This is because the parts are made in asia and they are 'composed' together in the UK. Many many companies do this.
LV made in India?
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This is because the parts are made in asia and they are 'composed' together in the UK. Many many companies do this.
Please realize that the cost of living is India is MUCH lower than in the U.S., France or Spain. What may seem like very low wages to us, may not be to an Indian family. So comments like "it's not like it'll benefit the workers over there . . ." are just so wrong.
This could mean huge differences in peoples' lives, for their families, their children, school, food. An hourly rate for them that means a job for a mother or father could mean the difference for a child surviving to adulthood. You cannot compare the hourly rate without looking at the cost of living and realizing what this could mean to the people who are lucky enough to get a job working in a Louis Vuitton factory.
Please also realize that by in large, their work ethic is far stronger than the work ethic of a lot of people that have month long vacations (like the French). If you've been without food, clothing, health care for your family, et., you can bet you will do everything in your power to do the best job you can, the best work you can in order to keep your position.
This is exactly what IBM, Sprint, AT&T, BellSouth and other manufacturers are finding: Loyal, inexpensive work force. We also don't have any way of knowing exactly what they are going to produce, be it pieces and then shipping for putting the remainder of the bags together, etc. Before we get too upset, we may want to wait and see before a rush to judgment.
Already we have dustbags that are nicer than the old ones. We may find an increase in quality - they may do pieces for eventual shipping to France and the Speedy or whatever may indeed say Made in France.
I think you mis-understood me, or maybe I'm not explaining myself well. I don't have doubts that this is going to create job opportunity for the Indian people. However, me as the buyer is going to pay the same $600 for a speedy. Now instead of having, say, 10% of this amount goes to the French workers, only 2% goes to the Indian workers. I would also like all 10% of the bag's labor cost to go to the Indians instead of LVMH stock holders who contribute NOTHING to my bag, or LV decreases its price, or me not picking a made-in-Inda purse!! That's what I wanted to say. I don't find it "so wrong" to think this way.
I'm sure the quality will be the same, but what I want to know is if LVMH intends on paying their Indian workers the same wage as their workers in USA, France, and Spain. My guess is that they want to, as another poster stated, maximize their profit, which would mean that they are taking advantage of India's inexpensive labor and NOT paying the workers the same. If that is the case, why increase prices? My other concern is that they will eventually close their other plants in the US & Spain to decrease costs. At any rate, this latest news is the cliched "nail in the coffin" for my affair with Louis Vuitton.
The store manager is just that, the STORE manager, and may or may not be in the know about all of corporate's plans. Forbes, on the other hand, is a reputable source for business news and often has insider information.
Hmm, made in India. India right now makes some bad fakes of LV bags...if LV opens a factory in India, maybe India will take over Korea's role in making superfakes =(
I think it's harder to regulate fakes in India than in France, USA, etc...(like the factory might open illegally at night to make fakes...yikes
I think it's harder to regulate fakes in India than in France, USA, etc...(like the factory might open illegally at night to make fakes...yikes
I am certainly not saying EVERYONE who buys a Louis Vuitton bag buys it for the reasons I listed. But it is what the majority of Vuitton customers are attracted by - whether they want to admit it or not. Their advertising is part of an image of luxury. I should clarify that from a marketing standpoint, the company, in this case Louis Vuitton, is selling an image/dream to you, of the model and the percieved luxurious lifestyle. Keyword here is percieved. The model is a vision (or model) of a supposed ideal self. Also, I don't think anyone thinks their dreams will be instantly fulfilled if they buy a certain product.
As for the quality - I honestly believe there are many low key brands out there that will make bags that will last just as long as any Vuitton bag. The quality and durability of a Vuitton piece should not be your sole reason for buying their products, for you are wasting your money.
Luxury IS a form of snobbery. With people suffering from all over the world, the fact that one indulges in a $1000-$2000 USD bag is horrific to certain people. Whether one realizes it or not, luxury is ultimately a form of excess, in a strictly moral sense. Everyone of us here is very lucky because we can even CHOOSE to buy Louis Vuitton. There aren't that many people in the world in income brackets that will allow them such an indulgence.
In the end, from a business perspective this is bad for Louis Vuitton. Their policies of no discounts and their products manufactured in Westernized countries is how they maintain their brand image. Without this image, Vuitton could not possibly charge you the insane amounts they charge you. For example, many Japanese companies like Sony manufacture their products in China for the US market, but will only sell 'Made in Japan' products in Japan? Why? Because of the percieved quality. And guess what, the Japanese (in general, of course, sort of like how Americans LOVE baseball, I am sure not all of us LOVE baseball) adore the French. The majority of Louis Vuitton products (along with Hermes) are sold in Japan. This is also a reason why Coach cannot crack the Japanese market. Watch Louis Vuitton sales go down in those regions the minute they realize their bags are made in India.
Just my two cents.
I totally agree with ya.
My 2 cents: I find it funny how most people here on the forum usually say they don't care where LV's products are made (France, Spain, USA), yet now, as soon as the words India, China or any other developing country is mentioned, prejuduice arises. I definitely prefer made in France LV bags and I have nothing against people who have this stance to begin with, but when inconsistency occurs, it bothers me. I believe that MOST people in the west have had no exposure to the East and often what they read/hear is so BIASED. There are certainly a lot of news and articles related to China these few years, yet the TONE of all of these reports are all somewhat negative and only show the western perspective based on views from like....iono 50 years ago??? I've also taken some Indian courses, and I'd like to say that this is a great country with very intelligent and hardworking people. It's soooo wrong to say "I'm not going to buy LV just because it's made in India (or China for other brands)" cuz I highly doubt that the US will remain to be the superpower, simply because China or India are most likely to be the next one within 50 years (well...The Economist says 20....but we'll see lol). So by then.... all perspectives will be shifted and EVERYONE will want a made in China/India product. Everything in this world is based on a certain image which shifts with time as new economic superpowers emerge.
I wonder.....Are most of the negative comments made so far on India directed towards that so-called 'cheap' country or is it anger that LV is not passing on the savings to the buyers of it's products?
It's well known that LV never has any discounted prices nor do it's items go on sale. Why expect it now just because it's extending it's production to India? LV is the oldest and most respected luxury brand and every move on it's part is definitely a part the company's future growth. It wouldn't survive all these years if their corporate heads did not know what they were doing.
And all the concern shown here about the 'under-paid' workers....it's not that bad really in India. Yes, there is a large section of the population who has a hand-to-mouth survival system, but at the same time, people there are very hardworking and are making efforts to educate their children so they can grow up to be independant and responsible citizens.
To all the non-Indians here on this thread who have either visited/toured/understood the India of today, kudos to each one of you.
And to the others, believe me, other than toting a piece of material with LV on it, grow up, broaden your minds, be magnanimous and a citizen of TODAY's global world!
I'm an Indian and I'm proud of it.
MERA BHARAT MAHAAN!!
It's well known that LV never has any discounted prices nor do it's items go on sale. Why expect it now just because it's extending it's production to India? LV is the oldest and most respected luxury brand and every move on it's part is definitely a part the company's future growth. It wouldn't survive all these years if their corporate heads did not know what they were doing.
And all the concern shown here about the 'under-paid' workers....it's not that bad really in India. Yes, there is a large section of the population who has a hand-to-mouth survival system, but at the same time, people there are very hardworking and are making efforts to educate their children so they can grow up to be independant and responsible citizens.
To all the non-Indians here on this thread who have either visited/toured/understood the India of today, kudos to each one of you.
And to the others, believe me, other than toting a piece of material with LV on it, grow up, broaden your minds, be magnanimous and a citizen of TODAY's global world!
I'm an Indian and I'm proud of it.
MERA BHARAT MAHAAN!!
Most LV buyers are not expecting discounts, but if LVMH is moving its production to India, and if they are paying their workers in India less than they are in the US and Europe, why continually raise the prices for their products? The huge profit margin that LVMH will make from this move bothers me, as well as the fact that I don't think it unfeasible for LVMH to close its factories in the US and other countries in which the cost of production will not maximize its profit. I'm glad that Indians are doing better in this new global economy; I just wish that this didn't also equate to job loss in other parts of the world.
I would think that opening shop up in areas that were fakes have been known to be produced would only accelerate the counterfeit cycle to a level that new releases and fakes would be hitting the marketplace at the same time.
However, supply chains demand a global footprint for any company to be competitive, but the trick is that how will LVHM spin this to their benefit? Cause it was easy to justify price hikes b/c you had limited supplies of materials, workers, etc. so there was a premium placed on the stock. In these JVs do what they are suppose to do and ease the bottleneck, then no company can justify RAISING prices -- in fact -- most economic models would indicate a decrease in costs passed along to consumers.
However, supply chains demand a global footprint for any company to be competitive, but the trick is that how will LVHM spin this to their benefit? Cause it was easy to justify price hikes b/c you had limited supplies of materials, workers, etc. so there was a premium placed on the stock. In these JVs do what they are suppose to do and ease the bottleneck, then no company can justify RAISING prices -- in fact -- most economic models would indicate a decrease in costs passed along to consumers.
India is NOT a large producer of fake Louis Vuitton bags. I would venture to say there are many more fakes produced here in the United States. India is not typically known either as a counterfeiting capital.
I'm also not sure why people keep touting the wage here as comparable, or that Louis Vuitton needs to pay an Indian worker the exactly same rate as they would someone in New York state. It, again, would be like paying someone a physician's wage there. The cost of living, especially in the outlying areas, is MUCH lower than in the US. It would be not economically feasible for a company to so overpay a worker for what is a typical wage in the country they live in. I'm sure LV will pay the workers a fair and decent wage via Indian standards. These are not going to be sweatshops. I imagine we are talking brightly, well-lit factories, with decent hours and decent pay - A wonderful thing for Indian families.
Please also be aware that India is a rapidly growing, and very sophisticated country (especially in urban areas). I think people have a vision of India from infomercials about Christian Children's Fund or something. Indian schools are, by and large, extremely good. The reason you have so many Indian doctors here in the U.S. is because they are so well-educated on a primary and secondary level, go to England (or in India) for their medical degrees and have no trouble whatsoever with their medical boards here in the U.S. That in and of itself attests to the tremendous job the schools are doing there, with very little money. The schools in the urban areas are better than the schools in North Carolina, Tennessee, Kentucky and many other states here. Indian children are generally taught English as a matter of course, along with Hindi. They you have many, many dialects (which typically can change within a 20 mile area). You have bilingual graduates who are easily and capably able to enter the workplace and converse with AT&T, Bellsouth customers at 18, 19, 20 years old. If you take an 18 year old graduate from rural North Carolina, I don't know if you put the two together, who would be more capable in math, science, literature.
Indian schools are very cognizant of young people and their place in the world economy, especially in math and science. Much still needs to be done with respect to the rights of women, but this is not a totally backwards country with people standing in a stream washing their clothes and it is very discriminatory to view it as such. While the poverty is still terrible (partially due to high population and lack of jobs), I have no concern whatsoever about my LV being made there and would proudly purchase a bag made there, especially with the knowledge of the wonderful opportunity it might give a child whose parent works there).
For those of you who blindly say it ruins the brand and they will never buy another LV unless it's made in the U.S., Spain, Italy or France, I doubt seriously that LV will miss the sale terribly. LV is going to do what's best for the company. Clearly, like many other major companies, they not only see price point, but see loyal, hardworking people, who are a bright, emerging workforce in the world economy. If you were the shareholders of any company, you would want the company to try to keep costs down, production up, monetary gain up.
This is what Louis Vuitton did from the start of his company. If you read the Birth of Modern Luxury, you will see that he, and his family, were always trying to manufacturer high quality, luxury items, and still are, while keeping costs down. He had very close ties with India and indeed, owes some of his prosperity to the very wealthy people from India in the early days of his company, as well as Britain. The fact that the main Paris store had an entire exhibit dedicated to India last year is a testament to that.
I'm also not sure why people keep touting the wage here as comparable, or that Louis Vuitton needs to pay an Indian worker the exactly same rate as they would someone in New York state. It, again, would be like paying someone a physician's wage there. The cost of living, especially in the outlying areas, is MUCH lower than in the US. It would be not economically feasible for a company to so overpay a worker for what is a typical wage in the country they live in. I'm sure LV will pay the workers a fair and decent wage via Indian standards. These are not going to be sweatshops. I imagine we are talking brightly, well-lit factories, with decent hours and decent pay - A wonderful thing for Indian families.
Please also be aware that India is a rapidly growing, and very sophisticated country (especially in urban areas). I think people have a vision of India from infomercials about Christian Children's Fund or something. Indian schools are, by and large, extremely good. The reason you have so many Indian doctors here in the U.S. is because they are so well-educated on a primary and secondary level, go to England (or in India) for their medical degrees and have no trouble whatsoever with their medical boards here in the U.S. That in and of itself attests to the tremendous job the schools are doing there, with very little money. The schools in the urban areas are better than the schools in North Carolina, Tennessee, Kentucky and many other states here. Indian children are generally taught English as a matter of course, along with Hindi. They you have many, many dialects (which typically can change within a 20 mile area). You have bilingual graduates who are easily and capably able to enter the workplace and converse with AT&T, Bellsouth customers at 18, 19, 20 years old. If you take an 18 year old graduate from rural North Carolina, I don't know if you put the two together, who would be more capable in math, science, literature.
Indian schools are very cognizant of young people and their place in the world economy, especially in math and science. Much still needs to be done with respect to the rights of women, but this is not a totally backwards country with people standing in a stream washing their clothes and it is very discriminatory to view it as such. While the poverty is still terrible (partially due to high population and lack of jobs), I have no concern whatsoever about my LV being made there and would proudly purchase a bag made there, especially with the knowledge of the wonderful opportunity it might give a child whose parent works there).
For those of you who blindly say it ruins the brand and they will never buy another LV unless it's made in the U.S., Spain, Italy or France, I doubt seriously that LV will miss the sale terribly. LV is going to do what's best for the company. Clearly, like many other major companies, they not only see price point, but see loyal, hardworking people, who are a bright, emerging workforce in the world economy. If you were the shareholders of any company, you would want the company to try to keep costs down, production up, monetary gain up.
This is what Louis Vuitton did from the start of his company. If you read the Birth of Modern Luxury, you will see that he, and his family, were always trying to manufacturer high quality, luxury items, and still are, while keeping costs down. He had very close ties with India and indeed, owes some of his prosperity to the very wealthy people from India in the early days of his company, as well as Britain. The fact that the main Paris store had an entire exhibit dedicated to India last year is a testament to that.
Quote from the Birth of Modern Luxury:
"The brand's establishment in India, first in New Dehli and then in Bombay, seemed almost predestined, since that country had sent many illustrious clients to Maison Vuitton, including the Maharajah of Baroda and Princess Pudukota." . . . "Louis Vuitton has had a continuously renewed product line for women and men, local customers and tourists, who travel and buy in the four corners of the world.
You know, for all we know, they may be opening up a factory there solely for the ease and use of manufacturring products easily for a rapidly growing subset of the wealthier population in India and Asia who want to purchase bags as the economy grows.
Either way, I keep thinking of the families whose parents might get jobs for a wonderful company, health insurance, food, schooling - That would be such a godsend to them. As a single parent, I know what it is to worry about a job, what might happen if you don't have it, etc. I am so blessed. We all are.
"The brand's establishment in India, first in New Dehli and then in Bombay, seemed almost predestined, since that country had sent many illustrious clients to Maison Vuitton, including the Maharajah of Baroda and Princess Pudukota." . . . "Louis Vuitton has had a continuously renewed product line for women and men, local customers and tourists, who travel and buy in the four corners of the world.
You know, for all we know, they may be opening up a factory there solely for the ease and use of manufacturring products easily for a rapidly growing subset of the wealthier population in India and Asia who want to purchase bags as the economy grows.
Either way, I keep thinking of the families whose parents might get jobs for a wonderful company, health insurance, food, schooling - That would be such a godsend to them. As a single parent, I know what it is to worry about a job, what might happen if you don't have it, etc. I am so blessed. We all are.
One of the reasons that companies outsource, apart from the cheap labor, is because developing countries offer other perks so that their citizens have more jobs.
For example a lot of export production zones offer tax breaks. The foreign company does not have to pay taxes to the country it has outsourced to for the first five -seven years. You can imagine how much this means in terms of profits.
As for superfakes it may be more likely that factories don't destroy overstocks, and they may appear for sale in the local markets for much, much cheaper.
For example a lot of export production zones offer tax breaks. The foreign company does not have to pay taxes to the country it has outsourced to for the first five -seven years. You can imagine how much this means in terms of profits.
As for superfakes it may be more likely that factories don't destroy overstocks, and they may appear for sale in the local markets for much, much cheaper.
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