As an enthusiastic fan of fashion and design, I often spend time researching the selling trend of well-known brands and their newly products. This morning I accidently saw an article illustrating the decline in the sales of one of the most famous luxury brands in the world, Louis Vuitton, which grasp my attention. (Website for the article: http://www.cnbc.com/id/100425902)

The article reflects that the decline of the sale was mainly due to the expansion of LV stores. As mentioned, the chief executive of parent LVMH, Bernard Arnault, suggests that the marketing strategy for the group is to limit the number of shops opening. I personally agree with his point, as LV should keep its brand image as luxury, (can be simply explained as something with high price but still lots of people want), so that rising of the price would not influence the selling. However, expanding opening shops would make the brand more common and decrease people’s high brand value mentally, which eventually detrimentally affect the sale.

Reference:

Less Is More for Louis Vuitton as It Pulls Expansion – http://www.cnbc.com/id/100425902

Photo via http://www.louisvuitton.com.au/front/#/eng_AU/Stores/Store-Locator/point-of-sale/Louis-Vuitton-Ho-Chi-Minh