For the curious Vuitton lovers

[Mariapia]

Oh, I saw this yesterday too, I'm in France for a couple of days at my parent's place. Found it quite interesting.

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.

I was sure all French bag lovers were watching Zone Interdite last night![emoji8]
Sorry, not Zone Interdite! Capital![emoji3]

 

[babyloove]

I watch Capital every week

 

[fabuleux]

LVMH is a public company, consolidated gross margin and operating profit is public information.
View attachment 3345132

Indeed, but they don't break down numbers by brand.

 

[MaryLVLover]

I was sure all French bag lovers were watching Zone Interdite last night![emoji8]
Sorry, not Zone Interdite! Capital![emoji3]

yeahhh

 

[fabuleux]

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.

Yes. I think the figures are probably close to reality. But who is surprised? We all know the true cost is in manufacturing in Europe and the USA, retail space (always the most expensive retail locations with plenty of employees), and marketing (prestigious models, coveted places in magazines, and lavish events). It's the same for all luxury brands... do we think Hermès or Chanel doesn't make similar profit margins? Let's be real!

 

[babyloove]

Yes. I think the figures are probably close to reality. But who is surprised? We all know the true cost is in manufacturing in Europe and the USA, retail space (always the most expensive retail locations with plenty of employees), and marketing (prestigious models, coveted places in magazines, and lavish events). It's the same for all luxury brands... do we think Hermès or Chanel doesn't make similar profit margins? Let's be real!

I agree with you

 

[Aryel]

Indeed, but they don't break down numbers by brand.

That's correct, they are required to break down the numbers geographically but not by brands.

 

[kellytheshopper]

Very interesting! Thanks for sharing!

 

[fabuleux]

yeahhh

Definitely 'une émission culte'!

 

[Quinni]

Thanks for sharing!

 

[hollyld]

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/ar...ouis-vuitton-sur-la-vente-d-un-sac-cabas.html

Thank you for sharing!

 

[MaryLVLover]

Definitely 'une émission culte'!

 

[BleuSaphir]

That was very interesting, made me want to see how are canvas are made, how exactly the handbags are made. But the process look like how Dior and Chanel make handbags...materials precut and workers assemble the piece by piece.