Louis Vuitton: Hiking Up the Price of Handbags
Posted Thursday October 17, 2013 2:15 PM GMT
Life isn’t all peachy keen for executives over at Louis Vuitton. As the company attempts to cater to an even more elite customer base (yes, it’s possible), the French fashion house has encountered some bumps along the way.
Veering away from its signature monogram canvas totes, the band plans to market higher-priced leather goods made from the best raw materials in the world. But that’s not as easy as it sounds, said financial officer Jean-Jacques Guiony. He explained to WWD analysts in a conference call on Wednesday (October 16), “This shift will not be a three-week process.”
The biggest challenge, he said, “is mostly on the supply of quality leather, which is a scarce resource.”
Adding to that, LV confronts tough competition in the luxury marketplace. Céline, Fendi, Givenchy and Berluti are all thriving in the high fashion handbag division, while LV “slightly” underperformed in its third-quarter results. “Moving the [needle] in such a large company takes time,” Guiony said.
And we can’t forget about the elephant in the room: Marc Jacobs is stepping down from his position as artistic director for LV after 16 years to pursue his namesake brand. If that’s not a daunting, we don’t know what is. But on the flip side, it’s Louis Vuitton we’re talking about, so we have faith they’ll figure it out. Stay tuned.
Photo Credit: Louis Vuitton