Louis Vuitton is Out of Favor?

On 25th of this month, in the Louis Vuitton New World Department store opening ceremony, the managing Kalin Mu - Perus  excitedly introduced to the reporters every corner of the store. On the surface it seems similiar to the other shops. But there are differences and are often referred to "super high" and "the only one." The reason is that, with the "designer popularity" era approaching, Louis Vuitton in Korea known is referred as the "three seconds handbag", that is, in every 3 seconds in the street can we see a Louis Vuitton bag.

In the case of the economic crisis last year, Louis Vuitton benefited from the increased purchase of Japanese tourists with the sales increased by 30% and achieved the sales volume of about 360 billion won, a break through. In the Lotte Department Store in Myeong-dong branch, the monthly sales can reach 60 billion won, 7.5 times of Prada.


But in the south, the suitation would be different. Last year, Hyundai Department Store's growth rate was only 10%. Galleria department store's growth rate was only 9.4%. The person in charge of the Galleria department store said: "In accordance with the tastes of customers in Southern China, they like Stefano Ricci, Nancy - Gonzalez, Liberty, Yikeruisi more. "Coupled with the reduced sales of foreign tourists early this year in Southern China, sales of department stores fell year on year. Popular designers such as Louis Vuitton and Gucci are hard to attract the southern consumers if they do not release the value of super-expensive and rare products.

Louis Vuitton Being Too Exaggerated?

The latest Louis Vuitton ads did not use sexy models to show off instead of using the image of the demure young lady. The productS are made of hand-made purses and wallets. The ads is entitled "The Young Woman and the Tiny Folds" and the other ad is "The Seamstress With Linen Thread and Beeswax".

But there was a tiny detail that we overlooked. Hardly any Louis Vuitton bag is handmade. While the workers were seen hand sewn Louis Vuitton bags in 2004 in Ducey's Louis Vuitton factory near St. Michel mountain village, this is only one step in the multi-channel processes and soon the bag was again to the next an assembly line.

Analysts told us that Louis Vuitton's high production efficiency makes it much higher than the industry average operating margins. In the first half of 2009, Louis Vuitton's parent company LVMH Moet Hennessy Louis Vuitton announced up to 30% operating margin. This significantly won over the two other rivals in leather products industry with Hermes being 25% and the Bottega Veneta being 22.9%.
This allows us to recall those Louis Vuitton ads. Of course, most people recognize that advertisements are often not really the case. However, if a company's advertisement is too exaggerated, what will you feel? If the one under discussion is Louis Vuitton, and what how will you feel?