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LV "Strategy": Cautiously Increasing Production To Protect Brand Image

2011/7/7 11:48:00 75

This factory site is part of the strategy, starting from the factory floor, and trying to maintain the small volume increase of the whole business.

"Our contradiction is how to increase production, but not to reduce our brand image."

Chief executive Yves Carcelle said in the new factory that the factory is surrounded by apricot gardens and cherry orchard.

Louis Vuitton carefully increase production to protect brand image

Unlike consumer brands in the mass market, luxury brands must maintain their unique aura.

Louis Vuitton continues to challenge the limits.

Selling thousands of Euro Limited Edition T works, it also allows millions of women to have their signature brown and gold alphabet pattern bags and wallets, becoming a "dream" customer.

Vuitton is considering launching perfume products, many high-end fashion brands to attract people's products.

Louis Vuitton says it sells perfume only in its own stores, rather than most of the perfume sold in department stores and perfume chains.

Chief executive officer Yves Carcelle

Louis Vuitton is in an unusual position in the luxury industry.

Analysts estimate that it is more than billions of euros in sales than its rivals, such as Gucci (last year's sales of 2 billion 700 million euros).

Other brands of LVMH Empire include champagne Dom P rignon, fashion brand Fendi and Sephora makeup chain.

Louis Vuitton's increase over the years means that it continuously improves production capacity.

The company has 17 factories, production bags and accessories.

Marsaz is the twelfth factory in France.

In addition, there are 3 factories in Spain and 2 factories in California.

Last year, the decline in Louis Vuitton inventories led it to shut its stores in France earlier.

Companies only produce parts, such as zippers in Asia.

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Louis Vuitton has 456 stores worldwide.

As the financial crisis has passed, most luxury brands are accelerating.

Louis Vuitton

But they are applying the brakes lightly.

Following last year's sales increase of 22%, Mr. Carcelle said he intends to gradually reduce expansion this year.

Prada and Herm s are competing to set up boutiques in China. Mr. Carcelle thinks that the territory has been largely covered by its own brand in the past 20 years.

Louis Vuitton has 456 stores worldwide, more than 100 more than its rival Gucci.

Its wide spread makes it more selective to open new stores.

This year, Louis Vuitton has only added about 5 new sites to its sales network, such as the super stores in cities like Singapore.

Mr. Carcelle now attaches importance to the expansion of existing stores, such as the Louis Vuitton store in Milan.

In 2002, Louis Vuitton was set up in the factory near Mont Saint Michel (Mont Saint-Michel).

Carcelle

He began to plan the next opening.

In 1977, the first factory outside Paris was set up in Saint-Donat, central France, but failed to meet the company's standards. So Mr. Carcelle decided to build another site nearby, using the latest machine.

The new site is located at Marsaz, which can accommodate all 200 workers in Santa Donat, or more.

Mr. Carcelle said that Louis Vuitton invested tens of millions of euros in industry every year.

In the years when the Marsaz plant was established, Louis Vuitton had to find other ways to increase its output.

Inspired by Japanese car manufacturers, Mr. Carcelle adopted Lean production processes.

Through the U queue with roughly 10 workers reconstituted, Louis Vuitton can raise more than 10% of factory area space without spending a penny.

Mr. Carcelle said, "we can recruit 300 new people, but there is no need to add another factory."

Analyze each production step to obtain potential benefits.

Louis Vuitton, a shoe factory in Italy, is now using robots to pick up the feet of shoes, in order to replace workers walking around the workbench and containers.

Mr. Carcelle said that using robots is "quite" saving time.

Louis Vuitton developed a computer program to enable workers to identify defects on leather after receiving leather, which helps to cut leather.

This procedure determines where to cut and produce dozens of different materials needed for a bag, which greatly reduces the waste of leather.

Louis Vuitton is known for its high quality, but not all processes are made by hand.

As a matter of fact, last year, its two advertising demo workers were banned by the British advertising supervision agency through handmade products, which could potentially mislead consumers.

In the Marsaz factory, the old workers are busy training dozens of new employees.

About 15 of them worked in a nearby shoe factory before the French factory went bankrupt.

Others have no experience in factory work. Some used to be beauticians, puppies beauticians and dental model craftsmen.

Walter Giulio, a factory manager, said his choice of staff candidates required "handy, teamwork and initiative."

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