Louis Vuitton

Background LV:

Louis Vuitton was a French fashion designer and skilled craftsman and he established his
eponymous brand in Paris in 1854. Vuitton started his career making trunks for Napoleon III's
wife, the beginnings of his career in an artisanal industry that called upon skills to custom
design boxes and, later, trunks according to clients’ wishes. Louis Vuitton stayed for 17 years
before opening his own workshop at 4 Rue Neuve-des-Capucines near the Place Vendome. The
Louis Vuitton label was founded by Vuitton in 1854 on Rue Neuve des Capucines in Paris,
France.
In 1886, Georges Vuitton revolutionized luggage locks with an ingenious closing system that
turned travel trunks into real treasure chests.

How old is LV?

It almost 169 years since 1854

What is so special about Louis Vuitton?

Authentic Louis Vuitton bags are handmade from experienced craftsmen who take pride in
producing impeccable products from only the finest and highest quality materials. The brand is
synonymous with luxury, exclusivity and high-quality which create high demand in the market
for its products.

The popular handbags in history of LV:

Louis Vuitton Sac Plat: The Louis Vuitton Sac Plat was first launched in 1968 and resembles a
shopping bag. Similar to the Keepall, the original design was meant to be folded in your luggage
and used once you reached your travel destination.

Louis Vuitton Speedy: The Louis Vuitton Speedy was first introduced in the 1930s but remains
one of the most recognizable and popular styles of all LV bags. The LV Speedy purse was
designed in response to advances in public transportation and the new need for a compact
lightweight bag that was also large enough to hold your daily necessities.

Louis Vuitton Noé:

The Louis Vuitton Noé was created in 1932 to carry bottles of champagne without breaking the
bottles and is the second oldest Louis Vuitton purse launched by the brand. but in 2013 Louis
Vuitton introduced a smaller version labeled BB and in 2015 an even smaller size called the the
Nano Noé and both can be used as an LV crossbody purse.

Comparative advantage of louis Vuitton

Introduction Louis Vuitton (LOUIS VUITTON) is a French fashion house created in Franch in
1854. LOUIS VUITTON mostly famous for its craftwork leather bags and trunks. LOUIS VUITTON
Also called as Louis Vuitton Moet Hennessy (LOUIS VUITTONMH) after merger with leading
manufacturers of champagne and brandy Moet et Chandon and Hennessy in 1987. Louis
Vuitton is one of the world most valuable luxury brands for a seventh consecutive year, which
worth billions of dollars.
Quality craftsmanship, heritage, and history are key factors of success for the luxury brand. The
LOUIS VUITTON brand and the famous LOUIS VUITTON monogram are also among the most
valuable brand that creates competitive advantages. Japanese consumers are among the
world’s biggest. Since most Japanese females are beauty-conscious, the LOUIS VUITTON design
can help Louis Vuitton regain the profits and the market shares. Besides, in this case, providing
limited editions is another good way to stimulate consumption. consumer’s loyalty in Japan, as
it is stated in the case that Japanese consumers had been holding the desire for inexpensive
luxury products from Louis Vuitton. LOUIS VUITTON can also use this opportunity to sustain
profitability in Japanese market rather than just survive.
LOUIS VUITTON should strive to make “inexpensive” products by increasing the value of
products, lowering the costs and prices, and finally creating high value for the consumers. As
the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis
Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own
online business since it can both add selling channels and empower the company to fight,

Japanese fashion luxury market contributes a lot to the success of LOUIS VUITTON. Japanese
women were conscious to beauty and willing to purchase things that could be considered
beautiful. Second, Japanese people are known for value and social status, they use luxury
goods to express their social position.

How LV Competitive with the same industry?

They try to improve their brand image and produce high performance, so that it can generate
high income and profit. As a company that started as a family business and has now developed
into a company that makes major corporate acquisitions, LV has two major

competitors in the same field, namely Kering and Richemont. In addition, other independent
brands are also included in their competitors, such as Hermes, Burberry, Channel, Ralph Lauren,
Coach and Prada Group. Therefore, the competition in the luxury brand industry is relatively
high. They don’t care how small market because LV only targets high class societies with high
income so that the influence is not large. Furthermore, the bargaining power of supplier factor is
also considered low, because LV deals directly with their suppliers for low prices with good
quality. The last factor is the relatively high threats of substitute products, because these
substitute goods can come from competitors and the existence of counterfeits that can damage
the unique value of the brand.

LV Strategic plan to achieve Competitive advantage

LV is applying both differentiation leadership and differentiation focus. They develop both
strategy and making it a hybrid strategic competition to compete.

The combination between those two strategic plans,

First: LV using differentiation leadership as they are doing strong research and development so
that they can put innovations into their diverse products and services with such superior quality
and more attractive that can strengthen their brand image to achieve competitive advantage.

Secand: using differentiation focus which they are in oligopoly industry with a niche market and
are targeting a group of customers that has different set of needs than other market populations.
They advocate incorporating an image of elegance into their brand while they are constantly
innovating on not only their products, but also their services and distribution channels including
sustainability integration, celebrity collaboration, environmental impact, and many more.