LVMH
Meet Hennessy Louis Vuitton SA, the world's largest luxury-goods
company, expects monogrammed denim handbags, eyewear created
with a hip-hop music star and bags with cherry prints designed
by, a pop artist to help boost the company's most profitable
business.
Louis Vuitton designer Marc Jacobs created LV monogrammed
jeans and denim handbags trimmed with crocodile skin for his
spring-summer 2005 collection, which also previewed eyewear
designed with hip-hop music producer PhtuTell Williams and
bags decorated with cherry prints by pop artist Takashi Murakami.
"The ready-to-wear show is a good way to bring energy
to our bags and accessories businesses as well,'" Yves
Carcelle, director of LVMH's fashion division, said in an interview
alter the show, held at Serre du Pare Andre Citroen in Paris.
Chairman Bernard Amault is focusing on keeping up momentum
at Louis Vuitton, which generates about 60 percent of the group's
operating profit and about 25 percent of sales. A threeyea
slump in the $74 billion luxury-goods business has made it
more difficult to turn around underperforming lines such as
Fendi and Pucci. LVMH also owns the Givenchy and Donna Karma
brands, among others.
The collaboration
with Murakami on the cherry prints follows Louis Vuitton's
first project with the Japanese artist two
years ago. which produced a best-selling and widely copied
line of bags with multicolored LV initials on a white background
known as the "Eye Love You" collection.
"Product is key, and creativity is the power behind the
brand." Carcelle said. The new products haven't been priced
yet.
Handbags represent one of the most profitable segments of
the luxury-goods business because they have a longer shelf
life and don't have the fitting and sizing requirements of
clothing.
Louis
Vuitton is also expanding its jewelry business, which started
with a
charm bracelet designed by Marc Jacobs two years
ago, into a full line called "Enprise" that features
luggage motifs and monogrammed flowers.
The 150-year-old brand, which already operates more directly
owned stores than any other luxury brand, is keeping up its
pace of opening about 15 stores each year, Carcelle said. Louis
Vuitton recently opened its 335th store, in Johannesburg, South
Africa. Last month, Louis Vuitton opened a 13,000 square-meter
store in Shanghai, its 14th outlet in China.
"This shows that we are rapidly penetrattrig new territory'
while continuing to grow in traditional markets such as North
America." Carcelle said.
Last month, LVMH said first-half profit rose 49 percent as
travelers returned to its Asian airport stores and U.S. shoppers
bought more champagne and cognac. Operating profit at the fashion
and leather goods unit, which includes Louis Vuitton, was unchanged
at 634 million euros ($787 million).