Am I crazy?!?!?! Is profit the only thing that matters??? long!

T

tgb01

Member
Feb 8, 2007
182
1
#1
Ever since reading a few threads on here about LV making canvas in China and shoes in India, it got me thinking............... Is profit the only thing LV and other luxury brands care about??

I am a businesswomen and know that shareholders want profit etc. I want profit for what I do for a living too. But in the case of LV, I think they have to be careful not to tarnish the "Brand". A good example is Mercedes, even a few years ago, Mercedes was high end and it had a WOW factor... Now it is like "Oh, there is a Mercedes". You can buy a benz for 30,000 now, so it has lost its luxury. Mercedes was the #1 car for best resale value in the late 1990's and now it is #36, so it has went from luxury to mass market.

I always think I like LV for the style, the quality and the higher price b/c it is exclusive. What would we do if LV turned into the next COACH? or Guess? Would we still buy it?!?!!?

Like I said, this has been on my mind and I wanted to get it out... it scares me to think what may happen to LV in a few years, even 10 years, will it still be what it is today? With everything and everyone going after Increased PROFITS and decreased quality (meaning damaged brand names) will there even be any luxury left in a few years?!?!?!?!

Sorry for the long post, I hope you understand where I am coming from... Just something that has been on my mind for a while. I just think a strong brand such as LV is sooooo important to a company and that is what its profits come from, that they should be worrying about the brand before anything!!! I still have to read Deluxe: how luxury lost its lust (no time yet!!).

What do you think???? Are you scared of what might happen to LV in the future??? Do you think it would ever do what Coach did???
 
#4
It's legal to mark goods made in certain country as long as more than 50% is made in that country. Tons and tons of high end designers have their goods marked made in Italy, made in England. While 99% of raw material came from China or Vietnam, just sew the buttons, zippers and other minor accessories to claim the Made in part.
 
#5
LV will NEVER turn into the next Coach. Please don't say that again!! :crybaby: The quality will still be the same and the luxury will still be there. Don't put too much thought into it... just enjoy your LV's!
 
#6
well, I agree with "Classic Chic". I know several clothing brands have factories in China, and clothing are made in China expect the label. And they sew the label in XXX, then they are made in XXX.

In fact, I think LV has decreased their quality overall. Some of the LV lovers may still remember how the dust bag made back in earlier days. Now it has changed to thin cotton fabric. I wasn't so happy with it. And now they have some items that are made in Spain, some people try to find the the same style that made in France which means they still care the overall quality.

I am not a "hot head" buyer, I would say" if one day, LV relocates their factories in China, Africa..., I won't buy LV items anymore". It's not because those countries can't make good quality stuffs, at that point, it clearly shows that LV focus on profit more than anything.
 
#7
Like you said, it's the interests of LV to make as much for their shareholders as possible - but as long as they keep making excellent quality bags in the styles that I like and sell them at a price not everyone can afford (for exclusivity's sake), I will continue to buy. Oh yeah, good service would help too :P
 
#8
Way to make it exclusive: limit the no./ double the prices every other year.
People are getting more affluent or now more open towards high spending, so that's why what once was luxury is losing exclusivity. Now the luxury quotient has been raised to customised and one-of-a-kind goods/services.
 
#9
globalisation, plus I don't I much mind driving around in my ML, I just hope that Vuitton doesn't become the next Coach, its so sad to see what they've done to their line all in the name of mass appeal and profit.
 
#10
The only way they would lose its appeal is if Marc Jacobs leaves LV or items officially start coming out of non-developed countries.

LV's price strategy is to move upward to build on the appeal of the brand but other products like Mercedes and Coach bags are to make products more affordable (by dropping prices) to gain/maintain market share.
LV is moving to cheaper producing countries for the purpose of maximising profit margins (sell high with lower cost of goods) and NOT for the purpose of selling cheaper to reach out to the mass market;
So dont worry much about LVs going the way of your examples as LV prices are going higher and higher as we speak. Worry more for your bank account, me thinks.
 
#12
The quality of LV bags isn't a worry, and is not about to be equalled or overtaken by cheaply produced bags. But - LV need to take more drastic action to reduce the number of fakes out there. Large numbers of people carrying horrible fakes does nothing for the brand image, either in terms of public perception of LV as a mass marketed brand, or in terms of perception of quality.
 
#13
mercx5 said:
LV's price strategy is to move upward to build on the appeal of the brand but other products like Mercedes and Coach bags are to make products more affordable (by dropping prices) to gain/maintain market share.
LV is moving to cheaper producing countries for the purpose of maximising profit margins (sell high with lower cost of goods) and NOT for the purpose of selling cheaper to reach out to the mass market;
So dont worry much about LVs going the way of your examples as LV prices are going higher and higher as we speak. Worry more for your bank account, me thinks.
Click to expand...
:tup:Totally agree!

One thing brands definetly have learned from the 90s is that wide availability is not good for long term financial success!
 
#14
Honestly what scares me is the fact that the quality "varies" when it's made in other countries. Remember the whole Neverfull thing? Many GM bags were misaligned when it was made in U.S.A.. I don't think L.V. will be lowering prices to match COACH or even some of GUCCIs. I do think that LVs strategy has turned into "profit mode" though. It's just such a weird situation. The reason why Mercedes-Benz went down is because of Chrysler, but that's a different story lol.
 
#15
Honestly what I think is that 'affordability' continues to increase. At one point a $600 handbag would never have been considered affordable or 'entry-level' and now the Speedy 30 is.
I think that that dollar amount will continue to climb....so eventually a $2000 bag will be considered affordable and no longer exclusive.
One of the reasons that Chanel cited for their massive price increases this year was to price out the middle class. They don't want those kinds of people buying their bags. They felt that the exclusivity of the brand was diminishing.
LV, on the other hand, is trying to bring in as many people as possible....with the Neverfull and the Speedy being reasonably priced. In addition, they have sooooooooo many accessories, which are also considered entry-level by the executives.
So LV is in this catch-22 situation. They have the profits (by opening up their brand to making cheaper bags)....but they still need to maintain the exclusivity. To do that, they have the limited edition runway bags that they make in 'limited' quantities and charge an arm & a leg for.

Therefore, I think as long as LV recognizes that people want exclusivity and one-of-a-kind pieces they won't become the next Coach. Coach does absolutely nothing to ensure that their brand remains exclusive (shoot, they are in my podunk mall), instead they are all about the mass market.

I hope that made sense!!!

I guess in the end is that mass market = affordability + less exclusivity. If you keep the exclusivity piece of it you won't become mass market.
 
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