Fashion Law Journal
Louis Vuitton is regarded as the second-oldest luxury brand still in operation, this French fashion firm adhered to the original “trunk on canvass” principle in all their items. Due to the increased demand for luxury goods, Louis Vuitton now operates in fifty countries and has over four hundred sixty stores globally.
Every product Louis Vuitton sells on the market is renowned for its simplicity and beauty. This luxury brand continues to hold its place in celebrity fashion, thanks to innovative designs crafted by skilled artisans and the use of high-quality materials. Practical purchasers usually do not buy products when they first come out on the market and instead wait for a sale to buy them. The market for Louis Vuitton, on the other hand, is unique. They are patient for the current brand’s classic design to be out before purchasing it, well aware of the price that is fully worth the investment.
History:-
Mark Ellwood, author of Bargain Fever: How to Shop in a Discounted World, highlights a key issue with that notion: Louis Vuitton products are never offered at a discount.
According to Ellwood, there’s a method to the brand’s madness.
Vertical Integration, is a strategy that dates back to the 1970s when steel magnate Henri Recamier married into the Vuitton family and he became the first person to lead the business who was an outsider.
Recamier observed that retailers who sold Vuitton products were marking up the bags by at least double the price, putting all the profits in their pockets and leaving little money for the manufacturers themselves.
Ellwood explains that vertical integration allows Vuitton to not only own its factories but also lease the space for its LV mini boutiques within department stores. This enables Vuitton to control the manufacturing of its products—adjusting production if a particular handbag isn’t selling well—and to staff and operate those mini boutiques directly.
So, LV never sells its products wholesale to a department store, which means the department store can’t sell LV’s products for a sale price.
Here’s Ellwood’s simple explanation of why vertical integration led to success for LV:
Recamier understood forty years ago that the key to selling products at full price was straightforward: By controlling how the products were sold, you could control their price.
Without a middleman, margins are higher, offering a plumper profit cushion during downturns.
This practice also confers exclusivity, since you can buy a given product only from an authorized dealer where the price is fixed.
The reasons why Louis Vuitton never goes on sale:-
- Brand Value
One of the primary reasons why Louis Vuitton does not offer any discounts or sales is due to its brand value. The brand has maintained its position as a symbol of luxury and uniqueness by not offering any sales on its products. By following this method, they differentiate themselves from other luxury brands that offer frequent sales and discounts to attract customers.
- Quality over Quantity
LV believes in Quality over Quantity and that makes it a unique brand. Scarcity is a very tricky marketing strategy for big brands like Zara, LV, etc. and they use future scarcity very well unlike other brands like Zudio, M- Bazzar, etc.
Louis Vuitton makes the finest quality products that last for a lifetime in the whole world. Each product ensures a high level of craftsmanship and attention to detail.
- Exclusivity
LV knows how to control the big market with an exclusive niche category and knows the game of Monopoly. It maintains an air of exclusivity by limiting its distribution channels and dominating the availability of its products. This method assures that their products remain extremely fancy and unique, which further adds to their brand value.
- Value Retention
Unlike fast-fashion brands where trends come and go quickly, Louis Vuitton’s products are designed to withstand the endless time. Due to their finest quality and ageless designs, their products retain their value over time.
Conclusion:-
In the end, I want to conclude that there are many reasons why Louis Vuitton does not offer any sales or discounts. I believe that the brand knows its niche customers and that is the sole reason for not giving its products at discounted prices as it will demine its brand reputation and well-being that has been created for decades. I believe that the brand’s strategy is to maintain rational prices, letting customers appreciate the quality and value of their products without discounts. I believe that Louis Vuitton has a strong prominence as a high-quality luxury brand that does not need to hold sales to sell Louis Vuitton products. Instead, once a sales goal is satisfied for a specific Louis Vuitton item, that item is terminated, and any unsold stock is wiped out. Louis Vuitton is not obligated to lower its rates to entice customers. And lastly as a customer myself I believe that Louis Vuitton is a brand that never fails to deliver high-quality goods that retain their worth as long as the Louis Vuitton name is attached to them.
Author name: Bipasha Rajak
