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Louis Vuitton means Luxury. Valued at 32 billion dollars, LV has a profit margin of 30%, making it the most profitable brand in the world. It has remained the No 1 counterfeit brand for the last few years because of its Exclusivity, which is ironic. Today the brand is not limited to high-end leather goods and luggage. It's involved in fashion, shoes, watches, accessories, jewelry, and perfume.
History of Louis Vuitton
We know Louis Vuitton was founded in 1854 by Louis Vuitton himself. Within a year, he expanded his store from Paris to London. The LV exclusive lock was designed in 1890. 6 years later, his son George created the famous LV monogram canvas we still find today. He opened the largest LV store in Champs Elysees, Paris 1914.
The turning point came in 1987 when LV acquired the Veuve Clicquot Group and merged with Hennessy. They became LVMH, the world’s largest boutique. Over the last two decades, LV has created limited edition designs. They have brought colorful expressions to their collection. The brand follows strict patterns to protect its products and intellectual property rights. Here are five pathways to LV success:
Extraordinary Craftsmanship
Louis Vuitton offers superior craftsmanship for its products. Their products are purchased not only for style but also for their best quality. It is one of the few brands still following the traditional ways. Their products are not only made from exquisite raw materials but also hand-crafted. Its superior craftsmanship is another reason for its higher prices. They immediately dispose of any defective products and offer no discounts or promotions.
Blend of Culture With Innovation
Louis Vuitton is rich in history and culture. The brand is an exquisite blend of culture with innovations. Their custom-made trunks are one of the best innovations. They give the brand the total singularity to create innovations.
Strong Brand Presence
LV has maintained its strong brand image and personality throughout its lifetime. It has connections over the world as it markets to over 50 countries. World-leading countries like China, Hong Kong, the USA, the UK, and Japan are its main contributors.
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Brand Strategy
Louis Vuitton is a leading luxury brand. To maintain the high-end segment of the luxury market, it prevents the risk of overexposure by limiting its visibility. It focuses on satisfying the consumers’ desire for customization and introducing innovations. The brand also focuses on fulfilling its consumers’ desire for customization.
Distribution Channels
Louis Vuitton sells its products exclusively through LV stores, including its official website. It does not use any middlemen or franchises. The brand wishes to provide the best purchasing experience to its consumers. They use the exclusive distribution channel and selective distribution.
Collaborations
Louis Vuitton has collaborated with famous designers such as Supreme and Marc Jacobs and expanded with pop culture. In 2016, LV collaborated with Square Enix, the video game company. They partnered with League of Legends to create trophy cases back in 2019. LV is experimenting and working with various non-fashion brands.
The Story Behind Every Bag
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The company Louis Vuitton promises the story behind every bag that they sell. Because of their exclusive stores, their stories reach their clients first-hand. These stories make the bags unique as they capture their consumers' attention. The Alma bag was a specific order from Coco Chanel herself in 1920. Anyone with the bag carries a part of Coco herself.
Memorable Events
LV releases limited products every year. It flaunts its new collections on social media. They want people to experience and resonate with their events. Time Capsule and Pop-up Collections are the two most famous events. Millennials and Gen Z market Louis Vuitton products with the events without LV spending any money on marketing.
Target Market
Louis Vuitton targets its consumers in two segments. First, the affluent young fashionable adults from 18 to 34. Second, the wealthy middle-aged men and women from 35 to 54. Both the target segments have high disposable income. They are brand aspirants who value money, tradition, fine craftsmanship, style, and Exclusivity. They are the upper-middle class and elite groups insensitive to the price.
Great Marketing
LV knows that each product needs different marketing strategies. They work with the best designers and models for their products. Azzedine Alaïa, Sybilla, Stephen Sprouse, and Helmut Lang Vivienne Westwood are some of their best designers. Their celebrity endorsements include successful models such as Angelina Jolie, Jennifer Lopez, Sean Connery, and Umma Thurman.
Conclusion
Since LV still targets consumers on the top end of the wealth spectrum, it can charge a premium cost for its products. The contrast between tradition and modernity itself positions LV as a high-end brand. Its traditional craftsmanship combines flawlessly with excellence and creativity. And it is going to remain one of the best fashion houses with its values.
Written by Garima Jain
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