...Introduction What are luxury fashion products? Firstly, it should be expensive. Then, they are not necessary goods and the demands of goods are based on purchasers’ wealth. Finally, these products must keep up with fashion. In recent years, online shopping has become a fashion trend. Most people choose to purchase products on the Internet. However, what effect will be happened when luxury fashion products combines with e-commerce. There are advantages and disadvantages of purchasing luxury goods by e-retailing as follow. Advantages For the e- retailer As we known, renting a shop or store is very expensive in current years, especially in the city centre. New Bond Street is now the most expensive retail location in Europe, according to a report. Shop rents rose to £536 per square foot per year. However, many exclusive fashion brands all set up in the street including Armani . As a result, fashion brand may have a huge cost to pay annually. E-retailing may change the situation. They do not need shop, only need to rent storage spaces, which is not necessary to rent in the centre. Therefore, the cost might be saved and used effectively. Furthermore, generally, every country has different styles of the brands. For example, Louis Vuitton launched a limited edition carry bag in the Europe, which cannot be purchased in other countries, only for European consumers. That means it is difficult to purchase the European style they prefer if they are from Asian. So this may less demand...
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...was formed in 1987 when Louis Vuitton, a leading luxury fashion brand, formed in 1854, merged with Moet Hennessy. Moet Hennessy had been formed in 1971 when Hennessy, a cognac manufacturer, merged with Moet et Chandon, a high end champagne producer. This formation of LVMH would signal the creation of one of the world’s most profitable and encompassing luxury goods conglomerates. In 1989, Bernard Arnault would enter the picture, become the major shareholder of LVMH and take up position as chairman. An entrepreneur and art admirer, Arnault had amassed a personal fortune in real estate and in other luxury goods markets before purchasing the majority share of LVMH. Under him, LVMH would grow exponentially, acquire even more brands, expand into new markets, and see unprecedented growth. By the late 1990’s to early 2000’s, the company would be posting net revenues in the billions of Euros, comprise some fifty sub companies, all of brand names synonymous with high end fashion and luxury, and have over 1,500 retail stores operating in every major market on a global level. LVMH became the parent company to some fifty sub companies across a variety of different product industries and types. All were owned by the same company, but most operated independently and, in some instances, were direct competitors of each other. Regardless, each company no matter how different had one thing in common; they all produced high end luxury products. LVMH operated five sub categories: wines and spirits...
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...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families...
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...The Luxury Evolution Every generation redefines its definition of luxury. How they relate to it or reject it. From the “more generation”, to the X, we have seen everything from conspicuous consumption to less is more. Each generation also redefines its relationship to luxury. The evolution of social, political and economic factors is just a few of the major defining elements in any generation’s approach to luxury products. How a particular group defines luxury is often influenced by the preceding generation’s relationship to it. Is it a coincidence that the lean, Generation-X “less is more” philosophy of the 1990’s immediately followed the Baby Boomer’s conspicuous consumption ideals of the 1980’s. No business lives or dies more by the definition of luxury, than the Cosmetics Industry. From mass to class distribution to direct sell, luxury is the name, of the game. Revolution or evolution, defining luxury becomes the bete noir as the baton is handed to each new generation The Cosmetics Industry lives on its ability to provide luxury goods (No matter the definition) more than any other. It is imperative that we not Only understand how varying market segments define luxury and thereby consume it, but equally important that we can predict how fresh and upcoming markets will define their unique relationship to it. As an industry we must ask ourselves, are we open to deconstructing traditional definitions of what constitutes luxury? What new requisites will tomorrow’s...
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...flat-topped trunk. This new trunk was different from its predecessors, the dome-shaped trunk, in that it was easier to stack and transport. For seven decades Louis Vuitton solely produced leather handmade bags. In 1987, the company merged with Moet Hennessy and diversified into leather accessories. In the mid/late 90’s the company received increasing pressure from Wall Street to sustain a double digit growth rate. In response Louis Vuitton began to look for opportunities to expand globally. Its focus quickly turned to infiltrating the Indian market. By 2008 Louis Vuitton had opened two other stores located in luxury hotels in India. These hotels provided easy access to LV’s targeted market, which was the “super rich”. Now the company was faced with another decision, to continue operation in luxury hotels or to expand into luxury malls. Up to this point, luxury malls were new to Indian consumers, creating a level of uncertainty for Louis Vuitton. In this case evaluation, we will discuss the impact of a high-end company entering a low income country. HIGH-END BRANDS IN LOW INCOME COUNTRIES A high-end brand, such as Louis Vuitton, can often find a market in a low income country. Sometimes the market is too small or too fragmented to pursue, but this is not always the case. Many low income countries have a very unbalanced social structure consisting of a large proportion of the population in or near poverty, a small middle class, and the remainder of the population...
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...affordable luxury market Mission: Ensure that the Coach brand remains a premier, distinctive and easily recognizable brand by delivering a consistent message to the customer through communications (coach.com, global e-commerce sites and social networking sites) and visual merchandising while protecting the brand from counterfeit goods Objectives * drive growth and increase market share by expanding their distribution channels to reach local consumers in emerging markets and leveraging the global opportunities * multichannel distribution model and increase global distribution * improve same store sales productivity and increase sales of products targeted toward men * build market share in North America, Japan through the addition of new stores * Raise brand awareness and build market share in underpenetrated markets such as Europe, Asia and South America * Anticipate consumer changing needs by being “consumer centric” through the use of extensive customer research and surveys to innovate to create customer and shareholder value * matching key luxury rivals in quality and style while pricing the goods at 50 percent or more cheaper than competitors Strategic Objectives Business Level Strategy * Product differentiation – “accessible luxury brand”. It can defend against new entrants since they have to surpass proven products; they also mitigate buyers’ power through the tiered pricing structure for its products * When products are well differentiated...
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...Table of content 1.0 Executive Summary 3 1.1 Objective 1.2 Vision and Mission 2.0 Company Summary 4 2.1 Background 2.1 Company locations and facilities 3.0 Products and Services 5 3.1 Product description 3.2 Competitive Comparison 3.3 Supply and demand details 3.4 Technology needs 4.0 Target Market 7 4.1.1 Target Market Segment Strategy 4.1.2 Market Needs 4.1.3 Market Trends 4.2 Industry Analysis 4.2.1 Industry Participants/Key Players 4.2.2 Main Competitor analysis 5.0 Strategic and Implementation Summary 10 5.1 Marketing Strategy 5.2 Pricing Strategies 5.3 Promotional Strategies 5.4 Distribution Patterns 5.5 Marketing Program 5.6 Sales Strategies 5.7 Sales Forecast 5.8 Sales Program 6.0 Web Plan Summary 13. 6.1 Website Marketing Strategy 6.2 Development requirement Reference 15 1.0 Executive Summary 1.1 Objective This paper will tend to provide a brief introduction of Louis Vuitton, the famous and high price and high reputation luxury brand product originated from France. Later, this paper will further investigate on the information regarding the company’s products and services (product mix) and its marketing analysis and industry analysis in general. The strategies analysis and implementation of the strategies will be demonstrated and website marketing strategies by the company will be discussed as well after the implementation of the strategies plan. Lastly, a brief conclusion will be provided...
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...how Vera Bradley began. Vera Bradley started producing colorful and unique pattered designs for luggage, bags, sports bags and handbags; and after the success of the first product line and their economic growth, they decide to expand, creating new products such as: wallets, purses, computer and cell covers, scarves, beach accessories, lunch bags and jewelry. The company growth was consistent until 2014 when the revenue of the company fell by 1% and the net income decreased around 15%. The customer traffic was declining and new customers were not buying Vera Bradley’s products anymore. After analyzing competitors, the industry, and the internal situation of the company, there are some recommendations that I would like to develop more in-depth to add those into a new strategic plan that can actually generate profit for Vera Bradley. RECOMMENDATIONS Recommendation 1: Decrease production of certain products on the existing line to have a limited amount of high quality handbags and accessories. Recommendation 2: Expansion of the distribution channels by opening new locations globally, especially Asia due to the growth in the luxury goods market there; and improving e-commerce. Recommendation 3: Make an improvement on their marketing strategy. Recommendation 1: Decreasing production of some products on the existing line to have a limited...
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...CASIO IN LUXARY WATCH INDUSTRY Market Analysis The mission of Casio's product development is to create something where there was nothing before - what Casio calls going from "0" to "1." By creating totally original products, Casio strongly believes that they add fun and convenience to daily life and pioneers new cultural trends. "Demand-creating" products, which Casio’s opinion will create markets of their own, produce economic and technological ripple effects. Strategic advantages of Casio in product development are realized by focusing on the following two core areas: 1. Superb product planning driven by accurate assessments of people's needs 2. Superior technologies to make products that meet those needs Competitive strategy in the luxury watchmaking industry: Per Michael Porter, the three fundamental competitive strategies for outperforming competitors in a long term perspective in luxury watch market are (i) differentiation, (ii) overall cost leadership and (iii) focus. These strategies are defined using the criteria of strategic advantage and strategic target. In order to implement these strategies correctly, companies need to develop different skills, gather particular resources and have an adequate organization of the company as in the following figure. Each of these strategy provide defense against the Porter’s five forces. Companies usually set one of these strategies as their primary target, but it is rare to find these strategies totally “pure”...
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...three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest player in the United States luxury handbag market is Coach with 36% market share. Coach is the second highest-selling luxury handbag retailer in Japan with 17% market share. The company is retaining as well as attracting new customers and growing the company revenues due to the wide variety and different price points which enables the consumer to have several choices. Coach further...
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...glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship Louis Vuitton store. When Louis Vuitton, the world’s biggest luxury-goods firm, inaugurated its huge shop in 2002 in the district of Omotesando, Tokyo, hundreds of people were queued outside...
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...reflecting the capability for correct and valid reasoning who find a solution to concerns or problems to make purchasing decisions (HOLBROOK and HIRSCHMAN, 1982). This model is questionable in terms of that it has a lack of attention towards the consumption phenomena where feelings effect the consumers behaviour. If we would consider the “consumption” of a luxury car, could we consider it from a information processing perspective? “Consumption has begun to be seen as involving a steady flow of fantasies, feelings, and fun encompassed by what we call the "experiential view."” (HOLBROOK and HIRSCHMAN, 1982: 132) This is where consumers “experience” by actual “consuming” the product (or service). There is a difference between “purchase / buying” and consuming. Consuming is simply “experiencing the product by actually consuming it” (HOLBROOK and HIRSCHMAN, 1982: 137). So the term “consuming” in the perspective of “experiencing” something is something far away from rationally thinking about something, information process is something that is far away from “feeling”. Information process model when it comes to purchasing/buying a luxury car would be based on different aspects that effect the decision making process of the individual that desires to buy that car. The access of information was never made easy. Now...
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... Sichuan Guizhou Source: China National Statistics Bureau, BBDO Analysis 3 As the economy expands and breaks into new ground… …the luxury category is also following suit -- it is achieving high growth simply by getting MORE PEOPLE TO BUY LUXURY GOODS FOR THE VERY FIRST TIME… 4 Luxury spending growth is driven by CATEGORY FIRST-TIMERS DECONSTRUCTING LUXURY SPENDING IN CHINA Source: Bain Luxury Market Survey – China 5 The crucial role of China’s BURGEONING MIDDLE CLASS % SHARE OF URBAN HOUSEHOLDS by income group (in RMB) % SHARE OF LUXURY CONSUMPTION by income group (in RMB) Source: McKinsey & Co. 6 How can they AFFORD LUXURY GOODS What is driving THEIR INTEREST IN LUXURY ? 7 China’ s middle class have a MINDSET THAT IS CONDUCIVE Optimism Ambition Loving of Life for luxury goods & services 65% feel their life will be better in the next 12 months. 42% say they work or study harder in order to succeed. 87% find it important to experience new things & enjoy life. Source: BBDO Voices 8 Their is a desire that is much stronger than THEIR EARNING POWER 49% 62% Say they long for luxury goods despite not being able to afford them right now. The figure specifically among 20 to 25 year olds. Source: TNS China 9 They SAVE UP for luxury products “ I thought about it for a very long time, and bought an LV bag. But my husband said if you carry it, others will think it is fake. But...
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...their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they can withstand wear and tear, and that there are no imperfections. The company markets its product through its own stores throughout the world and through company’s own website, LouisVuitton.com....
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...international markets such as China. This report analyses and develops the foreign markets for high end fashion. A company has been set up is called Ted Maker Ltd. The company is looking into investing in overseas with its business. The company is already an established company which sells accessories in the UK. This report will seek to develop whether or not the company should open a store overseas. With competitors opening new stores and an increase in new store development, competition in the market is getting high. This indicates that how critical it is to the chain to expand its product lines and operations, in order to advance a competitive strategy to expand the financial attainment in the high fashion industry. The report will be seeking to identify important facts and figures around the business to recommend the best course of action to expand the chain. This report seeks to provide an analysis of the luxury accessories store by undertaking a strategic audit. The report will consider going on to any feasible strategic possibilities in worldwide expansion. 2.0 Situational analysis 2.1 Macro and Micro Environment According to Bradley (2005), Pestle analysis is a measurement means to evaluate the environment surrounding the establishment (Bradley, 2005) Political Austerity in the UK has mainly impacted the UK low income market with low wages and fall in disposable income. The high taxes have hit the middle income market so the store will need to consider the consumer and...
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