Essay about Louis Vuitton Moet Hennessy Case
Table of contents
Executive Summary 3
Introduction to LVMH 4
Challenges 5
SWOT Analysis 7
Company Analysis 8
Porter 5 Forces Model 13
Industry Analysis 14
Alternatives 17
Recommendations 23
Endnotes 27
Executive Summary Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand
their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that
may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal
with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of
products in Asia compared to France.
LVMH should use ... Show more content on Helpwriting.net ...
In Japan, the costs of LVMH handbags cost approximately 40% more than in France. This started a
growing market to distribute bags from France to Japan for resale at a cheaper price. Arnault
believes that the producers of LVMH's goods need to be unrestrained by financial matters in order to
produce extremely high quality products. To keep the brand management of highly priced and high
quality goods, LVMH needs to expand to the younger new money of the Asian market. The high
quality is also a result of the mentality that "Made in France" is perceived as high western quality.
LVMH does not want to lower the labor costs because there would be a similar direction of the
quality. Finally, LVMH must protect its brand against counterfeit and dilution. With the recent
expansion of the internet and globalization, availability of products has grown to new heights. In
order to keep the brand management that LVMH desires, it must tightly control the availability so
not to dilute the market and lower the perception of their brand. Also with the increased knowledge
and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the
goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution
of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods
originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

Louis Vuitton Case Analysis
Louis Vuitton Case Analysis Key Issue Louis Vuitton is a flagship group of LVMH, which had
double digit growth during 2010 and 2011. Michael Burke, the new CEO of LV group is uncertain
about whether the group can grow sustainable. The main issue he current encounter is that how to
push LV to grow steadily and protect LV's values and heritage from being undermined. External
Analysis PESTEL Analysis Political: The global luxury goods market can separate into America,
Europe, Japan, Asia–Pacific, and rest of countries by region. Overall, the major luxury goods
consumption countries have relatively stable political environment in recent years. However, in
southern Europe, the ... Show more content on Helpwriting.net ...
Environmental: The global personal luxury goods industry may have negative impact to
environmental aspect if the manufactories have poor pollution control abilities. Some companies
also destroy instead of discounting their excess product in order to keep the products' value, which
may cause additional waste and recycle pressure, but the case did not provided enough information
for the environmental aspect. Legal: For some companies, acquisition is one of important method to
grow companies' size and profitability, but the acquisition is restricted by law. For example, French
law requires that one company should report its purchase action to the other company if it holds
more than 5% ownership. If the company uses other ways to circumvent the law, it may face lawsuit
issues later on. Conclusion: Overall, the global luxury goods industry still has high potential to
growth sustainably in the future. Since the market of this industry is worldwide, companies'
revenues will not largely affected by a single country or region. The important thing is to keep the
balance of expansion between different countries. Companies should also be carful about increasing
production effectiveness while retain the heritage value of the brands. Five–forces Model Degree of
Rivalry: The degree of rivalry is moderate in the global personal luxury goods industry. The industry
is very concentrated and occupied by few large players. These companies do not need

How Globalization Affects Luxury Goods
How Globalization Affects Luxury Goods Industry?
Andy Warhol, a pioneer in the visual art movement once said: "Whenever people and civilizations
get degenerate and materialistic, they always point at the outward beauty and riches and say that if
what they were doing was bad, they wouldn't being doing so well, being so rich and beautiful"
(Warhol, 1975). Throughout history, luxury emerged as early as civilization did. For old Romans,
the concept of luxury was a "disruptive power of desire". They set up the first laws about luxury:
"how much could be spent on banquets and adornment" (Ward, 2011). Since the rise of Christianity,
luxury stared to changed its meaning to be related to lust and sexuality. Until 17th century,
perspectives of ... Show more content on Helpwriting.net ...
An increasing economic interdependence of national economies across the world experiences a
rapid cross–border movement of goods, service, technology and capital. Luxury goods industry,
serve as one of the most competitive industry, emerging and developing rapidly all the time. To a
great extent, globalization promotes the development of luxury goods industry significantly in spite
of the big shock hit by several times of economic crisis.
It is hard to imagine that after the financial crisis swept across Europe, many great transitional
enterprises had to face collapse and bankrupt while the luxury goods industry become more
prosperous. Recently, the French luxury goods group LVMH announced their recent business
condition. The volume of the first week in October had incredibly increased by 12% the previous
week. The Hermes Corporation also said that in order to meet the increasing number of market
demand, it would open 15 branch stores in the latter half of the year. These aroused some fierce
debates, the public held a skeptical opinion towards the questions: How can the luxury companies
maintain their positions? Why didn't they strike down by financial crisis?
The spread of globalization forms an economic theory–in order to maximize the interests of each
country, the interdependence among countries accelerates the flows of

Reasons For Buying Luxury Goods
Their average monthly consumption times are more than twice, and the consumption cost is also the
highest in all age groups. The China Daily newspaper has reported that, younger Chinese luxury
goods consumption has become a trend. In their survey of Chinese youth luxury goods consumption,
more than 60% of young consumers indicated that in order to pursuit fashion and taste, they are
willing to pay big bucks to buy luxury goods (Wu, 2014).
Miss Wang worked for a foreign bank branch in Beijing Financial Street; she is a typical white–
collar worker in Beijing. Her one–year total income is approximately 300,000 yuan (Around 30,000
Pounds). Miss Wang is only 29 years old, but purchase luxury goods is a very common thing for her.
Due to the view ... Show more content on Helpwriting.net ...
I think the reason for this is vanity, but the young people passion on luxury goods also cannot be
excluded.
According to the report of China Financial and Economic News (2015), Miss Lu is a 22 years girl
which working in and advertising company in Shanghai. Her monthly income is 6,000 yuan, but she
is holding a Louis Vuitton bag that cost more than 20,000 yuan (Around 2,000 pounds). Miss Lu
said that, in order to buy this Louis Vuitton bag, she has saved money for several months. In the
months for saving money, she ate instant noodles in most of the days, and stick with free bus
transportation to save Metro ticket money. Furthermore, the questionnaire result has also shows that,
for young consumers, the main purpose of buying luxury goods is to reward themselves.
In addition, China 's young rich and the rich second generation are the main promoters of younger
luxury goods consumption. China Finance has reported that, the US and European luxury
consumption are concentrated in over 40 years old people. However, young Chinese luxury
consumer groups are rapidly growing up (Rebaca, 2013). Furthermore, Wu Jin has said that (2013),
the youngest of the world 's luxury consumers in China, and they are spending their parents money
to lives luxury. Many Chinese parents think that since they were very poor in their childhood, then
they want their children have a better quality of life. Young rich luxury

A Good With Luxury Brand
A good labeled with luxury brand, of which is also known as superior brand, opposites to those
goods labeled for everyday purpose. And in the meanwhile, it is always associated with fashion
factor, as a common sense, when people talk about luxury goods. Apparently, luxury brand is treated
as a social indicator in some extends since it becomes one of the most important symbols for social
status and life style in worldwide nowadays. In the meanwhile, online shopping continues to a
robust growth, with a result of online retail sales contributing to 4.9% of total sales in the first
quarter of year 2012, under the phenomena of economic crisis(Bureau, 2012). However, if luxury
brand performs a good show for online shopping adoption, especially in China. It is known to us
that after year 1978 for the Chinese economic reform, China has occurred an explosive economic
increase, having a total number population of 13 million people. With a better life standard, Chinese
people are hard to get contented by daily necessities. Instead, they want to show off their social
status to some extent with spare money. Therefore, luxury branding goods are one of their choice.
Also, it is meaningful to get insights from Chinese local people to better understand their online
behaviors towards luxury branding goods, as China is a growing market for international
business(Brennan and Wilson, 2012). Back to this final year paper, in this paper, the main purpose
and objective of this paper is to figure

Luxury Goods Industry

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