Being only 16 years old, Louis Vuitton started learning the technique of making trunks. In the workshop of his master he didn`t only get the necessary skills, but also shew his first miracles of ingenuity. It was he, who first created the flat case with side-drawn opening; his innovative inventions allowed him to open his own shop at the Elysian Fields in 1854. Today we can see the remains of its sign there. It tells us: «Louis Vuitton, making cases, Paris trading house, created in 1854».
The children carried on their father’s affair. Their family owned the Louis Vuitton until its coming out to the international market. The Louis Vuitton merged with the manufacturer of the expensive alcohol drinks Moet Hennessy in 1987. As a result, today the Louis Vuitton brand is the part of international holding LVMH, which belongs to president of the company Bernard Arno and his family (47,4%), institutional investors (44,2%) and physical persons (5,1%).
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The major designer of the company is Nicolas Ghesquiere, who exchanged Marc Jacobs at his working place. Now Louis Vuitton company is considered to be on its culmination stage.
The brand is very popular all around the world. Its fashion shows take place regularly and gather a big amount of stars, celebrities and representatives of royal dynasties. Brand collections always gets accolades from critics and the most influential editors of glossy magazines.
Something about Marketing
The marketing techniques of it are very different, but one of the most important is visual influence at the consumer. Company creates inspiring characters, which are then to be translated into social media. Almost all videos at the YouTube channel of Louis Vuitton are short films with the new collection of brand at the center of each.
What about logotype? It contains first letters of Louis Vuitton: LV, and also the flower with four petals, created in 1895 by Louis Vuitton’s son, George. The inspiring flowery motive of Japan, used in a wordmark LV, is complemented with the famous flower – monogram of company.
The Louis Vuitton company offers a huge amount of fashion luxury products for women and men, such as leather goods (handbags, wallets, big travel bags, passport covers), accessories (sunglasses, jewelry & watches, scarves, shawls & bandeaus, belts, bag trinkets, key holders), shoes, and even writing accessories (diaries, guidebooks, pens, ink bottles).
Louis Vuitton is a luxury and high fashion brand, but it also produces ready-to-wear goods, available in brand stores all around the world.
The unique style of Louis Vuitton is thrown into its fashion design: the monogram LV is the most significant detail in all its products.
The Louis Vuitton is a favorite brand of Bip Ling, Erin O’Connor, Angelina Jolie, Muhammad Ali, Michael Phelps, Juno Temple, Nikki Reed etc.
Since the 19th century, in which the company was founded, Louis Vuitton has became a classic one. It is always trendy and fashionable, but it can be hardly called fad because it is in a good demand for a huge amount of people.
As in the period in the middle of 70th, when the Louis Vuitton produced significant leather models, which related to him the special place in luxury-segment, Nicolas Ghesquiere today is writing history of renewed, freshened brand in the real-time. However, the traditions of brand still have their influence: new collection contains mutualism of modern casual style and fashion of 70th.
LVMH declared its net profit of such brands as Fendi, Louis Vuitton, Bvlgari and Moët et Chandone company in the first half as dropped to $2.03 billion (€1.51 billion). A year earlier, it was €1.58. Growth of sales is 2.8% to €14 billion. They also added, that the company lost €235 million at the foreign currency swings. Such information is taken from the Wall St Journal.
“Most of the markets are experiencing modest growth”, – said LVMH financial director Jean-Jacques Guiony in a conference call, published later in the Wall St Journal. “So offsetting currencies isn’t that simple when demand is somewhat sluggish.”
As for now, Louis Vuitton has taken various Corporate Social Responsibilities initiatives for restoring the environmental balance. First is decreasing energy consumption and greenhouse gas emission in its manufacturing cycle. Second is protecting natural resources and biodiversity. Third is decreasing waste in the process of production.
F.e., they use electric and photovoltaic vehicles for delivering their products to retail stores in USA and France.
The consumers of the company among Americans are considered sustainable concerned which is shown by the different statistics results. F.e., 42% of Americans decline buying eco-unfriendly products. The sustainable packages for goods ordered by network are increasing purchases for 2,6-4,2%.
The Consumer and the Customer
The Louis Vuitton has a huge amount of customers all around the world. Depending on the place of living and amount of wealth, their tastes differ, but there always is something consolidating among them: they accept good natural taste and pricy simplicity of company products, and reject counterfeited production, learning scrupulously all the specific characteristics of the original Louis Vuitton goods.
The general price range of its products is high, so only people of high wealth can afford them. The high price of products doesn’t lessen sales, it only supports status of this brand name, ‘cause quality of Louis Vuitton goods is known all over the world. For example, LV bags from the new collection 2015 cost 4000-25000$.
So, the customers: who are they? They are mostly women of 20 years and older, who always follow the last fashion trends. They love to indulge themselves with a new stylish things and have enough money for this. They’re smart, cute, tidy and love to travel round the world.
This is supported with the portrait of the target audience of LV, which is intended for wealthy women of the middle age and young fashionable ladies, able to afford the sexy brand. According to U.S. Census Bureau data, these are women 35 to 54 years old with a mean salary of $82,000, and women 16 to 34 years old with a mean salary of $55,000.
Louis Vuitton is trying to make its brand more pleasant to customers demonstrating its products as sexual, fashionable and attractive ones. Therefore, the customer of LV is thick of hedonism, needs more emotional pleasure and comfort, which is beyond practical functions of product. The major message of brand is to break everyday routine. That is something that makes pleasure of the client. Travelling round the Earth and even to other planets (used in some advertisements of LV) is the hobby of a company customer. They spend their day in a routine work, which can be differed with the help of extravagant and sexy garments of LV. They value style, being indifferent on price. They need prestige together with good taste and good quality.
Most customers of Louis Vuitton belong to Europe (the whole area), Middle East, Eastern Asia (the most developed countries), and USA. The quantity of wealthy of people in the country determines market request of LV products: the better economic situation of the state is, the more stores of LV are open there.