Swot Analysis Louis Vuitton

Topics: LVMH, Louis Vuitton, Luxury good Pages: 6 (1840 words) Published: January 6, 2013
Strengths :
Louis Vuitton’s quality reputation: they qualify themselves as a traditional brand( long history) and as the largest producer of Luxury Goods . they tend more recently to become creative . Consumers across the world : European countries (21% , United States but also a new emerging market in Asia (27% in 2011) *

Bernard Arnault named Marc Jacobs in 1997 as an artistic Director of Louis Vuitton Marketing with different star icons : Gisele Bundchen ,Gorbatchev , Caterine Deneuve, Bono , Keith Richards , Madonna => helps to identify to the product . Project an image of the product. They sell their product only in their own stores , in Paris , London , New York , Asia ( new Chinese store opened in Shangaï ) called « maisons ».This permits to stay leader in the sell of their product ,and avoid any discount sales , or promotion of their product. Tight Control on the quality, and the sell of their product . Personalize your own wallet, bags and other leather goods : «  Mon Monogram » . It adapts its design to consumers’ tastes.

Louis Vuitton continue to explore new markets , THIS will enable Vuitton to continue producing double-digit growth for years to come: They opened their first shop in Latin America : Sao Paulo , another store in China in Shangaï( 39 boutiques in China others in Beijing, Changchun…).=> aims at projecting exclusivity for top-ends costumers . Being too accessible can lead to “banalization,”  The Paris company, which doesn’t anticipate a slowdown in second-half sales in China, plans to protect its image by limiting store expansion, opening at most 20 shops worldwide in the next five years, he said. *

Growth of 17% for the clothes and bags => Growth of 25% for the whole group in April 2012. Online website which allows customers to buy Louis Vuitton products everywhere in the world. Vuitton sells reasonably priced handbags—the smallest Speedy Bag costs €430 in Paris *

Weaknesses :
Louis Vuitton even though try to be creative with the new designer Marc Jacobs , remain very classic , and don’t update their collection. ( collection of last year inspired by nazism, inspired by the movie the porter … , constant evolution, pushing too far) They sell their products at very high prices , their customers represent a certain elite . They tend to target rich and wealthy customers. They don’t do discount sales

Were it not for Vuitton, estimates one analyst, LVMH's sales would have fallen by 3% in the first half of 2009 and profits would have plunged by 40%. In normal times Vuitton contributes about half of the group's profits, and most of the rest comes from Moët Hennessy. In the first half of this year, however, Vuitton contributed an estimated 70% of profit. That leads some people to question whether LVMH is overly dependent on the leather-goods firm. *

Threats of New Entrants of Luxury Industry in Emerging Markets : Lancome ,Gucci , Chanel… *
Banalization of Louis Vuitton but it is difficult to reach the brand. *

Opportunities :
Louis Vuitton even though is traditional and reliable , needs to extend its product range : as it started for its personalized products line « mon monogram » Possibly endorse their products in movies : as they do for the movie Charade with Audrey Hepburn. REPOSITIONING :  Vuitton has since rapidly established a strong position in what it hopes will become another Japan: China. “The Chinese consumer is in a love affair with the Vuitton brand,” says Ms Flouquet. According to LVMH, in the first half of 2009 sales to Chinese people (at home and travelling) made up 18% of Vuitton's revenue. Despite widespread concerns about counterfeiting in the country, the Chinese are now Vuitton's biggest customer base after the Japanese.


Threats :
Counterfeit : there are lots of fake products in the market , being passed on as Louis Vuitton. Bernard Arnault CEO of LVMH wanted to get his fortune out of France in order to avoid taxes . This...
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