Essay about Louis Vuitton Market Position

717 Words Jan 25th, 2013 3 Pages
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LOUIS VUITTON MARKET POSITION

Louis Vuitton Malletier (commonly called Louis Vuitton) is a worldwide known French luxury brand, created in 1854, by Louis Vuitton. The main products are trunks and leather goods, ready-to-wear, shoes, glasses and jewelry. The LV monogram, used on most of the products, is highly recognizable, and is a main part of Louis Vuitton’s success.

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Competitive threats

Competitors (current threat)
Louis Vuitton has to face a fierce competition on the European luxury market. With 3.06 billion euros of net benefits in 2011, LVMH doesn’t fear the Eurozone crisis, and is the most valuable luxury brand. However,
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So far, European brands have the long history, the stereotypes and the international fame, but the new Chinese brands will eventually penetrate the European market. The awareness, the trust and the buying habit will come first with the pioneers, then the dandies, and finally the nouveaux riches, who will purchase the new brands when they are sure it’ll be recognize as a sign of success.

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What action to protect the market position ?
Competitors (current threat)
Louis Vuitton uses its well-known monogram to fulfil a desire of external recognition. Its actual fame is at the service of its growing fame: the more LV is known, the more its customers want to buy it. Their actual marketing action is clearly working, because LVMH benefits increase every year, despite the current Eurozone crisis.

Counterfeiting (short-term threat)
In order to fight the growing counterfeiting, Louis Vuitton must keep working closely with the custom services, giving clear descriptions on the shipping and authorizing regular thorough check of it. Another way to avoid a part of counterfeiting is to educate people in recognizing an original LV item from a counterfeited one. In few cases, the illegal purchase is not conscious and is the result of ignorance.

Foreign competitors (long-term threat)
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BIBLIOGRAPHY/REFERENCING
Chinese future competitors will bring a new luxury, based

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