5. 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
9. Monogram Multicolore – Speedy 30 Monogram Mini Lin – Diaper Bag City Bags and Briefcases Damier Graphite – President Briefcase Mahina XL Stephen Sprouse – Neverfull GM Monogram Vernis – Roxbury Drive
12. 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
13. 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
14. Sun Glasses Metal - Attraction Monogram Photocromique – Conspiration Pilote Metal and Acetate – Alias Round Desmayo Strass Cat Eye Obsession Carre LV Landscape Acetate - Mahina
16. Books Birth of Modern Luxury City Guide 2009, Mumbai Travel Note Book London History of the LV Cup City Guide 2009 – European Cities Travel Note Book Mumbai
17. Ties and Scarves Olivia Scarf Monogram Shawl Mix Monogram Tie New Denim Square Scarf LV Tie Signature Silk Celestie Tie
18. 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
19. Accessories Graffiti Brooch Sweet Monogram Headband Candy Bag Charm Monogram Canvas - Baxter Dog Collar GM Cigar Humidor 75 Mahogany and pear wood Monogram 1001 Nuits Hair Clip
20. Ready to Wear Spring Summer 2009 Spring Summer 2009 Cruise Collection 2009
21. Ready to Wear Spring Summer 2009 Pre Spring Summer 2009 Cruise Collection 2009
22. Brand Identity Physical Personality Self-projection Reflection Culture Relationship Luxury leather goods Monogram Damier Locks, trunks Quality Tradition Heritage Success, Show off Effortless luxury Art of travel Craftsmanship Sporting tradition Working class origin Elite customers “ La belle époque” French Japanese Elegance Comfort Understated Status Social belonging
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26. Competitors Analysis 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
27. Competitors Analysis 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
28. 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
29. 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
32. Product Identity Material 2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury , elegance, quality , clean Thick transparent glass Classical yet innovative (in a perfume bottle) Canvas Traditional yet feminine and young. Monogram Multicolore. Bright colours and white. Traditional , LV original signature print. Soft, feminine, dream Damier Azur Canvas in light blue and beige Feminine yet strong Slightly curvy corners and edges Elegance , sleek, modernity Very slim and long Meanings Signs
33. Package Identity Material 2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury, elegance, expertise , classical, LV heritage Canvas Practical, moder n Metal Sophisticated yet modern and innovative Silver logo , product name and base Eternal, LV original, symbolic, legendary print Damier Azur Canvas. Light b lue and beige Feminine and soft Round corners and edges Practical , elegant, modern Long and slim tin with metal base Meanings Signs
36. 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
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39. PAST French, 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 Positive atitude Brand Loyalty Self confidence Status Traditional Facets of Luxury
40. FIXED COST Production Cost 2.500 euros per colors X 2 = 5.000 euros 3.000 euros per piece 5.000 euros Per piece 3.000+5.000= 8.000 euros 3.000 euros per piece 13x3.000 = 39.000 euros(colors) 3.000 euros per piece (cutting) 39.000+3.000=42.000 60.000 euros per piece (Glass) 30.000 euros per piece (Cap) = 90.000 euros PRICES Colors films Metallic cutting frame Metallic LV Cutting frame Voyage Colors films Metallic cutting frame Glass injection matrix Cap injection matrix PRODUCTION TOOLS PACKAGING PACKAGING BOTTLE BOTTLE
41. VARIABLE COST Production Cost 3 euros 4 euros 5 euros Packaging Price per unit 4 euros 5 euros 6 euros BOTTLE Price per unit 150.000 100.000 50.000 NUMBER OF MODELS
42. Production Cost 44.80 euros 53.76 euros 57.25 euros 68.70 euros 74.50 euros 89.40 euros MARGIN : 500 % SELLING PRICES 8.96 euros 11.45 euros 14.90 euros TOTAL PRODUCTION COST BOTTLE + PACKAGING 3.08 euros 4.13 euros 5.26 euros PACKAGING Production cost per unit 3 euros 4 euros 5 euros PACKAGING Variable cost per unit 13.000/150.000 = 0.08 euros 13.000/100.000 = 0.13 euros 13.000/50.000 = 0.26 euros PACKAGING Fix cost per unit 5.88 euros 7.32 euros 9.64 euros BOTTLE Production cost per unit 5 euros 6 euros 7 euros BOTTLE Variable cost per unit 132.000/150.000 = 0.88 euros 132.000/ 100.000 = 1.32 euros 132.000/50.000 = 2.64 euros BOTTLE Fix cost per unit 150.000 100.000 50.000 Number of models
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45. Exclusive/Selective Distribution when appropriate 110% Polo RL Richemont Burberry Tod's Group Bulgari LVMH Escada Group Coach Hermès Gucci Division Louis Vuitton R 2 = 0.8591 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of Retail Sales EBIT Margin (%) Source : Merrill Lynch Luxury Goods Team estimates
47. Source : Merrill Lynch Luxury Goods Team estimates (trend between in-house production and gross margin highlighted but names of companies are left blank intentionally) Manufacturing Integrity: Product Quality
48. Source : Merrill Lynch Luxury Goods Team estimates Source : Merrill Lynch Luxury Goods Team estimates Presence in most Profitable Product Categories