WHAT MAKES A LUXURY BRAND TO FORGO SALES? IS IT ONLY THE BRAND IMAGE?

One thing as a girl that has always fascinated me is brands & handbags

But one brand which has led me to start blogging on the question of what makes a brand forgo sales is LOUIS VUITTON.

LOUIS VUITTON HAS NOT CONDUCTED ANY SALES SINCE 165 YEARS AND WHAT MAKES IT TO FORGO THE SALES

 

TO ANSWER IT WE NEED TO GO BACK IN 1854 WHEN LV WAS INITIALLY STARTED

Louis Vuitton is a luxury brand that manufactures Handbags, perfumes, clothing.

It is also rated as the 15th most valuable luxury brand for 6 consecutive years

There are many interesting facts about this brand that amazes everyone

As the saying goes on that behind every brand there is the story to reach and create that potential which it is experiencing now.

LV was found in 1854 by LOUIS VUITTON MALLETIER. He migrated from his hometown to Paris after his mother's death in search of a job he was initially working as a trunk maker in Paris then and noticed that trunks were not able to stack easily

After this observation, he started to create trunks in his carpentry that was easier to carry and stackable in a cuboidal shape. During those times box makers used to pack important luggage for the people according to their luggage they are carrying.

His innovative trunks lead the empresses of France Eugenie de Montijo also Napolean III's ( the first President of France)wife noticed this unique set of trunks created by Mr.Vuitton was employed him as a royal trunk maker and as her personal packer in the royal court. This was the first break for Mr.Vuitton. and the rest is the history

Now, the brand's worth is 16.64 billion dollars and has over 5000 stores all over the world.

Sales and discount boards companies hugely attract customers. On a recent survey the difference in revenue of company before and after the discount period the difference showed almost 45.6%.

The idea behind any 60% off sale is making the customer believe that he saved 60% of his money but to the company, it's a raise of 40% in revenue plus more space for incoming new goods. The survey was concluded on these three notes

10% DISCOUNTS-10% INCREASE IN SALES

0 DISCOUNTS - REGULAR SALES

10% HIGHER PRICE - NEGATIVE SALES

Even though this is universal the luxury market does not follow it fully.

Coming to the question of what makes LV to not conduct any sales in 165 years of branding the answer is not only the brand image but also many factors that Whereas about brand image in luxury market BRANDING is something for which products are paid for.The product will be in the luxury market under its brand image which is its reason for sales.

• LV has a great supply chain team and they know exactly how many consumers are going to approach them this specific year.

• There are even rumors that the brand buries its extra stock in order to save space for new goods.

And in any case,

there is left stock in the span the LV rather choose to make vintage and later on sell it on a higher price than a sale or discount

• LV's advertisement budget is $100 million and it doesn't advertise on traditional television but on leading fashion magazines such as vogue and on digital platforms.

THANK YOU DEAR ANAGHA FOR INTRODUCING ME TO BLOGGING WORLD :)

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