Introduction
Moet Hennessy – Louis Vuitton better Known as LVMH is the worlds largest luxury goods group. LVMH control more than 60 brands
External Environmental Analysis
Pestle Analysis
Political factors Political decisions have a great influence on the world of watches. The latest decision by the Swiss central bank to freely quote the currency and the geopolitical tensions increase the problems for watch manufacturers in the Swiss country. The decision to end the minimum parity between the Swiss franc and the euro would make manufacturers of luxury watches face one of their most difficult years. For a sector that derives its appeal from the label "Made in Switzerland", local production becomes a growing headache of the costs of the manufacture of watches. It is certainly not good news that the Swiss currency is so strong for the company that …show more content…
For consumers in emerging countries, such as China, India, Brazil and Russia. If you include the purchases that these customers make in Europe, four out of ten top-end products sold every year around the world come to your hands. By 2020, the weight of customers from emerging countries will reach 60%. In fact, the purchases in Europe of this group are exploding, although, in the emerging countries, these big firms have their own points of sale. For example, at Queen's Road Central in Hong Kong, rent, according to Business Week, is vertiginous: European brands can pay up to a million Euros a month to ensure a presence in the shopping area. Why, then, do the Russians, the Chinese, or the Brazilians queue up to buy in Paris, London or Milan when they could go to the same luxury store next to their house? It is demonstrated that the consumer, when on vacation, is more likely to consume. The product seems more authentic and even more chic. Asians are no longer satisfied with copies. It is one of the great changes of the last 15 years: they demand the
Moet Hennessy – Louis Vuitton better Known as LVMH is the worlds largest luxury goods group. LVMH control more than 60 brands
External Environmental Analysis
Pestle Analysis
Political factors Political decisions have a great influence on the world of watches. The latest decision by the Swiss central bank to freely quote the currency and the geopolitical tensions increase the problems for watch manufacturers in the Swiss country. The decision to end the minimum parity between the Swiss franc and the euro would make manufacturers of luxury watches face one of their most difficult years. For a sector that derives its appeal from the label "Made in Switzerland", local production becomes a growing headache of the costs of the manufacture of watches. It is certainly not good news that the Swiss currency is so strong for the company that …show more content…
For consumers in emerging countries, such as China, India, Brazil and Russia. If you include the purchases that these customers make in Europe, four out of ten top-end products sold every year around the world come to your hands. By 2020, the weight of customers from emerging countries will reach 60%. In fact, the purchases in Europe of this group are exploding, although, in the emerging countries, these big firms have their own points of sale. For example, at Queen's Road Central in Hong Kong, rent, according to Business Week, is vertiginous: European brands can pay up to a million Euros a month to ensure a presence in the shopping area. Why, then, do the Russians, the Chinese, or the Brazilians queue up to buy in Paris, London or Milan when they could go to the same luxury store next to their house? It is demonstrated that the consumer, when on vacation, is more likely to consume. The product seems more authentic and even more chic. Asians are no longer satisfied with copies. It is one of the great changes of the last 15 years: they demand the