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Questions and Answers

Which luxury brand has the highest value from the provided list?

  • Ferrari (correct)
  • Prada
  • Burberry
  • Bulgari

Which country is associated with the brand Patek Philippe?

  • United Kingdom
  • Italy
  • France
  • Switzerland (correct)

What is the value of the brand Dior as stated in the list?

  • 2,775
  • 3,330
  • 1,578
  • 2,038 (correct)

Which brand is ranked just below Burberry in the list?

<p>Zegna (D)</p> Signup and view all the answers

How many brands from Italy are presented in the list?

<p>4 (D)</p> Signup and view all the answers

What was the revenue from recurring operations for Louis Vuitton Moët-Hennessy in 2008?

<p>6,010 million Euros (B)</p> Signup and view all the answers

By how much did the profit from recurring operations increase from 2006 to 2008?

<p>294 million Euros (A)</p> Signup and view all the answers

What was the profit from recurring operations in 2007?

<p>1,829 million Euros (D)</p> Signup and view all the answers

Which year saw the highest profit from recurring operations reported?

<p>2008 (D)</p> Signup and view all the answers

What was the percentage increase in revenue from 2006 to 2008?

<p>14.8% (A)</p> Signup and view all the answers

What significant change did Gaston-Louis Vuitton implement for the brand?

<p>He redesigned the Monogram Canvas. (A)</p> Signup and view all the answers

When did Louis Vuitton first initiate its advertising strategy?

<p>In 1963 with the involvement of Hollywood actresses. (B)</p> Signup and view all the answers

What was the profit increase percentage for Louis Vuitton in 1988 compared to 1987?

<p>49 percent (C)</p> Signup and view all the answers

Which was the first country in Asia where Louis Vuitton expanded its market?

<p>Japan (A)</p> Signup and view all the answers

What year did Louis Vuitton enter China with its first store?

<p>1990 (D)</p> Signup and view all the answers

Which luxury brands were part of the merger that formed LVMH?

<p>Moët et Chandon and Hennessy (B)</p> Signup and view all the answers

In what year did Louis Vuitton become the world's biggest luxury brand in terms of market share?

<p>1977 (A)</p> Signup and view all the answers

Which method did Louis Vuitton use to initiate its global expansion despite the onset of World War I?

<p>By opening stores in key global cities. (D)</p> Signup and view all the answers

What was a significant factor in Louis Vuitton's need to redefine its strategy in Japan?

<p>Increased reliance on local markets due to decreased tourist sales. (A)</p> Signup and view all the answers

What did Jacobs try to achieve as the artistic director of Louis Vuitton?

<p>A mixture of tradition and innovation. (D)</p> Signup and view all the answers

What impact did the September 11, 2001 attacks have on luxury shopping?

<p>Severe decline in tourist flows affecting luxury markets. (D)</p> Signup and view all the answers

Since when had the worldwide luxury market been experiencing growth prior to the recession?

<ol start="1995"> <li>(A)</li> </ol> Signup and view all the answers

What was a direct consequence of the recession on luxury goods in Japan?

<p>Decline in sales in duty-free zones. (A)</p> Signup and view all the answers

What approach did Louis Vuitton take to adapt to local customers?

<p>Adjusting its products and strategies. (A)</p> Signup and view all the answers

Which of the following locations was directly impacted by the decrease in luxury shopping after September 11, 2001?

<p>Tokyo’s Ginza Namiki Dori. (C)</p> Signup and view all the answers

What was Louis Vuitton's strategy before the shift in consumer focus due to the economic downturn?

<p>Leading as a brand strategist and trendsetter. (C)</p> Signup and view all the answers

Which luxury fashion brand has the highest percentage of revenue from Japan in 2005?

<p>Baccarat (C)</p> Signup and view all the answers

What percentage of Louis Vuitton's overall revenue came from Japan in 2005?

<p>30% (D)</p> Signup and view all the answers

Which of the following brands had the lowest revenue percentage from Japan?

<p>LVMH Group (D)</p> Signup and view all the answers

In 2005, how much of Coach's overall revenue was attributed to sales in Japan?

<p>22% (B)</p> Signup and view all the answers

Which luxury brand is noted for its 'Keepall 55' handbag?

<p>Louis Vuitton (B)</p> Signup and view all the answers

What design inspiration did 'The Alma Normande' bag draw from?

<p>A shape invented by Gaston Vuitton (C)</p> Signup and view all the answers

Which brand reported a revenue percentage from Japan closest to 25%?

<p>Hermes (D)</p> Signup and view all the answers

Which luxury fashion brand achieved a revenue percentage equal to 27% from Japan?

<p>Both B and C (B)</p> Signup and view all the answers

What was the percentage increase in turnover from 12/2006 to 12/2007?

<p>9% (A)</p> Signup and view all the answers

Which year had the highest net income reported?

<p>12/2007 (C)</p> Signup and view all the answers

What was the gross operating surplus in 12/2006?

<p>655 million euros (A)</p> Signup and view all the answers

What is the value added percentage change from 12/2006 to 12/2007?

<p>2% (A)</p> Signup and view all the answers

Which year saw a 91% increase in exceptional results?

<p>12/2007 (A)</p> Signup and view all the answers

What was the cash flow in 12/2005?

<p>841 million euros (D)</p> Signup and view all the answers

What was the debt ratio in 12/2007?

<p>0.01 (A)</p> Signup and view all the answers

What was the percentage change in equity from 12/2006 to 12/2007?

<p>0% (D)</p> Signup and view all the answers

How much did current liabilities decrease from 12/2006 to 12/2007?

<p>2 million euros (B)</p> Signup and view all the answers

What was the financial result in 12/2005?

<p>462 million euros (D)</p> Signup and view all the answers

What was the rate of value added in 12/2004?

<p>40.01% (B)</p> Signup and view all the answers

Which year had the highest number of months reported?

<p>12/2005 (C)</p> Signup and view all the answers

What was the percentage increase in cash flow from 12/2006 to 12/2007?

<p>3% (D)</p> Signup and view all the answers

What was the export turnover in 12/2007?

<p>1,650 million euros (D)</p> Signup and view all the answers

Flashcards

Global Expansion

Louis Vuitton began expanding internationally, opening stores in cities like New York, Bombay, Washington, London, Alexandria, and Buenos Aires.

Modernization of Louis Vuitton

Under Gaston-Louis Vuitton's leadership, the brand evolved. They expanded the product line, incorporating small leather goods and redesigning the Monogram Canvas.

Marketing Strategy of Louis Vuitton

Louis Vuitton began actively promoting the brand. They started by giving bags to Hollywood actresses, aiming for brand recognition.

Vuitton's Market Dominance

By the mid-1970s, Louis Vuitton had become the largest luxury brand globally, based on its market share.

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Asian Expansion

They were strategically expanding into Asian markets. They opened stores in Japan (1977), Taiwan (1983), and South Korea (1984).

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LVMH Formation

Louis Vuitton merged with luxury companies Moët et Chandon and Hennessy in 1987, creating LVMH, the world's largest luxury goods conglomerate.

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Growth of Louis Vuitton After Merger

The merger with Moët et Chandon and Hennessy led to an impressive 49% profit increase for Louis Vuitton in 1988 compared to 1987.

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Continued International Expansion

Louis Vuitton continued its expansion strategy under Yves Carcelles' leadership, opening the first Chinese store in Beijing.

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Trend-Setting Brand Strategist

A company that sets fashion trends and influences the market with innovative ideas.

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Strategic Shift

A change in a company's approach to achieve its goals, often due to changes in the market or customer behavior.

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Local Consumers

People living in the same area as a company, who are the primary target for its products.

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Luxury Market Slowdown

A decline in sales and demand for luxury goods, often due to global economic events.

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Tourist Flow Decline

A decrease in the number of tourists visiting specific destinations, which can affect local businesses.

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Adverse Impact

A negative effect on something, such as a decline in purchasing power due to economic challenges.

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Guarantee of Future Growth

A promise or assurance that a company will continue to grow and be successful.

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Adjusting Approach

A company modifying its strategies and methods to adapt to market changes or customer needs.

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LVMH Key Figures 2008

This table summarizes Louis Vuitton Moët-Hennessy's (LVMH) Fashion & Leather Goods Division's key financial figures for 2008, including revenue, profits, and investments.

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Revenue Growth (2006-2008)

LVMH's Fashion & Leather Goods Division experienced consistent revenue growth between 2006 and 2008, increasing from 5,222 million Euros to 6,010 million Euros.

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Profit from Recurring Operations

This refers to the profit generated from LVMH's core business activities, excluding one-time events or unusual gains.

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Geographical Distribution of Revenue

This table shows where LVMH generated the most revenue from its Fashion & Leather Goods Division in 2008.

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Investments in Millions of Euros

This figure represents the amount LVMH invested in its Fashion & Leather Goods Division in 2008.

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Top Luxury Brands 2008

A list of the top 15 most valuable luxury brands in 2008, including their brand value and origin country.

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Brand Value

The monetary value of a brand, reflecting its reputation, customer loyalty, and overall impact in the market.

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Origin Country

The country where a specific luxury brand is headquartered or primarily based.

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Luxury Brand Ranking

The position of a luxury brand among other luxury brands based on factors like brand value and market recognition.

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Interbrand

A global brand consultancy that publishes annual rankings of the world's most valuable brands, including luxury brands.

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Japanese Market Importance

Japan represents a significant revenue source for many luxury brands, with some brands generating over 30% of their global sales from this market.

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Louis Vuitton's Japan Revenue

In 2005, Louis Vuitton generated 30% of its global revenue from Japan, highlighting the importance of the Japanese market for the brand.

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What is the Keepall 55?

The Keepall 55 is a classic Louis Vuitton travel bag, renowned for its durability and timeless design.

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What is the Speedy 35?

The Speedy 35 is a popular Louis Vuitton handbag, recognized for its versatility and practicality.

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What is the Alma Normande?

The Alma Normande is a Louis Vuitton handbag inspired by a design from the 1930s, known for its structured and sophisticated look.

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What is the Louis Vuitton Monogram Canvas?

The Louis Vuitton Monogram Canvas is a recognizable pattern featured on many of the brand's bags and accessories, known for its durability and classic appeal.

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Who is Gaston-Louis Vuitton?

Gaston-Louis Vuitton was a significant figure in Louis Vuitton's history, credited with modernizing the brand and expanding its product line.

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Why did Louis Vuitton give bags to Hollywood actresses?

Louis Vuitton's marketing strategy involved associating their brand with Hollywood actresses, aiming for increased brand recognition and desirability.

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Turnover

The total revenue generated by Louis Vuitton in a given period, representing the total value of goods and services sold.

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Export Turnover

The portion of Louis Vuitton's total revenue generated from sales outside of France.

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Value Added

The difference between the value of a company's output (turnover) and the cost of its inputs (materials, labor, etc.).

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Gross Operating Surplus

The profit generated from the company's core operating activities, before considering taxes and financial expenses.

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Operating Income

The profit generated after deducting operating expenses from gross operating surplus.

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Financial Result

The profit or loss generated from a company's financial activities, including interest income and expenses, and gains and losses from investments.

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Net Income

The bottom line profit, or net earnings, that remain after deducting all expenses and taxes.

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Cash Flow

The movement of cash into and out of a company. It reflects the total cash generated and spent during a period.

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Net Fixed Assets

The value of a company's fixed assets (e.g., buildings, equipment) after deducting any accumulated depreciation.

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Net Assets

The total value of a company's assets minus its liabilities.

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Equity

The ownership interest in a company, representing the value of the company's assets minus its liabilities.

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Long-term Debt

Debt with a maturity date of more than one year.

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Current Liabilities

Short-term obligations that are expected to be paid within one year.

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Profitability

A measure of a company's ability to generate profits.

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Rate of Value Added

The percentage of a company's turnover that represents value added.

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Study Notes

Louis Vuitton in Japan

  • Louis Vuitton's 30th anniversary in Japan was celebrated with a pop-up store in Comme des Garçons.
  • The store's location, on Omotesando Street, was strategically chosen for its prestigious location.
  • Yves Carcelle, CEO of Louis Vuitton, highlighted the brand's heritage and know-how appreciated in Japan.
  • Louis Vuitton's aggressive marketing strategy in Japan included extravagant Ginza and Roppongi stores.

Louis Vuitton History

  • Founded in 1854 in France, Louis Vuitton started as a maker of luggage.
  • The company developed the distinctive Monogram Canvas and Damier patterns.
  • Key figures, especially Georges and Gaston-Louis Vuitton, expanded the brand globally and established a wider presence.
  • The company expanded its product line from luggage to other leather goods, such as purses and wallets.
  • Marc Jacobs, a prominent fashion designer was Louis Vuitton's art director in 1998.
  • This role was impactful for the company's direction

Louis Vuitton in the 21st Century

  • Louis Vuitton's global strategy focused on limited-edition collections.
  • Collaboration with high-profile artists, like Stephen Sprouse and Takashi Murakami, created limited-edition items.
  • Opened flagship stores in major cities like New York and Sao Paulo to expand sales.
  • Louis Vuitton had aimed to grow profitability and establish a wider customer base across the world, including Japan.

The Japanese Luxury Market

  • Japan, in the early 2000s, was recognised as one of the most important markets for luxury brands.
  • Japanese consumers displayed a significant level of loyalty to luxury brands.
  • The Japanese luxury market was considered a high-growth market.
  • The Japanese luxury market was also competitive with many foreign brands, including Louis Vuitton, establishing a strong presence.

Consumer Behavior in Japan

  • Japanese consumers, especially women, viewed luxury products as expressive of their social standing and values.
  • Japan's focus on quality was a significant factor in the luxury market's growth.
  • Counterfeiting was a challenge that needed to be addressed.

Louis Vuitton's New Perspectives and Strategies

  • Reduced prices in response to economic slowdown and yen appreciation in 2008.
  • Developed new product lines to attract a younger generation, notably the collaboration between Marc Jacobs and Takashi Murakami for the "Monogram Ouflage" line.
  • Louis Vuitton's goal was to adjust its operations according to the changes in the Japanese market trends.

Key Financial Figures of Louis Vuitton

  • Key financial figures were reported in 2008 with high profitability and sales growth.
  • Profit and revenue figures show strong growth in the Japanese market, which was a key indicator of success.
  • Financial data indicates significant growth in sales and profits for the luxury goods division.

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