ommonly referred to as Louis Vuitton, or shortened to LV. The French fashion house was founded in 1854. The label is well known for its LV monogram, which is featured on most products, ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, and books. Louis Vuitton is one of the world’s leading international fashion houses. Louis Vuitton sells its products through small boutiques in high-end department stores, through in the e-commerce section of its website. Louis Vuitton (1821 – February 27, 1892), eponymous founder of the company, was born in Jura, France (now part of the commune of Lavans-sur-Valouse). In 1835, he moved to Paris. The trip from his hometown to Paris was over 400 kilometers (249 mi), and he traveled the distance by foot. On his way there, he picked up a series of odd jobs to pay for his journey. There, he became an apprentice Layetier to prominent households. Because of his well established reputation in his fields, Napoleon III of France appointed Vuitton as Layetier to his wife, Empress Eugénie de Montijo. Through his experience with French royalty, he developed advanced knowledge of what made a good traveling case. It was then that he began to design his own luggage, setting the foundations for LV Co. The Louis Vuitton label was founded by Monsieur Vuitton in 1854 on Rue Neuve des Capucines in Paris. Here below are some very rare images made by The Selby, of the Louis Vuitton family home and the Louis Vuitton bag workshop in Asnières. The illustrations are of Louis Vuitton (in orange) his son Georges Vuitton (in blue) and his son Gaston-Louis Vuitton (in green).
In 1858, Monsieur Vuitton introduced his flat-bottom trunks with trianon canvas, making them lightweight and airtight. Before the introduction of Vuitton’s trunks, rounded-top trunks were used, generally to promote water run off, and thus could not be stacked. It was Vuitton’s gray Trianon canvas flat trunk that allowed the ability to stack for ease with voyages. Becoming successful and prestigious, many other luggage makers began to imitate LV’s style and design.
In 1867, the company participated in the universal exhibition in Paris. To protect against the duplication of his look, he changed the Trianon design to a beige and brown stripes design in 1876. By 1885, the company opened its first store in London, England on Oxford Street. Soon thereafter, due to the continuing imitation of his look, in 1888, the Damier Canvas pattern was created by Louis Vuitton, bearing a logo that reads “marque L. Vuitton déposée,” which translates to “mark L. Vuitton deposited” or, roughly, “L. Vuitton trademark”.
In 1892, Louis Vuitton died, and the company’s management passed to his son. After the death of his father, Georges Vuitton began a campaign to build the company into a worldwide corporation, exhibiting the company’s products at the Chicago World’s Fair in 1893. In 1896, the company launched the signature Monogram Canvas and made the worldwide patents on it. Its graphic symbols, including quatrefoils and flowers (as well as the LV monogram), were based on the trend of using Japanese and Oriental designs in the late Victorian era. The patents later proved to be successful in stopping counterfeiting. In this same year, Georges travelled to the United States, where he toured various cities (such as New York, Philadelphia, and Chicago), selling Vuitton products during the visit. Georges Vuitton is also credited with developing Vuitton’s unique five-combination lock… In 1936, after Georges died, his son, Gaston-Louis, took the helm of the company.
In 1901, the Louis Vuitton Company introduced the Steamer Bag, a smaller piece of luggage designed to be kept inside Vuitton luggage trunks. By 1913, the Louis Vuitton Building opened on the Champs-Elysees. It was the largest travel-goods store in the world at the time. Stores also opened in New York, Bombay, Washington, London, Alexandria, and Buenos Aires as World War I began. Afterwards, in 1930, the Keepall bag was introduced. During 1932, LV introduced the Noé bag. This bag was originally made for champagne vintners to transport bottles. Soon thereafter, the Louis Vuitton Speedy bag was introduced (both are still manufactured today).
In 1936 Georges Vuitton died, and his son, Gaston-Louis Vuitton, assumed control of the company. During the World War II, Louis Vuitton collaborated with the Nazis during the German occupation of France. The French book Louis Vuitton, A French Saga, authored by French journalist Stephanie Bonvicini and published by Paris-based Editions Fayard tells how members of the Vuitton family actively aided the puppet government led by MarshalPhilippe Pétain and increased their wealth from their business affairs with the Germans. The family set up a factory dedicated to producing artifacts glorifying Pétain, including more than 2,500 busts. Petain’s Vichy regime was responsible for the deportation of French Jews to German concentration camps. Caroline Babulle, a spokeswoman for the publisher, Fayard, said: “They have not contested anything in the book, but they are trying to bury it by pretending it doesn’t exist.” Responding to the book’s release in 2004, a spokesman for LVMH said: “This is ancient history. The book covers a period when it was family-run and long before it became part of LVMH. We are diverse, tolerant and all the things a modern company should be.” An LVMH spokesman told the satirical magazine Le Canard Enchainé “We don’t deny the facts, but regrettably the author has exaggerated the Vichy episode,”. That publication was the only French periodical to mention the book.
During this period, Louis Vuitton incorporated its leather into most of its products, ranging from small purses and wallets to larger pieces of luggage. In order to broaden its line, the company revamped its signature Monogram Canvas in 1959 to make it more supple, allowing it to be used for purses, bags, and wallets. It is believed that in the 1960s, counterfeiting returned as a greater issue to continue on into the 21st century. In 1966, the Papillon was launched (a cylindrical bag that is still popular today). By 1977 with annual revenue up to 70 million Francs ($14.27 million USD).
A year later, the label opened its first stores in Japan: in Tokyo and Osaka). In 1983, the company joined with America’s Cup to form the Louis Vuitton Cup, a preliminary competition (known as an eliminatory regatta) for the yacht race. Louis Vuitton later expanded its presence in Asia with the opening of a store in Taipei, Taiwan in 1983 and Seoul, South Korea in 1984. In the following year, 1985, the Epi leather line was introduced. 1987 saw the creation of LVMH. Moët et Chandon and Hennessy, leading manufacturers of champagne and cognac, merged respectively with Louis Vuitton to form the luxury goods conglomerate. Profits for 1988 were reported to have been up by 49% more than in 1987.
Moët-Hennessy, whose product lines include Christian Dior perfume, Dom Pérignon champagne, and Hennessy X.O. cognac, is a well-established and extremely successful French enterprise. What began as the business of a talented French vintner around 250 years ago became a world leader in the production of wines, spirits, cosmetics, and perfumes. Claude Moët considered the Champagne region east of Paris, in the Marne River valley, to be an ideal location for wine production. He established a vineyard near Epernay but became frustrated dealing with the courtiers en vin, or distributors, who took his wine to market. Instead of depending on them to sell his wine, Moët decided to buy one of the offices of courtiers en vin and sell the wine himself. In 1743 Moët et Cie (Moët and Company) was formed. Joined by his son Claude-Louis, Moët quickly established customer accounts which included a number of landed gentry and nobles. In 1750 father and son established an account with Madame du Pompadour, who regularly ordered Moët champagne for the royal court at Compiègne. That same year Moët began selling champagne in Germany, Spain, Eastern Europe, and America. Claude Moët died in 1792, leaving the company to his grandson Jean-Rémy, who laid the groundwork for the later success of Moët et Cie. He expanded the base of operations at Epernay by purchasing the vineyards of the Abbey of Hautvillers, where a century earlier the Benedictine monk Dom Pérignon perfected the double fermentation of wine to create champagne.
However, it was Jean-Rémy’s friendship with Napoleon that helped the company attract a loyal international following. Jean-Rémy became mayor of Epernay in 1802 and first met Napoleon two years later. Napoleon and his entourage were lavishly wined and dined by Jean-Rémy in newly built guest houses at the firm’s address, 20 avenue de Champagne. Champagne historian Patrick Forbes wrote of the period: ‘everybody who was anybody in Europe was passing through the Champagne district en route from Paris to the Congress of Vienna and they all wanted to visit the celebrated champagne maker. … His 10 years in the Napoleonic limelight had made him the most famous wine-maker in the world and orders for his champagne began pouring in with such profusion that he hardly knew how to fill them.’ Later, before abdicating, Napoleon rewarded Jean-Rémy for his generosity by giving him his own Officer’s cross of the Legion of Honor. Moët later dedicated its Brut Imperial in Napoleon’s honor. Jean-Rémy’s customer list in the early 19th century had grown to include such famous people as Czar Alexander of Russia, Emperor Francis II of Austria (Napoleon’s father-in-law), the Duke of Wellington, Madame de Staël, Queen Victoria, and the Prince Royal of Russia (later to become emperor of Germany). I
n 1832 Jean-Rémy retired and relinquished direction of the company to his son Victor and son-in-law Pierre-Gabriel Chandon de Briailles. To reflect the new partnership, the company’s name was changed to Moët et Chandon. Victor and Pierre expanded the firm’s operations, and by 1879 Moët et Chandon dominated the Marne Valley with its introduction of more flavorful grapes from Cramant, Le Mesnil, Bouzy, Ay, and Verzenay. At this time Moët et Chandon employed close to 2000 people working as cellarmen, cork cutters, clerks, vineyard farmers, tinsmiths, needlewomen, basketmarkers, firemen, packers, wheelwrights, and stableboys. The company had even established a social security system for employees, which included free medical attention, housing assistance, pensions, maternity benefits, sick pay, and free legal aid. Moët’s average annual sales were believed to have been about 20,000 bottles during the 1820s. By 1872 that figure had risen to two million, and by 1880 it had reached 2.5 million. At the turn of the 20th century, Moët et Chandon’s clientele remained primarily within the upper echelons of society. During World War I, bombs demolished the offices and guesthouses where Napoleon had dined. Despite the destruction, Moët et Chandon reaffirmed its place in the market in the late 1920s by creating the Dom Pérignon brand of vintage champagne. Described by connoisseurs as the most perfect champagne available, Dom Pérignon also became the most expensive. The introduction of Dom Pérignon initiated a trend other champagne houses later followed: that of creating a premium brand, which placed other regular vintages second in status. Dom Pérignon, however, emerged as the most successful premium champagne. Despite interruptions in its business during World War II, Moët et Chandon recovered quickly after the war, as a result of its prompt modernization of facilities. From the installation of new wine presses to a comprehensive system of work incentives, the goals of fairness and efficiency were emphasized in all aspects of production. Count Robert-Jean de Vogüé, one of France’s most important wine buyers in the mid-1950s, led the company to even greater success. Under de Vogüé, Moët et Chandon experienced its most rapid period of growth to date, marked by its transformation from a family-owned venture into a Société Anonyme, or corporation. A series of acquisitions, mergers, and diversifications expanded the company’s product line. Moët et Chandon gained control of Ruinart Père et Fils (France’s oldest champagne house and Moët’s chief competitor) in 1962. The company acquired Mercier, another rival champagne house, in 1970, and soon thereafter purchased an interest in Parfums Christian Dior, marking the company’s first undertaking outside the champagne business. Moët et Chandon later completed its takeover of Dior, whose perfume products include Miss Dior, Dioressence, and Eau Savage. Moët et Chandon merged with Jas. Hennessy & Company, France’s second largest cognac producer, in 1971. The new company, called Moët-Hennessy, enjoyed a broader financial base and was better able to stimulate the growth of its interests abroad. The merger of Moët and Hennessy was brought about mainly as a result of a 1927 statute which limited the Champagne growing region to 34,000 hectares. (The statute was intended to protect the quality of French champagne by discouraging price competition). While less than 25,000 hectares were under cultivation in 1970, Robert-Jean de Vogüé believed that growing demand for champagne would exhaust the supply of land by the year 2000. Until other regions suitable for champagne production could be found, de Vogüé decided that diversification through a merger with Hennessy would insure a stable future for Moët.
Moët-Hennessy established a firmer presence in the United States in 1973 when it opened the Domaine Chandon winery in Napa Valley, California, a location which proved ideal for the production of sparkling wines. The production of sparkling wines at Domaine Chandon grew dramatically and enabled Moët-Hennessy to expand in one of its most important foreign markets. The winery also reduced, somewhat, demand in North America for French champagne, whose production was still restricted by law. Alain Chevalier, a protegé of de Vogüé, was chiefly responsible for the success of Domaine Chandon. He was named chief executive officer in the mid-1970s and began transforming Moët-Hennessy into a less conservative company with more aggressive marketing strategies. After de Vogüé’s death in 1976, Chevalier continued the diversification program started by his predecessor. In 1977 Moët-Hennessy purchased the Rozes companies in Portugal and France in an effort to raise demand for champagne. The following year, the company purchased Roc, a French cosmetics firm specializing in hypoallergenic make-up. The company also acquired Delbard, a French rose company, which was unable to continue financing the development of special new rose hybrids. The company also purchased Armstrong Nurseries of Ontario, California, the largest farmer of rosebushes in America. Moët-Hennessy was trying to apply rosebush cloning techniques to grape vines in order to produce better hybrids. As a result of these acquisitions, Moët-Hennessy became the world’s leading producer of roses. Chevalier, who became president of Moët-Hennessy in 1982, told Business Week, ‘Roses are a commodity. We can make them a brand name like champagne.’ Losses incurred by both Roc and Armstrong, however, depressed Moët-Hennessy’s earnings.
The introduction of a popular new perfume from Dior called Poison, however, helped offset those losses. Continuing its expansion in the United States, Moët Hennessy acquired its American sales agent, Schieffelin & Company, one of the oldest wine and spirit distributors in North America. Moët-Hennessy was one of the first French companies to use European Currency Units (or ECUs), more stable in value against the dollar and therefore preferable for funding investments in the United States. By the late 1980s, Moët-Hennessy had yet to realize fully an $11.7 million investment in research and development made during 1983 and 1984. In June 1987, a $4 billion merger was effected between Louis Vuitton with Möet-Hennessy, which allowed Louis Vuitton to expand its investments in the luxury business, while saving Möet-Hennessy from the threat of takeover. Moreover, the merger respected the autonomy of each company over its own management and subsidiaries. As Möet-Hennessy was three times the size of Louis Vuitton, its president, Alain Chevalier, was named chairperson of the new holding company, Möet-Hennessy Louis Vuitton (LVMH), and Racamier became executive vice-president. Massive disagreements and feuding followed, however, as management at Louis Vuitton believed that Möet-Hennessy was trying to absorb its operations. The 60 percent ownership that Racamier and the Vuitton family had held in Louis Vuitton became a mere 17 percent share of LVMH.
After several disputes and legal battles between Racamier and Chevalier over the running of the conglomerate, Racamier invited the young property developer and financial engineer Bernard Arnault to acquire stock in the company. Hoping to consolidate his position within LVMH with the help of Arnault, Racamier soon saw, however, that Arnault had ambitions of his own. With the help of the French investment bank Lazard Frères and the British liquor giant Guinness plc, Arnault secured a 45 percent controlling interest of LVMH stock for himself. An 18-month legal battle ensued between Racamier and Arnault, after Chevalier had stepped down. Despite Louis Vuitton’s strong performance, accounting for 32 percent of LVMH sales, Racamier could not hold onto his stake in LVMH against Arnault, who had the support of the Möet and Hennessy families. The courts eventually favored Arnault, and Racamier stepped down to create another luxury goods conglomerate, Orcofi, with the backing of such French investors as Paribas and L’Oréal. Arnault weeded out Vuitton’s top executives and began to bring together his fragmented luxury empire. Guinness plc had originally been brought into LVMH by Alain Chevalier, who had hoped to find an ally in his feuding with Racamier, in a deal to exchange one-fifth of the two companies’ equity capital. Guinness then united with Arnault to control LVMH. In 1990, when Racamier left, Arnault increased his interest in Guinness from 12 to 24 percent, fueling rumors that Guinness would be his next target. Takeover speculation was also encouraged by the fact that Guinness directors had little power in LVMH, while Arnault had by far the largest shareholder vote in Guinness. However, Arnault’s percentage in Guinness was proportionately equal to the 24 percent Guinness controlled of LVMH. In the early 1990s, Arnault controlled the world’s largest luxury empire, with about $5 billion in worldwide sales. His holdings were structured as a pyramid of interconnected companies with control of LVMH central to his power, as it had a market capitalization of $10 billion in 1990. The ubiquity of the Louis Vuitton monogram in the mid-1980s had damaged its reputation as a status symbol, and both profits and sales declined in the early 1990’s. However, demand for luxury goods was expected to rise again, especially in Japan, Korea, and China, where buying power was growing rapidly. Still, the American market, which accounted for 17 percent of LVMH sales, was not expected to remain strong as an upheaval in upscale retail outlets was hurting sales. Arnault planned to create data processing and advertising sharing among his luxury retailers, including Louis Vuitton, Dior, Givenchy, Lacroix, and Loewe. Also in the early 1990s, Yves Carcelle, a former textile executive, became president of Louis Vuitton and broadened the range of products distributed to the company’s 150 stores in an attempt to increase sales. Rampant counterfeiting, a difficult world economy, and its own flagging image were Louis Vuitton’s nemeses in the early 1990s.
By 1989, Louis Vuitton came to operate 130 stores worldwide. Entering the 1990’s, Yves Carcelle was named president of LV, and in 1992, his brand opened its first Chinese location at the Palace Hotel in Beijing. Further products became introduced such as the Taiga leather line in 1993, and the literature collection of Voyager Avec… in 1994. In 1996, the celebration of the Centennial of the Monogram Canvas was held in seven cities worldwide. After introducing its pen collection in 1997, Louis Vuitton made Marc Jacobs alongside Jae its Art Directors the following year in 1998. In March of the following year, they designed and introduced the company’s first “prêt-à-porter” line of clothing for men and women. Also in this year products introduced included the Monogram Vernis line, the LV scrapbooks, and the Louis Vuitton City Guide.
The last events in the 20th century were the release of the mini monogram line in 1999, the opening of the first store in Africa in Marrakech, Morocco in 2000, and finally the auction at the International Film Festival in Venice, Italy, where the vanity case designed by Sharon Stone was sold with the proceeds going to The Foundation for AIDS Research (also in 2000). A Louis Vuitton boutique in the Galleria Vittorio Emanuele II, in Milan, Italy. By 2001, Stephen Sprouse, in collaboration with Marc Jacobs, designed a limited-edition line of Vuitton bags that featured graffiti written over the monogram pattern. A very big responsibility have Marc Jacobs in this “game”. To have an idea about the hard work that Marc Jacobs and his staff is making in Louis Vuitton and how complicated is to prepare a collection that have to meet worldwide consumers test, just digit on YouTube “Marc Jacobs Documentary” and you will be really impressed about.
The graffiti read Louis Vuitton and as well, on certain bags, the name of the bag (such as Keepall and Speedy). Certain pieces, which featured the graffiti without the Monogram Canvas background, were only available on Louis Vuitton’s V.I.P. customer list. Jacobs also created the charm bracelet, the first ever piece of jewelry from LV, within the same year. In 2002, the Tambour watch collection was introduced. During this year, the LV building in Tokyo was opened, and the brand collaborated with Bob Wilson for its Christmas windows sceneography. In 2003, Takashi Murakami, in collaboration with Marc Jacobs, masterminded the new Monogram Multicolore canvas range of handbags and accessories. This range included the monograms of the standard Monogram Canvas, but in 33 different colors on either a white or black background. The classic canvas features gold monograms on a brown background. Murakami also created the Cherry Blossom pattern, in which smiling cartoon faces in the middle of pink and yellow flowers were sporadically placed atop the Monogram Canvas. This pattern appeared on a limited number of pieces. The production of this limited-edition run was discontinued in June 2003.
Within 2003, the stores in Moscow, Russia and in New Delhi, India were opened, the Utah and Suhali leather lines were released, and the 20th anniversary of the LV Cup was held. Louis Vuitton situated on the famous Champs-Elysées.In 2004, Louis Vuitton celebrated its 150th anniversary. The brand also inaugurated stores in New York City (on Fifth Avenue), São Paulo and Johannesburg. It also opened its first global store in Shanghai. By 2005, Louis Vuitton reopened its Champs-Élysées store in Paris designed by the American Architect Eric Carlson, reputed to be the largest and most successful LV store in the world, and released the Speedy watch collection. In 2006, LV held the inauguration of the Espace Louis Vuitton on its 7th floor. In 2008, Louis Vuitton released the Damier Graphite canvas. The canvas features the classic Damier pattern but in black and grey, giving it a masculine look and urban feel. In 2010, Louis Vuitton opened what it described as their most luxurious store in London. Louis Vuitton store in HoustonThe Louis Vuitton company carefully cultivates a celebrity following and has used famous models and actresses such as Jennifer Lopez and most recently Madonna in its marketing campaigns. Breaking from their usual traditions of employing supermodels and celebrities to advertise their products, on August 2, 2007, the company announced that the former USSR leader Mikhail Gorbachev would appear in an ad campaign along with Steffi Graf, Andre Agassi, and Catherine Deneuve. Many rappers, most notably Kanye West, have mentioned the company in certain songs.
The company commonly uses print ads in magazines and billboards in cosmopolitan cities. It previously relied on selected press for its advertising campaigns (frequently involving prestigious stars like Steffi Graf, Andre Agassi, Gisele Bündchen and Catherine Deneuve) shot by Annie Leibovitz. However, Antoine Arnault, director of the communication department, has recently decided to enter the world of television and cinema: The commercial is exploring the theme “Where will life take you?” and is translated into 13 different languages. This is the first Vuitton commercial ad ever and was directed by renowned French director Bruno Aveillan.
Since the 19th century, manufacture of Louis Vuitton goods have not changed: Luggage is still made by hand. Contemporary Fashion gives a preview of the creation of the LV trunks: “the craftsmen line up the leather and canvas, tapping in the tiny nails one by one and securing the five-letter solid pick-proof brass locks with an individual handmade key, designed to allow the traveler to have only one key for all of his or her luggage. The woven frames of each trunk are made of 30-year-old poplar that has been allowed to dry for at least four years. Each trunk has a serial number and can take up to 60 hours to make, and a suitcase as many as 15 hours.” Many of the company’s products utilize the signature brown Damier and Monogram Canvas materials, both of which were first used in the late 19th century. All of the company’s products exhibit the eponymous LV initials. The company markets its product through its own stores located throughout the world, which allows it to control product quality and pricing.
It also allows LV to prevent counterfeit products entering its distribution channels. Louis Vuitton has no discount sales nor does it have any duty-free stores. In addition, the company distributes its products exclusively through LouisVuitton.com. The Louis Vuitton Brand and the famous LV monogram are among the world’s most valuable brands. According to a Millward Brown 2010 study, Louis Vuitton is the world’s 29th most valuable brand, right after Wells Fargo and before Gillette . The brand itself is estimated to be worth USD 19.781 billion. Louis Vuitton is one of the most counterfeited brands in the fashion world due to its image as a status symbol. Only a small fraction of products bearing the LV initials in the general population are authentic. Ironically, the signature Monogram Canvas was created to prevent counterfeiting. In 2004, Louis Vuitton fakes accounted for 18% of counterfeit accessories seized in the European Union. The company takes counterfeiting seriously, and employs a team of lawyers and special investigation agencies, actively pursuing offenders through the courts worldwide, and allocating about half of its budget of communications to counteract piracy of its goods. LVMH (Vuitton’s parent company) further confirmed this by stating that “some 60 people at various levels of responsibility working full time on anti-counterfeiting in collaboration with a wide network of outside investigators and a team of lawyers.” In a further effort, the company closely controls the distribution of its products.
Until the 1980s, Vuitton products were widely sold in department stores (e.g. Neiman Marcus and Saks Fifth Avenue). Today, Vuitton products are primarily available at authentic Louis Vuitton boutiques, with a small number of exceptions. These boutiques are commonly found in upscale shopping districts or inside luxury department stores. The boutiques within department stores operate independently from the department and have their own LV managers and employees. LV has recently launched an online store, through its main website, as an authorized channel to market its products. On November 19, 2007 Louis Vuitton, in further efforts to prevent counterfeiting, successfully sued Britney Spears for violating counterfeiting laws. A part of the music video for the song “Do Somethin'” shows fingers tapping on the dashboard of a hot pink Hummer with what looks like Louis Vuitton’s “Cherry Blossom” design bearing the LV logo.
Britney Spears herself was not found guilty, but a civil court in Paris has ordered Sony BMG and MTV Online to stop showing the video. They were also fined €80,000 to each group. An anonymous spokesperson for LVMH stated that the video constituted an “attack” on Louis Vuitton’s brands and its luxury image. On February 13, 2007 Louis Vuitton sent a Cease and Desist order to artist Nadia Plesner for the “reproduction” of a bag that infringes Louis Vuitton’s Intellectual Property Rights.The reproduction referred to is a satirical illustration that depicts a malnutritioned child holding a designer dog and a designer bag. The illustration is featured on T-shirts and posters, with all profits going to the charity “Divest for Darfur”. The artist defended her “Simple Living” campaign and her right to artistic freedom in a written response to Louis Vuitton on February 27, 2008, calling attention to the lack of the famous monogram, further asserting that the illustration refers to ‘designer bags’ in general, with no specific mention of the Louis Vuitton brand in either the illustration or any associated campaign material.
On April 15, 2008, Louis Vuitton notified Plesner of the lawsuit being brought against her. It has been reported that Louis Vuitton is demanding $7,500 (5,000 Euro) for each day Plesner continues to sell the Simple Living products, $7,500 for each day the original Cease and Desist letter is published on her website and $7,500 a day for using the name “Louis Vuitton” on her website. In addition, it is alleged that Louis Vuitton is demanding that the artist pays Louis Vuitton’s legal costs, including $15,000 to cover additional expenses the company has incurred in protecting their intellectual property rights. The contested image was removed from Plesner’s website for an extended period. Although an alternative image is now used for Plesner’s fundraising campaign, the original image has since reappeared and is featured prominently on the site. New York Magazine reported, based on information provided by an LVMH spokeswoman, that Louis Vuitton attempted to stop the case from going to court, but that they were forced to take legal action when Plesner did not respond to their original request to remove the contested image, nor to the subsequent Cease and Desist order. According to the article, the LVMH spokeswoman also claimed that Plesner was attempting to conceal the lengths that LVMH went to in order to “prevent the lawsuit.” These claims did not align with Plesner’s published response to the Cease and Desist order, and the article has since been criticized for not allowing Plesner to respond to the claims made by LVMH, particularly as the magazine had been in contact with her only days earlier. In October 2008, Louis Vuitton declared that the company had dropped its lawsuit.
LVMH focused on growth and expansion in the mid-1990s and spent more than $3 billion during 1996 and 1997 on acquisitions. In 1996 Arnault invested $2.6 billion for a 61 percent interest in DFS Group Ltd., a specialty retailer that catered to international travelers. The purchase included 180 boutiques in Asia, DFS’s largest market. LVMH also invested in winery Chateau D’Yquem and purchased the fashion companies Céline and Loewe. The following year LVMH acquired Sephora, the French retailer of perfumes and beauty products, for $267 million, and invested in Douglas International, a German retailer of cosmetics and beauty goods.
Though LVMH diversified and grew its operations, many challenges arose in 1997 and 1998, and the company suffered from sagging sales. LVMH was hit hard by the economic crisis in Asia, a market that accounted for about half of LVMH’s total sales. The company’s investment in DFS was initially a disappointment; during the first half of 1997, DFS profits declined 50 percent, and during the first nine months of 1998, group sales for the retailing division that included DFS and Sephora declined 22 percent. In addition, several markets in which LVMH operated experienced difficulties. Increased competition and shrinking margins in the perfume industry, for example, posed a threat to LVMH’s perfume operations. In 1998, sales of LVMH’s fragrance and cosmetics division declined three percent. The wine and spirits segment was a slow-growing business, and LVMH’s sales of cognac had the most trouble, primarily due to a poor market in Japan, which accounted for about 20 percent of cognac sales. Cognac shipments to Japan fell from 6.2 million bottles in 1996 to 5.0 million in 1997. In 1998, shipments fell even further, to 4.3 million bottles, and total LVMH cognac sales fell 13 percent.
LVMH also spent much time and money attempting to thwart the merger of drink rivals Guinness plc and Grand Metropolitan plc, and this, coupled with the financial situation in Asia, led to a 38 percent drop in LVMH’s share price between July and November. For the year ended December 31, 1998, LVMH reported total net income of FFr 3.45 billion, down from Ffr 4.87 billion in 1997. Despite LVMH’s struggles in the late 1990s, the company remained confident that what was being experienced was only a temporary slump. In LVMH’s 1998 annual report, in fact, Arnault stated that ‘1998 was a year of consolidation and restructuring, aimed at laying strong foundations for resumed growth in 1999.’ Many industry analysts appeared to agree. Merrill Lynch Global Securities analyst Edouard de Boisgelin predicted in Business Week in late 1997, ‘Asia will come back. It will be a phenomenal source of growth for years to come.’ To prepare for the renewal in growth, LVMH continued to seek acquisitions.
In 1998 the company purchased Le Bon Marché, an exclusive specialty retailer in Paris. LVMH also bought Marie-Jeanne Godard, a leading distributor of fragrances and cosmetics in France. Marie-Jeanne Godard offered 77 shops in mostly medium-sized cities in France, and six stores in other European nations. LVMH felt the Marie-Jeanne Godard acquisition was a perfect supplement to its Sephora stores, and during 1998 LVMH managed to convert 18 Marie-Jeanne Godard stores to the Sephora format. LVMH added to its champagne division in 1998 by acquiring the premium champagne brand Krug from Rémy Cointreau. The firm also upped its interest in Gucci, from 4.8 percent to 34.4 percent in early 1999, with the hopes of acquiring the company. French retailer Pinault Printemps Redoute SA beat out LVMH in mid-1999, however, by gaining a majority stake in Gucci. A return to success came quickly, and 1999 was a strong year for LVMH. Asian economies were on the mend, helping to boost LVMH’s sales activity. Between January and August, the company’s share price rose 77 percent. For the first half of 1999, LVMH reported sales of EURO 3.59 billion, a 16 percent increase over the first half of 1998.
Though DFS continued to rack up losses, the amounts were shrinking, and the company felt strongly that DFS had hit a turning point. Though cognac and spirits also continued to struggle, other divisions made up for the loss–operating profits in champagnes and wines rose 39 percent, perfumes and cosmetics increased 45 percent, and fashion and leather goods climbed 15 percent. As sales increased, so did LVMH’s acquisitions. The year 1999, in fact, marked the company’s busiest year in terms of acquisitions. To expand its fragrance and cosmetics holdings, particularly in the United States, the company invested in four American beauty products companies: Hard Candy, which targeted female youths, Bliss Spa, BeneFit Cosmetics, and Make Up For Ever. LVMH also established a new watch and jewelry division, which included Tag Heuer AG, a Swiss watch maker in which LVMH gained a majority interest in September 1999. LVMH also acquired luxury watch makers Zenith, Ebel, and Chaumet.
LVMH also entered into some strategic partnerships to remain competitive in the marketplace. In October LVMH partnered with Italian fashion company Prada, usually a competitor, to acquire a majority stake in fashion design house Fendi, an Italian company operated by five sisters. Among LVMH’s other 1999 acquisitions were a majority interest in Thomas Pink, a British shirt maker, and the purchase of Phillips Auctioneers. The company also increased its stake in Inter Parfums Inc., a perfume manufacturer, from 6.3 percent to 20 percent.
LVMH sales in 1999 reached a record Ffr 56 billion, up 23 percent over the previous year. The company appeared to have recovered indisputably and solidified its position as the leader of the luxury goods market. Champagne sales rose by more than 21 percent, and cognac sales fared better for the full year, with sales up by seven percent. By the end of 1999, the fashion and leather goods division consisted of 261 boutiques and 15 global stores. Louis Vuitton sales, which had suffered during 1998, did much better in 1999, particularly in the fourth quarter, during which sales increased 45 percent. Fragrance and cosmetics sales rose 24 percent, and sales in the selective retailing division increased 21 percent, indicating a more positive situation with DFS.
Sephora stores expanded aggressively during 1999, and 127 new stores were opened that year. By year’s end, there were 253 Sephora stores in Europe and 50 in the United States. Sephora enjoyed its first store opening in Tokyo and began selling products via its Web site as well. LVMH opened its U.S. headquarters in New York City in December 1999 and seemed poised to enter the 21st century full steam ahead. Principal Subsidiaries ofthe company are: Möet-Hennessy; Louis Vuitton; Champagne Möet & Chandon; Champagne Mercier; Krug, Vins fins de Champagne S.A.; JA Hennessy & Co.; Thomas Hine & Cie; Edward Dillon & Co. Ltd. (Ireland); Louis Vuitton Malletier; Belle Jardiniere; Loewe SA (Spain); Berluti; Celine; Parfums Celine SNC; Kenzo; Givenchy SA; Christian Lacroix SNC; Parfums Christian Dior; Guerlain SA; Parfums Givenchy S.A.; DFS Group Ltd. (U.S.A.); Sephora Holding; Sephora France; Le Bon Marche Rive Gauche; Franck & Fils etc. And…the principal competitors are Chanel S.A.; Pinault Printemps Redoute SA; Gucci Group N.V. and The Seagram Company Ltd.
The mission of the LVMH group is to represent around the world the most refined qualities of Western `Art de Vivre.’ LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. In view of this mission, five priorities reflect the fundamental values shared by all Group shareholders.
LVMH values: “Be creative and innovate; Aim for product excellence; Bolster the image of our brands with passionate determination; Act as entrepreneurs; Strive to be the best in all we do”. And as you can see, they really do all in the best way. Sometimes in their complicate history, Companies are also making lot of mistakes. Without making mistakes nobody learn enough. What is important, is to admit that and correct as soon as possible them. Louis Vuitton is a great example for all start-up companies. We really appreciate their products, high quality, originality and the huge work made by their staff all around the world. We made this hard work to put together this information and images, and try to give you as real as possible a correct image of this Brand. Must be very clear that we are not payed by LVMH or someone else. and this post is not an advertising. We don’t have any relation with LVMH and still yet the company never invite us to their fashion catwalks ( we are still not so “important” as Mrs. Winthur…) For sure we miss so many thinks of Louis Vuitton’s history, and many others are just unknown. For other information, ust visit LVMH website below. We hope we didn’t offend nobody an if someone consider this information wrong or incorrect, feel free to write us and we will provide immediately to change or remove them. Here below you can see a few shots of the preparation for a presentation of their men collection.
www.louisvuitton.com
www.lvmh.com
www.theselby.com
