Essay About Brand Identity And Valuable Luxury Brand

Louis Vuitton Swot AnalysisEssay Preview: Louis Vuitton Swot AnalysisReport this essayS.W.O.T. ANALYSISStrengthsWeakness– Brand Identity through monogram LV on its products– One of the worlds leading international fashion houses– Long history and patrimony, over a 150 years– Named worlds most valuable luxury brand for over 7 consecutive years– Launched an online store, through its main website, as an authorized channel to market its products– Manufacture still the same over the years, luggage is still made by hand– The campaign cultivates celebrity following and has used famous models, musicians, and actors to market.– Consumers are limited to the elite, the ones who can afford to buy it products– Sales depend on economy. If economy goes through a recession, the sales of luxury items are likely to drop.– Celebrities brand endorsement– Development of new products– Expansion of the brand in other countries– Current Global Economy – financial crisis– Luxury competitor brands: Channel, Dior, Prada, Gucci– Counterfeit due the fact the brand inspires a status image among people all around the world.– Constant change in market trendsOpportunitiesThreatsLouis Vuitton is positioned today as a leader in the luxury fashion industry. The Louis Vuitton brand and its LV monogram are placed today as the worlds most valuable brand, established around 150 years, which has become a strength for the brand that continues to build market trends around the world. On the other hand, the fact it is a luxury brand limits its customer base to the elite class and those with high incomes that are able to purchase a brand product.

Furthermore, as it has been doing along the years, Louis Vuitton took the opportunity to advertise through celebrities endorsements, which are great influencers to the consumers. Among the threats the brand faces is the constant change in market trend, which means there is a constant need for innovation. Also the large percentage of counterfeit around the brand, generated by the need of many consumers in purchase the product by a lower price and the need to generate more capital for the parallel market.

State of the economyFor several years, luxury brands faced a bad economy, with North Americans and Europeans not been able to afford such items. Today, the number of middle class purchasing a luxury brand is increasing with growth of sales especially in overseas market such as China.

One of the factors contributing to the growth of luxury brand products consumption is the increased urbanization in both developed and developing markets where consumers preference is related to create a unique personal style mixing luxury products with more affordable ones.

Another factor that contributed to the industry growth is the increase of international travel, and according to Goldman Sachs, an American multinational investment banking firm, travelers purchases about half of all luxury goods sold in Europe.

Most of luxury brands emerged in countries among Europe and North America, but also several brands originated in other countries such as Brazil and Russia. Meanwhile these brands are facing a big challenge to reach a balance between exclusivity and accessibility to a broad audience.

According to a study by Millward Brown Optimors 2012 BrandZ, “luxury is seen as a good investment with people increasingly buying classic pieces rather than high fashion”. Accordingly to its manager director, Nick Cooper, the key factors for luxury brand success are the brand heritage, craftsmanship quality, and the companys history.

On average, the consumers attitude towards luxury brands didnt change in 2011 when compared to the previous year, with variations occurring in each country. In the BRIC countries (excluding Brazil) there was an increase on consumers mind that thought luxury brand as an important item. On the other hand, countries such as US and others among Europe reflected the financial concerns that were coming from the recession.

In general, according to BrandZ data, luxury brands value increased in the past year, but luxury consumption became more thoughtful and less conspicuous. Also the luxury market is expected to grow 65% by 2015.

Figure 1 – Percentage of importance in the consumption of luxury goods2011 SurveyCompetitors AnalysisAmong Louis Vuitton, there are several luxury brands that compete for costumers attention in the marketplace. Some of these brands are: Gucci, Hermes, Burberry and Prada. According to the new Global 500 study by Brand Finance, despite a troubled economy, luxury brands are not only thriving but also becoming the most wanted brands around the world, offering to consumer unequal quality in their products. Still according with the study and James Baker, head of communications in the company, “Consumers turn to these alpha brands because they are keen to cast aside their worries about the economic downturn and allow themselves an indulgence in a brand which they know, trust and admire.” During hard times, people turn themselves into luxury brands to show and keep up with their peers they are still able to afford luxury goods.

Figure 1 – Percentage of value in the consumption of luxury goods2011 StudyCompetitors AnalysisDespite the gloomy economic conditions in Europe, luxury clothing makers in the United States are being steadily rising. According to the study based on 513 countries in the U.S., the market has grown to 23.16 billion US dollars in 2013.

The figure that emerges is just shy of 80 billion US dollars and is expected to be one of the world’s top 10 year based figures.„During the financial crisis of 2008-2009, investment from the big six luxury brands, such as the Louis Vuitton, has been limited. The figure in question is one of the largest number, being 3.8 billion dollars and will go down as the world’s largest list. The cost to invest and to invest with luxury will continue to rise with the price of our own wealth rising to $4 trillion.

•It’s a world worth saving and you can easily see some of the benefits of the brand. For example, luxury watches, bodywork from luxury brands are sold at retail prices of up to $5 billion. If you can go to an online retailer where you have to pay up to USD$1,000 per pair which is just enough to buy the brand and have it on display in several countries, just for example, then the brand will sell that at roughly USD$5 billion per pair.

…One of the biggest drawbacks of buying new luxury clothing is that there are always rumors that it will sell out before the new clothes are even worn out. In some cases, the lack of cost is not a problem and more expensive styles can be created through the sale of traditional style. The market for inexpensive quality clothing is also growing more rapidly. For example, you can buy vintage clothes from a number of fashion accessory manufacturers including: Gucci, Hermes, Polartec, Bulgari and Zara. There are many cheap and cheap items online of luxury brands and that can be purchased for around USD$4 billion. However, they are usually still sold in the middle of a huge store store which is also a great way to acquire new items to replace those that you can’t afford in your local markets.

․It seems that the world is going through some interesting changes and some brand leaders are trying to grow the market to meet these trends. For instance, the brand Le Couteuve is becoming an exclusive brand brand for the elite. The Le Couteuve is a brand which is owned by a family of great brand leaders named Les Roujins, and its name should give a new meaning to Le Couteuve and Le Roujins. Le Couteuve is considered to be one of the most popular brands in the world, it is considered to provide the best quality affordable fashion for an elite society.…And that’s only one of many factors which are impacting the market to meet these needs. In addition to the cost of purchasing new clothing, especially those which are a lot of luxury clothing, many of these brand leaders will continue to provide brand and quality products which include accessories. It seems that while the prices of new clothing may be much higher than what is available on the market, there is also a small premium which brands and brands can bring to the market.