Louis Vuitton 2002 Annual Report Download - page 56

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PASSIONATE ABOUT CREATIVITY FASHION AND LEATHER GOODS
EXPANSION OF THE RETAIL NETWORK,
INCREASE IN PRODUCTION CAPACITIES
The Louis Vuitton retail network included
299 stores at the end of 2002. Over the year,
the brand increased its presence in all regions
of the world. Seven new stores were opened
during the second half, including a “global
store” in Kobe (Japan) and, with unprecedented
success, an exceptional store on the Omotesando
(Tokyo), the largest ever opened by Louis
Vuitton in Japan. The company inaugurated its
first stores in Israel (Tel Aviv), Russia (Moscow),
and the Netherlands (Amsterdam), and conti-
nued its expansion in China. At the same time,
the renovation (expansion and relocation of
stores) of the network continued, as it does every
year. In 2002, forty stores were renovated, nota-
bly in France, Italy and Japan.
To keep up with sales growth, Louis Vuitton
again increased its production capacities, with
the startup of a second workshop in Barbera del
Valles in Spain, and continued the construction
of a second unit in Ducey on the English
Channel. These industrial developments were
supplemented with the implementation of a
program to improve logistics that will optimize
delivery of the Group’s products worldwide.
DYNAM IC INNOVATION IN 2003
In 2003, Louis Vuitton’s growth will again be
driven by its policy of innovation, its investments
in advertising and promotional efforts, and
the expansion of its retail network.
Anew Monogram collection of bags and leather
goods designed by Marc Jacobs with Japanese
artist Takashi Murakami, and backed by a strong
advertising campaign, appeared in stores
in March with immediate success, matching
the creativity displayed in this new line. Among
other new products, Louis Vuitton will also
launch a new line of bags in goat leather, a very
soft leather highly prized by connoisseurs.
Distribution of the Tambour watch will be
expanded to 60 additional stores.
LOUIS VUITTON
AN EXCEPTIONAL PERFORM ANCE
IN THE LUXURY UNIVERSE
In 2002, Louis Vuitton posted sales growth of 7%
on a constant currency basis. Taking advantage
of very strong demand from its Western and
Japanese local customers, the brand recorded
balanced growth in all geographic regions and
again gained market share. Its performance was
particularly remarkable in Japan, where sales
grew 15% in yen, and in North America where
sales grew 12% in dollar. Louis Vuitton achieved
exceptional global growth of 23% on a constant
currency basis during the fourth quarter, and
posted a new record for sales in December.
LOUIS VUITTON INAUGURATES
A NEW GROWTH VECTOR
Illustrating the excitement they generated
among customers, new products at Louis Vuitton
contributed 11% to net sales for the year, without
compromising the growth of traditional products
that continue to perform.
The new Tambour lines of watches, a major
innovation, sold since mid-September,
opens up a new promising segment. Available
in 60 stores in 2002, with over 6,500 items
sold, over 5,000 more watches have been
ordered. The Monogram Mat collection,
launched in July, met with immediate
success. Louis Vuitton also created
the full LV Cup line to celebrate
the elimination regattas of the
America’s Cup, and a collection
of Monogram Vernis Fluo
bags developed with designer
Bob Wilson.
54 • ANNUAL REPORT 2002
The Papillon bag in
Monogram Cherry
Blossom fabric features
the cherry blossoms
loved by the Japanese
interspersed with
Louis Vuitton’s initials.