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?
