Professional Documents
Culture Documents
LOUIS VUITTON
IN INDIA
January 2008 :
Open new store in India, 3rd in this country at
Luxury Mall in New Delhi
Plan to moving from protective environment
luxury hotels to two stores LV established in
India
Targeting from "Super rich traveller" to "next
lower level"
1854
French Craftsman invented flat-topped trunk
1987 LV merged with Moet Hennessy, French wine maker to form LVMH Gorup
EUROPE VS US MARKET
DNUORGKCAB YNAPMOC
Europe
LV thrived in Europe because attitude towards luxury that formed aristocracies
ruling elite that only chosen few to feeling exclusive
European luxury brands did not have price points aimed capturing consumer
at various levels
US
US market with democratic roots that luxury is for all
They had product lines that allowed luxury "nibbling"
2000 90' acquisition by targeting heritage brands thats make LV have 60 brands with Four Business
segment : Fashion & Leather goods, wines & spirit, watches & jewellery, perfume & cosmetics
LV as pioneering travel brand that flagship company fashions & leather goods generated over half
groups profits. The segment include : Fendi, DKNY, Marc Jacob, Celine, Kenzo, Givenchy, Pucci, etc
.Distribution was tightly controlled, sales was strong with that only 5 units of a product to sell to a
customer
14 productions : 12 in France and once each in Spain & California with modern tech but skills
individual artisans, focused in craftsmanship not in mass production
2007 2.048 stores worldwide, 71.885 employees, 74% were outside France in network North and South
America and Asia Pacific.
Listed in NYSE with sales revenue consolidated 16,5 billion euro, and net profit 2,3 billion euro of
ending Dec'07
ENTERING INDIA
P
U
L
D Mahal Palace and Tower Hotel
A
R O Drawbacks:
C
P
E
Used promotional Indian cities do not have high
brochures. streets
Invitation for special Specialty store is limited
viewings of its products Indian infrastructure is not ready
P
R
at select gatherings Limitation of space
O
Offers personalized E Price of rental cost is high.
M
2003 : I C
R
O
tours of company’s
P
T
private museum
IO
PROMOTION PLACE
25% 25%
Do not rely on
N
INDIA conventional media of The price is high to
print and television create exclusivity and
Using viral marketing distinctive to other
LAUNCH Word of mouth people
INDIA MALL CONDITION
Unofficial statement of new malls coming up, by
LUXURY MALL 2010, at 300 malls. But not at all of them readily
attract luxury brand.
There is still not have the sense of synergy and
symbiosis that was integral to shoppling cluster
Federal government : 51% between mall management and store owners
ownership by a foreign enterprise
in a local retail venture of "single" WORLDWIDE LV CONCEPT
brand. Worldwide, the concept of LV store is the
Because of that encouraged Luxury Retail Cluster (LRC), usually in a city’s
global luxury brands to begin to downtown core. LRC can attract large enough
strategize their plan in Indian traffic, and allows luxury brand store to
market maintain the exclusivity of their brand.
LUXURY RETAIL
LUXURY MALL CLUSTER
LUXURY MALL VS PROS
PROS LRC Flexibility of Store design and
uniqueness
Less expensive to operate
Larger size of store Maintain exclusiveness
Can attract customers in large Visibility of Product
numbers CONS
CONS Limited LRC in India
Limited luxury mall in India Limited customer
Store design and layout not Very costly
flexible •
No opportunity for leisurely
window shopping
Didn’t guarantee quality
footfalls in the mall
WILL THE LUXURY MALL
CONCEPT WORK IN INDIA?
Existing,
WILL IT WORKS?
Louis Vuitton already have 2 store in Luxury Hotel :
1. The Oberoi Hotel
Expanding through Luxury
2. Taj Mahal Palace & Towers Hotel Store
mall include the posibility of
at Luxury Hotel has several lacks, including limited store space having a larger customer
(can not occupy more than 3,000 square feet), and the rental based that fit to the LV profile
cost is quietly high.
of target market
First Luxury Mall will be open in New Delhi, build by DLF Ltd.
Luxury malls offer a different experience than luxury hotels.
Luxury malls can invite large numbers of visitors, and customers
already segmented themselves. The store itself has more space
and luxury malls will offer the same ambience at half price. So,
compared to adding stores in Luxury Hotels or creating stores
in LRC with high investment costs, Luxury mall can be the best
alternative for LV.
HOW SHOULD LV TRIGGER
THAT FEELING AMONG ITS NEW
CLASS OF CUSTOMERS? WILL IT WORKS?
LV needs to identify, developed and nurture a new generation Luxury brands in
of luxury from scratch. They can use Marketing Strategy such as
community was not merely
:
Brand awareness : The goal is to make "new elite" aware of
about consumers having
the brand the money but about their
Exclusivity: To show that Louis Vuitton is a premium brand having a taste for good life
that distinguishes the target(super rich and the near rich)
and a feel for a lifestyle
from other lower tiers of the population
Brand Mantra : ‘I have succeeded’, ‘I made it’ – this theme will
give the sense of achievement for those who aspire to own
one Louis Vuitton
2. ECONOMIC 3. STRATEGIC
1. REGULATION
CONDITION LOCATION
Economic development 266.5 million people out of Indian cities do not have high streets
characterized by government 1.08 million in India live in Specialty store is limited
ownership of economic poverty. Indian infrastructure is not ready
assets 87 percent of population Limitation of space
Maharajahs lost traditional lived on income less than Price of rental cost is high.
hold in post as they lost their $2.5 per day Real-estate entrepreneurs planning to
titles and riches with develop luxury malls but have little
abolition of annual financial experience in retailing much less luxury
grants retailing (common infrastructure)
4. WHY DO LUXURY GOODS MARKETERS FORM RETAIL CLUSTERS?
Retail Cluster especially for Luxury Product (LRC) very effective because location is in the middle of the city
(city’s downtown core). Then, at LRC there are so many types of luxury products that allow customers to shop
for several products at one time. LRC also offers a convenience for companies in designing their stores, while at
the same time being able to maintain the exclusivity of its products.
Question 5. WHY DO CERTAIN LUXURY BRANDS LOOK
FOR STORE LOCATIONS IN LUXURY HOTELS?
Advantages :
The best start in hotel, because in any cities, a hotel is a gathering point for society and hub for those who traveler.
Another consideration is opening store in a hotel to be a cost effective solution versus stand alone stores.
Disadvantage:
The limitation space that store could not occupy more that 3.000 square feet.
The preassure of demand for space in luxury hotel pushed up rental cost in India twice the global average of 10
-12% of total cost