ENVIRONMENT ANALYSES

3. Global/Regional economic environment
Purpose of analysis: The economic environment consists of economic factors that affect consumer purchasing power and spending pattern. The economic environment can offer both opportunities and threats.
No company can avoid the influence of fluctuations in the global economy. And when you're in a developing market, the understanding of the economy is essential. Some elements of the economic environment (The divide between rich and poor purchasing power differences in social class, the market area, the stage of the economic cycle, the volatility of prices of some items such as gasoline, oil, gold) directly affect the purchasing power and consumer tastes, which determines the business results of the company.
Changes and effects: * Opportunities:
Living up to the world is big opportunity for LV. An increase in the wealthy class can lead to an increase in the ability to pay for items worth far as Louis Vuitton wholesale. For developing countries, previously, LV is a luxury item and overly almost can rarely afford. In Vietnam, the first store opened in 1997 is challenging and adventurous with LV. But back here in 2005, Vietnam had LV is developing very fast. Vietnam's economy is booming. Vietnam Consumers spend money more and more for the product on the essential. They enjoy life, travel overseas, go to theaters and fancy restaurants. The country has now opened the door, people know more about the fashion trends through magazines and media. So the fashion industry is developing rapidly. Yves Carcelle, President of Louis Vuitton Malletier Corporation, commented "We believe that Vietnam will continue to grow and will become a major market for luxury goods brand in the coming years. Less than a year or two more, on Dong Khoi Street, Ho Chi Minh City will be the 5, 6 store brand.Take a look at the