Luxury Goods Market in China

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Table of Contents

Introduction---------------------------------------------------------------------------------------2

History of Louis Vuitton------------------------------------------------------------------------2

Market trends-------------------------------------------------------------------------------------4

Marketing Strategy-------------------------------------------------------------------------------5

Marketing Objectives----------------------------------------------------------------------------6

Marketing Mix------------------------------------------------------------------------------------7 Product
Price
Place
Promotion

Market Analysis The Luxury Market In China-----------------------------------------------9

Reference----------------------------------------------------------------------------------------11

Introduction

Luxury goods are products and services that are not considered essential and are associated with affluence.The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies.on of luxury was limited to the elite classes.

This paper will discuss the development of luxury goods market in China and analyse the development and its future opportunities of Louis Vuitton, one of the world's most successful luxury companies, in China. Because LV is one of the most popular luxury brands in China and it can also represent the current situation of luxury goods market in China.

History of Louis Vuitton

Louis Vuitton (LV) is the world’s leading luxury brand. It is ranked number 1. It is also regarded as the leading brand of the LVMH group and the 1st world group of luxurious goods which were produced and distributed. This brand was created in 1987. LVMH earned worldwide sales of €16.5 billion in 2011 (+7.7%). This achievement has ensured and conquered competition with its revenues being three times greater than its follower Richemont Group. The group has been split into five core activities with a rich portfolio of over 60 brands. Fashion and leather goods constitute €5.6 billion sales which accounts for nearly 34 % of the group’s turnover. It is also this sector that stimulates the group’s growth engine. LV dominates the luxury segment by reaching a target of €1.659 billion turnover in 2006. Further, LV owns 405 stores. Its mission focuses on aiming at being the ’ambassador of the occidental art of life’, to be the symbol of elegance and creativity by realising its selling dreams crossing tradition and modernity. Hence, it frames its core values with concepts such as creativity and innovation, state-of-the art product quality, and an invaluable brand trademark appeal. The high dynamism of the global group is driven by the exceptional appeal of the LV branding, its efficiency in strategic development, and a long standing presence worldwide. Credit goes to factors such as the strong organic growth, innovative and creative product development, the influential and impact driven communication means and messages on luxury voyage and thematic ideas, the French prestigious lifestyles, the authentic know how and the well managed distribution network. All these factors have fuelled LV’s dynamism.

The company founded in the late 19th century, manufactures luxury leather products throughout the world. The products that are sold have the very popular LV logo on the actual leather and makes it as popular as any brand name in the world. The company only markets its products through its own stores throughout the world, this helps control pricing, quality and profitability, it also helps eliminate copies or fakes to be sold in smaller boutiques. The company only has one retailer that it sells it products through, Neiman Marcus.The founder began by selling signature trunks in Paris, since then the brand is considered...
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