Louis Vuitton Market Position Essay Sample

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Louis Vuitton Malletier (commonly called Louis Vuitton) is a worldwide known French luxury brand, created in 1854, by Louis Vuitton. The main products are trunks and leather goods, ready-to-wear, shoes, glasses and jewelry. The LV monogram, used on most of the products, is highly recognizable, and is a main part of Louis Vuitton’s success.

Competitive threats

Competitors (current threat)
Louis Vuitton has to face a fierce competition on the European luxury market. With 3.06 billion euros of net benefits in 2011, LVMH doesn’t fear the Eurozone crisis, and is the most valuable luxury brand. However, some competitors are targeting the same segment. The second most important brand, Hermès, is well-known for its leather goods, such as bags and belts. Gucci, the third, target the dandies and the nouveaux riches, like Louis Vuitton main line product. The three leading luxury brand are direct competitors.

Counterfeiting (short-term threat)
Louis Vuitton is the most counterfeited brand in the world. Every year, millions of Euros of fake items are sold illegally, cutting down the monogrammed brand’s benefits. This shortfall is not currently a problem for the giant of the luxury industry, but giving the economic situation in the Eurozone, and despite a full cooperation with the custom services, the counterfeiting is likely to increase (Nargis Namazi, 2010), and soon become a real issue.

Foreign competitors (long-term threat)
The two biggest markets for Louis Vuitton are currently the Europe, where most of its actual competitors come from, and the Asia. So far, Chinese are more luxury consumers than producers, but with the development of the country brought the development of local luxury brand. So far, those brands are not a threat in Europe, because Louis Vuitton targets clients who like to show off, and an unknown logo would defeat the object, but these brands, taking inspiration in the very old traditions of the country, will keep growing. So far, European brands have the long history, the stereotypes and the international fame, but the new Chinese brands will eventually penetrate the European market. The awareness, the trust and the buying habit will come first with the pioneers, then the dandies, and finally the nouveaux riches, who will purchase the new brands when they are sure it’ll be recognize as a sign of success.

What action to protect the market position ?
Competitors (current threat)
Louis Vuitton uses its well-known monogram to fulfil a desire of external recognition. Its actual fame is at the service of its growing fame: the more LV is known, the more its customers want to buy it. Their actual marketing action is clearly working, because LVMH benefits increase every year, despite the current Eurozone crisis.

Counterfeiting (short-term threat)
In order to fight the growing counterfeiting, Louis Vuitton must keep working closely with the custom services, giving clear descriptions on the shipping and authorizing regular thorough check of it. Another way to avoid a part of counterfeiting is to educate people in recognizing an original LV item from a counterfeited one. In few cases, the illegal purchase is not conscious and is the result of ignorance.

Foreign competitors (long-term threat)

Chinese future competitors will bring a new luxury, based on their traditions. Louis Vuitton must use its long history and its French identity, to keep its market position. Its creation by a French man, more than 150 years ago, gives it a psychological advantage of trust, quality and style, as well as a strong brand personality. LV must also provide a strong add-value, such as its actual store concepts, packaging, and after-sale services.


LVHM SWOT analysis. Available at: http://yousigma.com/comparativeanalysis/lvmhmoethennessylouisvuitton.html Louis Vuitton counterfeiting impact. Available at: http://www.retail-digital.com/sectors/luxury-counterfeiting-affecting-louis-vuitton Most powerful luxury brands. Available at: http://www.luxurydaily.com/louis-vuitton-hermes-and-gucci-top-list-of-10-most-powerful-luxury-brands/ Chinese luxury brand. Available at: http://online.wsj.com/article/SB10000872396390443615804578042151914543218.html, http://www.forbes.com/sites/bluecarreon/2011/11/02/can-china-produce-a-luxury-brand/, http://www.chinadaily.com.cn/bizchina/2012-10/08/content_15800258.htm, http://www.chinadaily.com.cn/bizchina/2012-10/08/content_15800258.htm Increasing benefits. Available at: http://www.lexpress.fr/actualites/1/economie/lvmh-benefice-et-ventes-bondissent-au-premier-semestre_1143127.html

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