PM1 Final Presenta.

on Script
Welcome to our final presenta0on and thank you very much for being here. We are Fashion Group 1 and our Group Name is Bellevue Clothing and today we
would like to present you our results we collected in the past weeks during our project blocks concerning the Inves0ga0on of Louis VuiFon´s market.

1. Table of Content

2. Star0ng with the Industry which is Fashion and as our subindustry we chose High fashion. We decided on the company Louis VuiFon. Founded in
1854 and with a total revenue of over 1 billion € in the France Market it is one world´s most valuable luxury brand and therefore well-known. Louis
VuiFon targets a niche market, because their high prices make it impossible for the masses to buy LV products.

Sta0s0c: This sta0s0c presents the brand value of Louis VuiFon worldwide from 2016 to 2021. In 2021, the Louis VuiFon brand was valued at
roughly 14.86 billion U.S. dollars. In comparison, the brand's valua0on was 13.58 billion U.S. dollars in 2019. 2020: record brand value during
pandemic – seems weird but the customer purchasing power remained and even increased.

3. Number Crunching

- Market size for high fashion in France is €5.265 billion

- Louis VuiFon owns 20% of this market which is €1.005 billion

- Total revenue 2020: 44.1 Billion Euro

Threat of New Entrants

The capital requirements within the industry are high, therefore, making it difficult for new
entrants to set up businesses as high expenditures need to be incurred.
Bargaining Power of Suppliers
The number of suppliers in the industry in which Louis VuiFon operates is a lot compared to the
buyers. This means that the suppliers have less control over prices.
Bargaining Power of Buyers
The quality of the products is important to the buyers, and these buyers make frequent purchases.
This means that the buyers in the industry are less price sensi0ve. This makes the bargaining
power of buyers a weaker force within the industry.
Threat of Subs.tute Products or Services
Threat of subs0tute products or services are low because Customers cannot derive the same u0lity (in terms of quality and performance) from subs0tute
product as they derive from the Louis VuiFon’s product.
Rivalry Among Exis.ng Firms
The number of compe0tors in the industry in which Louis VuiFon operates are very few. Most of
these are also large in size. This means that firms in the industry will not make moves without
being unno0ced. This makes the rivalry among exis0ng firms a weaker force within the industry.
Development And Descrip.on of Research
Primary Research- We did primary research by online survey. We did the survey of 53 people. 50% bought the replica products without the knowledge that
they are replica products. The rest 50% bought the products with the knowledge that these are replica.
Our primary research is for suppor0ng our secondary research.
Secondary Research – We read some online journals and read some books about high fashion industry and replica market from library. Besides we focus on
newspaper which helps us do know more about secondary data.
Nonprobability sampling
It is a random process for selec0ng par0cipants. We did convenience Sampling. We already have specific target group and want to know the needs of the needs
of this target group. With convenience sampling we will get the most reliable informa0on in a short amount of 0me with smaller sample size. This sampling is
cost and 0me effec0ve.

P
France plays a key role in the European Union as one of the leading member states in interna0onal affairs. It is known as country of beauty and fashion.

France enjoys a good poli0cal stability. It is trade friendly country. We can go to France for establish our business.

The cost of sefng a business in France is by far lower than it is in Germany, Japan and the U.S. We can enter the market with government support and
transparent trade policy.
E

Unemployment: (hFps://www.sta0sta.com/sta0s0cs/263697/unemployment-rate-in-france/)

-the unemployment rate in France was around 8.62 percent (2020)

Infla0on rates (hFps://www.sta0sta.com/sta0s0cs/270353/infla0on-rate-in-france/)

-Infla0on rate in France from 1986 to 2020, with projec0ons up un0l 2026

-In 2020, the infla0on rate in France was at about 0.53 percent compared to the previous year

--the current rate meets the European Central Bank´s target rate, which is below, but close to, 2 percent

GDP (hFps://www.sta0sta.com/sta0s0cs/263575/gross-domes0c-product-gdp-in-france/)

-Gross domes0c product (GDP) in current prices from 1986 to 2026

Cultural Aspects & Percep0ons

Paris is the shining center of the French fashion industry
Fashion has been very important in France for many centuries
T

The growing digital world opens up new opportuni0es, both in the crea0ve process and the way we interact with and discover fashion.

According to the Digital Market Outlook, the number of e-commerce users in Apparel segment in France is expected to grow to 40,0 million in 2025

France introduced new landmark an0-waste legisla0on for fashion brands and retailers as the country vies to clean up its act.

French legisla0on emphasizes the duty of employers to ensure the safety and protect the health, both physical and mental, of their employees

The 3 Ps are divided into: Price, People, Planet.

Now we apply the 3 ps to the Louis VuiFon company and will present the respec0ve advantages and disadvantages. The first aspect, namely the price and the
advantages are: Louis VuiFon makes a lot of profit with the products it sells. The produc0on price is very low and the selling price is very high. So the profit on
the products sold amounts to approx. 30%. The disadvantages are: Due to Corona, the poten0al customers do not have such a strong interest in buying such
expensive products, as this 0me has caused a lot of financial losses for some. Due to the high price, fewer customers will buy the products and the products
sold and the profit will decrease. Now we come to the next point, namely the people aspect. The advantages are: The products make people feel beFer than
they would were another brand. This is because the products are a lifestyle product and are very highly regarded in society. Accordingly, a lot of people look up
to you and give you compliments. It is also because the products make you unique and you stand out from the crowd. Now the disadvantages: The price for the
products is far too high. (More than 30%) The sales price is in no way related to the actual value of the goods. Due to the high prices, other brands also adapt to
it. This is because other brands are following the Louis VuiFon brand as an example, as it is one of the largest brands in the world. (Role model, yearly increase
of 3%) As a result, some people can no longer afford certain clothes. The last point is the planet aspect. The advantages are: Louis VuiFon is currently going
through a development and would like to become more environmentally friendly. They are currently sefng up recycling sta0ons and various recycling systems
in which they reuse materials that they no longer used in the previous process. Since Louis VuiFon is a very big role model for many other brands, they are
following them and apply these systems too. The products of the brand are also slow fashion products, so the quality is very good and lasts a very long 0me.
The products are not thrown away so quickly and it contributes to sustainability. At least the disadvantages: Louis VuiFon s0ll wastes a lot of resources and
burns their unsold products to this day. They will have a strong impact on the next genera0ons through this waste and they increase pollu0on.

1. Change in demand
The fashion industry is moving towards shorter product cycles and faster launches.
2. Strong emphasis on sustainability
Sustainability is something customers are looking for whenever they buy new products. Louis VuiFon has set an intense target to reduce emissions
generated from its own opera0ons. Their aim is to reduce their carbon footprint by 55% by 2030.
3. The use of polyester
The use of polyester is spart of material science. A trend which started growing in the 80s and will con0nue is the use of polyester, this also
includes the sustainability used in the high fashion spectrum. Polyester is also the most consumed fibre globally. The consump0on changes from
coFon to polyester. Polyester is economical and scalable
to produce. Also, it´s even more evolving with the 0me so the use of it will get bigger.
4. Technology and e-commerce
Technology and e-commerce is owed to the ever evolving consumer desires and the increased expenditure on fashion products. The fashion
industry is witnessing a constant stream of innova0on, with new technologies, crea0ng new experiences for the customer, such as online shopping.
Online shopping has more advantages, since it´s faster and easier for customers. The recent fashion success stories of France are in e-commerce
because France is not only a fashion leader but also a world leader in technology with its designed tech hubs. The online shops of high fashion
designers are used more oqen and the online segment starts growing also because of Covid19. The new trends are are inclined towards
automa0on and efficiency in produc0on.

We start now with the moral issue. You burn your unsold products, which gets to an image damage of your company. With your issue you are not
environmental friendly and not sustainable.
Now we come to the 9 step which we made for you. We know that you want to stay exclusive, but you need to think that burning limited resources is beyond
morality in anyway. The moral ques0on is “Should Louis VuiFon change their behavior towards exploita0on of resources and workers in order to become more
sustainable / environmentally friendly and to safe their brand image?“
We worked out possible ac0ons for you.
1. You can sell your unsold stocks at auc0ons
2. Recycle your products
3. You can reduce the price a liFle bit make liFle sales but not obvious sales, you mix your unsold products with a new collec0on in your store, but you
lower the price for it.
4. Make yearly auc0ons and donate the money to charity
So the problem for you company was to find out how many products you burn every year but also how many emissions are released by this burning problem.
We couldn’t find any facts and figures on this point.
There are a few relevant arguments of different opinions. Customer will just focus on their social status. Environmentalist one on the argument that they
pollute the world with their co2 emissions. The CEO will think about the image damage of them. The employe think about his job, doesn’t maFer if they are
environmentalist.

Recommenda.on
Focus more of being eco-friendly and care more about the waste of resources for our new genera0ons.
Louis VuiFon can reduce the price of the unsold stocks and mix it up with the items of the new collec0ons. They should try to set a limit of produc0on and
focus on demand and supply in order to know how much to produce, so they prevent that big amount of products are burned.
If they have only some leqovers, it will be easier to sell them and if s0ll are some pieces leq they have to give them to charity or charity events to improve the
image damage.
In addi0on to the replica products you have to put together a team that specializes only in this sector. You have to look for the big and have to pursue this
legally.