Louis Vuitton Moët Hennessy (LVMH) is raising its focus somewhat from the really affluent to the really, really affluent.

LVMH has an almost insatiable appetite for acquisitions, with its brand portfolio ranging from fashion brands Givenchy and Fendi to watch brand TAG Heuer. As if it isn’t already expensive enough, the Paris-based fashion house Louis Vuitton is launching a new line of higher than high-end handbags and accessories.

So what drove LV to make such a bold move? Firstly, fashion knows no end, evident through astrakhan – a type of fleece made from fetal lambs. The lavish lifestyle that celebrities nowadays embody and increasing numbers of Chinese consumers enjoy creates a niche for high-fashion conglomerates such as LVMH, and by launching an even more expensive and exclusive line of accessories, Louis Vuitton may be able to increase its gradually slowing revenue stream by targeting the “really, really affluent”. Secondly, LV by itself makes almost half of the conglomerate’s total revenue. However, its cash cow product, the Neverfull, has been seeing a drop in sales.

Recently, LV has been making profits from relatively lower margin areas, such as perfumes and cosmetics. Under its established brand name, LVMH’s new line can easily break-even by having great mark-ups.

Resources:

http://www.businessweek.com/articles/2013-09-25/louis-vuitton-shops-for-even-richer-customers

Have you tried McDonald’s most recent addition to its menu, the Veggie Signature McWrap™? We all know (and perhaps love) McDonald’s for its value-meals, which generally consist of a burger, fries, and a soda, but fast-food companies like McDonald’s has been under intensifying scrutiny for their contribution to the prominent health issue of obesity.

While it’s not trying to re-image its original fast-food brand, McDonald’s is certainly venturing into the “healthy” market of the fast-food industry, appealing to more health-conscious consumers, thereby enlarging its target audience. McDonald’s has been the unparalleled leader of the fast-food industry, with Subway following closely behind. Subway has made its brand synonymous with healthy-eating, and that has been its unique selling point. Back in 1998, Jared Fogle lose a whopping 245 pounds by living on the “Subway diet”, and he is still featured on Subway’s websites today.

By launching healthy options such as the Veggie McWrap, McDonald’s tries to take up more market share in the fast-food market. While Subway indubitably trumps McDonald’s in terms having first-mover advantage in the “healthy” fast-food sector, McDonald’s established brand name benefits the launch of its healthy menu options. Side salads have been announced to be offered as an alternative to McDonald’s conventional fries by early 2014, as an initiative to reduce childhood obesity. While this initiative is hopeful, some people may be overly passionate about their fries.

In recent years, fast-food consumers have seemed to show more interest in their calorie intake, and a recent study by the Hudson Institute discovered that sales of “higher-calorie foods” fell by approximately 1.3 billion orders between 2006 and 2011. The sales of fries alone dipped by 1.9% at fast-food chains. This shift is driving increasing numbers of fast-food restaurants to offer healthier options on their menus, just as McDonald’s is beginning to do.

Would you make the switch from Subway to McDonald’s Veggie wraps?

Resources:

http://www.businessweek.com/articles/2013-09-27/ready-to-swap-those-mcdonald-s-fries-for-side-salads

Remember the indestructible Nokia 3310 that would never break no matter how many times we dropped them? I’m sure we all do, but our grandchildren probably won’t have the pleasure of owning such a phone. Smartphones have replaced essentially all other types of cellphones, despite its shortened battery life. Apple, Samsung, HTC, are some of the many companies that have launched their individual smartphones over the past few years, and Google has joined the crowd.

After the acquisition of Motorola Mobility for $12.4 billion last year, Google launched Moto X by Motorola back in August of 2013. Since the launch of Moto X, there has been a “Lazy Phone” ad campaign that demonstrates how Moto X responds to commands when users say the phrase “Okay, Google now…”, much like the Siri of iPhones. It can already be seen that Moto X is not an weak competitor in the huge smartphone market, as many phone reviews have described it to offer outstanding overall user experience, such as its ergonomically designed size and shape.

Moto X – Moto Maker

On top of that, there’s the customization of the phones. Unlike other smartphone companies, Motorola is letting users decide what their phones will look like on its own website, the Moto Maker. The Moto X campaign stresses the idea of “Designed by You. Assembled in the USA.” The customization feature of Moto X not only allows customers to choose the colors they want their phones to be, but also lets them personalize the phones by engraving words at the backs of the phones. Even with the wide selection of colours that iPhones now offer, Moto X still retains a unique selling point of customization, as consumers feel more connected with the phones that they design, which ultimately define the customers themselves.

Being “assembled in the USA” also gives Moto X a competitive edge as it underscores how Motorola assembles its products in the USA, unlike most other companies, which outsource to overseas companies to assembled their products. However, this customization option is only available through AT&T at the moment, but Google says it hopes to make this option available across other carriers soon.

Resources:

http://www.cbc.ca/news/technology/google-launches-moto-x-customizable-smartphone-1.1342977

From Facebook to LinkedIn, Weibo to Instagram, social networks are all consuming in today’s world. Of course, when it comes to listing popular social networking services, Twitter has to be included.

Twitter is one of the dominant players in the social networking market. Throughout the past few years, social media has shown to be a lucrative market; with a plethora of adolescents and teenagers looking for ways for “self-expression”, this should come as no surprise. While social networking market was still in its infancy just a year ago, Twitter is now looking to raise 1 billion dollars.

The seven-year-old company which was once operating in the private sector is now launching an initial public offering (IPO) after seeing a loss of $69m in the first two quarters of 2013. While the company itself has never made a profit, unlike Facebook, its revenue had increased eleven times between 2010 and 2012, from $28m to $317m. Twitter will most likely list on NASQAD, the second largest American stock exchange. Analysts are predicting a positive response for Twitter’s IPO, as it will be the largest Silicon Valley stock offering since Facebook’s listing just last year. Holders of Twitter’s common stock will be entitled to one vote per share.

However, with the increase in social networking sites, it can be said that social networks are becoming excessive. After all, who needs five different social networking accounts? With the rise of social networks like Snapchat, Twitter’s popularity is slowly dropping. While Twitter might not be in its prime anymore, it’s making a smart move by launching its IPO sooner rather than later.

Do you think Twitter’s IPO will be received positively?

Resources:

http://www.bbc.co.uk/news/business-24392336