Louis Vuitton Moët Hennessy- is the world leader in the market of luxury products. Its net revenue in 2005 reached €14 billions and it employs 59 000 peole. As for its retail network, all over the world, more than 1700 shops have been opened. Indeed, the Group is present in 12 countries in Asia (excluding Japan). Thanks to its strong brand identity, the company has developed an international expansion. Bernard Arnault is the Chairman of LVMH. Although it was established in 1987 and enjoys an exceptional reputation as a world leader in luxury goods, the Group has realized a very quick growth thanks to its brand development strategy and the expansion of its international retail network. In Asia, it is Christian Dior which shows the greatest performance and its success has grown since the synergy with Christian Dior Couture. It has benefited from many innovations, new launches and the strength of its major classic products. For example, on the skincare segment the launch of the new Capture has been a real success. On the make-up lines, Diorskin, Collection and Backstage product lines have especially contributed to enhance the growth.
[...] Indeed, the fame of Louis Vuitton reinforced this summer with the opening of the Maison des Champs-Elysées in Paris is worldwide. We can find many Chinese and Japanese people walking on the Champs-Elysées and queuing in front of the Louis Vuitton shop in order to buy bags and wallets. And as a quota was put in place for Chinese people, they are even asking illegally local people to buy bags for them in exchange of some commission. Hence, China represented a huge potential of opportunities that LVMH must not pass through to develop its international expansion. [...]
[...] Fred celebrated its 70th anniversary by the launch of a unique collection of pearls and coral and the brand continues its expansion in Asia with the opening of new stores in Japan and Korea. Hence, we can notice that despite the new import tax on luxury watches introduced by China, many luxury brands keeps expanding their position. Tag Heur, Dior and Zenith for instance continue to develop strategic plan to strengthen their position through targeted point-of-sale openings and negociations with local partner about their distribution network. [...]
[...] Large advertising campaigns were realized and famous stylists such as John Galliano for Christian Dior, Marc Jacobs for Louis Vuitton . were called to join the Group. Innovation was on the agenda too: new lines and products were regurlarly launched (Cherry Blossom, Suhali from Louis Vuitton . Moreover, Bernard Arnault emphazised the principle of selective retailing. Indeed, luxuries firms tend to develop their own retailing channel by opening prestigious shops such as Maison des Champs Elysées. Today, faithful to its innovation and brands strenghtening policy, LVMH keeps making huge investments in opening new stores and launching new products and lines in emerging markets that show great potential. [...]
[...] For example, in June 7th 2006, was organised the first Louis Vuitton fashion show in Asia (more precisly in Tokyo in Japan). It was an important evenement because it was the first show outside Paris and the first time that a luxury brand made a real show in Asia. So one more time LVMH has an advantage on its competitors. It joins another point which is the good communication and image of LVMH in Asia. LVMH thus tries to be always closer to its clients. [...]
[...] Internal analysis of LVMH Strenghts Brand recognition: LVMH and especially Louis Vuitton is the more famous and popular luxury brand in Asia. So there is a high brand awareness and a good image. Leading position : LVMH is the leader of luxury goods in Asia. It is the world's largest luxury-goods maker. High quality products: LVMH focused strongly on the quality of thier products. They have a high level of autocontrol, they have high quality materials and most of their products are hand made and are produced in France or Europe. [...]
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