2007 - Brand Premium of Louis Vuitton Original Bag and Counterfeits

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Information about 2007 - Brand Premium of Louis Vuitton Original Bag and Counterfeits

Published on September 4, 2007

Author: fetscherin

Source: slideshare.net

LOUIS VUITTON Brand Premium of Luxury Goods and the Counterfeit Market: A Look at Louis Vuitton Handbags Natalie Powers Dr. Marc Fetscherin

LOUIS VUITTON AGENDA Objective Hypothesis Existing research Data collection Results Conclusions

AGENDA

Objective

Hypothesis

Existing research

Data collection

Results

Conclusions

OBJECTIVE Understand the effect of high prices of luxury handbags on buying patterns of consumers Retail channels Online discounted stores Counterfeit sellers LOUIS VUITTON

OBJECTIVE

Understand the effect of high prices of luxury handbags on buying patterns of consumers

Retail channels

Online discounted stores

Counterfeit sellers

HYPOTHESIS Greater availability of counterfeit products, and the increased quality in their similarity to originals, consumers are willing to pay less money for a knockoff item than for an authentic product LOUIS VUITTON

HYPOTHESIS

Greater availability of counterfeit products, and the increased quality in their similarity to originals, consumers are willing to pay less money for a knockoff item than for an authentic product

EXISTING RESEARCH What drives consumers to buy counterfeits Brand recognition without high cost Increased quality Availability LOUIS VUITTON

EXISTING RESEARCH

What drives consumers to buy counterfeits

Brand recognition without high cost

Increased quality

Availability

DATA COLLECTION Consumer survey Price collection LOUIS VUITTON

DATA COLLECTION

Consumer survey

Price collection

CONSUMER SURVEY LOUIS VUITTON Inability to Counterfeit More Exclusivity Increased Quality Lower Price Which of these would persuade you to buy an authentic Louis Vuitton handbag most? Never Not Often Upon Close Inspection Yes Does the quality of your handbag lend itself to be recognized as a counterfeit product? Very Satisfied Satisfied Reasonably Satisfied Very Unsatisfied How would you rate your satisfaction with the price paid for the handbag? Very High Middle High Middle Low Poor How would you rate the quality of the handbags purchased from this venue? All 2 1 0 How many of your handbags were purchased from a counterfeit dealer? Very Satisfied Satisfied Reasonably Satisfied Very Unsatisfied How would you rate your satisfaction with the price paid for the handbag? Very High Middle High Middle Low Poor How would you rate the quality of the handbags purchased from this venue? All 2 1 0 How many of your handbags were purchased at an online discount store? Very Satisfied Satisfied Reasonably Satisfied Very Unsatisfied How would you rate your satisfaction with the price paid for the handbag? Very High Middle High Middle Low Poor How would you rate the quality of the handbags purchased from this venue? All 2 1 0 How many of these were purchased at an authorized Louis Vuitton retailer? > 3 2 1 0 How many Louis Vuitton handbags do you own?

CONSUMER SURVEY

CONSUMER SURVEY LOUIS VUITTON

CONSUMER SURVEY

PRICE COLLECTION LOUIS VUITTON

PRICE COLLECTION

PRICE COLLECTION LOUIS VUITTON 269 185 195 496 496 775 900 1,400 1,400 Trouville 149 N/A 99 290 290 275 285 590 590 Pouchette 219 185 145 468 468 700 900 1,450 1,450 Alma Monogram Multicolor 199 165 N/A 319 309 450 1,110 1,110 1,110 Babylone 200 155 125 299 299 450 620 620 620 Speedy 30 190 145 130 285 287 475 725 795 725 Looping Mini Monogram Canvas eHandBagz LV-Designer Bags Bagways Balenci SacBelle LaPerle Saks 5th Avenue Neiman Marcus Louis Vuitton Replica (Counterfeit) Online- Discounted Retail Store

PRICE COLLECTION

PRICE COLLECTION LOUIS VUITTON 657% 45% 56% 56% Trouville 496% 51% 5% 107% Pouchette Accessoires 900% 51% 50% 61% Alma Monogram Multicolor 573% 21% 46% 0% Babylone 396% 60% 51% 0% Speedy 30 512% 46% 67% 10% Looping Mini Monogram Canvas Product Overall Counterfeit Sellers Online Discount Retail Stores Percent Change in Price

PRICE COLLECTION

CONCLUSION P rices for the same product vary the least in retail stores All but two bags demonstrated an overall difference in price of over 500% Highest was Alma with 900% increase from counterfeit to retail LOUIS VUITTON

CONCLUSION

P rices for the same product vary the least in retail stores

All but two bags demonstrated an overall difference in price of over 500%

Highest was Alma with 900% increase from counterfeit to retail

CONCLUSION Counterfeits owners who rated quality low to middle, had price satisfaction ranging from moderate to high Indicates they believe they got a good value for their money Authentic owners rated quality very highly but price satisfaction was lower than that of the counterfeit buyer Comfort with the quality knowing it is authentic, but had to pay a lot of money for it LOUIS VUITTON

CONCLUSION

Counterfeits owners who rated quality low to middle, had price satisfaction ranging from moderate to high

Indicates they believe they got a good value for their money

Authentic owners rated quality very highly but price satisfaction was lower than that of the counterfeit buyer

Comfort with the quality knowing it is authentic, but had to pay a lot of money for it

CONCLUSION Counterfeits offer lower quality, but with their low price provide an attractive value proposition for consumers If consumer satisfaction with the quality of the counterfeit handbag is moderate to high, but price satisfaction is even higher, consumers are willing to forgo the absolute quality of an authentic handbag for a more satisfying counterfeit LOUIS VUITTON

CONCLUSION

Counterfeits offer lower quality, but with their low price provide an attractive value proposition for consumers

If consumer satisfaction with the quality of the counterfeit handbag is moderate to high, but price satisfaction is even higher, consumers are willing to forgo the absolute quality of an authentic handbag for a more satisfying counterfeit

RECOMMENDATIONS Survey population size Additional brands LOUIS VUITTON

RECOMMENDATIONS

Survey population size

Additional brands

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