Louis Vuitton Net Worth, Money And More
Brand Value : $28.4 Billion
Louis Vuitton is the most valuable luxury brand in the world. Louis Vuitton today remains as a division of LVMH. LV’s products includes leather handbags, trunks, shoes, accessories, jewelry and watches. Each Louis Vuitton product adorns LV monogram. It remains as the world’s most profitable brand with profit margins of 40%. LV had a revenue of $9.4 Billion in the year 2013. Recently celebs like Angelina Jolie, Michael Phelps and Muhammad Ali was seen endorsing LV products. This fashion giant has a brand value of $28.4 billion as of November 2013.
Name and Brand History
Louis Vuitton brand name comes from Louis Vuitton who was a French designer and Entrepreneur. Louis Vuitton was born in 1821 in Anchay in a working class family. During his teenage young Vuitton took an internship in a box maker workshop for a successful maker called Monsieur Marechal. Vuitton worked for a few years with him and soon he got a reputation between Paris’s fashionable people. He gained the reputation of being one of the city’s premier box maker. Emperor of the french, Napoleon the third’s wife hired Vuitton as her personal box- maker. It was there where Vuitton learned about the elite class. There he also got a gateway to royal clients who would want his services. In 1854, Vuitton stopped working for Monsieur Marchal and opened his own box- making workshop in Paris it self. just four years after opening his own workshop, Vuitton launched an entirely new style of trunk. He stopped using leather and instead opted for canvas which was much lighter and more efficient then leather. Also all trunks at that time were of dome shaped. Vuitton made his trunk rectangular to make them more stack able and more easy to ship. This new design of trunk became a commercial success. These trunk were simple yet elite. and its simplicity appealed to Paris’s elite class of people and this marked as the beginning for Louis Vuitton as a luxury brand. For the next 20 years Vuitton made Louis Vuitton the luxury brand that it is today. He kept making high quality luxury baggage till 1892 when he died. After his death his son George made company’s famous LV monogram and the brand grew into a world renowned lifestyle and luxury brand.
His son George took the brand forward and in 1913 he opened a Louis Vuitton building. Till 1987 the brand produced small purses to wallets to larger luggage. The label opened its store in several countries of the world. By the year 1977 the brand had a profit of $14.27 million. In the year 1987, the label got collaborated with Moet Chandon and Hennessy making LV, LVMH. The merger was to with an intention to make a huge luxury goods conglomerate. The same year profit for the company raised by 49%. Soon LV had over 130 stores worldwide. Soon in early 90′s Yves Carcelle became the president of LV and introduced more products like Taiga leather line, and Voyager Avec collection. Soon Marc Jacobs became the Artistic Director for the brand and introduced clothing line for men and women, monogram vernis line, LV scrapbooks and LV city guide. In collaboration with Stephen Sprouse Marc Jacobs designed a limited edition line of bags that has graffiti on LV monogram. He also introduced LV’s first piece of jewelry, a charm bracelet the same year. The next year the brand introduced its watch line.
Today the brand has become a status symbol and because of this it is also the most counterfeited brand in the world. LV as a brand takes counterfeiting seriously and over half of its communications budget goes over prevention of counterfeiting. Today the company keeps a close eye on distribution of its products and unlike before, today LV products are only available in authenticated LV boutiques. Recently the label also launched its online store to market its products. Today the products sold by LVMH brand includes Wines and spirits, Fashion and leather Goods,trunks, shoes, Perfumes and cosmetics, Watches and Jewelry.
Worth
Louis Vuitton is at number 10 on the list of World’s Most valuable Brands by Forbes with a brand value of $28.4 billion. In the year 2013, Brands recurring profit exceeded a whooping $9 billion for the first time. and it also showed a remarkable increase in the sales of Wines and spirits. brand also witnessed a 20% increase in free cash flow to $5 billion.
It recorded the revenue of 29.1 billion Euro in 2013 and its profit from recurring operations rose to 6021 million Euros. In the year 2013, the brand witnessed a group net profit of #436 million Euros. the profit of the Brand for the year crossed over $5000 million. Revenue of LVMH for the year 2013 are as follows :
1) Wines and Spirits of the brand generated revenue of over 1800 million Euros
2) Fashion and leather Goods generated revenue of 4711 million Euro
3) Perfume and cosmetic products generated revenue of 1804 million Euros
4) Watches and Jewelry generated over 1300 million Euros
5) Other selective retail for the brand generated over 4000 million Euros.
some of the Louis Vuitton’s top most expensive items includes a LV Tambour Bijou Pink gold women’s watch worth $26,700., a LV Pink and gold men’s watch worth $31,000, LV patchwork bag worth $45,000, LV campanas Maracatu furniture worth $51,500, LV spin time Regatta White gold men’s watch worth $70,000, LV classic coquille Minaudire bag worth $101,000, LV Kusama Pumpkin Mianaudire jewel bag worth $133,400, and LV luxury trunk worth $170,000.
