Comprehensive PESTLE Analysis of Louis Vuitton: Marketing Report

This report provides a PESTLE analysis of Louis Vuitton, examining the external factors impacting the luxury brand. The analysis covers political factors like government policies and corruption, economic aspects such as taxes, trade rules, and customer spending habits. Social elements include customer demographics and psychographic segmentation. Technological considerations involve competition and innovation. Environmental aspects address climate change and sustainability, and legal factors focus on data protection and intellectual property. The report highlights how these factors influence Louis Vuitton's operations and strategies, emphasizing the brand's response to challenges and opportunities in the global market. The report also includes references to support the analysis.

Running Head: PESTLE ANALYSIS OF LOUIS VUITTON
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PESTLE ANALYSIS OF
LOUIS VUITTON
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8/20/2019

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Contents
ASSIGNMENT 1: PESTLE MARKETING ANALYSIS OF LOUIS VUITTON...................2
Political:.................................................................................................................................2
Economical:............................................................................................................................3
Social......................................................................................................................................4
Technological.........................................................................................................................5
Environment...........................................................................................................................6
Legal.......................................................................................................................................7
References..................................................................................................................................8

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ASSIGNMENT 1: PESTLE MARKETING ANALYSIS OF LOUIS VUITTON
The pestle analysis external factors are related to the things that effect the business from
outside the factors of PESTLE analysis are political, social, Technological, Economical and
Legal.
Political:
This includes the changes of government policy such as price of the product in order to bring
it on the market and the materials needed for the business to create the product. All of the
above things depend on the policies of the countries and relationships between them. For
example UK and their government policies should allow the business to easily transfer their
product and sell it on the market(Louis Vuitton, 2018). If there would be good relationship
with the country business-wise it will be able to benefit the business and support it as much
as possible (Retail Gazatte, 2019) Other things that can affect the business are corruption it
can affect businesses externally and internally. Which in this case could be to bring the fake

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products for of the current contexts the company sells? Louis Vuitton is a very famous brand
known worldwide and it is also the world's leading fashion company. LV sells everything in
fashion starting from the shoes and clothes to jewellery and even books. Worldwide 145,000
people are working for LV right now which politically proofs the fact that it benefits
employment growth in the country. However, it is a big issue condition-wise that today one
can easily access lot of fake Louis Vuitton products out there on the market. A recent
investigation shows that most of the fake items are transferred from China to the rest of the
world. China is one of the biggest places of this kind of corruption. Corruption has been
affecting Louis Vuitton. Sometimes people don't know that they are buying fake products of
LV which means customers are getting cheap fake items and their exceptions are left on the
zero as false products are very low quality and this situation is the reason for Louis Vuitton
losing clients. Corruption problems in the business can be huge. If the government won’t
handle it then it will affect private businesses as well as the government. LV has been trying
to stop the corruption and sue the sellers and shut down websites where they sell Louis
Vuitton patent items for a very cheap price. They are claiming that the fake products of their
brand on the market right now quality wise is nothing like the authentic versions.
Unfortunately, there are still websites which secretly sell fake version of luxury brands
(Oxford College of marketing, 2019).
Economical:
The taxes, trade rules, conditions and prices can change anytime. For example today in
Britain the businesses are dealing with Brexit, where there is a big chance of No deal Brexit
which means potential tax and product transitions and the cost growth all these are difficult
business situations, where it gets more expensive and hard for businesses to keep the
relationship as it is. Lots of Large businesses such as Louis Vuitton are afraid of the current
situation in Britain as for the last few years there have been debates about the solutions in

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government trying to come to one decision between the UK and European Parliament. So far
big businesses concern for no-deal Brexit as Britain is not ready for such a deal. Trade deals
for the businesses are one of the major aspects of economic growth, exchange rates, and
interest rates and with these restrictions it makes harder for business to develop in certain
countries. Louis Vuitton Ltd has built an empire in the United Kingdom and it can be seen
that in 2018-2019 LVMH’s group hit 18% to 5.58 billion pound sterling as well as free cash
flow grew with 4.79 billion. Louis Vuitton in customer’s eyes comes up as materialistic
goods which are advertised and marketed to attract rich clients and enhance consumer
spending habits (Louis Vuitton, 2019). Buying habits for customers can directly affect Louis
Vuitton. In 2019 statistics shows that people In the UK were spending more money on food
and traveling rather than on a luxurious brand. Also worldwide and in the UK there are
thousands of new brands where they already made billions in a very short period of time.
Such brands produce low, middle or good quality trendy products which middle-class budget
accessible people can afford (Louis Vuitton, 2018). High-end customers are trying to hide
their wealth with their clothes and items and there is a tendency where people's priorities
have changed. This kind of is a worrying future for luxury brands such as Louis Vuitton
(Oxford College of marketing, 2019).
Social
The customers of this company are usually high-income men and women from the age of 18
and upwards (Louis Vuitton, 2018).. The Psychographic segmentation research of the LVMH
Group consumer’s states that LV customers are Self-indulger, quality seeker or status
seekers. Millennial have put their money in purchasing Gucci and Louis Vuitton brands. If
everything goes as planned, Indicators' expectations are quite high in few words 45 percent of
all of the high-end spendings by 2025. Youths in China according to the research are
spending twenty percent of their earnings on luxury products. The same reports also showed

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Americans and Italians have higher spending habits. There are some countries where Louis
Vuitton is getting sold more than the others, for example in Asian countries people are
influenced by status and enriched in their indigenous cultures. People in Asia have a great
desire to fit in high society and prestige groups and surround themselves around people with
a high profile. Such countries have been influenced by their culture and society around them
to show their wealth with the display of the luxury products they have. Strong sales from
these regions can be an opportunity to study in detail of the result and why this happened and
use this as an opportunity to also influence other countries (Oxford College of marketing,
2019).
Technological
People today desire expensive technological items for work, university and home to do their
work better faster. Good quality technological products can cost $1000 and new products
every year in the market and for them it is a huge competition but the people focus on the
name and costs before buying the product. In these cases, advertisements and social media
take more money. People are spending on technology is hitting every day big numbers. We
all know you that people nowadays focus on showing their social status with their clothes but
they also need technology such as iPhone and latest laptops which are available in the market
in order to complete with the high social status, Even the middle class group is showing a
high amount of interest in buying expensive technology rather than other luxury items such as
clothing. The New innovations in technology are surrounded by big competition among the
brands. 5G is a new fifth-generation cellular network technology which is new on the market,
phones with 5G are more likely to be purchased and have more interest than the old phones
or any other luxury items. From one side it is good as customers will have easy access to
Louis Vuitton brand online as it will helps the website and will be quicker to purchase (Louis
Vuitton, 2018).

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Technology provides people with lots of options in the global industry and it also provides
with the information from where and what to purchase, it allows the customers to see
reviews and decide if the item is worth buying or not. The technology produces fewer
products than usual every year but demand for the technology is high. Promotion of brand
and product is one of the main keys in sales which means whenever new technology is out on
the market LV needs new marketing ideas and new contacts to let customers know about the
new products on the market and keep the suppliers happy. This will help them to increase the
cost of promotion in the marketing department for Louis Vuitton as part of the operation.
Technology is the way to provide fast information not only to the customers and suppliers but
also to other wide businesses, it is important to adapt the new technology and to keep up with
the innovations. The innovation of new technology is a great example to stay ahead of the
competitors and understand what their next step is and what the future for the business is
(Oxford College of marketing, 2019).
Environment
This element has become more important than others as a result of climate change, carbon,
recycling procedures, waste disposal. To not get fined by the government on not following
the environmental rule, it is important for the company to understand all the factors and keep
the workplace and the product they produce safe, and the busies should also make sure that
their practices should not to affect the outside world with the waste of carbons and
materials they make. Today there are regulations for every business that they have to follow.
In order to follow the environment rules, It is important to keep the permits up to date with
the environmental regulations. For example, Louis Vuitton uses leather to produce some of
their items and most of their wallets and bags. They also use metals, paintings, and

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chemicals, for them not to break any rules, being familiar with the environmental laws and to
keep eyes on the new regulations is necessary (Priori., 2015)
Legal
This includes that the company should consider for Louis Vuitton and Costs of meeting. The
data protection laws are currently critical for the business. Rights which allows a company to
have copyrights and patents. In the international countries usually, they all follow these rules
but Luis Vuitton has considers and carefully discuss with their Legal partners about all the
threats and danger before entering a to the new market. The company studies the average
time of business cases in case of going to court as in some countries, it might take years
which means there is not much time for the brand and it indicates loss of product and money.
For the country to be safe for Louis Vuitton business, it needs to meet all the data protection
rules or in worse cases most of them. Legal protection of intellectual property, patents,
copyright needs to be protected before entering the international market (Oxford College of
marketing, 2019)

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References
Louis Vuitton (2018), "Louis Vuitton Annual Report",[online]
https://www.lvmh.com/news-documents/news/lvmh-publishes-2018-annual-report/
(Accessed on 20/08/2019)
Louis Vuitton., 2019. Louis Vuitton [online] https://eu.louisvuitton.com/eng-e1/homepage?
campaign=sem_GG-IN-ENG-SH-BRAN-OTHE (Accessed on 20/08/2019)
Oxford College of marketing. 2019. What is a PESTEL analysis? [online]
https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/ (Accessed on
20/08/2019)
Priori., 2015 Environmental Law: Regulations Every Business Should Know [online]
https://www.priorilegal.com/blog/environmental-law-regulations-business (Accessed on
20/08/2019)
Retail Gazatte., 2019. Louis Vuitton owner books double-digit sales & profit growth [online]
https://www.retailgazette.co.uk/blog/2019/01/louis-vuitton-owner-books-double-digit-sales-
profit-growth/ ( Accessed on 20/08/2019)