LMVH in China: building its empire of desire
1. Why is LVMH so successful in China?
In my opinion LVMH is so successful in China first of all because their prices and glamorous prestige is reflected onto its customers and the Chinese luxury customers value being recognized as wealthy elites having a high social status. Secondly, ever since their opening LVMH had an exclusively unique heritage and craftsmanship, that made the brand so attractive for the customers. Another reason why the Chinese people love Louis Vuitton is the fact that having an overcrowded and communist society they feel the need to be noticed, to be perceived as different. That is the point that Louis Vuitton knew how to exploit in order to make them feel unique and special, feeding their ego and self-esteem.
The Louis Vuitton success in China is reflected by the survey that was held regarding the luxury products, where it was place either on the first or second place of the tops, but also from the fact that more than a third of the revenues comes from Asia. Not in the last line it is mentioned in the given text that Asia sales registered a huge raise of 27 % in time of only 4 year, starting 2008.
2. Louis Vuitton is LVMH flagship brand. Much of Louis Vuitton’s appeal is that it bestows exclusivity on its owners. In the last few years, however, the Louis Vuitton logo has been applied to handbags and accessories at an unprecedented rate. Discuss the challenges to the value of the brand as LVMH responds by introducing more luxury handbags and accessories without displaying the logo. In my opinion the response of LVMH by not displaying the logo of the brand any longer is a really good one, because the main reason why its customers stay loyal to the brand is the feeling that by wearing their products, they become part of the elite, the have a higher social status and they can be perceived as different, unique entities. Being in the possession of a LVMH product means having an added...
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