eBay scandal YouTube

YouTube Link : http://www.youtube.com/watch?v=s3fEzag-INE

LVMH Pod Cast

strategic Planning for global financial crisis

Many luxury brands have filled for bankruptcy in the last year due to the global financial crisis. Consumers don't have the money to spend on luxury items and therefore brands need to change in order to survive. Big conglomerates such as LVMH should have seen the warning signs of a potential crisis through environmental scanning. Through SWOT analysis LVMH could have listed their strengths, weaknesses, opportunities and threats and planned a long term strategy incase the economy took a turn for the worst. Christian Blanckaert, former executive vice president of French luxury goods Hermes points out "The survivors will be the ones who have a very clear strategy based on quality and who do not fake" (Heraldsun.com). Weaknesses and threats could have pointed out the direction a crisis could come from. Many companies in the luxury world are losing money and if they could have predicted or prepared for a global economic crisis some brands could still be profitable rather than bankrupt.

LVMH vs. E-bay

On February 12th 2010 LVMH won its case against E-bay for selling counterfeit Christian Dior, Kenzo, Givenchy and Guerlain perfume products which the auction site was retailing. This is a social force that can greatly affect LVMH reputation. Many consumers go on E-bay looking to find real luxury merchandise at a lower price but many times buy counterfeit. Not only does this put their reputation on the line but they lose customer loyalty and anger their customers. Customers can potentially believe that LVMH has manufactured the counterfeit creating social disapproval and a bad publicity. It's important that LVMH took this to court because if they didn't address the problem it would appear as if they didn't care about the quality and trademark of the product that hold their designer names. E-Bay was ordered to pay LVMH €200,00.

Company Introduction

In this blog i will be focusing on LVMH, Moet Hennessy - Louis Vuitton, Fashion & Leather Goods division. I will try to apply the information i learn from the textbook and in class discussion to developing crisis communication strategies for LVMH. For example, Professor Laskin, explained that crisis can be caused by an outside or inside error (deliberate or not). LVMH, for example can potentially face crises from such inside causes as an employee leaking to the press pictures of next seasons Louis Vuitton bag or overseas factory machines malfunctioning.

LVMH not only owns Louis Vuitton but Loewe, Celine, Berluti, Kenzo, Givenchy, March Jacobs, Fendi, StefanoBi, Emilio Pucci, Thomas Pink, Donna Karen and NOWNESS. Each of these brands have stores around the world. 25 % of LVMH Fashion & Leather Good divisions revenue comes from Asia, 20 % from Japan, 21 % from the rest of Europe, and 19% of the US. Therefore LVMH can face crises from such outside causes as terrorists attacks or natural disasters. Examples of the September 11th attacks, the Sars break out in Asia, and the war in Iraq put a hold on global tourism causing a three year decline in the luxury good industry and causing LVMH to lose money.

Disclaimer

This is a student's blog for Crisis Communication class at Quinnipiac University. As such, I as the author of this blog make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Opinions expressed on this blog are Julianna Aquino's personal opinions and do not represent opinion of the Quinnipiac University or opinion of the instructor of the class.