Louis Vuitton Introduction:
Louis Vuitton was established in Paris in 1855. For more than a century Louis Vuitton has dominated the luxury goods industry. In 1987 Louis Vuitton merged with a spirits, champagne, and perfume group Moet- Hennessey to form LVHM. Louis Vuitton is a global leader in a variety of luxury categories such as fashion and leather, wines and spirits, perfumes and cosmetics, and watches and jewelry. The LVMH group has traditionally excelled in markets such as Europe and the United States because both markets characteristically have a big population of high-income consumers. However, given that India is a developing economy, the success of Louis Vuitton in India is difficult to predict. The analysis of Indian luxury goods’ …show more content…
Louis Vuitton maintains an overall advantage over its peers through continuous focus on product quality (Kotler, 2002). All products are tested to make sure that they can last for a long time and can withstand wear and tear. It uses a good mix or machines and handmade craftsmanship into their products to increase productivity, to maintain high quality and still to hold on to the tag of handmade quality. To maintain high quality image of the products the company maintains a pricing integrity strategy. Using this strategy, a Louis Vuitton product is never put on sale. Customization of products such as personal engraving adds to exclusivity for its products. To be consistent with their products the company sponsors elite sporting events like motor sports in an effort to match the target audience tastes. To maintain its luxury brand image Louis Vuitton spends over 10 % of its sales for promotion and advertising (Kotler, …show more content…
It is about having the combination of other elements such as a cluster of luxury brands and the ambience that make it happen. This is the concept followed by Louis Vuitton worldwide. Lots of the Louis Vuitton stores around the world are part of Luxury retail clusters (LRC). Luxury retail cluster is usually spread over several blocks, usually in a city’s downtown. There are several advantages of Luxury clusters. A big advantage is the store space is usually big enough to accommodate the store decoration. A store’s image is reinforced by the image spillover of the neighboring store. Luxury retail clusters generate scale of economies from the number of customers that visit the cluster and also generate scale of economies from the point of view of the number of products available across all brands at one place for customers on a single visit. Some of the popular luxury retail clusters in the world are Fifth avenue in New York, and London’s west End, has a cluster of 300 global luxury brands. In cities that do not have luxury retail clusters, Louis Vuitton operates in luxury malls. Luxury mall is a collection of stores in a common infrastructure sharing facilities. One big drawback with luxury malls is it limits the store design and layout because of the space limitations. The window shopping opportunities are also limited compared to luxury retail clusters. In India, Louis Vuitton started with operating in five star
Louis Vuitton was established in Paris in 1855. For more than a century Louis Vuitton has dominated the luxury goods industry. In 1987 Louis Vuitton merged with a spirits, champagne, and perfume group Moet- Hennessey to form LVHM. Louis Vuitton is a global leader in a variety of luxury categories such as fashion and leather, wines and spirits, perfumes and cosmetics, and watches and jewelry. The LVMH group has traditionally excelled in markets such as Europe and the United States because both markets characteristically have a big population of high-income consumers. However, given that India is a developing economy, the success of Louis Vuitton in India is difficult to predict. The analysis of Indian luxury goods’ …show more content…
Louis Vuitton maintains an overall advantage over its peers through continuous focus on product quality (Kotler, 2002). All products are tested to make sure that they can last for a long time and can withstand wear and tear. It uses a good mix or machines and handmade craftsmanship into their products to increase productivity, to maintain high quality and still to hold on to the tag of handmade quality. To maintain high quality image of the products the company maintains a pricing integrity strategy. Using this strategy, a Louis Vuitton product is never put on sale. Customization of products such as personal engraving adds to exclusivity for its products. To be consistent with their products the company sponsors elite sporting events like motor sports in an effort to match the target audience tastes. To maintain its luxury brand image Louis Vuitton spends over 10 % of its sales for promotion and advertising (Kotler, …show more content…
It is about having the combination of other elements such as a cluster of luxury brands and the ambience that make it happen. This is the concept followed by Louis Vuitton worldwide. Lots of the Louis Vuitton stores around the world are part of Luxury retail clusters (LRC). Luxury retail cluster is usually spread over several blocks, usually in a city’s downtown. There are several advantages of Luxury clusters. A big advantage is the store space is usually big enough to accommodate the store decoration. A store’s image is reinforced by the image spillover of the neighboring store. Luxury retail clusters generate scale of economies from the number of customers that visit the cluster and also generate scale of economies from the point of view of the number of products available across all brands at one place for customers on a single visit. Some of the popular luxury retail clusters in the world are Fifth avenue in New York, and London’s west End, has a cluster of 300 global luxury brands. In cities that do not have luxury retail clusters, Louis Vuitton operates in luxury malls. Luxury mall is a collection of stores in a common infrastructure sharing facilities. One big drawback with luxury malls is it limits the store design and layout because of the space limitations. The window shopping opportunities are also limited compared to luxury retail clusters. In India, Louis Vuitton started with operating in five star