Louis Vuitton

Louis Vuitton
Louis Vuitton (LV) is the world's leading luxury brand. It is ranked number 1. It is also regarded as the leading brand of the LVMH group and the 1st
world group of luxurious goods which were produced and distributed. This brand was created in 1987.
LVMH earned worldwide sales of в‚¬16.5 billion in 2007 (+7.7%). This achievement has ensured and conquered competition with its revenues being
three times greater than its follower Richemont Group. The group has been split into five core activities with a rich portfolio of over 60 brands. Fashion
and leather goods constitute в‚¬5.6 billion sales which accounts for nearly 34 % of the group's turnover. It is also this sector that stimulates the group's
growth engine. LV dominates the luxury segment... Show more content on Helpwriting.net ...
This has enabled the company's capabilities to create a sustainable competitive advantage on a differentiation strategy by translating the brand
communication, distribution, product innovation, and pricing policy. This translation has occurred while the production is gradually and
confidentially being relocated to low labour cost countries in order to improve margins. The marketing strategy is of highest importance for the LV
luxury strategy to feel the market trends, and to translate its value of excellence and prestige in a message which is perfectly perceived by the customers.
External Environment: (Louis Vuitton in China)
– Macro Environment: PESTEL analysis3
The luxury market has challenged its growth by increasing its growth rate over the last decade (except 2001). This strategy was especially supported by
the emerging markets of China, India, and Russia... as growth relayed in the mature and almost saturated historical area (E.U., U.S, and Japan). The
increasing trends of international tourism, 'new rich people' and the favourable world economic growth, enabled the support of the luxury industry and
the emergence of new customers and the subsequent trading areas. However, the financial
... Get more on HelpWriting.net ...

Case Study: Compagnie FinanciпїЅre Richemont SA '
Compagnie FinanciГЁre Richemont SA is one of the three biggest luxury conglomerates in the world, along with LVMH and Kering Group.
Richemont's portfolio includes some of the most prestigious luxury brands in the world. Those brands mainly operate in the high–end watches,
jewelries and accessories industry. All these maisons have specific heritage, knowhow and craftmanship.
The Group owns 20 companies. For instance, the portfolio of Richemont includes: Vacheron Constantin (1755), Lange & Sohne (1845), Cartier (1847)
and Piaget (1874). Moreover it owns the world's most successful luxury e–commerce website, Net–A–Porter (acquired in 2000).
The group has a long–term view strategy, in terms of creating value for its stakeholders as well as for maintaining the brand identity of its companies'
portfolio.
The structure of Richemont is decentralized. Each maison has its own independence marketing and creative strategy. The products are then sold
through a network of boutiques owned by the Group or by third parts as well as through franchise.
Key Figures:
Richemont has been growing through its sales and profit from 2013 to 2014, respectively +5% and +3% (see graph below). This means that the group
is still growing and expanding. BRIC countries and the overall emerging countries represent a huge opportunity ... Show more content on
Helpwriting.net ...
Even though the Richemont Group is ranked the 2nd most profitable group after LVMH, they still have to compete at a high level with many designers
and hard luxury manufactures. Companies like The Swatch Group and Tiffany and Co have greater resources than Richemont and are also substantially
larger. Needless to say, that their strategies using celebrity endorsement and brand ambassadors for promoting their brands, increases their profitability
and their high status. Even if Richemont is well positioned on the luxury market, intense competition can lead to a decrease in the revenue of the group
if they don't live up to their competitors

Company Analysis Of LVMH: A Star Brand
Company Analysis
Strengths
LVMH's brand portfolio is a catalogue of the finest things money can buy. Arnault said, "A Star brand is timeless, modern, fast growing and highly
profitable."[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core
competencies. LVMHhas been successful through all of their various brands in their portfolio giving them each their independence and creativity.
"LVMH is well known for leaving much operational and marketing freedom to the various brands it owns."[iv] "LVMH has done an excellent job of
brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position
of gaining a following among the top percentage of China's wealthy. As the financial crisis stretches on, LVMH customers in China still have money
to spend.[v] "LVMH's brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by
proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. "Everyone hangs on
the coattails of Louis Vuitton's brand imaging in China."[vi] ... Show more content on Helpwriting.net ...
LVMH has a diversified source of revenues from all of its different product lines. "Due to its high brand value perception, the company will be able to
cross sell its products to increase revenues, primarily because all its products have high end positioning and the customer segment it caters to is
uniform across the product

Case Study : Coach Inc.
MEMORANDUM TO: CHERYL TRAHMS, CHAIRPERSON OF THE BOARD OF COACH INC. FROM: NICOLAS GRACIA SUBJECT:
RECOMMENDATIONS CONCERNING THE COURSE OF ACTIONS FOR AVAIABLE OPPORTUNITIES DATE: 11/10/15 CC: SUMMARY
Coach Inc. is an American Luxury goods company that became a publicly traded company in the year 2000. The company has been able to improve
their market share by using their accessible luxury strategy. The company has the ability to be aware and assess the needs and preferences of the
consumers. Coach has the opportunity to increase their sales by selling using the online medium, and can leverage the marketing initiatives for
targeting a large number of customers. However, there has been a strong competition in the luxury goods... Show more content on Helpwriting.net ...
The use of the best value strategy has driven immense success to the company, and the use of this strategy has been accomplished and is evident from
the following factors: Cost: The company in order to attract the middle income consumers as well as the affluent and wealthy consumers, influencing
them to spend more on handbags, Coach focused on matching the quality and styling of the key rivals in the luxury market by reducing their prices by
50% as compared to that of the competitors. This helped the company to attain a competitive advantage in the industry. Customer service: A product is
a tangible component, but there are some other intangible components as well that influence the buying behaviour of the consumers. The company also
focused in this area and improved their customer service that helped them to lure the consumers to buy the products. Quality: The quality that is
offered by the company is high and superior. The products are of superb quality that is eligible to compete in the market. Moreover, despite having a
higher quality, the products have reasonable mark–up price that poses a tough competition in front of the competitors. Styling: The company has a
wide range of variety of products that are unique for everyone and

Advantage And Disadvantages Of Lv
As we all know, Lv is a very famous luxury brand which has constructed a worldwide reputation for its design, innovation and quality in fashion
product area. Because of the good reputation and brand image, lv products are very popular within customers including those who cannot afford that.
Based on the high demand of owning a LV product, there are many counterfeits of the LV's products with cheap price flooding the market, which
obviously would damage the brand image and intellectual property. For these luxury brands, preserving the creativity and uniqueness as well as the
rights of designers is essential for its survival. To fight with the unlawful imitators, protecting intellectual property is always the key strategy for
sustainable development. ... Show more content on Helpwriting.net ...
In order to execute this policy, LV built its own intellectual property department with the support of 250 professional agents to manage over 12000
intellectual property rights including trademarks, designs and copyrights. In addition, lv also has a lawyer team with professionals from all over the
world, for example, former law enforcement professionals in Paris, Tokyo and so on. Due to the policy and the support, many counterfeits are
monitored and exposed. As a result, many criminal networks are broke up. Another success is in the internet branch of the intellectual property
department, this department monitors the internet situation, especially the search engines and the online shopping malls. In this way, over 2000 illegal
websites are forced to close.
Lv holds the view that not only the government and market should take responsibility of the counterfeits, but they also need to take the responsibility
in the whole value chain. In 2003, lv has decided to use the "contributory liability principle" to deal with the issues of some counterfeits aiming at
"intermediaries". This program gained good effect on some counterfeiting places, such as the New York's canal street. Besides, lv claimed that they
only sell products in their stores and official

Competitive Advantage Of Designer Directory
Competitive advantage
Designer Directory
The RealReal has a designer directory, which is a list of brands they accept to do the consignment service. For each category, they have specific
restrictions. For example, they only accept women items less than 10 years old and men items less than 5 years old. The restricted brand list make The
RealReal different from other consignment stores, putting more focus on high–end brands and targeting people who eager for the luxury goods they feel
pressured to afford, but not people just wanna seek for goods in lower prices.
Consigning process
"Everyone is so busy today and The RealReal's goal is to make it easy to sell your luxury items." The RealReal claims that they make consigning
effortless, ... Show more content on Helpwriting.net ...
Every photos they posted online is high–definition that you can see every small scratches and wrinkles. For instance, buyers are even able to see some
ash on the shoe sole.
In order to give consignors the most joyful resale experience, The RealReal's consigning process not only save consignors' precious time, but also help
them take care of their goods. For buyers, The RealReal guarantees the authenticity and quality of the second–hand goods, preventing them from being
treated by other unprofessional consignment stores. What's more, every clothes are steamed and every pair of shoes are brushed before they are
shipped to buyers.
The company's full services strategy, including product pickup and distribution, authenticity process and information exposure, has helped to
differentiate the site from several competitors and could even potentially eat away at other competitors' revenues in future.
RealBook Luxury resale book
Besides its shopping app, The RealReal has released another app called The RealBook, which is a huge advancement for those looking to become
smart, savvy shoppers in a digital age. RealBook offers evaluation of specific luxury goods by compiling and analyzing data from past purchases on the
site. Much of the information seems fairly intuitive. For example, Chanel, HermГЁs and Christian Louboutin hold value the longest, with Gucci and
Louis Vuitton trailing close behind. Cartier, David Yurman and Van Cleef and Arpels

Marketing Analysis : The Jw Anderson Product
(brand positioning)
(timeline)
Product
The JW Anderson product range consists of menswear, womenswear and unisex garments and accessories. They currently produce six collections
annually – two menswear and four womenswear.
(recent collections page on brand book)
(Price ranges per item)
Since its beginning, the brand been characterised by its gender defying designs, mixing masculinity and femininity in a very contemporary way and
creating the idea of a shared closet. "It's not gender for me, it's just clothing," Jonathan Anderson said. "I feel that in a modern culture, if it's about
gender then it's a very dated concept." This had been particularly notable in his menswear collections due to society's more typically conservative
attitudes towards the way men dress. J.W. Anderson has been known to send male models wearing mini skorts, crop tops, leather dresses and ruffled
knee–high boots down the runways. This uncompromising approach of avant–garde minimal androgyny is a solid USP and provides a niche within the
ready–to–wear market. According to Anderson in an interview with The Business ofFashion; "I think the brand will always be about androgyny," he
continues. "I love the relationship between men and women – that coupling. Men with men, women with women, women and men, that kind of mixture
of sex and sharing of garments – I think it's normal. It's about wearing clothes that tell a story and an emotion; it's not so much about gender."

Chinese People Prefer Buy Luxury
Introduction
Research question: In recent years why have more and more Chinese people opted to buy luxury
good overseas? Specifically in USA, Europe, Hong Kong, Japan and Korea.
In the past few years, during the holiday seasonal promotions, many brand–name stores in
various countries have been filed with Chinese tourists. This phenomenon has drawn the attention
of the Chinese Government, and according to media reports data computing, high–end consumer
goods purchased overseas by Chinese visitors in one a year alone amounted to $46 billion,
equivalent to nearly 300 billion yuan.
Chinese people are keen to buy luxury goods abroad, despite many cities within China also have
these brand outlets, including those Chinese people ... Show more content on Helpwriting.net ...
For example
Burberry's classic trench coat has a price on the brand Chinese official website for 22,000 yuan,
while in the UK site was ВЈ 1,195 (about RMB 11,855 yuan), while in France for в‚¬ 1,495, US
$ 1,895. The price of more than 40% cheaper than in China.(Wang,H 2013) In my opinion, I

think the price is the most important reason behind why Chinese tourists buy more luxury goods
overseas.
On the other hand, The China Daily reporter Xiao He cites another reason for why people buy
luxury goods overseas. In 2012, 25% of global luxury goods were purchased Chinese people, 60%
of consumption to overseas. Xiao believes that other reason for why people buy luxury goods
overseas is because in china, they don't have enough variety of luxury goods. The most typical
example is of the Apple phone, can not be purchased as quickly due to delayed release date in the
Chinese market, leading consumers take advantage of tourism opportunities to go abroad to buy.
Many Chinese consumers overseas have found that the same brand of goods abroad offer a much
more extensive range than in China.(Xiao,H 2013)
An article from The Ningbo Daily states another reason for why chinese people may buy luxury
goods overseas. The "customer environment" is an issue. Outside of China the general price tag
of luxury goods as

Loloe And Hermes Case Study Essay
The supplier power: High
The supplier bargaining power depends on the importance of volume, level of supplier uniqueness and threat of forward integration. The supplier's
power is high in term of unique product, less product differentiation and high threat of forwards integration, affecting their customer's ability to acquire
profitability (Porter, 1980). However, large firm like Chloe and Hermes international, accrued the power and the capital to pose a threat for forward
integration by owning their own channel of distribution, giving opportunities to achieve high market share thus being strong competitors for other
suppliers. In contrast, for new entrants, as a result of the high fragmentation of small scale suppliers, achieving economic ... Show more content on
Helpwriting.net ...
Chloe is a maison (subsidiary) of Richemont SA. Apart from Chloe, there are other world's leading luxury goods companies managed by Richemont
like Cartier, Lancel, Alfred Dunhill, Montblanc to name a few. Perhaps, that could be one of the most valuable resources Chloe enjoyed over
competitors. According to Geoffroy de La Bourdonnaye, the Chief Executive and creative director, the company generates a return on investment by
focusing on a core line of business and competencies. Chloe engaged in a wide variety of product categories and continue to epitomize the free spirit
and values of femininity, modernity, effortlessness and grace. Due to the labor intensity in the fashion industry, Chloe has made human its most
important resources, i.e. the skills and capabilities of the design and production teams, the logistic team, marketing team, store personnel and other
experts. Being part of Richemont's Maison, added value to Chloe brand. Andrew & FrГ©dГ©ric (2015) report shows that Chloe capabilities gave it
the privilege to establish strategic alliances with other maisons which resulted in being able to produce successful, creative fashion collections.
Justifying that, the analysis of the driver of the performance postulates that fashion collection made by a group affiliated brands with foreign
experience will be three times more creative than the collection made by the

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 LVMHhad 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

BUSINESS REPORT ON LOUIS VUITTONвЂ™S ENTRY INTO CHINA
BUSINESS REPORT ON LOUIS VUITTON'S ENTRY INTO CHINA XXX AUTHOR'S NAME XXX UNIVERSITY Executive Summary 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... Show more content on Helpwriting.net ...
On the other hand, the large market potential has drawn a host of luxury–goods companies to enter the China market, which makes the competition
fiercer and fiercer. And it is troublesome for LV that there are plenty of fake goods imitating LV's style prevailing in China, which are actually not
likely to reduce LV's high–end consumers, but would exert negative influences on consumers' impression and awareness of LV. In terms of social
culture, for one thing, the China consumers are attracted by middle– and high–end products and somehow more attracted by French luxury goods, and
they believe that the higher the price, the better the quality (Yuval, Vinay and Cathy, 2011, para7) (Exhibit 1). For another thing, the traditional virtue
of thrift is rooted in the mindset of the Chinese, with which some of the rich in China indicate that they would not spend a large sum of money to get a
product. (Exhibit 1) (Chinese consumers increasingly prefer internationally well–known brands. Retrieved on Jan 3rd 2013 from: http:/
/www.mckinseyquarterly.com/Tapping_Chinas_luxury
–goods_market_2779) In terms of transportation, airlines are increased like the Emirates group
which launched air routines in the main cities of China, and railway transportation as well as road transportation is more and more available, making it
convenient and fast for cross–national transportation. Therefore in conclusion, the opportunities for LV 's entry into China can

My First Shopping Experience At A Louis Vuitton Store
As I walk into the store, I smell the scent of fine leather is floating in the air. I hear a clerk speaking to me politely: "Welcome, please let me know
if you would like to take a look at anything or if you have any questions." Her smile is polite but not enthusiastic because she probably knows that
one out of ten customers walking into the store would actually purchase a product. While I am checking out a wallet, I feel the smooth leather with
my fingertips like it is part of my own skin. Once I check the price tag, it is like I just swallowed a sour lemon and it stuck in my throat. That was my
first shopping experience at a Louis Vuitton Store. Hermes, Chanel, Gucci, LV, Prada, Armani, and Ralph Lauren, when most people hear those names,
they may automatically connect them with luxury, expensive, rich, fancy, and exclusive. The marketing on those luxury brands did an excellent job
implanting their names and logos into people's lives. Even though the world is still recovering from the economic crisis in 2008, the global industry
for luxury products is constantly growing. A report from Arpizio (2014) onluxury good s shows that in years 2014, the overall global luxury market
exceeded one trillion, showing healthy growth of 7% over all. Definition from the business dictionary (2015) explains luxury goods as products which
are not necessary but which tend to make life more pleasant for the consumers. Luxury goods are not ordinary goods like water, food, clothes and other

Market Dynamics : 3-1 Market Analysis
3. Market Dynamics
3–1 Market analysis
a) Macro analysis
A macro environment audit provides a clear understanding of the external factors which exert influence on the luxury goods industry. There are several
key things that Burberry bears in mind from the pestle analysis which are shown in Table 2.
Economy
(+) The number of luxury consumers has more than tripled in under 20 years, to around 330m people and spending has risen to an estimated в‚¬217 in
2013 (The Economist, 2014).
(+) The main driver of this growth is the economic growth of emerging markets and it will be accelerated with the penetration of luxury brands to the
emerging market. (Thewalpole.co.uk, 2014, The Economist, 2014)
(+) Luxury brand sales is also strongly driven by luxury travelers which is also luxury brands should bear in mind. For example, the UK luxury sector
is said to nearly double in size, from ВЈ6.6 billion in 2012 to ВЈ12.2 billion in 2017 thanks to the luxury travel (Wadpole, 2013)
(–) Chinese government controls on gift–giving reduced demand for overall luxury goods (The Economist, 2014).
Technology
Technology is playing an increasing role in the high end fashion industry, for example through the Increasing use of technology to stream major fashion
events and communicate through social media (Burberryplc.com, 2014). Rapidly developing technology keeps eliminating the boundaries between
on–line and off line. Internet consumption has risen rapidly boosted by mobile devices which implies the

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 Helpwriting.net ...
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 &

Business Case Study: HermГЁs Of Paris
INTRODUCTION HermГЁs International, sometimes also referred to as HermГЁs of Paris or Hermes, is a French luxury goods manufacturer. It has
been consistently ranked as the world's most valuable luxury brand in different valuation and ranking studies published by leading consultancies.
HermГЁs as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high
levels of quality and professionalism through the entire manufacturing process gives HermГЁs a position of superiority in the very competitive and
ruthless world of luxury. According to the 2015 BrandZ rankings (conducted by Millward Brown), HermГЁs was the second most valuable luxury
brand with a valuation of USD 19 billion,... Show more content on Helpwriting.net ...
Currently, the range of products under the HermГЁs brand name includes leather goods, lifestyle accessories, perfumes and ready–to–wear. The leather
goods and saddlery category is the biggest contributor to the company's revenues, followed by ready–to–wear and accessories, silk, textiles and
fragrances. Background of HermГЁs Thierry HermГЁs founded the company in 1837 as a harness workshop in Paris. Originally, his intent was to
serve the needs of European noblemen. Thierry's son Charles–Г‰mile HermГЁs moved the company's shop to 24 Rue Du Faubourg Saint–Honore in
Paris, where it remains to this very day and is the company's global headquarters. In 1993, the company went public on the Paris Bourse, which for
various reasons was considered a strategic move with its own set of weaknesses. Throughout the late 1990s, HermГЁs extensively followed a strategy
of reducing franchise stores, by buying them up, closing quite a significant many and by opening more company–operated stores. As of 2014, HermГЁs
operated 311 stores globally, out of which 207 were directly owned and operated by the

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 LVMHannounced 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

Luxury Brand
It is universal truth that luxury brand industry is still booming even during financial crisis because today 's people have the right mind–set that luxury
products are purposeful and well thought out. In other words, they want to show off their wealth and personal status.
Main Forces The Macroenvironment Facing The Luxury Brand Industry
Analysing the macroenvironment facing the luxury brand industry, there are demographic forces, economic forces, cultural forces and technological
forces.
1) Demographic Forces
Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics "Principles of
marketing" (Kotler, Adam, Denize and Armstrong, 2008, p.89).
Age ... Show more content on Helpwriting.net ...
Everything we use nowadays exists because of the technology. "Luxury Fashion Branding" (Okonkwo, 2007, p.179) indicated the impact of the internet
on the luxury brand industry is mind–blogging and it could change consumer behaviour and the way the company operated.
Technology introduced us with the internet, internet banking, credit card and online shopping. The online shopping become very popular since the
consumer only needs a few clicks and a few minutes to buy the desire brands.
As a result, E–retail has become the essential sales channel for the luxury brands to sell their products online. Clearly, both the consumers and the
luxury brands have a lot of benefits because of the technology. Providing up–to–date information, customers can save time not to visit many outlets
when they want to get something, can make the products comparison at home and they also feel very convenient and trustworthy to shop online are a
few benefits consumers can enjoy because of the technology.
Factors Influencing The Increase In Younger Consumers ' Interest In Luxury Products

The main factor that greatly influences young people 's interest in luxury brands is Internet.
Nowadays most of the young people are wasting almost half day of their time on the internet. The first thing they do in the morning is the checking
their Facebook profile or email. That is the proved that internet

Marketing Development Of The Luxury Goods Industry
1.2.2.4Regional 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.
2.2.5Cultural feature
Luxury is not only a product of socio–economic

History And Growth Of Coach Company
History and growth 2 Coach Inc. was founded in 1941 as a small family–run workshop in a Manhattan loft. With the joining of Miles & Lillian Cahn,
Coach Inc. was able to innovate a process to make more flexible, superior and softer leather for the leather goods. Later on, Bonnie Cashin joined
Coach as creative head to design handbags for Coach (Coach Ltd Annual 10K report P.2).
With the help of the revolutionized product 's design, Coach started to develop a better reputation. In 1985, Sara Lee bought Coach Inc. and
triggered a rapid expansion of the Coach's business. The variety of Coach Product was increased to include the suitcase, accessory and luggage,
thereby the additional Coach stores and the new boutiques were opened. By the end of 1996, Coach had 15 stores and 50 boutiques within the
department store (Coach Ltd Annual 10K report P.2). As of today, Coach becomes one of the best leather goods and most recognized accessories
brands companies in the US.
Strengths
Coach is a pioneer of the affordable luxury industry in America. It has been running for the business over 70 years and have a great designing team to
produce a wide range of unique products, especially in handbags. In addition, the long history of their business had made an outstanding marketing
team which are professional in forecasting the trend in future.
Coach has a huge market in China so it has a significant advantage in China which tend to be the

Analysis on Louis Vuitton Case Study
1.What has made Louis Vuitton's business model successful in the Japanese luxury market? As the business model addresses "how the company
makes money in this business", Louis Vuitton's business model in Japan can be simply explained as selling products through directly owned and
controlled stores. A good business model can guarantee the success of business. LV's business model in Japan successfully drove it to the world's
largest market by strictly following the principles and benefiting from the external environment. First of all, the specifics and advantages of Japanese
market played a significant role in facilitating LV's success. (These advantages of Japanese market will be discussed further in Question 3.) With these
specifics... Show more content on Helpwriting.net ...
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. Another challenge for Louis Vuitton is the market and brand
dilution as it has already entered and successfully fit in the Japanese market. The products have already maintained the "acceptable" group, and the
company has become to feel difficult to increase the revenue. The figure provided in the case showed that nearly half of the Japanese have Louis
Vuitton–monogrammed items by the time of 2007. This seemed to make LV prevalent but not luxury any more. To maintain its brand image, it is

The External Environmental Impact Of Net-A-Porter In...
1. Introduction
E–commerce has become the hottest topic from the second decade of the 21st century and will continue to expand across the whole world rapidly.
Because of the development of online business market, some luxury brands will have to embrace the online retailing trend. Those luxury fashion
brands who needs to find an online partner to show their fashion products will give websites, such as Net–a–Porter, a chance to engage in the online
luxury fashion market.
This report will analyse the external environmental impacts on Net–a–Porter, an online luxury fashion retailer, and evaluate the opportunities and
threats in the macro environment for the company in terms of the following five years. At last, this report will provide some recommended solutions
for Net–a–Porter.
2. Current state of Net–a–Porter in luxury online market
2.1 Current State of luxury e–commerce market
According to Luxury Activist (2016), luxury goods purchase in physical stores has been growing by 3% since 2013, online sales have a solid 20%
growth reaching 6.7 billion pounds. Indeed, luxury sales online have reached 12.5 billion pounds in 2014, doubled it from the previous year.
McKinsey forecasts all luxury brands would embrace the online market by 2025 (75% was digitally influenced until 2014), the online luxury sales
may go up to 62.5 billion pounds (Remy, Catena and Durand–Servoingt, 2015). The online share of total online luxury sales was expected to double
from 6% (in 2015) to 12% by

What Makes Fake And What Types Of Products, There Are...
introduction/Background
Before proceeding to the discussion of this topic, it is necessary to determine the order, what is fake and what types of products, there are fakes.
There are four kinds of falsification of class "luxury" goods:
fake products – replicas of the original products, produced with the aim to give them the originals, thereby deliberately misleading consumers; pirated
products – demonstrative cheap copies of original products, the production of which is not hiding the fact of forgery; products–simulation – the goods
are not identical to the original product, but like them its content, name, design, appearance or (consumers tend to be aware that these products are not
original); products of handicraft production – design replicas of branded products without the brand logo and made by masters who work on the brand
or produce similar quality and design of products.
If we carefully get a grasp of these definitions, it is clear that the luxury goods sector have to face all four kinds of copy, though in varying degrees of
intensity. So, the first of these types of counterfeit products – one hundred percent fake – is implemented on various markets the people who present
themselves as official representatives of luxury brands. These products are sold everywhere, they offer housewives of San Francisco, you can see them
on the street stalls in the vicinity of Oxford Street in London full of them on Canal Street in Manhattan, and in various hot spots of Hong Kong,

Hermes Case Study
Scope of activities Hermes' main scopes of activities are The Leather Goods–Saddlery, The Clothing and Accessories, The Silk and Textiles Division
and Perfumes and Watchmaking divisions. The main activity of the group, leather goods and saddlery has multiplied by nearly 3.5 in eight years,
thanks to the construction of several manufacturing and supply development. The Clothing and Accessories division's sales have increased, by 17%
per year since 2008, particularly about the success of the new loan–to–product collections. Thanks to the success of the traditional "HermГЁs squares"
and the development of the offer, the sales of the division. Silk and Textiles grew, on average, 14.0% per year between since 2008. o Extent of
geographical coverage HermГЁs International's main geographic market, the Asia–Pacific zone (excluding Japan) growth was driven by the opening of
new stores in Macao, Hong Kong and China, as well as the expansion of two stores in Singapore. This region has been the most dynamic in recent
years. On the contrary, in Japan the sales are not as expected recently due to economic reasons. The American continent also represents a major outlet
for HermГЁs International. Lately, Hermes opened a store in Rio de Janeiro (Brazil), moved its store in Philadelphia (United States ) for a larger site,
and reopened its Honolulu (Hawaii) store. HermГЁs International performs well in the Old Continent thanks to strong sales in France and improved
distribution facilities (France,

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 asLVMH
or the Gucci Group."(Sherwood 2001, p. 6) Additionally the

Luxury Brands
LuxuryBrands–TheRisingPhenomenoninAsiaContrary to the traditional beliefs that Asians are conservative and skeptical towards materialism,
according to Radha Chadha, author of The Cult of the Luxury Brand, Asia is currently facing a "luxeplosion" where millions of men and women aged
1830, are flocking to purchase luxury products from labels such as Burberry, Rolex, Louis Vuitton etc. This phenomenon that started off in Japan, is
rapidly spreading to the rest of Asia, including South Korea, Taiwan, Singapore, and China. (Ravindran, 2007) Furthermore, sales of such branded
goods carry on even in bleak economic conditions. This brings us to question why are millions of Asians, not all of them... Show more content on
Helpwriting.net ...
In fact, a study by ExactTarget found that 65% of online Americans have purchased a product or service as a result of receiving direct mail, rather than
through marketing messages on Facebook (20%) and mobile marketing messaging (16%). (Epsilon Targeting, 2010) Thus there is likelihood that
this may also be representative of the consumer behaviour in Asia. One significant characteristic of the Millennial is the intricate adaptation of
technology and social media into their daily lives. This generation is as comfortable shopping online as well as physically, and can be easily
connected and converted into loyal patrons through social networking if done so wisely. A report by Four Seasons Hotels and Resorts revealed that
78% of affluent consumers are active on social networks and 65% of affluent consumers say brands without a presence on social media are out of
touch with consumers. (Four Seasons Hotels & Resorts, 2012) Hence, it is crucial that companies ensure that their social networking accounts such as
Facebook are actively engaging and interacting with the consumers and target markets. (Chauhan, 2013) Apart from utilizing social media sites, luxury
brands should also leverage on social video platform, such as having branded YouTube pages featuring interactive videos that promote and engage in
selling the brand. Brands can also link the video to their commercial site where consumers can head

Louis Vuitton MГѓВ¶et Hennesey (Lvmh)
ABLE 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... 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 asLVMH
or the Gucci Group."(Sherwood 2001,

How Branding Influences Consumers Luxury Fashion Choices
When given a choice between a pair of Prada shoes or a pair of Puma shoes, consumers are aware that both products will provide sufficient comfort
and protection to their feet. Yet, when asked in a recent visual survey, which shoe they would choose to buy, 76% of people chose the Prada brand
shoe (Appendix p. 7). Given that both shoes can achieve the same purpose, one asks why have so many people chosen that particular brand of shoe
over the other? When contemplating the alternative brands of each shoe, it could be suggested that effective branding has enticed consumers to prefer
the Prada shoe? The following essay will discuss how branding influences consumers luxury fashion choices.
Bain and Company (D'Arpizio et al, 2014) state that 'the market for personal luxury goods has nearly tripled in the past 20 years' (p. 7), with the
industry reflecting healthy growth by exceeding в‚¬850 billion in 2014 (p. 3). It is evident that luxury consumption is a thriving industry. Despite the
fact that prices of luxury goods has risen over 60 percent in a decade, consumers are still choosing to purchase such items (Sherman, 2014).
Prada, Chanel and Louis Vuitton are recognized as luxury brand goods (Okonkwo, 2007, pp. 45–47), yet there is much deliberation about the
definition of luxury. Bearden and Etzel (1982, p. 184) define luxury as 'something that is more than necessary', Webster states that it is 'something
adding to pleasure or comfort but not absolutely necessary' (2004, p.

The Effects Of Luxury Brand And Value On Consumer Behavior
The Effects of Luxury Brand and value on Consumers Behavior
Abstract
Diverse factors influence consumers' choice in the market. Key among the factors is consumers' perception of value and quality of the product they get
from the market. Conventionally, there exists stratification in free markets in which consumers choose the value the can afford. There is a correlation
between luxury brand and value, and their influence on purchases by consumers in the market. This paper aims to explicate the concept of the influence
of luxury brand and value on consumers. To attain this, the paper will strive to give a full explanation of brand perception in the market environment
that involves the transactions of luxury products. In the contemporary social economy, consumers are ... Show more content on Helpwriting.net ...
Apart from the social parameter to determine consumer behavior toward luxury, other metrics influence the value of the brands and consumer
perception. It entails an exploration of the luxury value conceptual model, which incorporates financial, societal, personal, and interpersonal factors
influencing the luxury brand and value on customers. Consumers must believe the credibility of the brand reflects luxury, because it is made up of
characterization of prestigious brand–name products, especially the psychological benefit of high prices during the recession. In this highly competitive
market environment, is important for a company to manage the client or brand, assisting clients in their ability to distinguish between different brands,
makes their brand valuation of competitors (Kim, Johnson, 2015). Academic views on luxury brand frequently identify what consumers typically can
offer luxury list they course considered to be luxury brands such as Louis Vuitton, Ferrari, Chanel, etc. However, some consumers may be difficult to
determine

Luxury Good and Burberry
3.2.1Brand 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 ...
3.2.6Retailing
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.
3.2.7Wholesaling
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

Definition Of Exclusivity On Quality
From this past 10 years, many brands have chosen to open up and share what they are but also their values.
I believe that other brands decided to do the opposite, working on the notion of exclusivity allowing consumers to be the first, the one and only to own
a certain product or to live a unique experiment.
The exclusivity of these types of services relies on a simple principle: terms and conditions to respect to be able to be offered privileges. Those types of
privileges can be accessible to those who will pay the price but also to people who would take part of a certain type of organization.
How can exclusivity be defined? How to create exclusivity? What is the history of exclusivity? Where does exclusivity stand in our culture? Is ... Show
Is luxury linked to exclusivity? Do we always have to pay to access exclusivity? Can exclusivity be affordable?
I believe that nowadays, luxury brands who tend to be reserved to elites are democratizing themselves. Aiming to reach more customers, luxury brands
use new strategies: Implementation of entry–level products, collaboration with Fast fashion brands (H&M x Karl Lagerfeld).
Luxury now seems to be the tool used to prove who we are. The purpose is not about the quality of the good anymore or the service that is linked to
it. I do believe that it is more about having and owning goods from luxury brand to show that we are part of an elite.
Luxury goods are known to be expensive.
Now, no matter the quality, as long as there is the brand.
Luxury, its quality and service now seem to be more common that it originally seemed to be. This democratization of luxury brands, does also have
negative effects.
One of the main negative effects, I think is the big demand for counterfeit luxury goods.
If someone really wants a luxury good, but can not afford it, this person will probably buy the counterfeit version of it. With the unique purpose of
making believe others that he can afford it.
'Before, only several goods were counterfeit. Now,

Case Study On Herles
пЃ¬Introduction of ''HermГЁs"
HermГЁs International S.A., or in short form HermГЁs is a French manufacturer founded in 1837. HermГЁs owns 14 product branches including
leather, scarves, ties, men's and women's fashion, perfume, watches, footwear, gloves, enamel, decorative arts, tableware, and jewelry. "HermГЁs sales
are composed of about 30% leather goods, 15% clothes, 12% scarves, and 43% other wares ". The company keeps tight charge on r the design and
manufacture of its huge number of inventory.
Positioning the brand:
According to Millward Brown Optimor, Hermes was ranked at top two most powerful luxury brands in the world in 2010 falling behind Louis Vuitton
and Gucci.
Brand image:
Elegant, premium, durable and everlasting, and its French ... Show more content on Helpwriting.net ...
This brand is designed and produced by a Chinese designer. This obviously indicates that HermГЁs speed up its market exploration in China.
Shang Xia is a brand for art of living that combined with the heritage of Chinese design and craftsmanship. The designer Jiang Qiong built SHANG
XIA with a concept of a 21st century lifestyle founded on the finest of Chinese design traditions.
Shang Xia's collections are includes striking furniture, fine decorative objects, exquisite accessories and luxurious garments. Uniquely, Shang Xia also
launches a series of limited edition "cultural objects" every year.
Nowadays, this niche Chinese clothing and lifestyle brand now has boutiques in Shanghai, Beijing and Paris. Luxury–sales growth in China is expected
to be 2% in 2014, according to projections from U.S. consulting firm Bain & Co. "That would be down from 20% three years ago, before economic
growth slowed and Beijing cracked down on corruption and a culture of giving officials pricey gifts.

Galeries Lafayette
Galeries Lafayette to Hong Kong in 2013/2014
Background
After having the valuable experience of working the last in–class assignment about Harvey Nichols (HN), as I felt I should have known more about
Harvey Nichols, I visited their store in Pacific Place to see & feel what it is & I spent several times in checking their website for more details. Now I
feel I understand more about why HN open its 2nd & bigger flagship store in Hong Kong & why HN is at Pacific Place, after I have seen that so
many visiting mainland Chinese who carried with big suitcases were shopping big qty & amount of luxury goods at HN in HK, & after I have found
that HN is owned by Dickson Poon (through Dickson Concepts), a HK based business man, by who the ... Show more content on Helpwriting.net ...
Limited HK (ITHK) |
|Ownership |Monlin Family 100% own |a company listed on HK Stock Exchange, chaired & |
| |Ginette MOULIN, Chairwoman |controlled by Sham Kar Wai |
|Business |Department store, supermarket, watch retails, finical, |fashion retail business across HK, China Arabia, Asia, |
| |traveling in France |France, Germany, Saudi |
| |"GL is somewhat of a fashion institution in France" GEO of|The company positions itself as the fashion icon in the |
| |Dept. Stores division of GL France |market targeting those customers who are looking for |
| |(GL reflects the best of French & international |taste, style and uniqueness. |
| |Creativity, ..., dedicated to Luxury fashions, well–known | |
| |brands & buyers favorites, ... invites shoppers to discover | |
| |the latest from top designers as well as talented young ) | |
|Brands |has 3500 brands all level 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

Role Of Luxury Flagship Stores
I. Introduction In 2007, Euromonitor International reported luxury goods market sales to exceed US$130 billion, and in 2016, the report luxury goods
market more than double to an exceeding sale of US$388 billion (Fionda & Moore, 2008). The significant growth rate in estimated market value
demonstrate an opportunity in the luxury goods market. While flagship stores are not exclusive to the luxury sector, they manifest an important role in
luxury brand recognition among consumers. It is essential to further investigate the role of flagship stores as they are an integral element of luxury
brand identity (Moore, Doherty, & Doyle, 2008). Previous research explore the nature and role of flagship store functionality and brand consolidation
regarding... Show more content on Helpwriting.net ...
For distribution partners, a high initial investment into a flagship store opening is crucial to indicate a belief of viability in the future of the market and
to signal brand confidence, strength and viability to wholesale customers, international partners and potential investors. (Kozinets, Sherry, De
Berry–Spence, Duhachek, Nuttavthisit, & Storm, 2002; Bruce, Moore, Britwistle, 2004). Regrading fashion media relationship building, luxury
flagship stores must understand and appreciate fashion media have a significant influence on how a luxury fashion brand is perceived and accepted.
Fashion media affect consumers' brand awareness and impact luxury flagship stores' press (Fionda & Moore, 2008). The fashion media includes
fashion editors, journalist, stylist, and famous public figures. Therefore luxury flagship stores must maintain and build a cpositive relationship with
fashion media. As reported in Moore's et. al. study, a retailer closed their flagship store in London due to untenable operating cost. In effect, the British
fashion press abandoned all coverage of the brand, which had adverse effects on the company's reputation and sales. Regarding customer relationship
building, luxury flagship stores recruit new and high spending customers (Moore, Doherty, & Doyle, 2010). The luxury flagship store customer
commonly

Marketing Of Luxury Brand Marketing
In recent years, there has been an increasing amount of literature on luxury brand marketing. "Luxury Brand Marketing is, the best design, the best
materials, the best merchandising, and the best packaging occur in the luxury industry "(Ko &Megehee, 2012:1395). Even though there are few brands
in the luxury sector, the sales of said brand are extremely effective. Due to this and the constant successful marketing of the luxury brand, these brands
set an example to non–luxury brands (Ko & Megehee, 2012). This literature review is intended to examine luxury brand marketing, and will
demonstrate the behavior of consumers who purchase luxury brands. This literature review consists of two parts; the first part provides a definition of
what luxury brand marketing and what luxury brands. The second part focuses in particular on the behavior of consumers who purchase luxury brands
and it will be described under the three headings: privileged access, the desire to show others people and bandwagon. Before considering the behavior
of consumers when purchasing luxury brands and defined the three headings, it is important to examine a definition of what luxury brand marketing
and what luxury brands. Nowadays, the luxury brand marketing is a controversial topic and so many writers discussion in the literature. According to
Nueoo and Quelch define luxury brands as, "those whose ratio of functional utility to price is low while the ratio of intangible and situational utility to
price is

The Is The Global Economy Seems Are Fluctuation Or Even Is...
1.1 Overview
Although currently the global economy seems are fluctuation or even is experiencing a noticeable recession (??The Euro Area,?? 2008; Webster,
2008), request for luxury goods worldwide is enhancing and swiftly increasing, with over 200 billion dollars of annual sales on average every year.
(Mcferran et al., 2014). Luxury items represent abundant consumer goods sales all over the world; worldwide selling of accessories, top grade apparel,
beauty, jewellery and watches, and many other products (Roberts, 2010). For luxury industry major market segments are not limited into some
developed western countries any more, the expansion of markets also reach to emerging markets like some Eastern developing countries or areas
such as China (Sherman, 2009). Over and above the traditional developed segments of market new luxury market segments are developing rapidly.
For example, performance by graduates of university with decent job as well as pretty high discretionary income, acted as the top twenty five
percentage of the U.S. consumers who are called as Generation Xers, spend 1/3 more on personal luxury goods such as ornaments, high–end apparel,
beauty as well as home luxury goods rather than those who are called as Baby Boomers (Park and Reisinger, 2009).
With its substantial population and growing economy, East Asia is fast becoming the world?s largest brand–name luxury goods market (Wong &
Ahuvia 1998; Jiang 2005). East Asians have been found to be avaricious luxury

The Development Of Luxury Industry
People love luxury. Some people think it stands for fashion, and some people think it stands for a social stratum, but in common, people think it
stands for rich and success. However, is it really a symbol of success? Or, it is just the satisfaction of vanity? People can see what famous people
use and wear in television or magazine in their daily lives which gives them a model of rich people's lives. Luxury usually plays a big role. People's
vanities push them to spend a huge amount of their income on purchasing luxuries so that they can look more similar to the famous people who they
idolize with. Generation to generation, using luxury to measure whether one is success or not becomes a culture, and rich becomes the synonym of
success in the society. The development of luxury industry benefits by this unhealthy culture; at the same time, people's vanities also be expended by
luxury which cause the distorted definition of success. The development of luxury industry never leaves human's vanity. People want to look rich but
not poor, specially, in United States and under American Dream. According to "Sales of the Luxury in Selected Countries in 2013" (see figure 1), the
country which has the highest "sales of the luxury goods" in 2013 is United States which is almost four times higher than Japan which is in the second
place (Bain& Company). People use to compare themselves to their friends and their idols. When Bai Zhen talks about Mr. Louis Vuitton's early age,
he mentions a

Luxury Industry in France
Luxury industry in France Luxury is artificial definition and cannot be easily transferred into real life. It is a notion of anything that is useless and
superfluous in real life. However, it can be often associated with beauty (art, entertainment, design, dГ©cor or trend) and remains one of the driving
forces behind society's spending. It is true that luxury speaks and renown's itself by big spending and indeed, outlandish expenditure is often
associated with it. The world luxury market is worth more than $130 billions and France is the country which owns the largest number of companies
in the luxury and historically always been trend setter in the luxury market. Some of the world's best symbol of lavish lifestyle is essentially... Show
Moreover they work closely with design schools in Paris organizing competition between design schools to choose the elite, the best students of this
competitive examination. Every structure, knowledge and human resources is centred on Paris. All of these condition factors are concentrated in only
one place in order to build every advantage and to get better and better. Capital resources are due to companies' investments working in luxury sector
and investing in bourse. MSCI World Textiles & Apparels & Luxury Goods index owns 1,500 securities on 23 international markets (Lefigaro website
2007). It is a reference to investment funds return. Then their strategic setting–up in Paris attracts numerous foreign investors. 2 Demand conditions
The second determinant of the diamond model mentions the demand more precisely the home demand, the size and the growth. France is formed by
more than 60,000,000 citizens and it is one of the richest countries of the world. Concerning the home demand, Luxury goods such as perfumes and
cosmetics, the sales keep their growth until 1989. After this period, the consumption has decreased because the demand has become more sophisticated
and restrained. The luxury industry does not work like the other industries. In fact, in luxury buyer needs do not exist. About the fashion design the
buyers are interested in the designers' creativity and they do not worry about their practical

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, LVMHis 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

Louis Vuitton

Recommended

Recommended

More Related Content

Similar to Louis Vuitton

Similar to Louis Vuitton (6)

More from Natasha Duze

More from Natasha Duze (15)

Recently uploaded

Recently uploaded (20)

Louis Vuitton