The Strategy of Louis Vuitton

Louis Vuitton Strategy LVMH is the world's leading luxury products group. The strategy of LVMH is based on combining LVMH fashion and leather goods. Net sales have grown 57% in the past two years. In 2001 LVMH had a strong earning growth in a slumping economy. This was due to the strength of the Louis Vuitton brand, which is the world leader in luxury goods and benefited the younger brands from the synergies that developed within the …

…snuffing out the creative spark that gives the luxury business its luster. He was responsible for bringing in new designers to spiff up Vuitton's styling and expand the product line, while terminating franchise agreements so that LVMH regained exclusive control of retailing. Carcelle's leadership has been effective. Last year, fueled largely by Vuitton, the fashion group accounted for nearly 30% of LVMH's $10.8 billion in sales, and more than 80% of its $1.4 billion operating profit. (Business Week-online June17, 2002)