louis vuitton

Claudio Diniz

History

Founded in 1854, by Louis Vuitton: Malletier a Paris

1858 - Grey trianon canvas

1888 - Damier Pattern

1896 Georges Vuitton designed the famous ‘Monogram Canvas’

Expansion to countries worldover

1930s onwards creation of signature bags – Keepall, Noe, Speedy, Papillon

1959 Monogram Canvas made suppler to be used for purses, bags, and wallets

1983 Louis Vuitton Cup

1987 Formation of LVMH

1990s onwards they launched many new lines and collections

By 1989 there were 130 stores worldwide

1998 Marc Jacobs appointed as Art Director, Pret-a-Porter

2000s Collaboration with Stephen Sprouse and Takashi Murakami

Revamped a few old lines

History

Portrait of Louis Vuitton (1821-1892) founder of the company

Four historical canvas - bottom/right: grey Trianon canvas, bottom/left: Striped canvas, top/right: Damier canvas, top/left: Monogram canvas

The Monogram canvas « Wardrobe » (1875)

The «Steamer bag »: ancestor of soft bags

The fabrication of Louis Vuitton

shoes, for which no less than 150

operations are necessary

Overview

« Vuitton Building » : the façade of the Louis Vuitton store, at 70, Av. des Champs-Elysées (1914)

Lock with multiple tumblers, launched in 1890

Launch of Louis Vuitton as a fashion label (1998)

The Milano toiletry case, presented by Louis Vuitton at the International Exposition in 1925

Portrait of Patrick-Louis Vuitton, 5th generation of the Vuitton family

Yves Carcelle, CEO Louis Vuitton

Louis Vuitton

workshop in Asnières,

France

Louis Vuitton’s 150th anniversary party (April 2004, Hongkong)

Overview

Monogram Vernis – Pegase 50

Damier Geant Aventurier

Stephen Sprouse – Keepall 50

Monogram Multicolore - Keepall

Epi Leather – Sirius 45

Luggage

Carried Monogram Canvas - Case

Monogram Mirior - Small Ring Agenda Cover

Monogram Canvas - Mini Agenda Zippy Cover

Epi Leather - Small Ring Agenda Cover

Monogram Vernis - Agenda Cover PM

Desk Agenda Cover – Nomade Leather

Agendas

Damier Azur Canvas - Pocket Agenda Cover

Watches

Montres Tambour 2002

Montre Tourbillon Tambour Monogram Montres Tambour Diving

Montres Speedy

Montres Tambour Quartz Small Lovely

Montres Tambour Fleurs Précieuses

Monogram Multicolore – Speedy 30 Monogram Mini Lin –

Diaper Bag

City Bags and Briefcases

Damier Graphite – President Briefcase

Mahina XLStephen Sprouse – Neverfull GM

Monogram Vernis – Roxbury Drive

Suhali Leather - Lockit Clutch

Clutches and Pouches

Monogram Damier Canvas – Pochette Compact

Monogram Limelight – Clutch PM

Stephen Sprouse – Pochette Accessories

Afterdark Monogram – Motard

Epi Leather – Sellier Dragonne Clutch

Wallets and Leather Goods

Mahina - Amelia Wallet

Monogram Canvis – Astrid Wallet

Suhali Leather – Serenata Case

Monogram Multicolore – Flat Coin Purse

Epi Leather - Key Holder

Monogram Denim – Zippy Wallet

Shoes

Harold Loafer in Calf Leather Sofia Sandal in Suede Goat Leather

Rose Pump in Glazed Calf Leather

Lagoon Thong in Canvas

Monogram Damier Canvas - Elan Sneaker

Coconut Mule in Monogram Canvas & Leather Patchwork

Fine Jewellery

Fleur Medalllian Necklace, Yellow Gold

Small Monogram Gallea Band Ring, White Gold

Clous Bracelet, Yellow Gold Large LV Pendant White Gold & Diamonds

Les Luxuriantes Earrings with Pink Sapphires

Les Craquantes

Small Pendant &

Chain

Sun Glasses

Metal - Attraction

Monogram Photocromique – Conspiration Pilote

Metal and Acetate – Alias Round

Desmayo Strass Cat Eye

Obsession Carre LV Landscape

Acetate - Mahina

Pens

Charm Pen

Agenda Ballpoint GM

Roller Pen LV cup

Leather-Covered Doc Ballpoint PenRhodium Finish

Books

Birth of Modern Luxury City Guide 2009, Mumbai

Travel Note Book London

History of the LV CupCity Guide 2009 – European Cities

Travel Note Book Mumbai

Ties and Scarves

Olivia Scarf Monogram Shawl

Mix Monogram Tie

New Denim Square Scarf

LV Tie Signature Silk Celestie Tie

Belts

Monogram Damier Canvas Belt

LV Initials Monogram Belt

LV Inventeur Reversible Damier Ebene Belt

Boitier Calf Leather Belt

LV Intitials Monogram Multicolore Belt

1904 Natural Calf Leather Belt

Accessories

Graffiti BroochSweet Monogram Headband

Candy Bag Charm

Monogram Canvas - Baxter Dog Collar GM

Cigar Humidor 75Mahogany and pear wood Monogram

1001 Nuits Hair Clip

Ready to Wear

Spring Summer 2009 Spring Summer 2009 Cruise Collection 2009

Ready to Wear

Spring Summer 2009 Pre Spring Summer 2009 Cruise Collection 2009

Brand Identity

Physical Personality

Self-projection

Reflection

CultureRelationship

Luxury leather goods Monogram DamierLocks, trunksQuality

TraditionHeritage

Success,Show off Effortless luxury

Art of travelCraftsmanshipSporting traditionWorking class originElite customers“La belle époque”FrenchJapanese

EleganceComfortUnderstated

StatusSocial belonging

Core Values

Traditional and Classic

Luxurious and Elegant

Iconic

Creates Desire

Evokes a sense of Style

Subtle Changes

Sophisticated and Elite

Brand extension- Why Perfume?

Available by all our competitors, missing from the LV catalogue

To cater to the already existing loyal LV customer

Fulfill desires of people of owning a LV product

Increase the Market Share

Increase Revenues

Competitors Analysis

Perfumes when sold through selective distribution channels are clearly luxury products, even if they correspond to low-priced items

Brands like Chanel, Lancôme, Estée Lauder, Dior and Lanvin launched perfumes as early as the 19th century

Other luxury brands like Chanel, Dior and Armani have an aided awareness of around 80% to 90% through their perfumes


Gucci by Gucci, 50ml - £ 48.00

Elizabeth Arden, Badgley Mischka Couture, 100ml - £ 61.00

Marc Jacobs, Daisy, 50ml - £ 49.00

Dolce & Gabbana, Sicily, 50ml - £ 43.00

Emilio Pucci, Sabbia 167, 50ml - £ 39.00

Bond No 9, Nuits de Noho, 50ml - £ 90.00

Dior, Midnight Poison, 50ml - £ 54.00


Cartier, Delicies de Cartier, 50ml - £ 48.00

Giorgio Armani, Armani Code, 50ml - £ 45.00

Valentino, Rock n Rose Couture, 50ml - £ 46.00

Bvlgari, Rose Essential, 50ml - £ 54.00

Hermes, Kelly Caleche, 50ml - £ 52.00

Givenchy, Ange ou Demon, 50ml - £ 50.00

Ralph Lauren, Notorious, 50ml - £ 48.00

Jean Paul Gaultier, Fragile, 50ml - £ 59.00

Trend Book and Colour Trend Book Creation

R - 111

G - 173

B - 222

R - 205

G - 55

B - 0

R - 239

G - 120

B - 171

R - 158

G - 0

B - 0

R - 0

G - 0

B - 0

R - 0

G - 138

B - 42

R - 134

G - 25

B - 124

R - 191

G - 173

B -191

Damier Azur

R - 255

G - 212

B - 0

R - 212

G - 19

B - 128

R - 232

G - 223

B - 205

R - 125

G - 116

B - 119

Monogram Multicolore

Trend Book and Colour Trend Book Creation

Creation and design of the new introduced product

Packaging Creation

Product Identity

Shape1: Very slim and long Elegance, sleek, modernity

Shape 2: Slightly curvy corners and edges

Feminine yet strong

Colour 1: Damier Azur Canvas in light blue and beige

Traditional, LV original signature print. Soft, feminine, dream

Colour 2: Monogram Multicolore. Bright colours and white.

Traditional yet feminine and young.

Material 1: Canvas Classical yet innovative (in a perfume bottle)

Material 2: Thick transparent glass

Luxury, elegance, quality, clean

Signs Meanings

Package Identity

Shape1: Long and slim tin with metal base

Practical, elegant, modern

Shape 2: Round corners and edges

Feminine and soft

Colour 1: Damier Azur Canvas. Light blue and beige

Eternal, LV original, symbolic, legendary print

Colour 2: Silver logo, product name and base

Sophisticated yet modern and innovative

Material 1: Metal Practical, modern

Material 2: Canvas Luxury, elegance, expertise, classical, LV heritage

Signs Meanings

Package Identity

An innovative product with classical features that reflect the brand heritage and expertise. It also brings a touch of modernity, fun and agility. It

caters to the sophisticated LV female customer and to the younger fans of the LV brand.

Modern Classic

Mass market

Luxury

Perfume Voyager

New Product Positioning

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

LOW INNOVATION

MEDIUM INNOVATION

HIGH INNOVATION

Voyager Parfum

Innovation Value Scale

Core business of the brand - Luggage maker

LV heritage and signature products

The LV customer: jet set. Likes to travel and visit new places but one thing is constant: the LV bags, luggage and accessories

Simple name and easy to remember

Good sonority

Invite the customer to travel and dream. Join the LV universe

Semantics – Why “Voyager”

Target Segmentation

Our targeted client are both sex, aged between 30-50 year’s old

Income between £ 35.000-150.000 +

They are graduate professionals with sense of self-worth and novelty seekers

Our product can be bought for personal use or as a gift

Achievers and innovators

PASTFrench,

Immaterial

Never vulgar

Plug in ephemeral

Trends & Events

Artistical statement

Cultural Mobility

Good life

“Planter ses racines tous les jours”

Contemporaneity & Universal

Myths

Desire

Stylish

Positiveatitude

Brand Loyalty

Self confidenceStatus

Traditional Facets of Luxury

BOTTLE BOTTLE PACKAGING PACKAGING

PRODUCTION TOOLS

Glass injection matrix

Cap injection matrix

Colors films

Metallic cutting frame

Metallic cutting frame

Metallic LV

Cutting frame Voyage

Colors films

PRICES 60.000 euros per piece (Glass)

30.000 euros per piece (Cap)

= 90.000 euros

3.000 euros per piece

13x3.000

= 39.000 euros(colors)

3.000 euros per piece (cutting)

39.000+3.000=42.000

3.000 euros per piece

5.000 euros

Per piece

3.000+5.000=

8.000 euros

2.500 euros per colors

X 2 = 5.000 euros

FIXED COST

Production Cost

VARIABLE COST

NUMBER OF MODELS

50.000 100.000 150.000

BOTTLE

Price per unit

6 euros 5 euros 4 euros

Packaging

Price per unit


Production Cost

Number of models 50.000 100.000 150.000

BOTTLE

Fix cost per unit

132.000/50.000 = 2.64 euros

132.000/ 100.000

= 1.32 euros

132.000/150.000 = 0.88 euros

BOTTLE

Variable cost per unit


BOTTLE

Production cost per unit

9.64 euros 7.32 euros 5.88 euros

PACKAGING

Fix cost per unit

13.000/50.000

= 0.26 euros

13.000/100.000

= 0.13 euros

13.000/150.000

= 0.08 euros

PACKAGING

Variable cost per unit


PACKAGING

Production cost per unit


TOTAL PRODUCTION COST

BOTTLE + PACKAGING


MARGIN : 500 %

SELLING PRICES

74.50 euros

89.40 euros

57.25 euros

68.70 euros

44.80 euros

53.76 euros

Production Cost

Cost of 50ml perfume bottle is £ 55.00

Pricing

Exclusive only to LV boutiques and concessions in department stores worldwide

Also available at LV web site and Duty Free

Distribution Strategy

Exclusive/Selective Distribution when appropriate

110%

Polo RL

RichemontBurberry

Tod's GroupBulgari

LVMHEscada Group

Coach

Hermès

Gucci Division

Louis Vuitton

R2 = 0.8591

30%

40%

50%

60%

70%

80%

90%

100%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

% o

f R

etai

l Sal

es

EBIT Margin (%) Source : Merrill Lynch Luxury Goods Team estimates

Extrapolated Evolution

Source : Merrill Lynch Luxury Goods Team estimates (trend between in-house production and gross margin highlighted but names of companies are left blank intentionally)

58%60%

70%

62%

78%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Louis Vuitton Hermès Richemont Gucci Division Tod's Group Burberry

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Estimated In-House Production Gross Margin

Manufacturing Integrity: Product Quality

0% 5% 10% 15% 20% 25% 30% 35%

Hotels

Jewelry

Leather Goods

Wines & Spirits

Watches

Accessories

Skin Care

Eyewear

Make-up

Shoes

Fragrances

Beauty Products (all segments)

Ready to Wear

Crystal

Porcelaine

EBIT Margins by Industry

Source : Merrill Lynch Luxury Goods Team estimates

Profitability Across Key Luxury Product CategoriesGross Margins (% ) Operating Margins (% )

Leather Goods & Shoes (1) 35%-80% 20%-50%Ready-to-Wear (2) 50%-65% 5%-20%Cognac & Champagne (3) 30%-40% 25%-35%Jewelry & Watches (4) 55%-70% 15%-20%Perfumes & Cosmetics (5) 15%-35% 5%-12%Writing Instruments & Lighters (6) 10%-50% 0%-15%Tableware (7) 10%-50% 0%-10%

(1) Louis Vuitton shows an operating margin near 50%, Gucci the second most profitable brand is at 30%+...

(2) Huge discrepancy as well between the players, even on the listed front (Hugo Boss, Escada, IT Holding)

(3) For premium and super-premium bottles only - Moët Hennessy third largest player in value

(4) Profitability in the jewelry and watch categories very similar. Margins higher with lower price points

(5) Benchmarks in the sector are L'Oréal Prestige & Beauté, Clarins, Estée Lauder - Shiseido in the red,

including on prestige products

(6) Only ST Dupont & Montblanc in sample examined (rest less profitable)

(7) Huge discrepancy between the best performing companies (Waterford Wedgwood)

and various money losing brands

Source : Merrill Lynch Luxury Goods Team estimates

Presence in most Profitable Product Categories

Characteristics

Positioning

Global brands with extended product propositions Target the largest audience by creating desire with permission Accessibility A well established ‘historical brand’ opens its door to YOU for a

‘luxuryland’ experience In line with customers looking for personal fulfillment over material /

statutory distinction

Customers

Everyone’s welcome (but not said openly, everyone has to feel privileged))

Price is not a discriminator in absolute terms But remains a filter in relative terms

Hypermodern Luxury: To Have and To Be

Advertisement placement in fashion, lifestyle and travel magazines, newspapers, specialized websites (ex: Style.com), TV and cinema.

PR. Beauty session of speciliazied magazines.

Advertisement with celebrities. Endorsement.

Direct Marketing.

Windows’ display. Teasers.

Special visual merchandising (especially in department stores)

Communication Strategy

louis vuitton

Entertainment & Humor