Things are still going pretty dang well for Louis Vuitton right now- even in this crazy economic climate. And let's face it, current CEO and Chairman of the Board- Yves Carcelle is fantastic... and probably has something to do with that.
But I just wanted to comment on a couple things he said in an interview with Nandini Raghavendra, for the Economic Times.
When asked about the way that Louis Vuitton's view on distribution has effected LV during the economic crisis, Mr. Carcelle responded:
"We control 100% of our distribution, no one can discount or put our products on sale. Unlike many other international brands, we are never ever on discount or on sale."
Well, can't argue with that- it's totally true... if you're buying from a LV Boutique. Louis Vuitton has 100% control of what's sold on the primary market (everything sold "brand new"- so, from your local Louis Vuitton, or instore boutique at Neimans, or online at eLux or louisvuitton.com) . So you're not going to buy a brand new Louis Vuitton handbag on sale.
But the idea that "no one can discount or put our products on sale" is just not true. (Although, based on what happened to distribution rights in the LV v. eBay France case ((not the counterfeit part of the decision, I back that- but the "distribution of parfumes etc. part))- I'm sure they'd love it if they did.) Louis Vuitton does not have control of what's sold on the secondary market. I love that market! That's the "pre-owned" market!
We at Fashionphile alone, sold over 2 million dollars in guaranteed authentic, but "gently used" Louis Vuitton handbags and other accessories last year. Over $25 million in authentic used Louis Vuitton goods were traded on eBay in the last year. So there are options if you're looking for a discount on authentic Louis Vuitton... you just have to shop in the Secondary Market! And in this economy, it's a fantastic place to buy!
But we TOTALLY agree with Mr. Carcelle on this one:
"I still do not believe the philosophy that people will change their habits. Yes, people will spend more sensibly, on value, increasingly make green decisions, but stop spending—no way, its human nature."
Hmmm, those shopping proclivities sound awfully familiar... Let's see... Trying to think of a way to "spend more sensibly" (Fashionphile!) "on value" (Fashionphile!) and shopping in an effort to "increasingly make green decisions" (Fashinphile)!
Mr. Carcelle, on that one, we couldn't agree with you more!
