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Running Head: LVMH IN CHINALVMH in China: Cracks Its Empire of Desire?Natalya FerriApril 11, 2019MGMT440Davenport University
2LVMH IN CHINAIntroductionLois Vuitton, France’s Moët Hennessy (LVMH) is a widely known company thatprovides luxury brand products, such as purses, wallets, etc. They opened their 16thglobalMaison at Shanghai’s Plaza 66 (a large luxury mall). This is where all the Louis Vuittoncollections and multiple contemporary artworks created by Chinese and international artists areheld. The opening of the Maison occurred at the same time LVMH was celebrating their 20-yearanniversary of their brand’s existence in China. Sales in Asia added up to be about 1/3 totalrevenues for LVMH in 2015. Due to their success in Asia, they have achieved an average annualgrowth rate of about 20% throughout the years 2007-2014.As we can see, Louis Vuitton succeeds best in China. This is due to their high prices,exclusive products and lack of local competition. Chinese are highly attracted to products thatnot everyone has because they want to be seen as wealthy elites with high social status. LVMH’sexclusive products are what keep rich Chinese customers coming back. Although, LouisVuitton’s brand has become so popular, that even the middle-class Chinese work hard to buytheir products. They have successfully built their brand and managed their company’s growth