Louis Vuitton Market Position Sample Essay

Louis Vuitton Malletier ( normally called Louis Vuitton ) is a world-wide known Gallic luxury trade name. created in 1854. by Louis Vuitton. The chief merchandises are short pantss and leather goods. off-the-rack. places. spectacless and jewellery. The LV monogram. used on most of the merchandises. is extremely recognizable. and is a chief portion of Louis Vuitton’s success.

Competitive menaces

Rivals ( current menace )
Louis Vuitton has to confront a ferocious competition on the European luxury market. With 3. 06 billion euros of net benefits in 2011. LVMH doesn’t fear the Eurozone crisis. and is the most valuable luxury trade name. However. some rivals are aiming the same section. The 2nd most of import trade name. Hermes. is well-known for its leather goods. such as bags and belts. Gucci. the 3rd. aim the dudes and the nouveaux wealths. like Louis Vuitton chief line merchandise. The three taking luxury trade name are direct rivals.

Forging ( short-run menace )
Louis Vuitton is the most counterfeited trade name in the universe. Every twelvemonth. 1000000s of Euros of bogus points are sold illicitly. cutting down the monogrammed brand’s benefits. This deficit is non presently a job for the giant of the luxury industry. but giving the economic state of affairs in the Eurozone. and despite a full cooperation with the usage services. the counterfeiting is likely to increase ( Nargis Namazi. 2010 ) . and shortly go a existent issue.

Foreign rivals ( long-run menace )
The two biggest markets for Louis Vuitton are presently the Europe. where most of its existent rivals come from. and the Asia. So far. Chinese are more luxury consumers than manufacturers. but with the development of the state brought the development of local luxury trade name. So far. those trade names are non a menace in Europe. because Louis Vuitton targets clients who like to demo off. and an unknown logo would get the better of the object. but these trade names. taking inspiration in the really old traditions of the state. will maintain turning. So far. European trade names have the long history. the stereotypes and the international celebrity. but the new Chinese trade names will finally perforate the European market. The consciousness. the trust and the purchasing wont will come foremost with the innovators. so the dudes. and eventually the nouveaux wealths. who will buy the new trade names when they are certain it’ll be recognize as a mark of success.

What action to protect the market place?
Rivals ( current menace )
Louis Vuitton uses its well-known monogram to carry through a desire of external acknowledgment. Its existent celebrity is at the service of its turning celebrity: the more LV is known. the more its clients want to purchase it. Their existent selling action is clearly working. because LVMH benefits addition every twelvemonth. despite the current Eurozone crisis.

Forging ( short-run menace )
In order to contend the turning counterfeiting. Louis Vuitton must maintain working closely with the usage services. giving clear descriptions on the transportation and authorising regular thorough cheque of it. Another manner to avoid a portion of counterfeiting is to educate people in acknowledging an original LV point from a counterfeited one. In few instances. the illegal purchase is non witting and is the consequence of ignorance.

Foreign rivals ( long-run menace )

Chinese future rivals will convey a new luxury. based on their traditions. Louis Vuitton must utilize its long history and its Gallic individuality. to maintain its market place. Its creative activity by a Gallic adult male. more than 150 old ages ago. gives it a psychological advantage of trust. quality and manner. every bit good as a strong trade name personality. LV must besides supply a strong add-value. such as its existent shop constructs. packaging. and after-sale services.

BIBLIOGRAPHY/REFERENCING

LVHM SWOT analysis. Available at: hypertext transfer protocol: //yousigma. com/comparativeanalysis/lvmhmoethennessylouisvuitton. hypertext markup language Louis Vuitton forging impact. Available at: hypertext transfer protocol: //www. retail-digital. com/sectors/luxury-counterfeiting-affecting-louis-vuitton Most powerful luxury trade names. Available at: hypertext transfer protocol: //www. luxurydaily. com/louis-vuitton-hermes-and-gucci-top-list-of-10-most-powerful-luxury-brands/ Chinese luxury trade name. Available at: hypertext transfer protocol: //online. wsj. com/article/SB10000872396390443615804578042151914543218. hypertext markup language. hypertext transfer protocol: //www. forbes. com/sites/bluecarreon/2011/11/02/can-china-produce-a-luxury-brand/ . hypertext transfer protocol: //www. chinadaily. com. cn/bizchina/2012-10/08/content_15800258. htm. hypertext transfer protocol: //www. chinadaily. com. cn/bizchina/2012-10/08/content_15800258. htm Increasing benefits. Available at: hypertext transfer protocol: //www. lexpress. fr/actualites/1/economie/lvmh-benefice-et-ventes-bondissent-au-premier-semestre_1143127. hypertext markup language