Louis Vuitton Case Study

Executive Summary: The global luxury goods’ marketplace in the past decade has experienced nothing short of a complete evolution and transformation. This industry has endured global economic downturns in advanced economies such as the United States requiring them to branch out of their comfort zones and expand into emerging markets specifically the BRIC countries. These Asian nations possess high GDP rates that are anticipated to increase significantly in the upcoming years. Luxury goods were once a possession of strictly the wealthy, brand conscious consumer with a high disposable income. Within these developing economies reside a “new breed of young entrepreneurs and noveau riche consumers”, offering large potential within the middle class market for luxury brands (Pan). Although these countries offer significant promise, access will come at the cost of fierce competition, potential of counterfeiting and international trade barriers. Bernard Arnault, the head of the Louis Vuitton Moet Hennessy brands, recognizes that penetration, growth and development in these emerging markets are a critical part of the brand’s long-term global strategy. LVMH is the parent company of around 50 sub-companies that run autonomously and implements the Star Brand formula. The company is determined to capture the growing Asia market with particular focus on China, Japan, South Korea and India. Although these areas are quite affluent and familiar with Western luxuries, LVMH faces difficult challenges such as raising consumer awareness, counterfeiting, and emphasizing purchase within one’s own nation state. The recommendations of this case analysis addresses each of the challenges and offers both a short term and a long-term implementation plan. If LVMH executes the suggested recommendations, the organization will be a global powerhouse by both western and eastern standards.
LVMH’s Mission, Vision and Core Values
LVMH Mission:
To represent the most refined qualities

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