Overall sales at Louis Vuitton’s parent company, LVMH, has been sluggish of late, and the top brass at the luxury company have worried that the ubiquity of their logo-heavy bags have been partly to blame. (Consider the rise in popularity of, say, the uber-expensive Celine totes over the classic LV duffel.) Louis Vuitton responded by introducing more expensive and highly exclusive leather goods.
Though it’s only been a few weeks, WWD is reporting sales of the new high-end W and Capucine bags ($3,380 and $4,730, respectively) are actually off to a slow start.
According to WWD, yesterday’s third quarter analyst call with the conglomerate revealed sales of fashion and leather goods at LVMH owned Céline, Fendi and Givenchy, were outperforming Louis Vuitton. Despite the beautiful ads starring Michelle Williams and the brand’s decision to follow the infamous Birkin bag trajectory and release the Capucine in small batches, the luxury handbag shopper just isn’t biting quite yet.
Could it be the type of client Louis Vuitton is trying to court has been permanently turned off after seeing its logo bags on one too many women? The brand’s chief financial officer, Jean-Jacques Guiony, begs to differ, stressing that “moving the [needle] in such a large company takes time.” Fair enough, though wouldn’t it sound better if they’d all sold out on the first day?
Meanwhile, Guiony said it was “too early” to make any comment on the succession plan at Vuitton, following recent news the company’s artistic director of 16 years, Marc Jacobs has relinquished his title to concentrate on his eponymous line and the more affordable Marc By Marc Jacobs. Jacobs is said to be planning an IPO within the next three years, and while there were rumors last week Nicolas Ghesquiere would takeover, for the time being at least, nothing has been confirmed.
What do you think about Louis Vuitton‘s “hyper-luxury” plans? Is it simply a matter of time before the bags start flying off shelves?