LOUIS VUITTON MARKET POSITION
Louis Vuitton Malletier (commonly called Louis Vuitton) is a worldwide known French luxury brand, created in 1854, by Louis Vuitton. The main products are trunks and leather goods, ready-to-wear, shoes, glasses and jewelry. The LV monogram, used on most of the products, is highly recognizable, and is a main part of Louis Vuitton’s success.
Competitors (current threat)
Louis Vuitton has to face a fierce competition on the European luxury market. With 3.06 billion euros of net benefits in 2011, LVMH doesn’t fear the Eurozone crisis, and is the most valuable luxury brand. However, some competitors are targeting the same segment. The second most important brand, Hermès, is well-known for its leather goods, such as bags and belts. Gucci, the third, target the dandies and the nouveaux riches, like Louis Vuitton main line product. The three leading luxury brand are direct competitors.
Counterfeiting (short-term threat)
Louis Vuitton is the most counterfeited brand in the world. Every year, millions of Euros of fake items are sold illegally, cutting down the monogrammed brand’s benefits. This shortfall is not currently a problem for the giant of the luxury industry, but giving the economic situation in the Eurozone, and despite a full cooperation with the custom services, the counterfeiting is likely to increase (Nargis Namazi, 2010), and soon become a real issue.
Foreign competitors (long-term threat)
The two biggest markets for Louis Vuitton are currently the Europe, where most of its actual competitors come from, and the Asia. So far, Chinese are more luxury consumers than producers, but with the development of the country brought the development of local luxury brand. So far, those brands are not a threat in Europe, because Louis Vuitton targets clients who like to show off, and an unknown logo would...
Chinese future competitors will bring a new luxury, based on their traditions. Louis Vuitton must use its long history and its French identity, to keep its market position. Its creation by a French man, more than 150 years ago, gives it a psychological advantage of trust, quality and style, as well as a strong brand personality. LV must also provide a strong add-value, such as its actual store concepts, packaging, and after-sale services.
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Most powerful luxury brands. Available at: http://www.luxurydaily.com/louis-vuitton-hermes-and-gucci-top-list-of-10-most-powerful-luxury-brands/
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Increasing benefits. Available at: http://www.lexpress.fr/actualites/1/economie/lvmh-benefice-et-ventes-bondissent-au-premier-semestre_1143127.html
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