such goods look at feels the same to the untrained

Competitor Analysis

We identified the competitors of Louis Vuitton to beHerms International SA and Gucci. The reason for this selection is because according to the Top 100 Global Brands in 2010, bothHerms and Gucci along with Louis Vuitton was listed as the top 3 luxury fashion brands. Hence, we felt that it is best to compare these 3 brands.

Herms International SA is replica louis vuitton a fashion brand renowned for its upscale luggage, apparel, and accessories. Initially starting as a manufacturer of premium leather harnesses for horse drawn carriages, Herms has now evolved into a luxury goods manufacturer with nearly 15 categories of products, including scarves, ties, watches, stationery, gloves, tableware, jewelry, perfume, men and women apparel, footwear, textiles, and home goods. Steeped with more than 170 years of history, the company operates 315 stores worldwide and is still majority owned by descendants of its founder, Thierry Herms. The company's emphasis on family fake designer bags ownership and superb craftsmanship and uncompromising quality is the hallmark of all Herms products.

Over the years, Herms has earned a reputation for creating high quality designer fashion products to cater to the super rich and the premium luxury segment of the market. On top of that, Herms is also renowned for its creation of unique customized products. Urging its customers to to faites nous rver (make us dream), Herms skilled designers and craftsmen will put in their utmost to fulfil special and unusual customer requests. Though these orders carry a large price tag, customers who are willing to pay will get a limited edition product that is unique and bears the replica louis vuitton handbags hallmark of Herms.

Major firms such as Herms in the luxury fashion industry target a significantly different set of consumers, as compared to other players in the industry. The bulk of their target market is men and women, ranging from young adults to seniors with a net income of about $5,500 replica louis vuitton bags from china or above per month, as well as "high net worth individuals cheap louis vuitton bags from china (HNWI)", or quantitatively, individuals with up to $1 million worth of liquid assets. The typical target consumer of Herms, who has a keen eye for fashion and trends, will not flinch at paying a USD$10,000 (S$12,200) fake louis bag premium for a customized Herms suitcase or any luxury good for that matter. In short, this particular customer is able and willing to pay a premium for something which exudes class and quality, and at the same time is unique, rare and customizable to his/ her needs.

Strong brand name and global presence

Herms is a French based fashion store with a strong brand name and global presence. Its heritage, replica louis vuitton bags being French, naturally augments its business as the French are globally renowned for quality fashion products. This perception of the brand is no different in Singapore, as Herms is looked upon as a brand of high prestige amongst other super luxury brands such as Louis Vuitton and Gucci.

Large number of over 300+ exclusive stores of which 180 are operated directly

Globally, Herms operates over 300 exclusive retail stores including 180 boutiques which are directly operated by Herms. In Singapore alone, Herms operates five boutiques all of which are located in premium locations in and around town.

Many production units across the globe

Herms operates 33 production units across countries in Europe, Asia pacific and America, some of which are very reputable for quality standards and design, such as France, Japan and America.

Digital presence is limited in ecommerce

One of Herms sales strategy is online commerce. However, for a brand of its reputation and standards, the website is overly simple with little interactivity between the company and the customer. The site also lacks an online real time assistant, a common feature in many good websites today.

Substantial waiting list for customised items

replica louis vuitton For customers who aspire for exclusivity, Herms offers customization on some of their products. However, the company has also built a reputation for long wait list on customized goods, whereby custom bags can take as long as months or even years to arrive.

To expand its market by including masstige brands

The term "masstige" comes from the combination of "Masses" and "Prestige". Behind it is the idea of expanding into the market between the mid levels and the super premium. Although this may seem contrary to a brand like Herms, the growing number of mid to high level of income holders are increasing, especially in huge developing countries like India and China, making this group a substantial market segment.

To use the digital revolution to its full advantage

Herms can look into launching smartphone applications, adding interactivity onto their website as well as online real time sales assistance. Other features Herms can consider include a new form of electronic marketing known as "AR (Augmented Reality)", which can also give Herms that extra boost and uniqueness from its competitors.

Expand its presence in emerging countries

Huge opportunities are abound in developing countries, such as South America, China and India, where the number of affluent individuals are increasing steadily. Though already physically having stores in such countries, Herms has yet to establish a strong foothold and brand presence there.

Herms faces intense competition from established brands such as Louis Vuitton and Gucci, with the three of them constantly jostling and switching ranks as the Fake Louis Vuitton Replica Bags top 3 luxury brands of the world. Louis Vuitton holds a substantially strong foothold in first place, whilst Gucci and Herms constantly vie to outbid each other. However, in light of the volatile fashion industry due to the general world economy as well as the rise of developing nations, nothing can be certain.

Imitation is the biggest threat in this industry

With the growing popularity of super premium brands such Herms and its products which does not require unique high tech or proprietary methods of manufacturing, comes the very real threat of the increasing imitation goods market. Such goods look at feels the same to the untrained eye and go for a fraction of the price of the original, making this a very real threat to companies like Herms.

With the onset of the Eurozone financial crisis, production and sales operations of Herms will no doubt be affected. With less liquidity in the market, Herms production and financing costs will go up for Herms, and on top of that, high quality replica handbags china sales are likely to drop as people begin to practice more restricted spending, presenting a significant threat given that Europe consists of 37% the company's total revenue (according to their financial report).

The House of Gucci, better known as Gucci is one of the world's leading luxury fashion brands founded by Guccio Gucci in 1921 and it is part of the Gucci Group, which is owned by French company, PPR.

The brand is recognizable by its icons of heritage; the green and red stripe. Focusing on its quality, Gucci has been growing for the past nine decades and continues to see growth in 2012 with a 30% jump in online sales and a 15% increase in China signs that the luxury brand is in a good replica designer handbags place despite continued economic uncertainty.

As quoted by Aldo Gucci, "Quality is high quality replica handbags china remembered long after price is forgotten", it shows Gucci's emphasis on quality of its products and how it tried to convince customers a handbag isn just an accessory but an investment.

Furthermore, Gucci has over 370 directly operated stores (DOS) as a strategy to control its distribution processes as well as to ensure the consistency of value of the brand. All Gucci's products are made in Italy and this iconic Made in Italy style has become a symbol of elegance, sophistication and desirability which has enabled Gucci to become one of the world's most desirable luxury fashion brands.

Another unique selling proposition of Gucci is its ability for personalization of its products which allow customers to differentiate themselves from the rest.