Article: LVMH wants to buy stake in Indian leather-maker

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CindyYZ

CindyYZ

Dreams of H and CLs
O.G.
Sep 26, 2006
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#1
I know there was some discussion on the board about LV outsourcing to India. This article was in Forbes:

http://www.forbes.com/markets/feeds/afx/2007/03/30/afx3567474.html

LVMH wants to buy minority stake in Indian leather-maker - Louis Vuitton CEO
03.30.07, 8:51 AM ET

NEW DELHI (AFX) - LVMH's luxury goods unit wants to buy a minority stake in an Indian leather-goods manufacturer, Louis Vuitton Malletier CEO Yves Carcelle said, without excluding the possibility that LVMH might one day offshore some product manufacturing to India.
'We have had discussions with Indian company Hi Design in Pondicherry (Southern India),' he said. 'If all goes to plan, LVMH will own a minority stake in the leather-maker,' Carcelle told journalists, without specifying a timeframe.

He denied that the move signalled an outsourcing of the French giant's manufacturing to India. 'We do not intend to manufacture Louis Vuitton bags in India,' he said, 'but we don't know what will happen in the future and are not ruling out the possibility that one day we will do some parts manufacturing here.' For example he said, 'there is an increasing scarcity of couture craftsmen in Italy. Also, LVMH already sources fabrics and embroidery from India.'

Carcelle was talking on the sidelines of a luxury goods conference in New Dehli.


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#8
It's definitely referring to Louis Vuitton and not other LVMH Units:

'We do not intend to manufacture Louis Vuitton bags in India,' he said, 'but we don't know what will happen in the future and are not ruling out the possibility that one day we will do some parts manufacturing here.' For example he said, 'there is an increasing scarcity of couture craftsmen in Italy. Also, LVMH already sources fabrics and embroidery from India.'
 
#9
Might be the signal of the beginning of the end...I will not support high end products being outsourced...sorry goes against the grain of everything I believe in. I've demonstrated my beliefs with other brands...which moved up to LV many years ago..
 
#12
Might make the bags we have now that much more precious.
Then again, LV may just be trying to corner a supply, perhaps the leather itself may become scarce in future.
This all may mean something, then again it may mean nothing.....
 
#13
They are not ruling out the possibility, but it's probably a quote that in the distant future if they do for example source the leather from India which is in part manufacturing, then at least he's safeguarded in that the wrong quote would not come back to haunt him. LV bags will still be largely made in europe or US anyhow.
 
#14
I personally wouldn't mind as long as they continue to produce the same items in Europe. It'd be fine for LV customers who don't care where the product is made- however I will never be one of them. For me, it's European-made only!
 
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