1.
Louis Vuitton ’’A single journey can change
the course of a life’’

2.
The photograph in the previous slide (taken by M. Bourouissa) represents
Virgil Abloh in the middle-creative director of Louis Vuitton-as the painter in
the ‘Atelier du peintre’ (1854-1855) by Gustave Courbert In this allegory the
artist (in this case Virgil Abloh) looks for a perfect composition among
spaces, people and clothes.
The sentence ‘A single journey can change the course of a life’ was taken
by the advertisement of Louis Vuitton endorsed by Angelina Jolie in
Cambodia, May 2011.

3.
Omnichannel Management
Team Project
Professor:
Luca Bergliaffa
Authors:
Alberto Barbara
Davide Bisi
Francesco Minisini
Gilberto Uboldi
Gabriele Pace
Naijia Wang

4.
Never heard
of Louis
Vuitton?
To concludeSWOT
analysis
Identity
and
strategy
co
nte
nts

5.
It's a long story
we have chosen 4 instants…

6.
« Le Futur de la Tradition »
Among all the big companies that operate in the luxury sector, the Moet Hennessy Louis Vuitton group is without a doubt a
supporting pillar, whose Maison become ambassadors of "exquisitely refined art de vivre" and whose creations nourish the
forbidden dream of many consumers. LVMH is a French holding company based in Paris, whose portfolio includes, thanks to
majority or absolute holdings, about seventy prestigious brands marketed all over the world and which guarantee the
company the undisputed leadership in the luxury goods market. The Maison, gathered under the guidance of chairman and
CEO Bernard Arnault (which holds a 47.52% stake), are deeply rooted in six different sectors ranging from high fashion
products and leather accessories, with the management of brands such as Louis Vuitton, Kenzo, Celine, Fendi, a wide range
of sparkling wines among fine wines and spirits. And yet, its activities are also extended to cosmetics and perfumery, watches
and jewelery.

7.
Once upon a time, in 1854
In 1854, the founder Louis Vuitton, opened in Paris, in Rue Neuve des Capucines, his first suitcases and luxury leather goods with
the sign bearing his name: "Louis Vuitton: Malletier in Paris": it was the official birth of the most imitated brand in the world. It is in
these years that Vuitton conceived the travel trunk that made him famous for all the Parisian high society and its brand, a guarantee:
it replaced the traditional rounded cover, with an innovative flat lid, characterized by a greater lightness, given by the frame in poplar
wood, a more solid structure, determined by the metal rim, and by a modern and elegant line, suitable for a refined and well-off
clientele who could understand the preciousness of the product. The success was immediate and resounding and Vuitton began to
supply many royal courts of the time. In 1892, after the death of Louis, the command of the company passed to his son, under whose
administration was born the famous LV monogram, still the company's logo. During the twentieth century, the company started an
important internationalization policy, reaching the eastern markets, with the opening of a first boutique in Beijing, and the American
ones. The turning point that indelibly marked the history of the now established Louis Vuitton was however in 1987, when it was listed
on the stock exchange and successfully completed the merger with the company of wines and spirits Moet Hennessy, taking the
name LVMH.

8.
From the first lady to the dj
Since the ‘90s Louis Vuitton has collaborated with artists who have contaminated but never distorted the brand.
From Stephen Sprouse to Takashi Murakami and Yayoi Kusama, renowned artists have given their own interpretations to the brand by
enriching its storytelling and imagination while contributing to its relevance even beyond the luxury system.
In the past 20 years, the brand went through energetic creative directors such as Marc Jacobs while never changing its core values.
It was paid great respect for the brand staples such as the Monogram and the Art of Travel (the Annie Leibovitz advertising campaign
with the likes of Keith Richards, Sean Connery and Angelina Jolie). The Iconic collections were developed and updated but never
distorted, while at the same time, contemporary products like sneakers were launched to satisfy the appetite of younger customers.
The launch of the collaboration with the New York-based skateboard brand, Supreme, did not disturb the brand’s perception nor the
opportunity to dress the First Lady of France.
A dream team of creative directors has been put in place: Nicolas Ghesquière, Virgil Abloh and Francesca Amfitheatrof. They all
contribute with different yet stylish points of view to the brand’s evolution.

9.
• 1854: foundation of
the firm in Paris
• 1896: creation of the
LV monogram
• ‘50s/’60s: Jet set
main characters use to
carry LV luggages
• ‘60s/’70s: the bucket
and speedy bags
conquer the women
world
• ‘90s: thanks to
Dapper Dan LV
reaches new targets
• 1997: Marc Jacobs is
titled creative director
• 2013: Nicolas
Ghesquière replace
Jacobs
• 2014: for the 160°
anniversary of the
company many
designers re-think the
LV monogram
• 2017: Kim Jones,
driver of innovation
for LV, launches a
collaboration with
Supreme
• 2018:VirgilAbloh is
the new men artistic
director

10.
A wide range of products
Louis Vuitton’s world
Fragrances
Books
Shoes
Handbags
Travel
Jewellery and Time pieces
Accessories
Home and Lifestyle
Ready to wear

11.
Chinaone of the most
important market in fashion
Features for Chinese Market:
- Online channels
- Payment system
- Customer Experience

12.
Focus on Chinese market
We used the personal experience of our class mate Naijia
Wang who described the experience of consumption in
luxury within the chinese market.

13.
co
nte
nts
Never heard
of Louis
Vuitton?
To concludeSWOT
analysis
Identity
and
strategy

14.
(Sender)
(Receiver)
(Inside)
(Outside)
Physical Facet
Iconic monogram
Women's bags
• Powerful and seductive
• Voyageur
Personality
Stylish and luxurious travel
Exclusivity
Credibility
Distinctiveness
They’re:
• premium segment men and women
• Jet set individuals
• “I Am Successful AND Accomplished”
Culture
Self imageReflected customer
Relationship

15.
The brand identity prism by Kapferer for LouisVuitton was
made thinking about all the different aspects from all the
group components stand point.

16.
Brand Strategy
Prestige
Affordability
Mass Market Exclusivity

17.
Expansive
ranking
Brand Bag
€
Decollété
shoes €
Average price
€
1 Prada 2.900 695 1.795,5
2 LouisVuitton 2.380 580 1.480
3 Valentino 2.300 650 1.475
4 Saint Laurent 1.690 950 1.320
5 Gucci 1.980 650 1.315
6 Balenciaga 1.290 995 1.142,5
7 Burberry 1.650 490 1.070
8 Moncler 495 Ca. 500 497

18.
Prestige and Affordability are defined as the average price between décolleté shoes and classic bag of each brand
calculated using prices on their websites.
Mass Market and Exclusivity are related to the number of items shoppable on each ecommerce of these brands so
that exclusivity means few items online and mass market means a lot of items shoppable online. (data takend on
charts in the next two slides).
The bags we considered are those we found as first item in the ‘relevance’ sorted list on the ecommerce of each
brand. We decided to do that because it may be the best seller item.
Décolleté shoes are taken using the same technique of the bags. The only thing we could not find is a décolleté
kind of shoes for Moncler and we calculated the average price of all the Moncler shoes on the e-commerce.
The last column ‘average price’ is about the addition of the bag price and the décolleté price and then divided for
2.
Using the Contaclab online document we know that the most important item to look at if we want to determine
the exclusivity of a luxury Brand is the bag. The price of this kind of good Is the most iconic one. Louis Vuitton has
the second highest price (consider that is a brand which produces a big amount of different items).

19.
DIRIGITAL DARWINISM
To survive and prosper, luxury
players need to enhance the
customer experience and transform
their businesses for the digital era.
The most forward-looking brands
focus on three things.
Luxury 4.0
The luxury
ecosystem
Customer
intimacy

20.
The digital experience today
To survive and prosper, luxury players need to enhance the customer experience and transform their businesses for the digital era.
The trajectory of digital in luxury has come into sharper focus. Digital is a critical source of growth and a powerful way to increase brand
equity. It also enables companies to reimagine key enterprise processes, both front end and back of house. A Luxury 4.0 operating model
has begun to emerge: brands and retailers use data to get closer to customers, capture emerging preferences, and streamline the process
of turning ideas into new products. But digital will probably bring on further disruption—and players in the luxury market should prepare for
it.
Digital is penetrating the value chain and giving companies opportunities to be more effective and responsive. While brands and retailers
recognize that it is essential to experiment on this front, there is wide variation in what companies do. The most forward-looking brands
focus on three things. They are building a Luxury 4.0 operating model that increases their speed and agility by digitizing their businesses.
They are using data to take customer knowledge and relationships to a new level. And fast-moving leaders are forming partnerships
across the luxury ecosystem to accomplish what they cannot do on their own.

21.
Luxury 4.0. Industry 4.0—the fully digitized model for manufacturing—is the inspiration for Luxury 4.0. In industries ranging from autos to consumer electronics, Industry
4.0 is creating a new seamless system that ties together self-aware machines in factories, smart logistics, customer data, and design. These connections make it possible
to respond rapidly to shifts in demand and customer needs, to reduce costs, and to turn customer data quickly into new products and business models that drive growth.
Will this extend to a sector in which art and other intangibles are dominant factors in the value equation? Indeed, just-in-time design and manufacturing have huge
implications for luxury fashion brands. We expect digital and Industry 4.0 to affect luxury operating models in ways that make operations more agile and responsive, without
diluting the DNA of luxury products: craftsmanship, unique design, and personalization.
Customer intimacy. Big data and machine learning are bringing authenticity and relevance back into the customer relationship. It may seem paradoxical to use machines
to get “real and personal,” but luxury brands can win big by using technology to be as authentic with the consumer as they were historically. In the early days of the luxury
époque, Louis Vuitton hand-wrote specific suggestions to a customer to recommend particular travel bags for a transatlantic journey to New York City. Today, big data and
advanced analytics help brands find opportunities to provide services uniquely tailored to each customer and occasion, so the brands seem as authentic as Vuitton’s notes.
This will make consumer relevance ubiquitous in luxury.
The luxury ecosystem. Players in the luxury market have a lot to accomplish on the journey to digital, and not much time to do it. To get where they need to go, luxury
brands and retailers can complement in-house competencies through strategic partnerships—for example, by enlisting help to create novel and exciting customer
experiences. To develop the new competencies that digital requires, companies should become adept at choosing whether to make, to buy, or to partner with others.

22.
what future for physical stores?
There are plenty of things we love about shops – the personal service, the ability to touch and feel products, the fun of the experience and the
instant gratification. And we seem to love shopping online too; after all, it’s easy, convenient and eliminates the need to queue or lug heavy
bags around. Technology can help us take the best of both worlds to create a more seamless, friendly and pleasurable experience.
A goal to which luxury brands are approaching but which will not be reached in the short term. The goal in perspective is that all these
channels work together, really seamlessly and being complementary.
The study "The Digital Frontier For Luxury Goods" - presented by Luca Solca (Exane Bnp Paribas) analyzes the effective degree of digital
development by luxury companies, with particular regard to the integration between physical and digital stores.The analysis highlights five
different levels of digital development: from a basic level, where a brand aims to have the best visibility on the network, up to a maximum level,
which provides for a complete integration of CRM activities between physical and digital channel . A critical point (the Holy Grail) is the
integration of physical and digital distribution: to offer the customer the possibility (only apparently trivial) to buy on the internet and return to
the store, to buy online and pick up in the store, to buy in the store to the stock that is not physically present at the point of sale. Many Luxury
Brands have reached base levels while few have become leaders in the more complex aspects of digital development.

23.
LOUIS
VUITTON’S
OUTSIDE
THE BOX
STRATEG
Y

24.
Never heard
of Louis
Vuitton?
To
conclude
SWOT
analysis
Identity
and
strategy
co
nte
nts

25.
threats
weaknesses
opportunities
strengths
• Diversification
• Customized experience
• New environmental
policies
• Deep history
• Largest luxury brand
• High level of customer
satisfaction
• Strong Brand Portfolio
• Reliable suppliers
• product innovation
• Highly skilled workforce
• Days inventory is high
compare to the competitors
• Investment in Research
and Development is below
the fastest growing players
in the industry.
• Gaps in the product range
sold by the company
• Imitation of the counterfeit
• New environment regulations
• Increase in animalists sensibility
• Technologically Powerful
competitors
• Rising pay level
• Currency fluctuations
S w
to

26.
STRENGHTS
Deep history : the dense history of LV, a meticulous mix of reality and legend, confers solidity and credibility to the brand.
Largest luxury brand : the French group LVMH Moet Hennessy-Louis Vuitton SEincluding, among others, Louis Vuitton, Fendi, Bulgari,
Loro Piana, Emilio Pucci, Acqua di Parma, Loewe, Marc Jacobs, TAG Heuer, is in the luxury sector the first in the world for dimensions with
total sales of $ 23,447 billion (2018, Deloitte).
High level of customer satisfaction –Good Returns on Capital Expenditure – Louis Vuitton is relatively successful at execution of new
projects and generated good returns on capital expenditure by building new revenue streams.
Strong Brand Portfolio – Over the years Louis Vuitton has invested in building a strong brand portfolio. The SWOT analysis of Louis
Vuitton just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product
categories.
Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain
bottlenecks.
Highly skilled workforce through successful training and learning programs. Louis Vuitton is investing huge resources in training and
development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.

27.
WEAKNESSES
There are gaps in the product range sold by the company. This lack of choice can give a new
competitor a foothold in the market.
The profitability ratio and Net Contribution % of Louis Vuitton are below the industry average.
Investment in Research and Development is below the fastest growing players in the industry.
Even though Louis Vuitton is spending above the industry average on Research and Development,
it has not been able to compete with the leading players in the industry in terms of innovation. It
has come across as a mature firm looking forward to bring out products based on tested features
in the market.
Days inventory is high compare to the competitors – making the company raise more capital to
invest in the channel. This can impact the long term growth of Louis Vuitton.

28.
OPPORTUNITIES
New environmental policies – The new opportunities will create a level playing field for all the players
in the industry. It represent a great opportunity for Louis Vuitton to drive home its advantage in new
technology and gain market share in the new product category.
New customers from online channel – Over the past few years the company has invested vast sum
of money into the online platform. This investment has opened new sales channel for Louis Vuitton. In
the next few years the company can leverage this opportunity by knowing its customer better and
serving their needs using big data analytics.
Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in
bank the company can invest in new technologies as well as in new products segments. This should
open a window of opportunity for Louis Vuitton in other product categories. Even more, organization’s
core competencies can be a success in similar other products field.

29.
THREATS
New environment regulations and sensibility : Paris agreement (2016) could be a threat to certain existing product categories.
Environmental sensitivity emerges every day. customers are becoming increasingly demanding about the company's environmental
impact, and regulations in this area are moving in the same direction. This theme is amplified and really critical in the fashion
industry that is responsible for 20% of global waste of water and 10% of carbon dioxide emissions, it is the second most
environmentally toxic sector.
Imitation of the counterfeit : is always a threat to Louis Vuitton’s product especially in the emerging markets and low income
markets. The company has a body of 60 lawyers hired full-time to combat counterfeiting.
Increase in animalists sensibility: a large part of Louis Vuitton's products are of animal origin.
The social acceptance of these products is going to decrease.
New technologies : developed by the competitor or market disruptor could be a serious threat to the industry in medium to long
term future.
Rising pay level : especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on
profitability of Louis Vuitton
Currency fluctuations: as the company is operating in numerous countries it is exposed to currency fluctuations especially given
the volatile political climate in number of markets across the world.

30.
DIFFERENT
STRATEGY
BEST RESULTS
(at least TODAY)
SHOPPABLEITEMSONLINE
REVENUES
Around 1500
shoppable Items
Online
9.6 Billion In Revenues

31.
Never heard
of Louis
Vuitton?
To concludeSWOT
analysis
Identity
and
strategy
co
nte
nts

32.
Louis Vuitton is aware of the growing
importance of the digital channel, and
of the necessary omnichannel
integration between online and offline.
It does not choose to act in a
reactionary way, denying or opposing
this trend, which is inevitable. The
strong Omnichannel position of the
brand in China is the concrete proof of
this dynamic approach.
At the same time, however, in sharp
contrast with all the other brands
operating in the luxury sector, the range
of products available online decreases.
Betting once again on the exclusivity
that only the presence in the physical
store can give.
Louis Vuitton communicates exclusivety
through all its channels.
Those who spot the brand on social
medias, newspapers or other channels
probably cannot afford to buy these
items. It conveys a precise idea of what
Louis Vuitton wants to do: make
individuals wish to belong to a social
prestigious world.
The promise of the brand is to let you
stand apart by the community, to give
you the possibility to be part of an high
social standing.

33.
CONCLUSIONS
In a recent speech, Bernard Arnault, the mastermind behind LVMH, said that he is not obsessed by the size of Louis Vuitton,
but rather that he is much more interested in keeping it in great shape while propelling it to become the most desirable brand
in the upcoming years. In a world where profit is king, the higher the margins the greater the executive bonuses. Short-term
results seem to polarize between the good and the bad. Yet Louis Vuitton stands out for the long-term vision implemented in
its own development.
Louis Vuitton can afford to hire the coolest and most talked about street-style designers for its men’s collections and for
dressing the First Lady of France, while still being appreciated as the most prestigious luxury brand in the world.
The brand can dare to match a French uber-chic avant-garde designer and an American DJ turned trendsetter.
Louis Vuitton is aware of the growing importance of the digital channel, and of the necessary omnichannel integration
between online and offline. It does not choose to act in a reactionary way, denying or opposing this trend, which is inevitable.
The strong Omnichannel position of the brand in China is the concrete proof of this dynamic approach.
At the same time, however, in sharp contrast with all the other brands operating in the luxury sector, the range of products
available online decreases. Betting once again on the exclusivity that only the presence in the physical store can give.

34.
Bibliography
Signature experience : art and science of customer engagement for fashion and luxury companies
Stefania Saviolo
The New Strategic Brand Management: Advanced Insights and Strategic Thinking
Jean-Noel Kapferer
When Advertising Highlights the Binomial IdentityValues of Luxury and CSR Principles:
The Examples of LouisVuitton and Hermès
Naïade, Anido Freire - Leïla Loussaïef

35.
Webliography
https://www.collater.al/virgil-abloh-boyhood
http://www.tinaloves.com/2011/06/angelina-jolie-for-louis-vuitton
https://it.fashionnetwork.com/news/McKinsey-Cina-sorpassa-USA-nel-2019-come-primo-mercato-mondiale-del-
fashion,1040674.html#.XHRYl89Kjs0
https://www.vogue.it/moda/news/2018/04/24/louis-vuitton-la-breve-storia-del-famoso-monogramma
https://www.pambianconews.com/2018/03/26/virgil-abloh-guidera-luomo-di-louis-vuitton-233426/
https://www.ilsole24ore.com/art/moda/2018-02-15/stile-elezioni-e-diplomazia-macron-e-vuitton-
163018.shtml?uuid=AEdqFs0D&nmll=2707&fromSearch
https://www.ilsole24ore.com/art/moda/2018-05-25/vuitton-conferma-ghesquiere-capasa-altri-due-anni-guida-camera-moda-cambio-vertice-
baselworld--121759.shtml?uuid=AElN9duE&fromSearch
https://www.ilsole24ore.com/art/moda/2019-01-18/il-lusso-e-desiderio-inclusivita-e-va-gentleboy-louis-vuitton-poesia-miyake-
090605.shtml?uuid=AEA4nkHH&fromSearch
https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/luxury%20in%20the%20age%20of%20digital%20darwinism/t
he-age-of-digital-darwinism.ashx

36.
Webliography
https://altagamma.it/media/source/CS_DLE3_v7_1.pdf
https://diginomica.com/luxury-brands-final-frontier-omni-channel-e-commerce/
https://www.dmnews.com/channel-marketing/multi-omnichannel/article/13035216/how-three-luxury-brands-are-adapting-to-
an-omnichannel-world
https://www.ilpost.it/2016/02/10/bauli-louis-vuitton/
https://www.lofficielitalia.com/moda/quanto-inquina-la-moda
https://www.mckinsey.com/industries/retail/our-insights/the-business-of-creating-desire-an-interview-with-the-ceo-of-lvmh-
fashion-group
http://fernfortuniversity.com/index.php
https://www.ilpost.it/2016/02/10/bauli-louis-vuitton/
https://youmanist.it/categories/fotografia/arte-mito-leibovitz
https://www.luxurysociety.com/en/articles/2018/05/louis-vuitton-art-top-luxury-brand-maintenance-and-success/

37.
On the field
To gather more information
Short interviews were conducted with employees in the sales points:
■ Via Monte Napoleone, 2, Milan
■ La Rinascente - Piazza del Duomo, Milan
Telephone customer service provided further details on the company's policies.