LOUI S VUI TTON

In India
Group 7
L OUI S V UI T T ON
Luxury
Products and Services that are not considered essential
Associated with affluence
Status symbols
L OUI S V UI T T ON
Why Luxury?
Historical image: Luxury goods limited to elite classes
Maintain image of exclusivity
Deliver emotional benefits
L OUI S V UI T T ON
Luxury Consumers
Practical
Consumer
(Older-wealthier)
Premium price for
premium products
Functionality and
quality
No impulsive
buying
Statement
Consumer (The
rising class)
Personal statement:
I have arrived
Highly driven
Buy as a reward
self actualized
Feel Good
Consumer
Emotional
purchase with little
concern about
quality
Buy to indulge
Social
Acceptance
Social Statement: I
belong to a higher
social class
Only brand
conscious
Driven by a need to
show off
L OUI S V UI T T ON
Louis Vuitton
1854
Louis Vuitton
1987
LVMH
1990s
Acquisition
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LVMH
Wines and
Spirits
Fashion and
Leather Goods
Perfumes and
Cosmetics
Watches and
Jewelry
Selective
Retailing
In 2008
Revenue: 3226 mn
Growth: 7.7%
Revenue: 5628 mn
Growth: 7.8%
Revenue: 2731 mn
Growth: 8.4%
Revenue: 833 mn
Growth: 13%
Revenue: 4179 mn
Growth: 7.4%
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The Indian landscape
1947
1991
2001
2003
2004
2012
2025
Independence
Liberalization
Ban on import
of leather
goods lifted
LV comes to
Oberoi, Delhi
LV comes to Taj
Mahal Palace,
Mumbai
More than 23 million (greater
than Australias population) to
be super rich
FDI in retail
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Strengths
The brand is one of the oldest fashion
houses with more than 150 years of history
Biggest luxury brand in the world
High brand recall and global presence
Extremely diversified brand portfolio
The company markets its products through its
own stores, allowing control over product quality
and pricing
Weaknesses
A few brands are disproportionately responsible
for the revenue
Limited customer base
Restricted retail opportunities as the company
markets its products through its own outlets only
Business heavily depended on economic
conditions

Threats
Proliferation of counterfeit products lessen value
of brand
High import/ custom duties in India
Scattered population
Cheaper products with the same functional
benefits

Opportunities
Growing market for luxury goods in India ( ~ 30%
in 2007 - 2008)
Lack of local competitors
More exposure to global trends resulting in
increased awareness and craving for luxury brands
High GDP growth rate; High growth of HNWIs

L OUI S V UI T T ON
Comparison of growth strategies
Factors Individual stores Luxury Malls All Malls
Risk Level Most suitable Neutral Most unsuitable
Brand Exclusivity Most suitable Suitable Unsuitable
Market Potential Unsuitable Suitable Most suitable
Exposure Most unsuitable Neutral Suitable
Cost Effectiveness Suitable Suitable Most unsuitable
Total* 17 18 13
*Points awarded according to: 5 Most suitable, 4 Suitable, 3 Neutral, 2 Unsuitable, 1 Most unsuitable
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Luxury Malls in India: A success story?
Exponential GDP growth
(~50% growth from 2000-
2005)

Government opening to multi-
brand retail

Best substitute for LRCs in
India



100%
600%
1100%
1600%
2100%
2600%
3100%
3600%
1995 1997 1999 2001 2003 2005 2007 2009
Growth of different classes of consumers (base: 1995)
Super Rich Sheer Rich Clear Rich Near Rich Strivers
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Triggering loyalty: How to do it?
Persona:
It represents the distinctive projection plus coherence of its applications across touch points.
The visual brand identity captures the brands personality, mystique and emotional values.
Public Figures:
Brand association with personalities who are nouveau riche and depicting LV as their
preferred choice
Differentiation:
Maintaining exclusivity & superiority of design is extremely important so as to differentiate
from its competitors
Emotional Appeal
LV as a preferred choice for those who has achieved their goal and the brand signifying their
choice for exclusivity and as a beacon of sense of accomplishment
L OUI S V UI T T ON
Questions?