The essay analyzes Moet Hennessy Louis Vuitton. Moet Hennessy Louis Vuitton (LVMH ) group is the leading manufacturer of luxury goods ranging from personal accessories to luggage, perfumes and wines. LVMH was established in the year 1987 with the merger of Louis Vuitton…
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The essay "Global Fashion Industry with a Focus on Moet Hennessy Louis Vuitton" examines the industry of fashion. The company owns over sixty brands and some of them, like Veuve Clicquot Ponsardin (1772), Chateau d'Yquem (1593), , Guerlain in 1829, Louis Vuitton (1854), Hennessy (1765), Moët et Chandon (1743) the have been in the market since the past two centuries (McCrone, 2006). It operates 5 different category of products including wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. LV had been following a strategy of innovation, differentiation and strategic mergers to become a market leader in the fashion industry (Lent, Tour and Perrin, 2009). The company offers exclusivity and high quality and is driven by the motto of attention to detail to deliver the best quality. It follows a policy of developing a brand image that is shared across its brands and supported by all the activities undertaken by the company. This report contains an analysis of the macro environment (using PESTEL framework) for the global fashion industry to assess the threats and opportunities that an organization like LV may face. It also contains a micro analysis or industry analysis of the fashion industry to evaluate the business environment and the challenges that LV faces. Finally, an internal strength and weakness analysis is conducted to assess how the strengths of LV can be used to capture the opportunities proffered by the macro and the micro environment., and what it needs to do to overcome its weaknesses in order to combat the threats posed by its business environment. Finally, the report discusses the current strategy of LV in the light of the SWOT analysis and makes appropriate recommendations. PESTEL Analysis Political Environment The fashion industry has seen a revolution in terms of its penetration and reach across the diverse cultures and markets globally (Kapferer and Bastien, 2009). The advent of globalization and liberalization of economies across the world have made it possible for products from one end of the globe to be displayed and bought at the other end. The fashion industry too has seen a rapid proliferation across the borders owing to the political liberalization and increased acceptance of the Western lifestyle by the growing middle class in the developing countries (Kotler and Keller, 2011). The political liberalization on one hand has made it possible for brands like LV to be sold across diverse regions like China, India, Brazil and Africa, while on the other hand there has been an increased political activism at the grassroots level in several countries against high fashion and the trend of consumerism (British Standards Institution, 2011). Foreign brands, especially the luxury brands are often the target of censure and attacks in countries where movements are under way or where there is widespread resistance to liberalization. It can be seen that while there is scope for international expansion, there is also a need to understand the local sentiments and culture so that the brands can become acceptable and likable internationally. Economic Environment The recent financial crisis of 2008-2009 saw the fashion industry too see a slow down in sales and business. Large and popular organizations like the Australian Hrringbone and Centro have posted large losses during the crisis period. In addition to loss of revenues, there was also a potent impact on the trends in the fashion –
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Globalization, despite its many setbacks, has also positive benefits. Due to globalization national borders are not very important now, and there is the interconnectedness of organizations and businesses, while countries focus more on deregulation, privatization and liberalization of industries, and the importance of world markets.
The study analyses the situation of Louis Vuitton Moet Hennessy exemplifies one effect of globalization on an already successful business through the use of the following theoretical frameworks: PESTEL framework; The SWOT analysis; The 4 Ps of marketing (Product, Price, Place and Promotion); The Boston matrix and Ansoff’s matrix.
This study includes the analysis of the communication channels, mixes and ways the companies or brands in the perfume segment used and are using to retail their brand identity and position their products. The example of a very well-known luxurious brand has been used throughout the study to assess its communication channels.
From a marketing perspective, this is referred to as marketing audit or environmental scanning (Lancaster & Reynolds 1999). Both the external as well as internal environments have a bearing on the way an organisation operates.
Of these brands, it is probably the Louis Vuitton name that has penetrated nearly all major product classes in the consumer retail industry, and successfully launched itself on a global scale while maintaining its exclusivist image.
The study is about two groups of family owned businesses who have been able to establish their brands globally and are now competitors to each other. Hermes Group and Louis Vuitton are the two groups present in the international market for a long time and have been able to capture the market with their different products and established their brands.
The problems facing the Italian textile industry are due to the competition posed by China. Most of the firms are affected by the low labor costs in the Chinese market. The conditions became worse after January 2005 when because of WTO the textile industry became free of restriction.
This essay investigates the supply chain and fashion production of Louis Vuitton. Creating a revolution in the nature of travel, Vuitton established a new era of modernity. With a decline in the glamour of travel the company diversified into high-fashion clothing, jewellery, shoes and watches. Significantly, brand weakening due to product diversification.
On this basis one can gauge the stand of the firm especially with respect to its brand identity against the backdrop of the retail industry in China. Both the internal and external analysis along with micro and macro environment
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