Louis Vuitton SWOT Analysis 2022 – LVMH

113 0

SWOT Analysis Of Louis Vuitton analyzes, Louis Vuitton is the world’s most valuable luxury brand and is a division of LVMH. Its products include leather goods, handbags, trunks, shoes, watches, jewelry and accessories. Most of these are adorned with the LV monogram. It is one of the most profitable brands in the world with profit margins north of 30%. Louis Vuitton Malletier was a suitcase maker who established his French luxury brand in 1854. He focused on the high-end market and was well-known for his great designs. … Then it was in 1896 that Louis Vuitton introduced the famous LV monogram to his bags, the design which has become so famous today.

Did you know?

All Louis Vuitton handbags are handmade. It takes about a week to create one handbag.

The Louis Vuitton label was founded by Vuitton in 1854 on Rue Neuve des Capucines in Paris, France. Louis Vuitton had observed that the HJ Cave Osilite trunk could be easily stacked. In 1858, Vuitton introduced his flat-topped trunks with Trianon canvas, making them lightweight and airtight. A special line in the company policy is personalization and the design of custom goods, which allows even the most demanding clients to get exactly what they want. According to Wikipedia, “For six consecutive years (2006–2012), Louis Vuitton was named the world’s most valuable luxury brand.

This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Louis Vuitton.

Louis Vuitton At A Glance – Louis Vuitton SWOT Analysis

Company: LVMH
Founders: Louis Vuitton
Year of establishment: 1854, Paris, France
CEO: Bernard Arnault
Headquarters: Paris, France
Employees (Dec 2020): 23,736
Ticker Symbol: LVMH
Type: Public
Annual Revenue (Dec 2020): EURO€28.7 Billion
Profit net income (Dec 2020): EURO€4.96 Billion

Products & Services: Leather goods | Handbags | Trunks | Shoes | Watches | Jewelry | Accessories

Company Website: eu.louisvuitton.com

Top Louis Vuitton Competitors 

Competitors: Hermes | Gucci | Prada | Chanel | Burberry | Coach | Fendi | Versace | Christian Dior | Calvin Klein | Cartier | Zara | Ralph Lauren | Armani | Levi’s

Louis Vuitton SWOT Analysis – SWOT Analysis Of Louis Vuitton

SWOT Analysis Of Louis Vuitton analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Louis Vuitton SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Louis Vuitton SWOT Analysis. Below Is The Detailed SWOT Analysis Of Louis Vuitton.

Louis Vuitton Strengths – Louis Vuitton SWOT Analysis

  • A strong connection to high-quality: in the premium segment, consumers are always concerned about the quality of the items they choose to use and are prepared to pay more for it. Louis Vuitton products have always been the standard in terms of the design and quality of handbags. The long-standing association with high-end quality is the main strength.
  • Recognition of the brand: The Louis Vuitton monogram has a lot of recognition and that is why people would prefer carrying bags with the monogram of the brand as it is associated with class and prestige in the society.
  • The best celebrities endorsements: Louis Vuitton was always backed by the most famous celebrities in show business. They have supported the brand and have carried it out in public appearances. The top endorsements are Scarlett Johansson, Uma Thurman, Angelina Jolie and Muhammad Ali.
  • Large network: Louis Vuitton employs around 1,212,289 employees around the world, making it among the most prestigious employers of companies that deal with high-end products. The brand sells its goods through their own stores as well as high-end retail chains and on their website. The brand is available throughout more than 50 nations in more than 460 stores.
  • Exclusive merchandise: Louis Vuitton is well-known for their customized luggage that is monogrammed to signify their brand. Their exclusive brands ensure that your luggage is distinct from other luggage and isn’t used by anyone else.
  • Top designers: The design team at Louis Vuitton comprises of top designers around the globe. The names of some of them include Helmut Lang, Azzedine Alaia, Sybilla, Manolo Blahnik, Vivienne Westwood, Isaac Mizrahi, Stephen Sprouse, and Romeo Ggli.

Louis Vuitton Weaknesses – Louis Vuitton SWOT Analysis

  • Overly centralization: Louis Vuitton is known as a difficult employer. Their emphasis on exclusivity means they brevet and copyright the majority of their designs. They also are reliant on centralized decision-making which lowers morale.
  • A lack of sensitivity to different cultural norms: Louis Vuitton is French in style and design and is more open to other styles and isn’t aware of trends in other nations.
  • Reliance too heavily on Japanese Japan Market Japan is among Louis Vuitton biggest markets and more than 85 percentage of Japanese women own a Louis Vuitton product. This has limited the capacity of the brand to explore other markets.
  • Exorbitant pricing: Louis Vuitton is an exclusive brand. A basic item from the company is priced at around 1500 dollars. This makes it difficult for anyone to afford the LV bags or suitcases and, consequently, the company has a goal of capturing an small market.

Louis Vuitton Opportunities – Louis Vuitton SWOT Analysis

  • Growth opportunities for the market: The worldwide market for luxury items is estimated to be around 42 billion dollars, with the potential for growth of 4 percent annually. This is a huge chance for companies that sell luxury goods.
  • The number of female workers: The need for status symbols is increasing at the work place as more women start the workplace. This presents a great chance to Louis Vuitton in their prime market, which is formal baggage alternatives.
  • The rise in per-capita income: Most countries around the world have witnessed a dramatic rise in per-capita income, with this resulting in discretionary income is showing a significant rise as well. This could lead to an increase in the demand for items that are not essential and high-end goods.

Louis Vuitton Threats – Louis Vuitton SWOT Analysis

  • Counterfeiting: The most significant danger that luxury goods are facing today is counterfeit goods on the market. The presence of counterfeits does not only give the brand a bad image but also decreases the percentage of market.
  • Managing customization across the globe: The forte of Louis Vuitton is their capacity to design exclusive products and that means they will also have to tailor their products to different  cultures. The team that is comprised mainly of European designers will face an enormous challenge.

Louis Vuitton SWOT Analysis Overview Template

louis vuitton SWOT Analysis Overview Template

This is the SWOT report that Louis Vuitton has done. Please let us know if you have additional suggestions to add.


Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.