Louis Vuitton Introduction

LVMH play along Overview Louis Vuitton, a French fashion house, is now a brand of the LVMH group. It was archetypal set up up in 1854 by a young trunk- manufacturer named Louis Vuitton. He started out by designing and manufacturing innovative stackable trunks. Products were sold through a company-owned sales outlet located in Paris. Then, in 1876, the company introduced lavishness trunks with detachable frames. This is the prime(prenominal) and initial success of Louis Vuitton, which enabled the steadfast to set up a new store in London in 1885.Sales kept increasing and the company was gaining more and more in popularity and character of a luxury brand. In 1987, Louis Vuitton Moet Hennessy, better known as LMVH was formed, as a French multinational luxury goodsconglomerate, headquartered inParis. LVMH rapidly grow to become the world leader in luxury goods. Bernard Arnault, the CEO of the company, took slight than 12 years to build up LVMH through the acquisition of legion (predicate) luxury brands, expansion into retailing and an aggressive globalization strategy.LVMH was named after the first two companies that were merged in 1987 to create the company the luggage and leather-goods maker Louis Vuitton and the Champagne and Cognac producer Moet-Hennessy. In subsequent years, many more celebrated luxury goods producers were taken over and added to the conglomerates brand portfolio. In 2005, LVMH owned over 50 well-known brands operating in quintuple main sectors Wines & Spirits (which accounted for 19% of sales), Fashion & Leather goods (35% of sales), Perfumes & Cosmetics (16% of sales), Watches & Jewellery (4% of sales) and discriminating Retailing (26% of sales).The mission of the LVMH group is to represent the most refined qualities of westbound Art de Vivre around the world. LVMH must continue to be synonymous with two elegance and creativity. The products, and the cultural values they embody, blend tradition and innovation, and kindle inha lation and fantasy. In view of this mission, five priorities reflect the fundamental values share by all Group stakeholders * Be creative and innovate * organize for product excellence * Bolster the image of our brands with passionate determination * figure out as entrepreneurs Strive to be the best in all we do However, Louis Vuitton brand has been facing many issues, especially in their logistic and tot chain fill inment. In spite of the rapid increase of demand, Louis Vuitton doesnt manage to respond appropriately to the growing demand. The question is the probability of default in the products. Thus, products must be resent to the warehouse and so on. It leads to a elope of time and money and an appropriate management of the logistics and supply chain.Louis Vuitton also faces several(predicate) and many issues such as the lack of numbers of warehouse, the distance which illuminate it from the stores, the problem of inventory and so on What we are going to plow in this r eport is to find out from where are these issues coming from? Does Louis Vuitton constitute enough flexibility and responsiveness from the supply chain management of the firm? Is the firm developing too many new products while no customers are ready to buy them?