Louis Vuitton 2003 Annual Report Download - page 36

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EXCEPTIONAL VITALITY AND RESPON-
SIVENESS
The brands of the Fashion and Leather Goods
business group demonstrated exceptional vita-
lity and responsiveness in the tough economic
and monetary climate of 2003, and gained
market share against their competitors. With
this robust performance, the business group
recorded organic growth of 9% and increased its
operating margin to 32%, up two points over
2002.
Louis Vuitton, the leading brand of the business
group, continued to increase its edge over its
competitors.
The smaller brands continued their strategic
repositioning, and several reported outstanding
growth in 2003, thus confirming their potential.
LOUIS VUITTON
Ve ry strong demand from local customers throu-
ghout the year drove the double-digit organic
growth of Louis Vuitton, which posted record
sales in 2003 and again increased its income
from operations despite negative currency
effects. Growth was particularly robust in the
United States and China. Backed by its very
strong performance in 2003, the world’s top
luxury brand again increased its lead in its
market.
NEW PRODUCTS ENJOY CONSIDERA-
BLE SUCCESS
The strong momentum for innovation at Louis
Vuitton was one of the essential drivers of growth,
exemplified by the huge success of the Cherry
Blossom, Multico and Eye Love Monogram leather
goods lines, a result of the creative partnership
between Marc Jacobs and Japanese artist Takashi
Murakami; the launch of the Suhali line of leather
goods, sculpted in valuable and rare goatskin, and
the creation of the Cuir Epi soft leather products.
Other factors contributing to the brand’s per-
formance were its media presence with two
major advertising campaigns featuring Eva
Herzigowa in the spring and Jennifer Lopez in
the fall, as well as the expansion of the retail
network with eighteen new stores around the
world. Louis Vuitton established a presence in
India for the first time, in New Delhi, and ope-
ned two new stores in China (Shenzhen Citic
and Guangzhou La Perla) and a store with a
highly original format in the Roppongi Hills dis-
trict of Tokyo, the center of night life in the city.
As of December 31, 2003, Louis Vuitton had
317 stores.
At year-end 2003, the closing of the Champs Ely-
sées store in Paris for expansion resulted in an
extremely spectacular exterior with a façade fea-
turing two huge trunks made of Monogram fabric.
To keep pace with the growth in sales, Louis
Vuitton opened its Condé and Ducey plants, raising
the number of its production workshops to thirteen.
Senda by Loewe will
become the trademark
line of the Spanish brand.
34 LVMH ANNUAL
REPORT 2003
LF
&
EATHER GOODS
ASHION