France’s Moët Hennessy Louis Vuitton S.A., better known as LVMH, is one of the most popular luxury brands in the market from the past and now the 20th century. Since its formation in 1987, LVMH has become the world’s largest luxury conglomerate, owning more than 70 brands and 3,950 stores worldwide. The company’s business activities are divided into various groups, including wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, and other activities (Reuters, 2019).

Louis Vuitton, the flagship brand of LVMH is popular for made-to-order bags using exotic skins to project exclusivity for top-end customers. The company began to focus on leather products with high value-added rather than entry-level canvas logo style. In addition, Louis Vuitton has promoted a set of “logo-free” handbags targeted exclusively at high-end customers (Rothaermel, 2017). Relevant to the company’s intention to maintain brand exclusivity, they are sourcing the materials used to create their staggering handbags from a small number of private dealer pools. In addition, LVMH manufactures its leather goods in company-owned factories in France, Switzerland, Germany, Italy, Spain, and the United States. This initiative is maintained by the company to keep control over their intellectual property and to get closer to their regular patrons. In 2017, Louis Vuitton allied with Supreme, an American skateboarding shop and clothing brand established in New York City in April 1994. This initiative leverages the cool factor of Louis Vuitton particularly among millennials, thus increasing their overall market presence and profitability (The Fashion Law, 2017).

1. The supply chain strategies of Louis Vuitton
2. The optimum procurement process for Louis Vuitton to maintain brand exclusivity
3. The risks involved under the presumption that Louis Vuitton decided to outsource the production of their famous handbags

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1 Louis Vuitton has very few suppliers to maintain uniformity and exclusivity of its fabric and raw ... View the full answer