This is a project that I did while on exchange in Paris, France. The project is an analysis on the Luxury Goods Industry and the Globalization opportunities/challenges it is facing.

1. The Luxury Goods Industry Presented By: Luben Blagoev, Stephanie Garisto & Ana Radunovic

9. Pros Cons Reduction in Protectionist Barriers Few Companies Own Market Share Lower Costs of Production Consolidation Expansion of Global Demand Outsource Production at the Expense of National Interests Tools Towards Future Progress Compromises Luxury Experience Creation of Economic and Political Ties Upsurge in Number of Multinational Counterfeit Operations

10. Discussion Question Does the luxury goods industry benefit from the implications of globalization?

13. Goodwill 4.4 Billion Euros Marketing and Selling Expense 6.1 Billion Euros Revenues 17.2 Billion Euros Net Income 2 Billion Euros *Based on 2008 Annual Report for LVMH

15. Goodwill $0.97 Billion USD Marketing and Selling Expense $1.93 Billion USD Revenues $4.8 Billion USD Net Income $0.4 Billion USD *Based on 2008 Annual Report for Polo Ralph Lauren Corp.

19. Empirical Analysis Beyond economic theory, however, there are several modes of reasoning for and against moving production offshore: For Against Reduction in Protectionist Barriers Counterfeit Operations Lower Costs of Production Idea of Sweatshops Tools Towards Future Progress Conflicts with National Interest Creation of Economic and Political Ties Compromises Brand Image and Idea of Luxury

20. NEWS UPDATE Wall Street Journal Friday March 20th, 2009