Luxury retailers must focus on providing a rounded customer experience. Providing intimate one-on-one experiences and offering brand-wide scale for off-the-shelf goods are two perks that lure consumers into their stores. Louis Vuitton’s success also comes from their profound marketing strategy of providing their customers with the most luxurious products and services while broadening their market globally. In 1992 they made the decision to open stores in countries such as India, Japan and China. Before the end of 2007, Chinese were Louis Vuitton’s third largest customer segment in the world. Technology has also affected luxury brands such as Louis Vuitton. Today’s world is solely based on technology gadgets such as smartphones and tablets. Therefore, they had to find a humanistic method to connect and engage with their social media customers by investing in creating mobile apps that provide a luxury experience at a distance.
Other luxury brands such as Gucci, Saks Fifth Avenue, and Gilt Groupe have also used this innovative way to retain their customer fan base by adapting to the forever changing retail market. This method of advertisement has been very successful to the fact that 93% of the wealthy smartphone users that had experienced the apps have reported of having a good shopping experience. 71% also felt better using the mobile apps and would prefer that more luxury companies will jump on the bandwagon and offer apps as well. With that being said, Louis Vuitton has no limits as to how much they would invest in pleasing their customers. They have also proven that adapting to technology advances will also assist in retaining the current customers too.
The Term Paper on Louis Vuitton in India
The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families in India with annual incomes greater than INR100 million. This number is expected to grow to 140,000 ...
Louis Vuitton Case Study Question Two
The production and sale of counterfeit goods is a global, multi-billion dollar problem and one that has serious economic and health ramifications for Governments, businesses and consumers. Counterfeiting is everywhere – it can affect what we eat, what we watch, what medicines we take and what we wear – and all too often the link between fake goods and transnational organized crime is overlooked in the search for knock-offs at bargain-basement prices. The battle against phony goods being smuggled into the United States is worse by the day. It’s estimated that $600 billion of our annual world trade is either counterfeit or pirated. (2009) Everything from fake handbags and jewelry to baby formula and medicine is counterfeited illegally by factories. These factories aren’t just producing fake goods but they are also hoarding women and children to work in the “sweat shops” which contributes to human trafficking. With that being said, counterfeiting of Louis Vuitton products does have a negative effect on the company.
Louis Vuitton is the highest target for counterfeiters today. The impact on this company in the market has decreased sales tremendously. The issue has also affected the image of the company as well. Many celebrities have stopped purchasing Louis Vuitton products because of the “knock offs” that are constantly being smuggled into countries all over the world. In 2009, Louis Vuitton began to fight back against its counterfeiters; companies such as eBay and Home Shopping Network are just a few names that have been charged with trademark infringement or counterfeit. The French Court in Paris ordered eBay to pay Louis Vuitton and Christian Dior Couture $63 million in damages. That same year President Bush signed the PRO-IP Act which established tighter laws and penalties for counterfeiters. It also provided grants up to $25 million annually to assist in developing ant-counterfeiting programs.
The Business plan on Swot Analysis Louis Vuitton
Strengths : Louis Vuitton’s quality reputation: they qualify themselves as a traditional brand( long history) and as the largest producer of Luxury Goods . they tend more recently to become creative . Consumers across the world : European countries (21% , United States but also a new emerging market in Asia (27% in 2011) * Bernard Arnault named Marc Jacobs in 1997 as an artistic Director of Louis ...
The company’s special team also filed a law suit in Tampa, FL against HSN (Home Shopping Network) for trademark and infringement as well. Louis Vuitton has held a brand value of $26 billion according to Forbes and has ranked the 17th most powerful global brand in the business today. Louis Vuitton makes if perfectly clear that their company will not be violated without repercussions. They have aggressively sought out ways to protect its trademark as well as their image by devoting a special team of investigators and lawyers to seek out and prosecute counterfeiters across the world.
The effects of counterfeiting are far reaching. Counterfeit products take away legitimate revenue from brand owners and disrupt relationships with exclusive distributors, all of which causes economic harm. Because counterfeit products are almost always inferior to the real thing, consumer dissatisfaction with a company over poor quality of counterfeit goods will dilute a trademark. This costs businesses, jobs and market share. Therefore, counterfeiting will always have negative aspects on any company it targets.
References
Kolter, P., & Keller, K.L. (2012).
Marketing Management (14th ed.).
Upper Saddle River, NJ: Prentice Hall.
Thomas, D. 2009. “Fight Against Fake Designer Goods Isn’t Frivolous”. Today
Scott, J. “Battle of the Handbags; Continues-Louis Vuitton Sues Home Shopping Network”
2012. “Luxury Brands Must Develop Their Customer Experience To Survive”. Huffpost Business
www.unodc.org/toc/en/crimes/counterfeit-goods.html
http://www.fr.com/BrandOwnersCanCombatCounterfeiting/
