LVMH's Most Profitable Brand Louis Vuitton: From the Commons to the Aristocracy

In 1854, the poor kid Louis Vuitton, a French carpenter family, ended his service in the French court and founded his first leather goods shop in Paris. From then on, Louis Vuitton, a brand that came to bequeathed to the nobility, was born. How does this brand become a household name? Let us now enter the luxury world of Louis Vuitton.

More than 1,500 stars, 1,500 bottles of Kaige Champagne, 15,000 snacks, and French foie gras and Beijing roast duck. In Beijing Guomao, the mall that assembles the top brands in China, the most prominent location has been occupied by Louis Vuitton. This is the second flagship store opened by Louis Vuitton after Shanghai Plaza 66 in the Mainland. This symbolizes Louis Vuitton. Deng Yi clothing and apparel series officially unveiled in Beijing.

Louis Vuitton leather goods is the most dazzling star in the brand's product line. In addition to its impeccable perfect workmanship, it is another place that people can not put it down to. It is precisely because of this that there are reasons why fashionistas around the world are competing to pursue it. From the beginning of the design to the present, the canvas bag with the unique "LV" logo, which is a unique interlaced letter pattern, has become a fashion classic along with rich legendary and Athens designs.

The secret of Louis Vuitton's success lies in its combination of its long history and avant-garde fashion. In 1997, the New York artist Marc Jacobs was the director of Louis Vuitton's artistic director. He first launched a series of subversive “grass bags” and then cooperated with Japanese artist Takashi Myrakami to re-interpret Monogram... behind the hot sale, Louis Vuitton. Deng created a 45% high profit. Last September, Louis Vuitton opened its second brand new concept store in Taipei 101. One large brown balloon with the words “LV” printed in gold floats in the atrium of the 101 building and can be seen far away from them; the crowd waiting to enter the market is from morning to evening, and is rowd up. The longer it takes, the average waits an hour before it can enter. To celebrate the opening of the limited-selling iPod exclusive leather case, a price of more than 10,000 yuan, more expensive than an iPod mini, but like a clearance sale, like a day All sold out.

At present, Louis Vuitton, part of the LVMH Holding Group, merged with Moet & Hennessy in 1986 and was subsequently acquired by LVMH Holding Group. The company has more than fifty companies including Chriatian Dior, Givenchy, Chanel, Celine, and Fendi. A brand that spans the fashion kingdom of clothing, jewelry and wine. In 2003, LVMH had a revenue of 12 billion euros (approximately US$16 billion) and a profit of 730 million euros (approximately US$960 million), of which Louis Vuitton accounted for 60% of the group’s profit. The gross profit of a single brand is as high as 45%. Bernard Arnault, chairman of LVMH Group, revealed that since he bought Louis Vuitton in 1989, sales of the company have increased five-fold, gross profit has also increased six-fold, and share prices have gradually climbed since Marc Jacobs took over as artistic director. , The highest ever reached 100 euros, is currently 60 euros per share.

However, Louis Vuitton is not without its drawbacks, at least one of which is the high proportion of sales in the Japanese single market. According to the US Business Weekly report, Louis Vuitton’s 47 stores across Japan contribute up to 55% of its operating income each year. In response, Morgan Stanley, the U.S. investment bank, issued a profit warning, although Louis Vuitton sued the French court and the court finally ruled that Morgan Stanley must pay damages of 30 million euros. Deng Ting is indeed an alert.