Louis Vuitton is the king of bling. No other luxury brand can match its global appeal and eye-watering price tags.
Statista has revealed that the global brand value of Louis Vuitton skyrocketed to approximately 23.4 billion U.S. dollars in 2022, up from 14.9 billion U.S. dollars the previous year!
Boasting an empire that spans 50 countries, with over 460 stores worldwide, it’s no surprise that Louis Vuitton is particularly popular in Asia.
Countries such as Japan, China, India and Singapore have embraced the brand with open wallets, with surveys indicating that a staggering 92% of Japanese women own a Louis Vuitton handbag. That’s insane!
What’s the secret behind Louis Vuitton’s phenomenal success? What are the pillars of its brand strategy? Find out in my 2nd part of my series of brand analysis articles, where I’ll reveal how Louis Vuitton makes people go gaga over their goods.
1. Heritage and history
Louis Vuitton started in 1854 when a young craftsman named Louis Vuitton opened a shop in Paris. He made travel trunks that were durable and elegant, which people loved.
He came up with innovations like the flat-top trunk and waterproof leather. He also made custom-made trunks for rich clients like Empress Eugenie of France and President Porfirio Diaz of Mexico.
After Louis Vuitton died in 1892, his son Georges took over and expanded the company globally. He designed the iconic LV monogram to distinguish the brand from imitations and counterfeits.
Today, Louis Vuitton is part of the LVMH group, which owns other luxurious brands such as Dior, Fendi, and Moet & Chandon.
The brand continues to innovate and create new products that appeal to its customers’ tastes and lifestyles. Some of its recent launches include the LV Crafty collection, the LV Pont 9 collection and the LV Volt collection.
2. Exclusivity and luxury
Louis Vuitton has nailed luxury, crafting a brand that screams exclusivity and aspiration. How do they keep it up? Limited-edition collections.
By keeping supply low, demand goes through the roof. Customers go wild for these unicorn sightings of fashion. Especially the accessories, like handbags, because they’re seen as an investment that holds its value over time – a timeless treasure in your wardrobe.
Some of the most memorable collections include the Centenaire Collection in ’96 to celebrate 100 years, the Graffiti and Roses collections with Stephen Sprouse, the Multicolore Monogram with Takashi Murakami, and the Artycapucines Collection with contemporary artists in 2019.
These limited lines showcase Louis Vuitton’s iconic bag styles but with unique colours, patterns and materials, appealing to collectors and fashionistas alike.
Exclusivity is reinforced by their pricing strategy. The brand is known for high price tags reflecting the superior quality of the products and exceptional craftsmanship.
Moreover, Louis Vuitton never offers discounts or sales, further cementing its status as a premium label. Some of the most expensive handbags ever sold include the Crocodile Lady Bag at $54,500, the Kusama Pumpkin Minaudière Jewel Bag at over $133,000, and the crocodile skin City Steamer at a whopping $55,500.
These prices create a perception of exclusivity and value among consumers who are willing to pay a premium for the privilege of owning a piece of Louis Vuitton.
3. Innovation and design
Louis Vuitton is a fashion powerhouse that’s always pushing the envelope when it comes to design. Their innovative approach has set them apart from the rest, especially in their use of materials and construction techniques.
Did you know that Louis Vuitton has been experimenting with 3D printing for some of its prototypes and accessories? This includes shoe buckles and jewellery, which is pretty cool if you ask me!
Another thing that sets Louis Vuitton apart is their collaborations with various artists and designers. They’ve worked with some big names such as Jeff Koons, Takashi Murakami, Pharrell Williams, Virgil Abloh, and Kanye West, to create limited edition lines that reflect their unique design styles and visions. These collaborations have generated quite the buzz and excitement among customers and collectors who appreciate the fusion of art and fashion.
In 2016, Louis Vuitton launched their first perfume in 70 years and built a state-of-the-art fragrance factory to develop the perfumes. They’ve also added men’s fragrances in 2017. Actress Emma Stone was the star of Louis Vuitton’s first fragrance film.
Louis Vuitton is also committed to sustainability and environmental responsibility as part of the LVMH Group’s Initiatives for The Environment (LIFE) program. They’ve set goals to reduce their carbon footprint, water consumption, waste generation, and packaging impact by 2020. The brand has also supported social causes such as education, health, and culture through their foundation and partnerships.
Lastly, Louis Vuitton has emphasised their heritage and craftsmanship by training a new generation of artisans to craft leather goods and footwear using century-old techniques. They’ve also opened workshops and ateliers around the world to showcase their savoir-faire and quality standards.
4. Global reach and distribution
Louis Vuitton has a strong global presence, with stores and boutiques in major cities around the world. The brand’s distribution strategy is designed to reach a wide range of customers while maintaining its exclusivity.
Firstly, they keep their distribution channels limited to just two: their own retail outlets and their official website. This helps the brand to control the quality, pricing, and image of their products and avoid counterfeit items. They also avoid franchise services and keep their product distribution limited to the stores they operate worldwide.
The brand is also vertically integrated, meaning that they control every link in the value chain from sourcing and production facilities to selective retailing. This allows them to ensure excellence both upstream and downstream and to adapt quickly to changing customer needs and preferences.
When it comes to retailing, Louis Vuitton operates its own stores that are located in prime locations, offering a luxurious and personalised shopping experience. They also sell their products online through their official website, which is available in several languages and offers various services such as personalisation, engraving, and hot stamping. However, the brand does not sell its products through any other online platforms or third-party retailers.
The brand has a global reach with stores in over 50 countries across Europe, Asia, America, Africa, and Oceania. They also cater to different markets and cultures by offering regional variations and limited editions of their products. For example, the brand launched a special collection inspired by Chinese New Year in 2020.
5. Celebrity endorsements and collaborations
Louis Vuitton has a long history of partnering with celebrities and designers to create limited-edition products and collections. These collaborations help to generate buzz and increase the brand’s visibility among key audiences.
Louis Vuitton knows how to create a buzz around its products and generate excitement among its customers. The brand uses various marketing tools to communicate its story and values, such as advertising campaigns featuring celebrities and influencers; collaborations with artists and designers; events and exhibitions; social media platforms; and online platforms such as LV Now and LV TV.
According to Statista, LVMH Group spent a whopping 9.5 billion euros on advertising and promotion costs worldwide in 2022 – the most they’ve invested in advertising since 2008. By associating themselves with the rich and famous, Louis Vuitton reinforces their image as a brand reserved for the elite few.
Conclusion
Louis Vuitton bags aren’t just mere fashion accessories; they’re statements of one’s style, status, and individuality. These beauties are built to last and to be handed down like heirlooms.
Louis Vuitton has really nailed their brand strategy and that’s why they’re a leading brand in the luxury goods industry.
If you’re looking to establish your brand as an icon like Louis Vuitton, then we should talk about my brand strategy services.
Together, we can create a cohesive and captivating brand strategy that will connect with your audience and position you as a leader in your industry.
Don’t settle for a bland brand. Be like Louis Vuitton and make your mark with style and quality that never goes out of fashion!
References:
- The story behind the brand: Louis Vuitton – BRAND MINDS. https://brandminds.com/the-story-behind-the-brand-louis-vuitton/.
- Louis Vuitton Marketing Strategy & Marketing Mix (4Ps). https://www.mbaskool.com/marketing-mix/products/16755-louis-vuitton.html
- Louis Vuitton: brand value worldwide 2016-2022 | Statista. https://www.statista.com/statistics/980552/louis-vuitton-brand-value-worldwide/
- World’s top 10 most valuable luxury brands in 2021. https://www.moneycontrol.com/news/photos/business/worlds-top-10-most-valuable-luxury-brands-in-2021-7283631.html
- What Is Louis Vuitton Brand Value? – Bliss Tulle. https://blisstulle.com/what-is-louis-vuitton-brand-value/
- Louis Vuitton | Company Overview & News – Forbes. https://www.forbes.com/companies/louis-vuitton/
- https://www.statista.com/statistics/980552/louis-vuitton-brand-value-worldwide/
- New record year for LVMH in 2022 – globenewswire.com. https://www.globenewswire.com/news-release/2023/01/26/2596311/0/en/New-record-year-for-LVMH-in-2022.html
- The Best Limited Edition Louis Vuitton Handbags – Sotheby’s. https://www.sothebys.com/en/articles/the-best-limited-edition-louis-vuitton-handbags
Leave a Reply