1. Why is LVMH so successful in China?
2. Louis Vuitton is LVMH’s flagship brand. Much of Louis Vuitton’s appeal is that it bestows exclusivity on its owners. In the last few years, however, the Louis Vuitton logo has been applied to handbags and accessories at an unprecedented rate. Discuss the challenges to the value of the brand as LVMH responds by introducing more luxury handbags and accessories without displaying the logo.
3. LVMH is also confronting the problem of proliferation of the LV logo through excessive counterfeiting activity. How can LVMH use its strengths to overcome threats from counterfeiters?
4. How does LVMH encourage Chinese customers to purchase LVMH products in China rather than abroad? Do you think these strategic initiatives will be successful? Why or why not? What other ideas do you think LVMH should pursue to encourage Chinese customers to purchase LVMH products in China?
5. Given a backlash in China against conspicuous consumption (the spending of money on luxury goods to publicly display wealth and status), what recommendations would you give LVMH?
6. Other Luxury brands, such as Chanel, Burberry, and Gucci, are building a presence in the large luxury-goods market in China. What actions might LVMH take to sustain its strong position in the market?