Louis Vuitton: Empire of Desire

Louis Vuitton Empire of Desire
  The world's largest luxury goods group, the next will do?
  June 2, 2012 | Paris | excerpt in the officially published version
  French luxury goods produced by the tradition can be traced back to the court of Louis XIV era. The sun king who Versailles Palace sponsored a lot of useless odds and ends to create handmade artisan industry, let them make some ébénistes (cabinet),   tapisseurs (small objects), menuisiers (wood crafts), and whatnot. The king in today's successor to the case of Bernard Arnault deserved. Bernard. The Arnot Mr. is currently the world's largest luxury goods maker Louis Vuitton Group's chairman and CEO, is also the largest controlling person. In the past 25 years, he personally will be a weak state, garment enterprises to the brink of collapse into a business owns 60 well-known luxury brand giant. Swiss Bank predicts that the Louis Vuitton this year's total sales will reach 27 billion euros (about $ 33 billion), 2011 total profit of 3.5 billion euros, while its market value reached a staggering 620 million euros. Obviously, compared to other luxury brands, Louis Vuitton and more money. "Louis Vuitton is like a mini version of the German" an insider such a boast that. Like Germany peculiar those Wal gone in small and medium-sized enterprises, the LV acclaimed craftsmanship and first-class quality always makes people happy to pay more money to buy them. They are between the biggest difference is that the former does not produce the full product of growing up in a materialistic atmosphere, while the LV? It is made ​​is such as champagne, handbags and the like synonymous with desire (see table above).

  The transformation of the art of luxury goods industry

The magnificent architecture of the business empire of Mr Arnott has stimulated a wide range of sales growth. Boston Consulting Group, this study found, the size of a retail brand for every doubling its various business spending (such as advertising, rent, staff salaries, etc.) will be reduced by 30%. HSBC analyst Irwin Lamb Berg pointed out that this is not Mr. Arnault kept in mergers and other brands of reasons. He did so the real reason is that he is a firm belief driven, he is convinced that he can control all of the luxury brands and they are bigger and also maintained a firm's sales. His record is indeed confirmed his view. For example, in 1984, he bought was in a bad situation of the French fashion brand Dior. Dior founder of the naming rights of the brand's four spam pajamas all kinds of rotten Street goods, from sunglasses to have, which led directly to cheap for this brand. Mr. Arnott, with ten years to buy back 350 of title license. In order to restore the past glory of Dior, he hired a distinguished designer John Galliano. Mr. Galliano would soon fall from grace, but Dior brand revival, and the operating profit is getting higher and higher. But sometimes, Mr. Arnault also for their generous pay a small price to pay. Cosmetics brand Sephora and DFS duty-free shops in the Louis Vuitton they bought after losing money (between 1996 and 1997). The trend of the brand Celine (Celine) and KENZO is suffered years of losses. Arnott has spent several years to solve these problems, which he fell a few times and fallen. The first Sephora store always seemed too much to the supermarket, suddenly put the brand's style to pull down. In 2003, Mr. Arnault to assign the former manager of the Staples Center and suppliers Jacob Levy as Sephora European region CEO. Mr. Jacob, the size of the major brands of store were reduced to turn to each of the shops have joined the beauty nail center and beauty salon, and large-scale introduction of a variety of beauty products for this brand. With DFS, Sephora today's sales performance is very good. LV each brand of its subsidiary's sales were not disclosed, but analysts estimate the brand of the loss of up to only five. Arnott Mr. may not be willing to admit it, but in fact his body in a new brand so recklessly gamble another important reason for that is his business empire, is still too dependent on the identity of that outsize. Louis Vuitton, that so many people dream of the "LV" logo of the brand printed on each bag and belt, exclusive of this vast business empire for 37% of the total sales and the vast majority of its profits. Since since 1990 appointed CEO of St. Calis and in 1997 was appointed artistic director Marc Jacobs, Louis Vuitton has been like a full money never empty out the box the same. LV can get the best leather raw materials and processed them into the subtle and intricate art, and finally to take a flexible way to put them to the market. In addition, in order not to make the devaluation of the product positioning, LV never discounted. Over the years, this world famous brand has maintained peer unmatched speed forward, in a sense, it is the slow down. In the first quarter of this year, sales of Louis Vuitton fashion and leather products Extension brand (ie, have joined the LV, some of the smaller brands such as Fendi) in the United States grew by 18% in Europe and Asia respectively. 12% and 10%. It sounds to force it? But the Asian market investors had expected more power gains. This led directly to the above sales shortly publish in the LV and its stock price suffered a fall. However, some people in the own ideas. They believe that the LV has been good enough to record, and some even predict the total LV sales will have a 25% increase, reaching 6.6 billion euros. China's consumer market has not lost the love and pursuit of the LV handbags. They just choose to holiday in France to buy for the price cheaper than in China for nearly half. Even the Chinese market is sluggish, India and Indonesia, two countries LV purchase frenzy has only just begun. Would help if some customers may be identified everywhere a huge and prominent LV bored (for example, in Japan, this logo is difficult to make you stand out in a crowd). So, Louis Vuitton will be for them to remove the logo, in fact now only a quarter of customers still prefer to identify the reservations. Film director Sofia Coppola, the brand has designed a number of logo, plain products. The glory of the trunk is no longer? It is worth mentioning is that companies appear to be dropping, this fear of aging, like its customers who fear getting older era. Mr. St. Carsley will be leaving at the end of this year. A former LV executives recalled those of Louis Vuitton's head of people often catch-phrase "Since we sold the first bottle of perfume that moment, we will never progress "However, in this plan on hold for years, LV also finally on sale of perfume products. When the people that Arnott Mr. gamble, is not surprising. Louis Vuitton, the world today the leader of the so-called "soft luxury" industry (this industry, including bags and other accessories, as well as champagne and brandy and other products), Mr. Arnault also want to be "hard luxury" industry hegemon. He Bvlgari pour so much effort the reason the world does not too well-known jewelry brand, Moreover, they are not for sale. In addition, some analysts still have some concerns from the European Agricultural Credit Bank Group Lucca. Suoer Jia commented, LV need to add in the watch industry do more, but Bulgari's strengths lies in rings and necklaces and other jewelry . The next challenge will be formidable. LV will do our best to buy Ruaimashi the shares, this family business appears to be tenacious and not compromise, but Mr. Arnott and will not give up. No doubt, Hermes is a well-known brand, Mr. Arnott is convinced that this brand can do bigger and better. In addition, ambitious to seize the initiative, the first of its powerful rival Swiss Richemont (Richemont) bidding. Arnot, Mr. 63-year-old. His five children, two has already begun for the effectiveness of the family business. Daughter Delfina in control of the father, Christian Dior, son of Anthony manages the Italian shoe brand Berluti. Maybe someday, someone in his children will succeed his father to become the new emperor, but to inherit the mantle of Mr. Bernard Arnold special is not so simple.