For the curious Vuitton lovers

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  1. #1 May 2, 2016
    Last edited: May 2, 2016
    Last night there was a documentary on French television about Louis Vuitton. Check out the video below with some rare footage of the factory. Also, the journalists estimate that the manufacturing costs for a basic bag (a NF apparently) is about 10% of the final price of the bag. 50% being marketing and retail network. Not surprising at all in my opinion. The final 40% would represent LVMH's margin.

    Enjoy!

    http://www.jeanmarcmorandini.com/article-353017-morandini-zap-decouvrez-les-marges-de-louis-vuitton-sur-la-vente-d-un-sac-cabas.html
     
  2. Another interesting part of the documentary featured the testing lab for leather goods with all kinds of machines that put bags under all kinds of torture, to make sure they can be used "every day for ten years," says the manager. Even climate simulators are used. Very cool.
     
  3. That was very interesting!! Thanks for sharing Fabuleux. I don't speak French but I got the gist of it :smile: Do you live in France?
     
  4. No I live in the US, but I am originally from France. My family still lives there so I get to go quite often. I am glad you enjoyed the short video!
     
  5. Saw it thanks a lot Fableux,are there more video links to making of LV bags?
     
  6. I'm surprised they disclosed their profit margin so publically...

    So much of gorgeous canvas btw, I could swim in it! :biggrin: Thanks for sharing!
     
  7. As mentioned above, it's an estimate from the journalists.
     
  8. Ok, I see... It's not so much, especially because they spend an insane %age on marketing their products! There is a boutique here that sells luxury clothing brands for up to 150% mark up but naturally they leverage the brand's marketing and produce vey little of their own.
     
  9. Oh, I saw this yesterday too, I'm in France for a couple of days at my parent's place. Found it quite interesting.
     
  10. I live in France and watched it yesterday, very interesting.
    The journalist estimates LV buy canvas for 11 € / metres. B.Arnaud didn't answer to the cost questions.
     

  11. LVMH is a public company, consolidated gross margin and operating profit is public information.
    ImageUploadedByPurseForum1462200385.357673.jpg
     
  12. That's strange if journalists had to estimate something so public!
     
  13. I'm guessing reporters did a lot of maths to derive their data. This is also very interesting, thanks for sharing!!
     

  14. I saw it too and found it very interesting!
     
  15. Thanks for sharing this one!