Louis Vuitton, according to WWD is about to take the premium pricing route to shore up its dwindling bottom line. But, this is not without gains for the high-end fashionistas of the world. With the premium price, Louis Vuitton plans to get more premium leathers with canvas getting phased out.
In a conference call LVMH’s CFO Jean-Jacques Guiony announced the plans to move towards higher priced accessories with higher quality material, hence the talk of premium leathers. Inching more towards the price points and leathers of other LVMH own brands.
Business strategy re-think may have happened after the successful launch of the new W and Capucines bags, sold at $3,380 and $4,730 respectively. Prior to release, both bags had ad campaigns featuring Michelle Williams, and Louis Vuitton already have another Hollywood star in Sofia Coppola in its corner with her own bag creations. Still, Louis Vuitton regularly finds itself underachieving in profit department compared to sister companies Céline and Givenchy. It is to remedy this situation the company is planning to change pricing strategy, though it won’t be an overnight change, as LVMH executives stressed.
I for one, don’t think Louis Vuitton need to go more premium than they are now, I still can’t afford them. Then again, I’m not the one with the task to deal with Bernard Arnault regularly. So, open your hearts to Louis Vuitton bags and purse to LVMH.