Luxury Brand in China: Louis Vuitton's Pursuit of Lasting Charm

In 1854, Louis Vuitton, a young man from the mountains of the eastern part of France, foreseeing the advent of the travel era, founded a company in Paris with his own name, specializing in the manufacture of bags and the life Way associated accessories.

150 years later, Louis Vuitton's LVMH Group has become the world's largest luxury goods group. Its brands cover luxury brands in all industries (such as Hennessy), including Louis Vuitton brand sales completed Accounted for more than two-thirds.

In 1978, Louis Vuitton entered the Japanese market. In less than 30 years, Japan has become Louis Vuitton's largest luxury brand market with a turnover of more than 1 billion euros.

The Japanese's obsession with Louis Vuitton has come to an incredible point: When Louis Vuitton opened its largest flagship store in the world in Tokyo in 2002, more than 1,000 people had waited at the door, and some had brought it. Sleeping bags and food waited for two days, hoping to be the first to enter the mall.

To understand the real reason why Louis Vuitton maintains its long-lasting charm and becomes the world’s most profitable luxury brand, it must bypass its dazzling appearance. Quality is on the one hand, and there is also a strict management of the company's sales network (Louis Vuitton's bags are never discounted), and the most important is its willingness to innovate and its ability to develop new markets.

Today, Louis Vuitton is becoming increasingly powerful. The company's annual sales have reached 3.8 billion U.S. dollars, which is almost double that of its closest rivals Prada and Gucci. In 2003, Louis Vuitton's operating margin reached a record 45%, while the luxury goods industry's average profit margin was only 25%.

In 1992, Louis Vuitton entered the Chinese market. From the very beginning, it was confined to the sales of the hotel until September of this year when he opened his first flagship store on the mainland in Shanghai's Hang Lung Plaza. Louis Vuitton has always maintained a pioneering spirit. Today, Louis Vuitton has 322 stores in 52 countries, but it is still accelerating. In the luxury goods industry, it is a small number (or even the only company) that dares to take risks and settle down in new places such as Vietnam.

Bernard Arnault, chairman of LVMH, said at the Hong Kong brand conference in early December that most of the company’s brands have now entered the mainland market, but the expansion has only just begun.