Louis Vuitton 2002 Annual Report Download - page 52

50 •51 ANNUAL REPORT 2002
WITH LOUIS VUITTON, THE WORLD’S LEADING LUXURY BRAND, THE FASHION
AND LEATHER GOODS GROUP INCLUDES FASHION HOUSES GIVENCHY
AND CHRISTIAN LACROIX, AS WELL AS CÉLINE, LOEWE, BERLUTI, STEFANOBI,
KENZO, MARC JACOBS, FENDI, PUCCI, THOMAS PINK, AND AMERICA’S DONNA
KARAN. THIS EXCEPTIONAL GROUP EMPLOYS OVER 15,000 MEN AND WOMEN
AND HAS 20 WORKSHOPS AND 793 STORES WORLDWIDE. WHILE MAINTAINING
THE IDENTITY AND THE STRATEGY OF ITS BRANDS, THE BUSINESS GROUP
OFFERS THEM A POWERFUL INFRASTRUCTURE AND SHARED RESOURCES.
INTHE DIFFICULT
CONTEXT OF 2002,
TO WHICH FACTORS
DO YOU ATTRIBUTE
THE REMARKABLE
PERFORMANCE OF
LOUIS VUITTON?
YVES CARCELLE:
We should first ment ion
that this is a historical
trend. Each time there
is a recession, we gain
market share. In periods
of uncertainty,
consumers probably
turn to proven values.
Ever yt hing leads us
to believe that they will
do the sam e in 2003.
In 2002, Louis Vuitton’s
growth accelerated in
the fourth quarter; we
truly created a difference
in our competitive
sect or. This wa s due, in
particular, to the success
of our new product s,
the culm ination of
the creative efforts made
at Louis Vuitton. I am
thinking particula rly of
Tambour, which has two
unique features: this is
the first time a fashion
brand ha s launched
a watch that is both
desirable, because it fits
perfectly within its
universe, and technically
advanced and, therefore,
likely t o arouse the
interest of connoisseurs;
and, second, its retailing
is totally controlled— a
key a nd crucial element
of our strategy—
because it is sold exclusi-
vely in the Louis Vuitton
stores.
DIDN’TTHE SUCCESS
OF THESE INNOVATIONS
HURT SALES OF THE
OLDER PRODUCT LINES?
Y. C.: Our traditional
product s are just as
sought a ft er and they
continue to grow. This
is a key factor in
maintaining the excep-
tional profitability
of Louis Vuitton, which
again improved in 2002.
WHICH ARE YOUR
OBJECTIVES FOR
THE OTHER BRANDS OF
THE BUSINESS GROUP?
Y. C.: For a num ber
of bra nds, 2002 wa s
devoted to repositioning
their stra tegies based
on their strengths, to
improving their organi-
zation and distribution,
to strengthening a nd
refocusing their creative
resources, in order to
prepare for future
growth founded on solid
bases, with a new
momentum and, some-
times, new mana gement.
We will be investing very
select ively in new stores,
which means only if the
development model is
profitable.
WHAT ARE YOUR FUTURE
GROWTH DRIVERS?
Y. C.: There are m any.
I will mention just a few:
the expa nsion of Louis
Vuitton into new business
lines, such a s watch
making, where we ha ve
considerable potential;
new countries for the
presence of luxur y
brands, such as China,
or even Russia and India,
where we have just
opened our first stores;
and, of course, t he
successful growth
of other fashion brands
of t he LVMH Fashion
Group currently under
development.
PASSIONATE ABOUT CREATIVITY FASHION AND LEATHER GOODS
AN EXCELLENT PERFORM ANCE
IN A DIFFICULT CONTEXT
STRATEGY AND OBJECTIVES.
Interview with Yves Carcelle, President of the Fashion and Leather Goods business group