MARKETING AND SALES MANAGEMENT LUXURY BRANDS DISTRIBUTION GROUP Jaya Charde 8 Raman Thakur Kevin Panicker Suraj Singh How much are you willing to pay for this? Guess the product and price! Louis Vuitton Paint Can Bag Rs. 2 Lakh 70 % Consumers connect to their favorite brands through social platforms Consumer Behaviour Luxury Brands The desires of the luxury consumers have changed with a mindset transformation Consumer Behaviour Luxury Brands Key Motivators for Offline Shopping Expectations from Online Shoping Quick Statistics of Industry Top 100 Companies ABOUT LOUIS VUITTON In the age of steam, boat and horse-drawn carriage Vuitton's skilled craftsmanship in trunk making saw him create groundbreaking flat-topped stackable cases that were both waterproof and light as a feather. Region-wise Operations & Revenue Key Driving Factors • Premium and entry-to-luxury segments are where growth is • Emerging markets are key • Millennials Are Both Driving Growth and Redefining the Luxury Market Revenue by LVMH (Asia) Distribution Principles Proper sales routes Store concept individualisation Business practice reform Store establishment in prime locations Brand enhancement through flagship stores Supplementing stores with paid catalogs Store placement strategy growth In-shop store placement Retail store growth Directly Operated Stores Operated by LVMH The most appropriate medium of the distribution of luxury goods is the DOS both offline and online. This channel best preserves the brand qualities of exclusivity through controlled distribution, and prestige through brand image projection. Travel Retail Stores Operated by Retailers Travel retail provides them with to opportunities to create visibility for their products, increase customer loyalty and acquire new customers in different countries Selective Stores Operated by Sephora - A House of LVMH Beauty products are available in Sephora stores which is another brand owned by LVMH Safe space for LV to enter into selective retail otherwise it does not license any third party to sell its products Pop-up Stores Temporary Seasonal Stores With specialist 3D print provider Omus, LV mounted a 968 sq ft structure that was created with a 3D printer in just 18 days. Reinforces the perception of scarcity of the luxury product, by limiting consumers’ exposure to it in time, through the creation of a unique and unrepeatable event E-Commerce Operated by e-commerce website Improving the online luxury retail offerings from traditional high-end brands to answer the needs of the modern affluent customers. E-commerce sites are opening the doors to the world’s best luxury boutiques — boutiques that are open 24/7, without geographical borders. This channel is both the next big challenge and a big opportunity for luxury brands. Mobile Application Owned by Louis Vuitton The mobile application, available on iPhone or iPad, offers the entire catalogue of cities and covers thousands of regularlyupdated addresses. Future is here! The Technology Associated with RFID Labelling Allows prospective Hyper Personalisation customers to try its jewelry on its site using their webcam and facerecognition software Interactive Dressing Rooms Allows customers to view all the variants in which the Sephora also uses AI technology product they are trying on is to allow users to upload their available on a touch picture and virtually apply screen; it makeup and visualise how products would look on them. . Thank You! Q&A