Louis Vuitton Voyage by farleyw

LOUIS VUITTON VOYAGE FARLEY WHITE 1

TABLE des MATIÃ&#x2C6;RES 2

CONTENTS ABSTRACT 5 INTRODUCTION

SECTION UN. BACKGROUND

COMPANY OVERVIEW 9 LVMH 11 LOUIS VUITTON TODAY 12 LUXURY TRAVEL INDUSTRY 17 FASHION INDUSTRY AND TRENDS TEXTILE INNOVATIONS 21 TRAVEL AND APPAREL 22

SECTION DEUX. MARKET ANALYSIS LUXURY TRAVEL 25 LUXURY FASHION AND APPAREL TRAVEL AND APPAREL 32 TARGET CONSUMER 36

SECTION TROIS. PRIMARY RESEARCH PRIMARY RESEARCH OVERVIEW 39 INDUSTRY INTERVIEWEES 40 CONSUMER INTERVIEWEES 41 INDUSTRY INTERVIEWS 42 CONSUMER INTERVIEWS 44 KEY FINDINGS: SECONDARY RESEARCH KEY FINDINGS: PRIMARY RESEARCH

SECTION QUATRE. STRATEGY STRATEGIC OVERVIEW 49 PRODUCT OVERVIEW 51 MEN’S APPAREL ASSORTMENT

MEN’S PANTS 53 MEN’S SHIRTS 54 MEN’S OUTERWEAR 55 WOMEN’S APPAREL ASSORTMENT 58 WOMEN’S PANTS 59 WOMEN’S DRESS 59 WOMEN’S SHIRTS 60 WOMEN’S OUTERWEAR 61 ACCESSORIES ASSORTMENT 64 PRICING STRATEGY 66

SECTION CINQ. PROMOTION STRATEGY

SECTION SIX. LAUNCH STRATEGY

la CONCLUSION.

NOTES de FIN.

PROMOTION OVERVIEW ADVERTISING 70 SOCIAL MEDIA 74 VOYAGE APP 76 BRAND PARTNERSHIPS 78 SPORTING EVENTS 80 DISTRIBUTION 84 VOYAGE LAUNCH

46 47

KEY SUCCESS FACTORS 91 SALES FORECAST 92 MARKETING BUDGET 93 CONCLUSION 95

ABSTRACT In a globalizing world where consumers are more connected than ever to fast-paced lifestyles, travel has become both a necessity and an escape. For the luxury consumer, the lines between business travel and leisure travel are quickly blurring, and the market must respond to the needs of its consumer subsequently changing. Luxury travel is closely connected to many other industries within the luxury sphere, including fashion, which provides a unique opportunity for collaboration and expansion. This M.A. final project proposal explores the idea of a luxury brand, Louis Vuitton, a global company with deep travel roots, creating a brand extension into travel apparel. Through analyzing the industry, Louis Vuitton as a company, brand positioning, and the unique selling proposition (USP) of the proposed extension, this project seeks to prove the viability of extending the Louis Vuitton brand into travel apparel.

INTRODUCTION As luxury shifts from its traditional product focus to an experiential focus, brands must adapt to evolving consumer desires. Not surprisingly, luxury travel has experienced a substantial increase in the last decade, and this growth is expected to continue steadily over the next twenty years. Luxury brands, particularly those that are product-focused, must integrate experiences into their offerings, and travel is a natural bridge into the experience economy. Louis Vuitton, a luxury powerhouse that was founded over a century ago as a travel goods company, is perfectly positioned to create a new line of products for a new set of consumer needs. With leather goods, luggage, and accessories among its core product offerings, as well as a strong spirit of travel in its goods and marketing, the brand could easily marry its apparel with its travel DNA. The modern traveler, with a heightened desire for travel experiences combined with a greater need for business travel due to a globalized world economy, has apparel needs that have not yet been met by the fashion industry, and Louis Vuitton is the perfect brand to meet these needs. By creating a line of apparel specifically designed with the traveler in mind, with features that make travel and transitioning across various locations and situations effortless, Louis Vuitton can increase its share of the luxury market and set a new standard for luxury apparel. This brand extension will explore a Louis Vuitton brand extension into travel-specific apparel. By carefully analyzing the brand, as well as the luxury travel and fashion markets, rapidly evolving needs of the luxury traveler will be identified and addressed. The first deliverable will be an assortment plan for this new line of Louis Vuitton apparel that will take market, company, and primary research into account. The second deliverable will be a comprehensive marketing plan that will identify appropriate marketing channels and strategies for this innovative new line, as well as opportunities for collaboration. Combined, the two deliverables seek to prove the viability of a Louis Vuitton extension into travel apparel.

SECTION UN. BACKGROUND 8

COMPANY OVERVIEW Founded in Paris in 1854, Louis Vuitton began as a luxury luggage and travel goods company, using the tagline “articles de voyage,” or “travel goods.” Founded on the principal of savoir faire, Louis Vuitton quickly became a favorite among leisure class travelers due to its quality, luxury, and attention to customer needs. With innovations such as the iconic stackable steamer trunk, the “unpickable lock,” and durable, water-resistant leather “canvas,” Louis Vuitton developed a culture of innovation that still exists within the brand to this day. Known worldwide for exceptional quality and distinctive products, the company has extremely high brand recognition. The Louis Vuitton logo and monogram print are among the most recognizable symbols within the luxury sphere and continue to draw customers year after year. Today, Louis Vuitton has grown into a global powerhouse brand with over 460 stores in over 65 countries. The company is based in its hometown of Paris and maintains over 19,000 employees worldwide. Michael Burke serves as Chairman and

CEO of Louis Vuitton, and Nicolas Ghésquiere is the brand’s current Creative Director. Louis Vuitton currently sells products in six distinct product categories: men’s and women’s readyto-wear, men’s and women’s shoes, jewelry and watches, accessories, leather goods, and, most recently, fragrance. While Louis Vuitton’s brand recognition is incredibly high, the company maintains an exclusive retail model. Louis Vuitton sells its products to consumers using three highly controlled channels. First, the company operates independent Louis Vuitton stores in exclusive locations throughout the world. Flagship store locations include Fifth Avenue in New York City, Union Square in San Francisco, the Champs Elysees in Paris, Shanghai Plaza, and Marina Bay in Singapore. Second, the company uses limited luxury wholesale, favoring the store in store model in a select few luxury wholesalers in selective locations, such as Saks Fifth Avenue and Selfridges. Third, the company sells select products, mostly accessories and leather goods, online through the Louis Vuitton website.

LVMH LVMH is the world’s largest luxury conglomerate and parent company to Louis Vuitton. The company was formed in 1987 when Louis Vuitton merged with Moet Hennessy, and both companies remain cornerstones in the LVMH portfolio. The group manages 70 brands, or “maisons,” and almost 135,000 employees, including Bernard Arnault, who serves as the company’s legendary CEO. LVMH divides their maisons into six distinct categories. The first, Wine and Spirits, features brands such as Moet & Chandon, Hennessy, Dom Perignon, Krug, and Veuve Clicquot. The second category, Fashion and Leather Goods, focuses on both classic brands with strong heritage, such as Dior, Fendi, and Louis Vuitton; as well as newer brands such as Marc Jacobs and Kenzo. This category is the most lucrative for LVMH, bringing in 36.3% of the group’s total sales in 2017 (Berezhna). The third category, Perfumes and Cosmetics, includes industry powerhouses such as Benefit Cosmetics and

Guerlain. Watches and Jewelry, the fourth category, includes top retailers such as Bvlgari and Tag Heuer. Selective Retailing, the fifth category, focuses on unique retailing experiences with brands such as Sephora, Le Bon Marché, and Starboard Cruise Services. Last, the sixth category, Other Activities, focuses on luxury investments and lifestyle brands that further the company’s pursuit of excellence. Value-wise, LVMH focuses on “innovation and creativity, excellence of products and service, and entrepreneurship” (LVMH). The group manages the companies within its portfolio independently “as startups,” which allows high levels of autonomy, as well as specialization and reactivity for each maison. LVMH is a publicly traded company, with a market cap of 126.49 billion euros and current share prices at 238.40 euros, with share price steadily increasing over the last year (MarketWatch).

LOUIS VUITTON TODAY Louis Vuitton’s foundations in the travel industry are still highly present today, both in classic icon products and new innovations. The company maintains its iconic luggage and steamer trunks, which are revitalized from time to time through collaborations with other, often more youth-focused brands such as streetwear brand Supreme, as well as offering new products within the travel sphere such as Ghesquiére’s City Steamer. In 2016, the company launched Horizon, a collection of lightweight, high-volume roller bags featuring bold prints and colors, done in collaboration with Australian industrial designer Marc Newson. In doing so, the company made the classic monogram canvas almost 50% lighter (LVMH), a perfect example of the company’s ability to innovate without losing its roots and heritage. Louis Vuitton also offers a fragrance and fragrance carrying solution designed specifically with the traveler in mind. In addition to product innovations over the years, many of Louis Vuitton’s most high-profile advertising campaigns feature travel-related themes, including the ongoing “Spirit of Travel” campaign, which features high-profile celebrities as models and exotic locations that showcase the versatility of the brand and its products, particularly its iconic leather goods. In addition, LVMH, Louis Vuitton’s parent company, maintains a strong presence in travel retail, particularly through the ownership of Duty Free Shoppers and Starboard Cruise Services. Louis Vuitton’s promotion methods are highly consistent with what would be expected of a star brand. All advertising and promotion is highly conspicuous and glamorous, and the company has won numerous awards for effective and beautiful advertising (Groth). Louis Vuitton often hires some of the world’s most famous photographers to shoot its campaigns, including Mario Testino and Patrick Demarchelier (Louis Vuitton). The company’s “Spirit of Travel” campaign, which launched in 2014 and is still used in current marketing endeavors, features celebrities and high-profile models in exotic locations through photographs (both digital and print) and short films. 12

As for digital efforts, Louis Vuitton has been late to digitize and begin selling online but has recently focused major efforts and resources into growing both digital presence and digital consumer engagement. With the launch of social media, as well programs such as the “virtual advisor” on Facebook, which uses AI to answer consumer questions about the brand and its products (Bloomberg), Louis Vuitton is attempting to create meaningful digital engagement with customers. In recent years, the brand has been able to create effective visual ad campaigns and digital narratives using Instagram stories, and was the first luxury fashion brand to do utilize the platform (BoF Team). Louis Vuitton’s highly conspicuous position in the luxury marketplace has allowed for a later introduction into the digital world, but the brand has recently determined the importance of a strong digital presence, even for a heritage brand. As perhaps the most prominent star brand in the LVMH portfolio, Louis Vuitton continues its pursuit of market domination, with rapid expansion into Asia. In 2016, Asia accounted for 40% of LVMH’s fashion and leather goods revenue (LVMH). As of October 2017, the brand outperformed forecasted third-quarter growth by 3% under creative director Nicolas Ghesquiére, who was brought in by LVMH in 2013 to help modernize the brand and combat brand fatigue. In 2016, the LVMH group brought in 37.6 billion euros in revenue, up 5% from 2015 (LVMH).

LVMH’s current initiatives and goals are focused on “taking a long view,” and include optimizing current business models for a rapidly changing market space. These initiatives include supply chain optimization, product innovation, the LIFE environmental initiative, and digital growth, to name a few (LVMH). As the luxury market becomes more segmented, LVMH will continue to benefit from its “maison” business model. In a sense, the maisons can “adapt without sacrificing their founding values” (LVMH). Looking to the future, Louis Vuitton specifically is focusing on continued reinvention, as well as strengthening its production and promotion of icon products, for example introducing a smart watch in July 2017 (O’Connor) and introducing a fragrance line in 2016 to target slightly lower spending clientele (Reuters). In addition, the brand will focus on “communications that revolve around key events of the year and by continued exhibitions around the world focusing on Louis Vuitton’s history and universe. Quality improvements in the retail network will continue, with the consistent aim of offering customers a unique experience and unparalleled service” (LVMH). In recent years, Louis Vuitton has endeavored to become a cultural symbol in addition to a luxury retailer. By creating the Louis Vuitton Foundation, an art museum and cultural hub outside of Paris designed by famous architect Frank Gehry, Louis Vuitton has demonstrated its commitment to the promotion of the arts and culture outside of the brand itself. High-profile collaborations with artists such as Takashi Murakami and Yayoi Kusama in the 2000s and Jeff Koonz in 2017 have also increased the brand’s perceived artistic value and versatility. Major challenges for Louis Vuitton in the foreseeable future include brand fatigue due to the ubiquitous use of the company’s logo and monogram print, widespread counterfeiting (particularly in Asia), digital implementation, and millennial engagement. 14

Louis Vuitton’s historical innovations in travel make a travel apparel brand extension a natural fit. The combination of the brand’s high recognition and extremely controlled distribution make for an instant sense of exclusivity, and the brand’s activities are widely covered by media in the fashion and luxury industries due to its dominant position within the marketplace. The timing for this extension is ideal, as the company is clearly trying to return to its travel roots, as indicated by its recent innovations and collaborations of its luggage and trunks, as well as its marketing communications. The “Spirit of Travel” advertising campaign could naturally be built upon for a line designed specifically with the traveler in mind. Furthermore, the extension could be used to generate unique and engaging digital content, which the brand currently lacks. As the brand attempts to capture the interest of millennials, an ongoing challenge throughout this decade, digital media and experience will become important methods for the brand to create engagement. Louis Vuitton’s current brand strategy is looking to both the past and the future. By looking to the past for inspiration, the brand can use its rich history to build upon what it does best. With over a century of luxury experience and innovation, Louis Vuitton possesses a distinct heritage that has captivated luxury consumers throughout its life as a brand. The future allows innovation and new areas that will assist the brand in its pursuit of luxury market domination. In its ability to focus on both the past and the future, a travel apparel extension is completely in line with the brand’s strategy. Additionally, Louis Vuitton is mostly known worldwide for its leather goods. While the company offers apparel and shows at Paris fashion week, the collections are not widely covered by the media and do not resonate as much with the luxury consumer as other brands’. Many consumers outside the luxury sphere, who can immediately identify a Louis Vuitton handbag or trunk, are completely unaware of the brand’s other offerings. Furthermore, the brand has become staid in the eyes of many consumers, with offerings remaining fairly consistent and safe throughout the decades. By offering a new and innovative line of apparel, Louis Vuitton can not only increase profits and market share, but also draw attention to its apparel offerings as a whole.

LUXURY TRAVEL INDUSTRY In today’s fast-paced world, time has become the greatest commodity. Additionally, as millennials come of age, luxury spending is shifting away from products and toward experiences. Experiential spending is expected to increase from $5.8 trillion worldwide currently to $8 trillion by the year 2030, almost 38% (Euromonitor). In the social media age, the new mode of conspicuous consumption has become unique and memorable experiences. For the luxury consumer, the response to these phenomena is travel. By the year 2030, air traffic is expected to double what it is today (Euromonitor). Travel, for both business and leisure purposes, is on the rise, and the luxury consumer is a major driving force behind this change. Luxury consumers desire uniqueness, comfort, and style when they travel, and are willing to pay a high premium for value-added services that enhance their overall experience. Consequently, travelers make up 40% of global luxury goods spending, indicating a strong correlation between spending and travel (Business of Fashion). Conversely, while consumers only do business with travel brands sporadically, as opposed to everyday brands, the offerings of these everyday brands drastically affect consumers’ expectations, particularly where convenience is concerned (Deloitte). Consumers want authenticity and personalization as well, which can be difficult for travel brands to achieve, as they are not in regular contact with their consumers and have less opportunity to capture necessary data (Deloitte).

more of a luxury, the lines between business and leisure travel will continue to blur, specifically within the luxury sphere. In the future, luxury travelers will need even more functionality and versatility, without sacrificing the style and comfort they have grown accustomed to. “Thanks to ubiquitous connectivity, and on-the-go, 24/7 services via mobile devices, the distinction between the business and leisure traveller will be ever more indistinct. In the not-so-distant future, the travel industry will need to consider travellers as individuals, whose needs and expectations will change at will, in an instant, and which will be context-specific” (Euromonitor). In short, business and leisure travel are comingling more than ever before, and travelers’ needs are evolving and becoming more extensive as a result. In terms of statistics illustrating this phenomenon, according to Forbes, 78% of millennials surveyed intentionally added on personal vacation time to their business travel (Zimmerman). In fact, the phenomenon of mixing business and leisure travel has become so popular with millennials that media agencies such as Forbes and the New York Times have coined the term “bleisure travel” to describe it. While baby boomers tend to keep their business and leisure travel separate, millennials, who are able to travel more due to a tendency to delay marriage and having children, have spearheaded the “bleisure travel” trend, and an estimated 57% of companies have responded by implementing policies allowing employees to extend business travel to include personal time (Zimmerman).

As our world becomes more connected and time becomes even 17

FASHION INDUSTRY AND TRENDS The fashion industry is currently in the midst of major changes. Fast fashion and digitalization, as well as the introduction of wearables and smart textiles, have proven to be major disruptors to the industry. Luxury consumers desire novelty and innovation, as well as the quality they have grown accustomed to. Global star brands such as Gucci and Louis Vuitton have traditionally dominated the conversation, which is beginning to shift as millennial consumers are choosing to patronize smaller, more connoisseur brands. The shifting retail landscape, as well as direct-to-consumer digital retail have affected the industry substantially, and many large retailers have suffered as a result. In response, larger brands and retailers have begun to offer curated collections and innovative collaborations. In the coming months, womenswear is expected to showcase utilitarian themes and aesthetics. In contrast, femininity is a major theme of many forecasts, both in the traditional sense and in a newer and more powerful sense, with the rise of tailoring and suiting (Howard). Active wear, which can play a major role in travel apparel, is expected to become more influenced by subculture and anarchy, with designers offering bolder and more avant garde styles (Varga). Streetwear and a newer, “gritty”

aesthetic will become major influencers to athletic apparel. As lifestyles become more spontaneous, activewear will become more versatile and adaptable to everyday life, transitioning from the gym or the street to more formal situations more effectively (Varga). Accessories will feature avant-garde embellishments and personalization, capturing consumers’ attention with novel and surprising twists and playful aesthetics (Hudson). Menswear is expected to see utilitarian themes as well, with individuality and statement pieces becoming mainstays in men’s wardrobes, more so than at present (WGSN Menswear Team). Streetwear and sportswear will be combined in new and different ways, creating entirely novel aesthetics (WGSN Menswear Team). Oversize styles and bold prints of all kinds, often mismatched, will permeate the menswear market in the months to come (WGSN Menswear Team). Outerwear is expected to feature personal touches and embellishments, as well as Eastern aesthetics. In addition, denim and athletic style windbreakers will be widely worn (Trunzo). Personal aesthetics will become more daring and more personalized in menswear in coming seasons.

TEXTILE INNOVATIONS A variety of features and innovations in textiles have arisen in recent years that will prove invaluable to this the travel industry, as they have the ability to help meet travelersâ&#x20AC;&#x2122; changing needs, as well as enhance their travel experience significantly. The first category of improvements is made up of performance enhancing features. For example, increases in textile breathability, particularly with regard to traditionally stiff and heavy fabrics, will provide comfort for travelers. Weather andspill proofing, such as Dropelâ&#x20AC;&#x2122;sliquid resistant cashmere, will provide essential protection to travelers, who are potentially exposed to all sorts of weather and potential mishaps while traveling. Featherlight down alternatives will not only improve aesthetics and comfort of outerwear butwill also take up less space in suitcases and allow travelers to travel lighter. In addition, textiles can now be integrated with heating and cooling technology, allowing one garment to adapt toan extreme range of climates and provide temperature control for the wearer. Functionally, smartphone charging patches and wearable technology capabilities can be added to textiles to heighten connectivity on the go and

eliminate the hassle of trying to charge devices while on the go. Currently, most of these innovations in textiles have been utilized only in tactical apparel and gear, although they can be easily incorporated into higher end apparel. The second category of improvements is made up of aesthetic features. For example, reversibility and convertibility of garments allows for heightened adaptability as travelers move from location to location and business travel becomes more intertwined with leisure travel. In a sense, one garment can become multiple different outfits as the wearer reverses it to show different colors or prints. Additionally, one garment can be styled multiple different ways to create multiple outfitsthat adapt to different levels of formality, through convertible designs. From a technical standpoint, color changing textiles can further increase the aesthetic versatility of a garment, although this technology is in its infancy. Through both aesthetic and functional innovations, apparel can be made even more effective and useful for the traveler.

TRAVEL AND APPAREL Apparel is an integral part of the traveler’s experience. Preparing for a trip, either business or leisure, often results in substantial purchases. According to a study by RocketFuel, luxury travelers reported making as many as eighteen purchases in preparation for a trip, as opposed to non-luxury travelers, who reported an average of four (Jokic). The luxury travelers were over 200% more likely to make these purchases from a luxury retailer over a mass market retailers (Jokic). Apparel is the most common item travelers purchase pre-departure, making up 43% of purchases in anticipation of travel (Jokic). Some expenses while traveling are unavoidable, such as taxes and fees, baggage fees being the most aggravating for almost 40% of consumers surveyed (Jokic). Today’s luxury travelers have two basic options for apparel when traveling. The first is to dress fashionably or professionally, focusing on appearance above all else. This option sounds great in theory, but when facing long plane rides, possible layovers and delays, and car or train rides in addition, the appeal quickly fades. Traveling in stylish clothing does not provide much in the way of comfort, which, when faced with the hassles of travel, is more important than many people consider. The second sartorial option is to eschew looking fashionable and choose comfortable clothing, perhaps athleisure or casual alternatives. While this option makes for a more pleasant ride, sometimes this is not an option in the presence of business obligations or the need to look presentable without time to change, especially as “bleisure travel” becomes more prevalent. 22

Many companies have recognized the need for travelspecific apparel and begun to offer apparel lines designed with the traveler in mind. Most of these brands are massmarket retailers, such as J. Jill, Chicoâ&#x20AC;&#x2122;s, Athleta and Everlane. Interestingly, these brands tend to only offer travel apparel for women. While the apparel is functional and comfortable, it tends to be extremely casual in nature. While appropriate for certain situations in leisure travel, it does not consist of anything appropriate for business obligations. Of note is the brand Travelsmith, which offers both casual clothing and streetwear for men and women, each piece travel-specific features and innovations. The price point of Travelsmith, however, is closer to the mass-market level, and the brand tends to stick to basic styles rather than incorporate a high fashion influence. In addition to mass-market brands, tactical apparel companies such as Orvis, Patagonia, and Columbia offer travel-specific clothing. These offerings, however, focus more on functionality and tactical features than style, and are not appropriate for many luxury business travel situations. There are a handful of low-level luxury brands that offer a handful of travel garments, including Peter Millar and Kit & Ace, but a clear white space exists in the travel apparel market. Luxury high fashion brands, particularly those at the Louis Vuitton price point and level of exposure, have yet to embrace the traveler.

SECTION DEUX. MARKET ANALYSIS 24

LUXURY TRAVEL As conspicuous consumption is overtaken by the desire for meaningful luxury experiences, luxury travel is positioned to benefit massively. Global growth of spending on luxury experiences is expected to achieve double digit growth in all sectors between 2015 and 2020 (Euromonitor). As luxury lifestyle mentalities become more important, travel will no doubt become a cornerstone to the luxury market. Consumers still desire a good value for their money and are willing to pay top dollar for value-added services to enhance their luxury experiences. In addition, consumers are desiring more personalized and authentic experiences, particularly within the luxury sphere. Consequentially, customers are becoming more active participants in the market and will require heightened transparency and brand relationships (Euromonitor). Trends such as the desire for sustainability and heightened wellbeing affect the luxury travel market and its purveyors (Euromonitor). Luxury shopping continues to be a large driving factor of the luxury travel industry, as consumers frequently travel to seek luxury retail opportunities, generally to major cities. In addition, authenticity and connoisseurship, as well as heritage, are becoming increasingly important factors to the luxury traveler (McGee). As social media becomes more pervasive, documenting experiences has become the new method for conspicuous consumption. Travelers, particularly millennials, desire experiences worth of documenting, and methods of transportation are no exception. Technology has both fueled growth and disrupted the travel industry in recent years and is continuing to do so. For example, private jets have become an even more important status symbol, leading to the creation of companies such as Surf Air, which is described as “Uber for private jets” (Butt). In addition, as “bleisure” travel and working remotely become the norm, travelers

are now able to travel for extended periods, and travel companies have responded by increasing and promoting connectivity in accommodations (Butt). As accommodations become more home-like, with the advent of companies such as Airbnb, as well as hotels offering more and more apartment-style accommodations, travelers are choosing to vary their destinations instead of purchasing vacation homes (Butt). Globally, economic growth and increasing wealth are expected to benefit the travel industry substantially. The number of High Net Worth Individuals (HNWIs) worldwide in the year 2030 is expected to more than double from its current rate, topping off at 88 million (Euromonitor). By the year 2020, global luxury hotel sales are expected to continue growing to $191 billion annually. Although travel is on the rise globally, a combination of geopolitical and global factors has increased the amount of uncertainty in the luxury travel industry worldwide at present and into the foreseeable future. “Thanks mainly to currency fluctuations, economic and political headwinds and the added fear of terrorist attacks, the future of the wealthy tourist is looking increasingly challenging, with many key luxury shopping destinations, particularly in the developed markets of the US, France and Hong Kong, seeing a drop in international luxury spend” (Euromonitor). Developed travel markets are expected to see less traffic due to safety concerns, while Asia stands to gain significantly through increased travel (Euromonitor). As threats such as terrorism and political instability threaten some of the world’s most popular travel destinations, many travelers are seeking more remote and exotic locations. While the luxury travel industry stands to gain from the increase in global wealth and luxury consumers’ changing preference from goods to experiences, uncertainties cannot be ignored in the years to come. 26

With travel on the rise worldwide, especially in the luxury sphere, consumers are desiring memorable experiences over goods. In addition, luxury travelers appreciate travel-based offerings that cater to their specific needs as the internet and digital retail has created a demand for instantaneous gratification, as well as customization of both product and experience. As consumers become more educated and demand more personalization and innovation, particularly in luxury goods, luxury brands must respond to a heightened level of expectations, particularly where millennials are concerned.

traveler will pay more for value-added services, and desires unique innovation, particularly where their apparel is concerned. As millennial travelers choose farther and more varied destinations than ever before, unlike their parents who tend to frequent the same destinations over the years, they will require goods and services that can help them adapt to various locations and situations. Bleisure travel has effectively created an entirely new set of requirements of travel apparel, which brands in the industry must acknowledge. Additionally, as travelers document their experiences, brands such as Louis Vuitton can promote themselves through ingraining themselves in these experiences.

With the advent of â&#x20AC;&#x153;bleisureâ&#x20AC;? travel and its rapid penetration of the travel industry, consumers will require accommodations and goods that meet both business and leisure needs. This will become especially apparent where apparel is concerned, as apparel is profoundly tied to both image and experience. Clothing that is more adaptable and functional without compromising style will become a necessity, and Louis Vuitton is perfectly positioned to offer this line, with the capability to do so well ahead of its major competitors. As the luxury market shifts from products and toward experiences, a travel apparel brand extension is perfectly timed. While product-based in nature, the line caters to an experience, which is a method the brand can use to make its products more relevant in an experiencebased economy, as well as capture the attentions of millennial consumers as their spending power increases. The luxury consumer needs products that cater to their new desire for experiences. If the apparel will not only provide status and style but also allow them to enjoy an experience more, they will be more driven to purchase. Research has proven that the luxury 27

LUXURY FASHION AND APPAREL As luxury goods become less important than experiences, retailers and producers are having to rethink the nature of their products. Currently, however, apparel and footwear still make up the largest category of luxury sales worldwide. Luxury goods, including fashion, must become more experiential in nature, and retailers are looking to omnichannel strategies and technological innovation in order to do so. Digitalization plays a huge role in this change and brings new opportunities for consumer engagement. Personalization and heightened customer service have also become important strategies for retailers in a changing marketplace. As the world continues to globalize, e-commerce and m-commerce are huge factors in fashion companiesâ&#x20AC;&#x2122; bottom lines and growths, as brands can grow worldwide without investing in brick and mortar infrastructure (Euromonitor). Fashion brands are also collaborating with companies in more experiential industries in order to increase their experiential offerings, including hospitality, food and beverage, automotive, etc. In addition to retailing methods, the fashion industry has been subject to profound disruption in the past decade. Wellness consciousness has spurred the continuing prevalence and growth of luxury athleisure (Euromonitor). As a result, many high fashion companies have begun offering activewear lines, and athletic apparel companies are currently experiencing some of the fastest growth in the apparel sector. In the same vein as wellness, sustainability and transparency have become priorities for consumers. In 2017, 42% of fashion companies made their supply chain information available to customers (Scarano). The advent of wearables has also proven to be a huge disruptor and can increase the ways in which experiences and goods can be merged. Wearables also address consumersâ&#x20AC;&#x2122; increasing desire for wellness. Personalization of both 28

experience and good has become an important driver of the luxury fashion industry, as 41% of consumers now demand personalized shopping experiences (Scarano). This appears to be a response to disillusionment caused by fast fashion and the ubiquity of trends in all levels of the fashion industry (Galenytska). In response, many brands are adapting their current business and production models in order to deliver this to consumers, utilizing technological innovations such as data mining and artificial intelligence, as 75% of fashion companies reported intent to increase their investment in AI this year (Scarano). Digitalization has undoubtedly changed methods of purchase for consumers. As technology makes shopping easier, mobile payments are expected to be eight to twenty times their 2015 value in 2018 (Scarano). Overall, the fashion industry has begun to shift to a â&#x20AC;&#x153;startup mindsetâ&#x20AC;? as innovation becomes more important (Scarano). Companies within the fashion sector have looked to new modes of operation, collaboration, and investment. Affordable luxury has experienced the fastest growth in the luxury apparel sector over the past five years, with a growing amount of economic development worldwide creating a new group of consumers (Euromonitor). Currently, the United States remains the largest market overall for luxury goods, but Asia is quickly growing and is expected to overtake the US in a matter of years (Euromonitor). Emerging markets with growing disposable income promise growth to luxury retailers but remain uncertain due to geopolitical factors and currency fluctuations (Euromonitor). By 2025, Millennials and Generation Z will possess 47% of the worldâ&#x20AC;&#x2122;s gross income, forcing brands to take them seriously as generational cohorts and pay attention to their needs and desires in the coming years (Euromonitor). 29

With the fashion industry in the midst of profound disruption, apparel companies must create offerings that live up to rapidly changing expectations and can adapt to various market conditions. Digitalization and customization have become imperatives for apparel companies, particularly those within the luxury market, as consumers want to combine experience and product. Fast fashion has created an immediate desire for trends as they break, and brands are having to anticipate trends and their effects on the market more than ever before. Of note, however, is a growing backlash toward fast fashion, particularly with millennials and generation Z. Fast fashion and the disposable apparel model have created both a surplus of apparel, most of which ends up in landfills, and the degradation of responsible manufacturing and sourcing. In response, consumers are demanding more transparency, particularly where supply chain and environmental impact are concerned, and are moving away from fast fashion. Luxury brands, focused on higher quality and responsible production, stand to gain significantly as this shift continues. As for aesthetics, the general â&#x20AC;&#x153;lookâ&#x20AC;? of the fashion industry has in some ways become more causal. With the advent of streetwear style and athleisure, apparel companies can provide both comfort and style to the consumer without losing the luxury fashion look. This can prove highly advantageous in a travel situation. Forecasts for the next few years show outerwear as important pieces, which could easily fall in line with a travel-based brand extension. A travel-specific line, which meets both fashionable and functional needs, will not only exceed customer expectations, but provide innovation and differentiation that will allow it to surpass other apparel categories. As consumers, particularly millennials, shift their favor from large star brands to smaller, more connoisseur brands that provide a more unique product and experience, a highly curated line of apparel could potentially allow a large brand such as Louis Vuitton to find favor among this new breed of consumers, especially if it provides innovations that other brands cannot.

While experiences are the new form of luxury currency, apparel and footwear still make up the largest percentage of global luxury spending. While goods do not carry the same weight they once did, particularly with younger generations, they are still necessary and relevant.

Apparel brands can adapt to a changing market in a variety of ways. By integrating products with experiences, brands can maintain their market shares and keep their apparel sales high. Additionally, consumers desire an increased level of functional features, even in fashion garments. Uniqueness and innovation are profound motivating factors for consumers purchasing apparel currently, as luxury customers want something special in an arguably saturated apparel market. Heightened consumer desires for wellness and technological integration with respect to travel can be taken advantage of for travel-specific apparel, for the sake of both functionality and comfort, as well as current desired aesthetic. As fast fashion faces a backlash of sorts due to lack of transparency and corporate social responsibility, traditional fashion lines such as Louis Vuitton can benefit from an increased perception of quality, particularly when combined with a focus on increased business ethics and sustainability practices. LVMH retains substantial control over its manufacturing and can affect profound improvements to sustainability and responsible manufacturing due to its position in the industry. Millennials, who have been largely responsible for this change, continue to come of age and increase their spending power, their needs will become more important to brands such as Louis Vuitton that have not necessarily focused on a younger clientele base. A new and innovative travel line may be a highly effective way to engage with these consumers, as they prioritize functionality and innovation. Retailing has not only been affected by e-commerce in recent years, but also by m-commerce. Purchases made on mobile devices are increasing, and consumers with an â&#x20AC;&#x153;on the goâ&#x20AC;? mindset are often choosing to shop on their smartphones rather than deal with a computer. This becomes even more apparent when consumers are traveling. With a travel line that caters to high powered professionals, this phenomenon must be taken into consideration with regard to retail strategy. Creating innovative mobile and digital content will be imperative for fashion brands, not only to reach millennials, but also to engage with travelers. 31

TRAVEL AND APPAREL As conspicuous consumption is overtaken by the desire for meaningful luxury experiences, luxury travel is positioned to benefit massively. Global growth of spending on luxury experiences is expected to achieve double digit growth in all sectors between 2015 and 2020 (Euromonitor). As luxury lifestyle mentalities become more important, travel will no doubt become a cornerstone to the luxury market. Consumers still desire a good value for their money and are willing to pay top dollar for value-added services to enhance their luxury experiences. In addition, consumers are desiring more personalized and authentic experiences, particularly within the luxury sphere. Consequentially, customers are becoming more active participants in the market and will require heightened transparency and brand relationships (Euromonitor). Trends such as the desire for sustainability and heightened wellbeing affect the luxury travel market and its purveyors (Euromonitor). Luxury shopping continues to be a large driving factor of the luxury travel industry, as consumers frequently travel to seek luxury retail opportunities, generally to major cities. In addition, authenticity and connoisseurship, as well as heritage, are becoming increasingly important factors to the luxury traveler (McGee). As social media becomes more pervasive, documenting experiences has become the new method for conspicuous consumption. Travelers, particularly millennials, desire experiences worth of documenting, and methods of transportation are no exception. Technology has both fueled growth and disrupted the travel industry in recent years and is continuing to do so. For example, private jets have become an even more important status symbol, leading to the creation of companies such as Surf Air, which is described as “Uber for private jets” (Butt). In addition, as “bleisure” travel and working remotely become the norm, travelers are now able to travel for extended periods, and travel companies have responded by increasing and promoting connectivity in accommodations (Butt). As accommodations become more home-like, with the advent of companies such as Airbnb, as well as hotels offering more and more apartment-style accommodations, travelers are choosing to vary their destinations instead of purchasing vacation homes (Butt). Globally, economic growth and increasing wealth are expected to benefit the travel industry substantially. The number of High Net Worth Individuals (HNWIs) worldwide in the year 2030 is expected to more than double from its current rate, topping off at 88 million (Euromonitor). By the year 2020, global luxury hotel sales are expected to continue growing to $191 billion annually. Although travel is on the rise globally, a combination of geopolitical and global factors has increased the amount of uncertainty in the luxury travel industry 32

worldwide at present and into the foreseeable future. “Thanks mainly to currency fluctuations, economic and political headwinds and the added fear of terrorist attacks, the future of the wealthy tourist is looking increasingly challenging, with many key luxury shopping destinations, particularly in the developed markets of the US, France and Hong Kong, seeing a drop in international luxury spend” (Euromonitor). Developed travel markets are expected to see less traffic due to safety concerns, while Asia stands to gain significantly through increased travel (Euromonitor). As threats such as terrorism and political instability threaten some of the world’s most popular travel destinations, many travelers are seeking more remote and exotic locations. While the luxury travel industry stands to gain from the increase in global wealth and luxury consumers’ changing preference from goods to experiences, uncertainties cannot be ignored in the years to come. Research shows that travelers continuously purchase apparel in anticipation of a trip, with clothing making up 43% of pretravel purchases. In addition, the luxury consumer makes over four times as many purchases before traveling than the average consumer, which can prove highly advantageous to a brand such as Louis Vuitton. Clearly a demand for luxury travel goods exists, and clothing that meets travel needs can enhance the pre-travel experience in addition to providing comfort during travel. As travel and apparel become more intertwined, particularly within the luxury sphere, the lack of collaboration between the two industries in an effort to meet evolving customer needs has created a major white space in the market. Forced to either dress up or dress down and effectively choose presentation or comfort, travelers would undoubtedly embrace a luxury brand allowing them to choose both. With no high fashion brands currently offering travel lines, Louis Vuitton could create a new generation of high fashion apparel that will resonate with consumers worldwide and provide an entirely new set of services to the luxury traveler. Social media and heightened connectivity have created a new form of conspicuous consumption in the luxury experience. The luxury consumer desires unique, world-class experiences and, thanks to social media, can document them and show them off to their peers instantaneously. As such, brands must adapt their product lines to cater to this new form of consumption. Creating easily recognizable and photographable goods allows brands to insert themselves into consumers’ experiences and posts, essentially generating free advertising. By creating travel-specific apparel that features a highly identifiable luxury brand, Louis Vuitton could effectively marry product and experience. In doing so, the line could generate publicity and buzz as consumers photograph and share images of themselves having luxury travel experiences while wearing their Louis Vuitton travel apparel.

TARGET CONSUMER

The target consumer for this brand extension is made up of both men and women within Western markets. They are college-educated, high-earning, urban professionals, whose travel needs are comprised of both business and leisure, sometimes both in the same trip. While they may be resource rich, they are time poor, with demanding jobs and obligations. They are aged 35-50, nearing the peaks of their careers, and value time and experience as well as style and luxury. While they are luxury explorers, very familiar with the world of luxury and what it has to offer, they do not have the time to shop around and prefer trusted brands they can depend on season after season, such as Louis Vuitton. They desire authenticity in the brands and experiences they choose, as they are required to function authentically both in the business world and socially. They value health and wellbeing, as their schedules and fast-paced lifestyles require

that they be in good physical form. This consumer, referred to as the “Undaunted Striver” by Euromonitor’s 8 global consumer types for 2018, is image conscious and follows trends, enjoying spending money on premium products and experiences (Euromonitor). This target consumer is perpetually curious, always seeking new experiences and knowledge. They are tech-savvy and hyper-connected, as their lifestyles demand it, favoring mobile platforms as they are constantly on the go (Euromonitor). They enjoy convenient methods for purchasing goods, especially luxury goods. They are frequently influenced by digital marketing channels and social media, more so than other consumer groups (Euromonitor). They are slaves to the pursuit of excellence, and favor brands that they perceive to be similar in that regard. They enjoy products that they see as solving problems and creating solutions for them,

as they already have plenty to worry about in their lives and desire simplicity and ease (Euromonitor). As they are financially savvy and work hard, they are not fooled by logos and flash, and require true quality to back up a luxury price tag. When traveling on their busy schedules, they have a clear need for practicality and ease, but with business obligations and luxury destinations, they also feel the need to look stylish and presentable wherever they go. For the target market of this brand extension, functionality and convenience are key. These products must be made to meet a considerable list of needs and desires and must be retailed in a way that facilitates an effortless transaction. The target marketâ&#x20AC;&#x2122;s lack of time will prove advantageous to Louis Vuitton, as they desire trusted brands that they are already familiar with and can depend on, as well as provide them with a little status. In addition, due to their fast-paced

lifestyles, they are most reachable via digital marketing, and marketing content must be created accordingly. This consumer group desires products that make their lives easier and solve problems for them, so functional innovations and technological integration will likely resonate profoundly. They are willing to spend a high amount for quality and functionality, as well as value-added features and improvements.

SECTION TROIS. PRIMARY RESEARCH

PRIMARY RESEARCH OVERVIEW Primary research for this brand extension is designed to better understand the target consumer and his or her needs and behavior on an emotional level. The goal of this primary research is to determine what is missing for the traveler when he or she travels. Learning methods in which his or her experience could be improved will prove imperative. In addition, determining whether or not he or she purchases clothing specifically for traveling, and when, is an important aspect of this research. Learning how to connect with him or her on an emotional level and engage with him or her in a meaningful way that leads to purchasing will prove another critical strategy to this research. The most effective way to gain this information is through short personal interviews. For these personal interviews, I have divided interviewees into two distinct categories of individuals. The first category (Category 1) is comprised of individuals who work in the luxury travel industry. These individuals have access to this extensionâ&#x20AC;&#x2122;s target consumer on a daily basis and their businesses depend on engaging them in a meaningful way. These interactions lead to an invaluable amount of knowledge, both personal and behavioral, that could prove highly useful to my research and to the development of this brand extension. The second category of interviewees is comprised of individuals who fall within the target market. These interviews will allow me to cater to and communicate with my target market more effectively. 39

INDUSTRY INTERVIEWEES

Pauline Sisson works as Owner and Marketing Director for Jet Stream Seasoning, a company that provides luxury food and services to private jet travelers passing through the Aspen, Colorado airport. She has a great deal of face-to-face interaction with luxury travelers at each stage of the travel process, and her job depends on meeting their needs efficiently and effectively. She maintains innate knowledge of travelersâ&#x20AC;&#x2122; behavior within the luxury sphere and keeps a close eye on factors that influence luxury travel. Among her greatests talents is the ability to identify patterns in luxury consumer behavior and anticipate needs.

Paige Tillung is Retail Manager for the Cloister at Sea Island, a five star resort in Georgia. She spends every day working with luxury travelers and helping to meet their retail needs. She is an expert in customer service, and she keeps detailed records of customer needs and requests overtime to better anticipate their needs and improve Sea Island retail as a whole. In addition, Paige works closely with luxury retailers, particularly with Peter Millar, in an effort to enhance company relations and provide an innovative retail experience for customers, as well as to develop products that anticipate the needs of Sea Islandâ&#x20AC;&#x2122;s clientele.

CONSUMER INTERVIEWEES Ilyse Schuman serves as Co-Chair of the Workplace Policy Institute at Littler Mendelson P.C. in Washington, D.C. A veteran traveler, Ilyse travels frequently for work, as well as for leisure when her time permits. Most of her travel is domestic, and she most often travels out of Washington D.C.’s Ronald Reagan International Airport.

Julia Tandy lives in Seattle, Washington and works as an educator. Julia has access to substantial resources and frequently travels to exotic and luxurious destinations across the world. She most frequently flies out of the Seattle/Tacoma International Airport and Los Angeles International Airport. Mahendra Srivastava serves as the President of Sortimo North America, a German company, and travels a great deal for his work. Mahendra is a native of India and travels there from his home in Atlanta frequently. His most-frequented airports are Atlanta Hartsfield-Jackson International Airport, London Heathrow International Airport, and Munich International Airport. Stephanie Maxwell serves as an Area Manager for thriving jewelry brand Kendra Scott. She is based out of Kansas City, Missouri. A longtime lover and customer of Louis Vuitton, Stephanie also enjoys travel, mostly for leisure, but some for business as well – most often to Kendra Scott’s headquarters in Austin, Texas. She most frequently travels out of the Kansas City and Chicago O’Hare Airports.

INDUSTRY INTERVIEWS Category 1 interviewees are all connected professionally to the luxury travel industry. Their direct interaction with luxury travelers has provided a wealth of consumer insight, which will prove invaluable for this brand extension. Through repeated transactions, both interviewees have determined a number of patterns and behaviors among luxury consumers. Both interviewees recognized the importance of anticipating and addressing the luxury consumerâ&#x20AC;&#x2122;s needs. Being able to predict their desires and prepare for them makes the difference, as luxury consumers expect an incredibly high level of service and do not want to bother themselves with trivialities. Being on time, prompt, and minimizing hassle are key to creating repeat business with luxury travelers. As far as retail and apparel are concerned, categorizing consumers into want vs. need helps create the appropriate form of interaction and lead to a more effective sale (Tillung). Customers with a need have more pressing desires that they want met with familiarity and comfort. They must be attended to more efficiently than those who are shopping out of want, who desire uniqueness and are more interested in the experience itself. As far as unmet needs, both respondents provided valuable insight into the luxury traveler. Being able to conveniently address retail needs in an efficient way could be improved, according to Paige Tillung, who maintained that stocking a wide enough array of products to meet all different types of travelersâ&#x20AC;&#x2122; wishes in one place is something that could be made more effective. Also, most travel-specific retailers focus their business model toward one particular generation, which should be broadened (Tillung). Additionally, providing value for price is imperative, as luxury travelers are often faced with exorbitant fees and prices, which businesses assume they will pay without question due to their wealth (Sisson). Being able to minimize hassle and provide an honest and fair customer relationship is an effective way to win luxury travelers over. When traveling, luxury consumers want their clothing to be practical and functional. Being able to offer them the sizes and colors they need is important. As for colors, dark and neutral colors that mix and match well and do not show dirt are effective with the traveler (Tillung). Furthermore, clothing that looks good and feels good is among travelersâ&#x20AC;&#x2122; highest priorities. Being able to minimize the amount of laundering, ironing, and maintenance while traveling could also prove an effective motivating factor for the luxury traveler. In addition, providing value and quality for price is important (Sission), as value-added features and services have become highly effective in capturing the luxury consumer.

Providing effective and efficient services to luxury travelers that reduce the amount of hassle they face while traveling proved a recurring theme throughout the Category 1 interviews. Often, these travelers are without their personal assistants and become highly frustrated when having to deal with menial tasks (Sisson). Therefore, their experience can be greatly improved by taking care of minutiae for them and anticipating frustrations. Being able to offer flexible and interchangeable apparel that fits into their busy and quickly transitioning lifestyles is also something the industry has not yet mastered (Tillung). Also of note is the idea that maintaining anti-microbial apparel textiles and sanitizing other goods (blankets, pillows, etc.) is important to the traveler, as germs travel rapidly in travel environments. Both interviewees provided valuable insight into the factors motivating luxury consumers to make purchases. Both noted spontaneity and inspiration as motivators for recreational travelers, while stress provides motivation for many more serious travelers. The luxury traveler is known to return to dependable brands that exceed their expectations, as they do not want to deal with planning hassles, especially when traveling for business (Sisson). In traveling, consumers are looking for new experiences, so providing a product or experience that they cannot find anywhere else is imperative (Tillung). Destination and climate also provide substantial motivation for travelers, particularly those preparing for a trip or those who neglected to pack certain climatespecific items. In addition, the actions and behaviors of their peers, especially with the advent of social media, becomes a major motivating factor for luxury travelers (Sisson). They want to feel like theyâ&#x20AC;&#x2122;re keeping up with their peers and having the same caliber of experience.

CONSUMER INTERVIEWS All interviewees agreed that finding apparel that meets all of their needs while traveling is difficult for them. Being able to prepare for any situation while maintaining minimal luggage proves problematic to many travelers. Changing clothes while traveling is possible, but difficult and unpleasant (Schuman). Travelers have other worries and do not want to have to stress about their apparel. Longevity and durability of clothing while traveling and its ability to maintain its condition throughout a journey were cited as a need that is frequently unmet (Tandy). In terms of potential improvements to the travel apparel experience, functionality was a major theme with respondents to these interviews. Convertibility, which minimizes the amount of apparel needed, was cited as a desire (Tandy). Additional features such as hidden pockets and textile improvements such as wrinkle resistance, stretch and breathability, weather proofing, etc. are also among potential improvements cited by the target market. One respondent mentioned a luxurious, soft travel wrap that can be worn as a blanket, scarf, or wrap, that is soft but light and a low-maintenance fabric (Schuman) as a method to combat airplanes frequently being cold. The respondents reported that they make the majority of their travel apparel purchases in anticipation of a trip. Busy schedules, remote locations, and unfamiliarity were cited as reasons for this. Purchases made while on a trip were cited as either necessities that were forgotten at home or impulse purchases made while exploring new locations and new retail environments. Needs seem to be addressed before leaving for a trip or vacation, while wants are addressed while traveling in an exploratory manner. 44

The three interviewees for Category 2 were selected as those who fall within the target market for a Louis Vuitton travel apparel brand extension. They are frequent travelers, some for business, some for leisure, and some for both. They know the ins and outs of the travel industry and experience from a luxury standpoint. As members of the leisure class or high-powered business travelers, they can speak to the insights and motivations for both business and leisure travelers. The Category 2 interviewees provided excellent insights into the apparel factors that are considered a luxury while traveling. Having clothing and shoes that are comfortable, dependable, and stylish help to enhance the situation and mitigate the stress that comes along with travel. Shoes and pants were cited specifically. Having apparel inspired by activewear and loungewear that doesnâ&#x20AC;&#x2122;t look like activewear was also cited as a luxury among these consumers (Tandy). Reconciling comfort and style was easily the most cited problem among interviewees. Business travelers also cited an inability to effectively transition from formal to casual situations without a major change of clothing as a source of stress and discomfort while traveling. Adaptability is an issue widely reported, particularly where changes in climate are concerned (Schuman). While layering can address this issue, having to deal with multiple layers while traveling can prove a hassle (Tandy). Often, travelers are living out of a carry on, particularly business travelers, so carrying apparel for multiple climate zones and situations is often made exceptionally difficult due to limitations in baggage size.

KEY FINDINGS: SECONDARY RESEARCH

1 2 3 4 The advent of â&#x20AC;&#x153;bleisureâ&#x20AC;? travel has reshaped the way people travel and the way that businesses interact with their consumers. Mixing business and leisure travel creates an entirely new set of expectations and needs that brands must now meet. Travelers want to be able to work and play on the same trip, and both sets of needs must now be met.

As far as brand selection goes, consumers are aspiring to do business with unique and memorable brands rather than industry dominating labels. They want an experience involved with every purchase or brand interaction, and they want to feel as though the brands they patronize value both their business and their input.

For the luxury consumer today, experience has become the new form of conspicuous consumption. This shift is largely driven by the millennial generation, and arguably the advent of social media, and bodes extremely well for the travel industry, as well as brands associated with travel.

Not to be overlooked is the growing prevalence of m-commerce, particularly within the target market for this brand extension. As consumers are on the go more than ever and the mobile phone becomes more engrained in their lifestyles, mobile commerce has become an unavoidable form of purchase.

KEY FINDINGS: PRIMARY RESEARCH

1 2 3 4 5 6 The target consumer for this brand extension desires products and brands that simplify their lives. They are busy with fast paced lifestyles and demanding jobs, so they have grown used to people and products solving problems for them and making their lives easier. Dealing with minutiae and avoidable hassles is not something they want to spend any time out of their busy days dealing with.

The biggest issue for this consumer is the disparity between comfort and style with regard to travel apparel. They are used to people and products working for them, and they do not feel their apparel is currently doing so where travel is concerned.

As they are resource rich and time poor, they are known to return to trusted luxury brands that meet their needs time and again, rather than seeking out new ones, and their loyalty to brand is high.

Despite high resources and luxury accommodations, these travelers are often packing light, particularly when traveling for business, sometimes living out of only a carry-on bag, and they do not want to have to bring more clothing than is absolutely necessary with them when they travel. They want flexibility and versatility in a compact set of travel apparel.

Surprisingly, this particular group of consumers is greatly influenced by their peers. Although they are pioneers of industry and creativity, they want to be seen enjoying the same goods and services as those in their social set, to keep up in a sense, and their buying habits often mirror those of their peers. Generally, consumers within this demographic favor the same brands as their peers, particularly within a certain geographic area.

These consumers want to look and feel their best when traveling, and the majority of the purchases they make in preparation a trip are apparel. This shows a clear willingness to spend money so that their apparel needs are met while traveling.

SECTION QUATRE. STRATEGY 48

STRATEGIC OVERVIEW The key strategy for this brand extension is to stay true to Louis Vuitton’s existing business and promotion models while introducing a new element of innovation and functionality. WHAT’S SO SPECIAL? Using insights gleaned from exhaustive primary and secondary research, the development and promotion of this brand extension will be executed keeping two factors in mind: the target consumer, for obvious reasons, and Louis Vuitton as a brand itself. The goal is to build on existing brand capital without compromising the tradition and image of the brand. All products will be developed with the luxury traveler’s needs in mind and considering feedback gathered from the target audience. These products will be developed to solve common travel problems for the users and make the experience of travel more comfortable and more pleasant. Promotion for this brand extension will remain true to the Louis Vuitton brand, and will be eye-catching and luxurious, which is expected of the brand, but also creative and capable of creating meaningful brand interaction.

PRODUCT OVERVIEW + COMFORT

+ FUNCTION

The products for this brand extension will need to possess four key characteristics. The first is comfort. This apparel must be comfortable, easy to wear, and feel as luxurious as everyday apparel. Utilizing soft knits and stretch fabrics, for example, appropriate and fashionable garments can be made comfortable and wearable without sacrificing style. The second characteristic is functionality. This clothing needs to work for the luxury traveler. Durability is key, as these garments will not require much in the way of laundering. They will also be made wrinkle resistant, to eliminate the need for ironing while traveling or looking disheveled coming off an airplane. Stain resistance and liquid resistance will protect from the everyday perils of travel and the havoc they can wreak on clothing. Antimicrobial finishing processes can help protect against the inevitable germ exposure travelers face, as well as protect against odors when long travel days are unavoidable. These garments must also be light and fit perfectly into a carry-on bag without taking up much space or weighing the bag down. Additional features, such as wireless charging patches and temperature control will increase the functionality of the garments and the sense of ease for traveler.

+ STYLE

VERSATILITY

The third characteristic imperative to this collection is style. These garments must be stylish, as presentability is key with this target market. Louis Vuitton is known for timeless style, which cannot be compromised in this brand extension. The fourth and final characteristic is versatility. These garments must be made to withstand any situation the traveler might face with style, from the jet to the boardroom to the dining room of a five-star restaurant. In addition, garments that can be styled multiple ways will reduce the amount of clothes needed on a trip. Being able to style one garment multiple ways or reverse it to change color and print will greatly enhance the options the traveler has for apparel. This collection of apparel will become known as the Voyage collection, both as an indication of its intended purpose and as a nod to the brandâ&#x20AC;&#x2122;s heritage and tagline. This brand extension will follow the traditional seasonal model that Louis Vuitton currently follows, with a Spring/Summer collection and a Fall/Winter collection each year. Core items will remain the same, and most seasonal changes will be with regard to color, print, and style nuances. 51

MEN’S APPAREL ASSORTMENT The men’s apparel within the Voyage collection will be designed with both the business traveler and the leisure traveler in mind. This apparel will be able to move from formal to casual situation effortlessly through layering and interchangeability. A set of interchangeable shirts and pants that are all in coordinated colors and prints that match will allow options and graduated levels of formality. These pieces will be at the core of the line and will provide the foundation for a buildable luxury travel wardrobe. In addition to shirts and pants, a travel sweater will be introduced for additional layering capabilities. To round out the men’s apparel assortment, a highly functional travel jacket will be introduced. All pieces in the men’s travel apparel line will be made to coordinate, match, and layer to provide maximum interchangeability.

MEN’S PANTS Voyage men’s pants offerings will include a dress slack, a more comfortable everyday pant, and a short suitable for more casual travel environments. The dress slacks will be made of Loro Piana’s super 150s merino wool, which is light and thin, which provides a lighweight hand suitable for year round wear. The pants and shorts will be made of a 97% elastane and 3% cotton blend for optimal stretch, breathability,and durability. In addition, all three pants will be finished so that they do not need to be ironed and will repel any liquid they may come into contact with, which will be especially helpful during travel. The purchasers of these pants will never again have to worry about finding an ironing board in a hotel room or spilling their drink during airplane turbulence again. These pants will be comfortable and stylish, with color offerings appropriate for any travel situation. Men’s Voyage pants will be offered in Louis Vuitton’s standard size run of 38-48.

VOYAGE SLACK

OBSIDIAN

VOYAGE PANT

SAHARA

BALTIC BLUE

LONDON FOG

VOYAGE SHORT

BALTIC BLUE

POLYNESIAN PINK

MEN’S SHIRTS A collared button-up shirt in two different colors will be offered, the Voyage shirt, with an anti-wrinkle, liquid resistant, and anti-microbial finishing to help shield against odor, stains, and wrinkling. Inside the cuffs will be a bright patterned fabric that will display additional personality when wearing the shirt casually. A more casual, short sleeved collared shirt (or “Hawaiian” shirt as the brand calls them) will be offered for warmer environments. In addition, both long and short sleeved polo shirts will be offered, for a more casual look that does not sacrifice polish and can be dressed up with a blazer or sport coat. These shirts will look just as good under a well-tailored blazer as they will with the sleeves rolled up lounging around a resort. All Voyage shirts will be made of 100% cotton with anti-wrinkle, liquid resistant, and anti-microbial finishing to protect against the hazards of travel. Voyage shirts will be offerred in a standard Louis Vuitton size run of S-XXL.

VOYAGE SHIRT

GLACIER

VOYAGE HAWAIIAN SHIRT

CLOUD

BALTIC BLUE

VOYAGE POLO

OBSIDIAN DAMIER

GLACIER

SIBERIA

VOYAGE LONG SLEEVE POLO

ALPINE GREEN

MEN’S OUTERWEAR VOYAGE SWEATER

GALAPAGOS GREY

VOYAGE JACKET

BALTIC BLUE

The Voyage Sweater, a 100% cashmere sweater featuring Dropel’s liquid and stain resistant cashmere will provide warmth and style to the traveler when dealing with colder climates and chilly airplanes. This sweater will be made to layer effortlessly, both over a dress shirt or polo, and under a jacket or blazer. The sweater will be reversible, with a solid color on one side for more formal situations, and a pattern on the other, for more casual locations that allow for a bit more personality. The men’s line will close with the Voyage Jacket, an exquisitely crafted piece that can be worn conservatively and in a neutral color but reversed for a bolder print. This jacket will provide both the flexibility and function the male traveler needs, as well as some style. This jacket will be completely liquid resistant and feature a removable hood for optimal weather protection, as well as being reversible with a print on one side. It will be made of a lightweight microfiber that will provide warmth but also breathe a bit to provide for excellent layering capabilities. In addition, the jacket will be outfitted with a charging patch in one of its pockets, so that searching for an outlet to charge a smartphone while traveling becomes a worry of the past. In addition, the jacket will feature zipper pockets on the inside, to protect valuables. The sleeves of this jacket will be able to inconspicuously detach, so the garment can be worn as a vest in climates that are slightly warmer. 55

WOMEN’S APPAREL ASSORTMENT

For women’s apparel, the Voyage line will be centered around interchangeable separates. Two pants options, one focusing on supreme comfort and the other offering a professional look without compromising comfort, will be offered in neutral colors. The line will also feature four styles of tops, two knit tops and two blouses, each adapting to various travel situations effortlessly. For layering, a luxuriously soft cashmere sweater will provide warmth and comfort. In addition, a travel dress that converts into multiple looks will provide effortless style. To round out the women’s offerings, a highly functional and convertible all-weather jacket will provide weather protection and warmth.

WOMEN’S PANTS The ladies’ Voyage pant offerings will offer comfort and flexibility to the luxury travler in any situation she encounters. The Voyage Slacks, luxurious non-wrinkle pant in an a 97% cotton, 3% elastane fabric will provide a polished and professional look without sacrificing comfort. The pants will have a slight stretch for additional comfort while traveling but will still remain structured and appear elegant and put together. These pants will be lightweight and tailored, and will be made in a pull-on style, without an uncomfortable zipper that digs into skin while sitting for long periods of time. The Voyage line will include the Voyage Skinny Pant, a slimmer and slightly more casual knit pant that still maintains a polished look. Finishing processes for both pants will allow for wrinkle and liquid resistance, as well as an antimicrobial finish. Voyage pants will be offered in sizes XS-L.

VOYAGE SLACK

ONYX

VOYAGE SKINNY PANT

HIMALAYA

ONYX

RED MONOGRAM

WOMEN’S DRESS

VOYAGE DRESS

EBONY

In addition to pants and tops, the Voyage Dress will be offered to provide the traveler with a soft, comfortable knit dress that is convertible and can be worn multiple ways depending on the necessary level of formality. The dress will be made of 100% cotton and will have the same finishing process as the separates to reduce stains and wrinkles while traveling and decrease the amount of laundering necessary. It will reversible, with a conservative solid on one side and a vibrant print on the other. The Voyage Dress will be offered in sizes XS-L. 59

WOMENâ&#x20AC;&#x2122;S SHIRTS The tops for this line will consist of two blouses, for a more formal option, as well as two knit tops for presentable comfort. The tops will be designed with layering in mind but will also look put together when worn on their own. The blouse will be in solid colors with a monogram print on the inside of the cuffs to show personality when appropriate. The sleeveless blouse will be reversible, with solid black on one side and black with patterned panels on the other. In addition, the long sleeve knit top will have lace side panels and be reversible as well. All tops will be made of 100% cotton and feature hidden inside pockets. Each piece will be treated so that it is liquid resistant, antimicrobial, and wrinkle resistant. The tops will be offered in sizes XS-L.

VOYAGE BLOUSE

SNOW

VOYAGE SLEEVELESS BLOUSE

EBONY

VOYAGE SHORT SLEEVE TOP

ONYX

RUBY

PACIFIC

VOYAGE LONG SLEEVE TOP

ONYX

RUBY

WOMEN’S OUTERWEAR VOYAGE SWEATER

ONYX

VOYAGE JACKET

The Voyage women’s offerings will include a luxurious 100% cashmere sweater designed to layer effortlessly with the other Voyage pieces. The cashmere will be liquid resistant and highly lightweight. The Voyage sweater will be customizable using the My LV World Tour promotion, which allows hallmark pieces to be customized using patches inspired by classic and modern luggage stickers. In addition, the women’s travel line will feature the Voyage Jacket, a piece that is soft and luxurious, but also reversible and convertible in that its sleeves can be removed, and the garment can be worn with a solid or print showing, or as a vest, similar to the men’s Voyage Jacket. It will also be lightweight and water repellent microfiber with a removable hood, to protect the wearer against the elements without sacrificing breathability. This jacket will also feature a charging patch so that she never finds herself with a dead cell phone, as well as interior zipped pockets for the protection of documents and valuables. Both outerwear pieces will be offered in sizes XS-L.

MONOGRAM NOIR

ACCESSORY ASSORTMENT The travel apparel line will feature three main accessories. First, a soft knit travel wrap will serve as an identifiable hallmark piece for the line, providing warmth and versatility. The accessories portion of the Louis Vuitton travel line will also feature a travel tote, a modern and innovative iteration of the brandâ&#x20AC;&#x2122;s iconic Neverfull tote. The third and final accessory offered in the travel line will be a travel briefcase, providing style and functionality with the utmost professionalism. The goal of the Voyage accessories will be to enhance existing hallmark pieces and create a new generation of mainstay products.

VOYAGE WRAP

MONOGRAM CLASSIC

MONOGRAM MULTICOLORE

Louis Vuitton currently offers lightweight shawls, but the Voyage Wrap will be thicker and with innovations specifically for travel purposes, although it can also function as an everyday piece. It will be sturdy and warm but lightweight, and reversible with a print on one side and a solid color on the other, so that the wearer can determine how flashy she (or he) wants to be at any given time. This wrap can be worn as a wrap, used as a blanket, or styled as a scarf, depending on the travelerâ&#x20AC;&#x2122;s needs. It will be stain and liquid resistant, as well as wrinkle resistant and antimicrobial. The wrap will also come with a small bag that fits into a purse or carry-on effortlessly for easy storage.

VOYAGE TOTE

MONOGRAM CLASSIC

DAMIER EBENE

DAMIER AZURE

Unlike Louis Vuitton’s classic shopper tote, the Neverfull, the Voyage Tote bag will be multifunctional and convertible. Its greatest functional innovation will be that it can be carried as either a shoulder bag, a tote, or a backpack. It will have short handles on the top that allow it to be carried as a tote bag, in addition to a removable longer strap, that can be worn over the shoulder, or threaded through two metal loops to form the straps of a backpack. The travel tote will be equipped with multiple zippered interior pockets for the storage of important or valuable items, as well as a latch closure on top to prevent anyone from reaching inside inconspicuously. Inside the tote will be an attractive clutch bag that can be easily removed for evening events. The travel tote will be made of Louis Vuitton’s signature canvas and will feature the Louis Vuitton monogram print, as well as the brand’s classic damier print in both brown and azure. Both the bag and interior clutch will be part of the Louis Vuitton My LV World Tour collection, which allows signature pieces to be customized using patches inspired by classic and modern travel, as well as famous destinations.

VOYAGE BRIEFCASE Louis Vuitton currently offers a travel briefcase for men, the Horizon Briefcase, but its only truly unique feature is a removable strap with elastic. The briefcase only comes in Louis Vuitton’s signature monogram print, which some business travelers object to due to its conspicuousness. In addition, the Horizon Briefcase is categorized as a men’s accessory, while the briefcase created for this brand extension will be suitable for both male and female business travelers. The Voyage Briefcase will provide the functionality of a briefcase, as well as additional features designed with the traveler in mind. It will be made of Louis Vuitton’s signature leather canvas that was recently made lighter specifically for luggage purposes. In addition, an interior charging patch will ensure that no device necessary for business is left uncharged. Interior zippered pockets will provide protection for a passport and other travel documents, in addition to a large interior zippered pocket that will fit a standard sized laptop or tablet. The new travel briefcase will be featured in Louis Vuitton’s classic monogram print, as well as the company’s less conspicuous black epi leather, and the monogram option will come with the option to customize using My LV World Tour.

VOYAGE BRIEFCASE

MONOGRAM CLASSIC

EPI NOIR

PRICING STRATEGY Pricing for this travel brand extension will remain in line with Louis Vuitton’s current pricing model. Products will remain in the premium to extra luxury pricing category, with prices reflecting the cost of the materials and features provided. While garments and bags will likely be priced slightly higher than the brand’s ready to wear and leather goods apparel, the difference can be justified with increased functionality and its specific purpose. Louis Vuitton’s men’s shirts average around $1000, which can be increased for this brand extension due to additional features. Pants cost around $800 on average, which will lead to this

brand extension pricing pants up to $1000. Men’s jackets are currently all selling for over $2000, which can be increased as functionality rises. For women’s apparel, most tops are between $1000 and $2000, so pricing will predictably be toward the upper end of that range. Pants average at around $1200, so one can expect the travel line to be priced above this average. Simple dresses sit at around $2000, which can be raised slightly for this brand extension. Jackets average at around $3800, so the price for women’s jackets can be increased given additional features. Leather goods average at $3000, which will allow an increased markup for the travel line.

MEN’S APPAREL ITEM Voyage Slacks Voyage Pants Voyage Shorts Voyage Shirt Voyage Hawaiian Shirt Voyage Polo Voyage Long Sleeve Polo Voyage Sweater Voyage Jacket 66

UNIT COST $60 $55 $40 $74 $65 $30 $38 $85 $110

RETAIL PRICE $950 $900 $800 $850 $750 $650 $700 $1025 $2800

WOMENâ&#x20AC;&#x2122;S APPAREL ITEM Voyage Slacks Voyage Skinny Pant Voyage Blouse Voyage Sleeveless Blouse Voyage Short Sleeve Top Voyage Long Sleeve Top Voyage Sweater Voyage Sweater Voyage Jacket

UNIT COST $48 $40 $68 $55 $28 $39 $84 $85 $105

RETAIL PRICE $1100 $1025 $1500 $1200 $900 $975 $2200 $1025 $2700

UNIT COST $105 $450 $320

RETAIL PRICE $1300 $2500 $2200

ACCESSORIES ITEM Voyage Wrap Voyage Tote Voyage Briefcase

SECTION CINQ. PROMOTION STRATEGY

PROMOTION OVERVIEW The Louis Vuitton travel apparel brand extension will be launched as the Louis Vuitton Voyage collection. Although the brand features the word “voyage” in a number of its product names, it does not present or feature a specific line using the word “voyage.” Most current travel offerings are given the name “horizon.” The use of the word “voyage” instead of “horizon” for this brand extension not only ties back to the brand’s heritage, but also creates an easily identifiable product line and evokes purpose. In addition, using this word can connect with other products the brand offers that feature the word, such as watches. Using the name “Voyage” is a way to promote the brand’s future while honoring its history and roots, as well as its historic tagline “articles de voyage.” Promotion for the Voyage collection will stay true to Louis Vuitton’s existing promotion by expressing a sense of conspicuous luxury in addition to creative innovation. The primary intent of all promotion will be to create a sense of aspiration and inspiration. These activities will be global in nature and help the brand not only innovate but pay homage to its roots. 69

ADVERTISING Promotion for this brand extension will center around digital advertising. The target market for this brand extension is often on the go and consumes most of their news and media via mobile devices. As such, advertisements will be optimized for digital and mobile devices specifically. Excellently photographed product shoots with high profile models, not necessarily movie stars but titans of industry and influential personalities at the forefront of their fields, will display the Voyage collection in a sophisticated and conspicuous manner in the same vein as the famous “Spirit of Travel” campaign. In order to create cohesive advertising and tie the Voyage campaign to existing campaigns, Louis Vuitton will launch a new global campaign entitled “Excellence Travels in Louis Vuitton.” This campaign will be designed not only to create aspiration, but allow the target market of successful and influential individuals to identify with the brand. Each advertisement will feature an recognizable, influential persona from around the world whose work or talent will tie into the tagline of the ad. For example, an advertisement featuring Francis-Ford Coppola and his daughter Sofia will read “Vision Travels in Louis Vuitton. Luxurious shoots in exotic destinations featuring luxury transportation and exotic destinations will show the products in

action and in transit. Additionally, product-centric videos will be produced, not only showcasing the products and explaining their features, but creating a story for the line and connecting it to Louis Vuitton’s existing heritage. Advertising for the Voyage campaign will be featured in digital media outlets frequented by the target market. Publications such as the New York times and Wall Street Journal offer digital versions and platforms, often featuring luxury brand advertising that caters to their highly educated readership. In addition, featuring advertisements in upscale digital fashion publications such as the Business of Fashion and Womenswear Daily will reach more fashion-minded consumers. Luxury travel publications with a strong digital presence such as Conde Nast Traveler, Elite Traveler, Town & Country, and Travel + Leisure will also feature the advertisements. Louis Vuitton will also post a great deal of video content to its YouTube page, which will create shareable videos and content highlighting the Voyage line. These videos and photos will also be featured on the brand’s homepage in a very conspicuous manner and circulated via email to the brand’s existing customers in an effort to increase awareness of the Voyage line.

VISION TRAVELS IN LOUIS VUITTON Francis Ford Coppola, Sofia Coppola

ARTISTRY TRAVELS IN LOUIS VUITTON Angelina Jolie, Oscar Winner

TRAILBLAZERS TRAVEL IN LOUIS VUITTON Sally Ride, First American woman in space. Buzz Aldrin, Apollo 11. Jim Lovell, Apollo 13.

SOCIAL MEDIA As for social media, the Voyage promotion will be targeted toward Generation X and the first half of the Millennial generation. As such, the two most important platforms will be Facebook and Instagram. These consumers don’t have much of a presence on Snapchat and prefer straightforward digital interaction that gets to the point quickly and integrates seamlessly into their daily digital routines. Content for Facebook will consist more heavily of videos and interactive content that links to the Louis Vuitton website. Innovative video content featuring the Voyage line and the features and options available will be at the core of the line’s Facebook content. In addition, “Excellence Travels in Louis Vuitton” content will run on both platforms. All Facebook content will be geared toward driving traffic to the Louis Vuitton website, while Instagram content will drive traffic to mobile purchasing channels. Each advertisement will be linked to Louis Vuitton’s website and app for a seamless purchasing experience. The use of influential global individuals from around the world who appeal to the target market will also be employed, featuring well photographed product placement that shows the Voyage products in action. 74

VOYAGE APP Perhaps the most exciting and important facet of the promotion for this brand extension will be the creation of a smartphone app. Louis Vuitton will create the LV Voyage app, which will put both retail and concierge travel services at its customers’ fingertips. This sleek and expertly designed app will allow customers to purchase any of the Voyage items with easy one-click purchasing, similar to Amazon’s. Shoppers can choose whether they want their purchases shipped to their homes or to select hotels around the world that the brand maintains partnerships with. In addition, the app will store customers’ purchase information and keep records of sizes and other preferences on file so that returning customers never have to worry about ordering the right size. The LV Voyage app will also come equipped with services that exceed customers’ expectations and further eliminate the hassles of traveling. Customers traveling to certain major cities can request a stylist to assist them during their trip or select a travel wardrobe for them that can be delivered to their hotel before their arrival. As many luxury travelers move between multiple homes worldwide, the LV Voyage app can assist in building a permanent wardrobe in each home. The LV Voyage app will not only lead to increased m-commerce for the brand, which is critically important to this target market, but will also help foster long-term customer relationships for Louis Vuitton. In addition to providing concierge services, the Louis Vuitton Voyage app will merge with the existing City Guide app, which provides travelers with comprehensive guides to travel and major world cities. The new Voyage app will be a digital destination for the luxury traveler’s every need: from concierge styling to restaurant recommendations.

VOYAGE

CALL CONCIERGE

Louis Vuitton Voyage App Mockup

Louis Vuitton City Guide App 77

BRAND PARTNERSHIPS Brand partnerships will play a large role in the promotion of this brand extension. These partnerships will mostly consist of luxury brands within the travel industry that cater to a similar target market as the Voyage collection. The use of brand partnerships will allow Louis Vuitton to collaborate with and capitalize upon the consumer bases of other brands, as well as take advantage of their communications infrastructures. These partnerships will be selective in nature and must maintain Louis Vuitton’s sense of exclusivity. These partnerships can be promoted through a variety of luxury channels that cater to high end travelers and maintain corporate sponsors, including events such as the Yachting Festival de Cannes, film festivals, and arts events such as Art Basel, or Opening Night at La Scala. Publications that maintain society pages such as Town & Country can also host promotions for these partnerships, as peer influence is highly effective with this target market.

for partnership with the Louis Vuitton Voyage collection. Almost all of the world’s largest hotel groups maintain luxury properties, and these can be a great place to showcase the Voyage collection. For example, Marriott Group’s Ritz Carlton properties and JW Marriotts, the Four Seasons, Hilton’s Waldorf Astoria, Hyatt’s Park Hyatt and Grand Hyatt, IHG’s Intercontinental, and Starwood’s St. Regis provide well known and well-traveled luxury properties in strategic locations. In addition, independent five-star properties such as The Breakers can provide a more boutique feel to Voyage promotion. These locations can provide the setting for exclusive pop-up events for the Voyage collection and can allow for substantial cross-promotion between hotel bookings and apparel. In addition, these luxury properties in select cities can serve as partners with regard to the concierge services in that clients can request a stylist through either Louis Vuitton or their hotel.

Transportation partnerships will be made with private jet companies such as Netjet and highly trafficked private airports, while commercial jet partnerships will be made with high-end airlines focused on exceptional customer service, including Emirates and Virgin Atlantic. Luxury cruise lines such as Cunard and Viking, as well as yacht companies, will increase the scope of these collaborations. Cross-promotion can be achieved by promoting the purchase of both travel tickets or charters and Louis Vuitton Voyage products. In addition, the line can be marketed directly to luxury travelers while traveling via these channels through a presence in select luxury airport shopping centers.

Another viable area for brand partnership is with credit card companies that offer travel promotions to their exclusive customers, such as American Express Platinum and Chase Sapphire. These travel promotions and incentives could be increased with the purchase of a Louis Vuitton Voyage item, for example earning more rewards points with the purchase of a Voyage piece. In addition, rewards points earned by traveling could be used to earn concierge styling services through Louis Vuitton. Creating a Louis Vuitton travel rewards program could provide luxury exclusivity and viable promotion for all parties involved. As far as partnerships, there is no shortage of luxury companies in the travel industry for Louis Vuitton to begin building a relationship with.

The luxury hospitality industry provides enormous opportunity 78

The comforts of home wherever you roam.

and VOYAGE

Louis Vuitton x Ritz-Carlton Ad Mockup and VOYAGE

THE PERFECT TRAVEL COMPANIONS.

Louis Vuitton x Cunard Ad Mockup 79

SPORTING EVENTS In recent years, Louis Vuitton has forged partnerships with exclusive sporting events around the world. Using the tagline, “Victory Travels in Louis Vuitton,” the brand has created a series of bespoke travel trunks for some of sports’ most exclusive trophies. Most notably, the brand has created promotional cases for the Auld Mug, the America’s Cup sailing tournament trophy. In addition, the brand has created trunks for both trophies of the French Open, as well as FIFA’s World Cup. These sporting events draw luxury travelers from around the globe year after year, as well as maintaining a sense of luxury and exclusivity, and Louis Vuitton stands to benefit substantially from increasing its involvement in the global luxury sporting industry. Other events that could be considered for involvement include the Master’s Tournament to appeal to golf’s elite, the Monaco Grand Prix, the world’s most prestigious formula one race, as well as exclusive equestrian events including the World Polo Tournament, the World Equestrian Games, and the Dubai World Cup horse race. In addition to creating bespoke trunks for the trophies given to the champions of these events, Louis Vuitton could use its growing Voyage line to outfit high profile figures in each respective sport. The brand could even expand to creating specific items within the Voyage line for a particular sport or

event, which the brand has done in the past with icon bags, most recently with Formula One. By not only integrating its brand image with coveted luxury prizes but also the major players themselves, Louis Vuitton can create increased luxury lifestyle integration and aspirational value.

Speedy 30 in Race Print, inspired by Formula One

This promotion strategy creates seamless integration with the Voyage campaign, through both tagline and global presence. These events will also allow Louis Vuitton to interact with consumers away from its traditional retail environments. Promoting these event partnerships via social media, the Louis Vuitton website, and luxury lifestyle publications, such as Town & Country, Travel + Leisure, and Vanity Fair, as well as sporting publications such as Golf Digest or Horse & Hound, will allow for a more specific consumer interaction. In addition, these publications will allow for targeted awareness and increased brand interaction.

City Steamer in Rio, inspired by FIFA

District MM in Damier Cobalt, inspired by the Americaâ&#x20AC;&#x2122;s Cup 81

VICTORY TRAVELS IN LOUIS VUITTON Zara Phillips-Tindall MBE, Olympic Silver Medalist

VICTORY TRAVELS IN LOUIS VUITTON Fernando Alonso, Formula One World Driversâ&#x20AC;&#x2122; Champion

DISTRIBUTION The Louis Vuitton Voyage line will maintain an exclusive distribution plan that is similar to the brand’s existing distribution. Voyage products will be made available on the brand’s website, which will allow customers to explore the product in an in-depth way and view the advertising videos. Products and product knowledge will also be made available with the touch of a button in the LV Voyage app, where customers can have travel items shipped anywhere in the world without a second thought. Louis Vuitton’s Voyage line will utilize a tiered rollout strategy, with Voyage products landing in 100 Louis Vuitton stores during the first year. During the first month following the Voyage launch, a select three flagship stores in Paris, London, and New York City will carry Voyage products. After the first month, the second phase will begin with twenty five stores in major world cities such as Milan, San Francisco, Tokyo, Miami, Hong Kong, and Montreal, as well as all remaining flagship stores, will begin to carry the Voyage line. Five months later, at the six month post-launch point, the third tier of the rollout will begin with seventy-two additional stores in major cities, as well as three Louis Vuitton stores in major airports: Paris’ Charles de Gaulle, London’s Heathrow, and Singapore’s Changi. By maintaining exclusivity but creating conspicuous promotion, Louis Vuitton can launch the Voyage line and create a new generation of mainstay products.

SECTION SIX. LAUNCH STRATEGY

VOYAGE LAUNCH The Voyage line will be launched in conjunction with Paris Fashion Week. It will be displayed along with Louis Vuitton’s Spring/Summer collection in September. This introduction will provide perfect timing for the line to launch in late winter in anticipation of travel’s spring shoulder season that leads into the high season beginning in June. Digital promotion for the line will begin in January in anticipation of the line hitting stores. The app rollout will be timed a few weeks in anticipation of the line’s official retail launch, which will allow the brand to create hype and consumer interaction through early enrollment in the Voyage concierge program, as well as educate consumers. Beginning the week the Voyage line launches, a series of three exclusive Voyage launch events will take place in iconic locations in three key cities. These events will be held in famous historic cocktail lounges within iconic hotels, which allows traveling guests luxury accommodations without having to leave the building. The first event will take place at Bar Hemingway at the Ritz in Paris and will kick off the line’s launch in the brand’s home city. The second event will be held at the American Bar in London’s historic Savoy Hotel. Next, promotion will move across the pond to the King Cole Bar at the St. Regis in New York City. Each event will be by invitation only, and will maintain an exclusive guest list of influential people in arts, culture, and business, as well as some of the brand’s top customers.

These events will feature a private fashion show in addition to pop-up shopping opportunities for guests, with exciting bonus features such as on-the-spot bag personalization. Creative travel-inspired installations and fixtures will adorn the room and convey a sense of imagination. The brand will offer its iconic travel guides to guests, as well as signature cocktails and h’ors d’oeuvres inspired by world travel. Stylists from the Voyage collection’s concierge program will be available to assist guests with shopping and enroll them in the program. The presence of two Voyage line ambassadors who appeal to the target market of sophisticated world travelers. The first ambassador, Marion Cotillard, was selected to provide a sense of culture as well as a French connection to the line. As a female face associated with the arts and fashion as well as global conservation, Marion Cotillard will appeal to fans of film, music, and travel alike and is a natural fit for the brand due to her effortless French style. The presence of these two ambassadors will not only provide credibility but also draw attention to the Voyage line and the exceptional features it has to offer consumers. The second Voyage ambassador will be Richard Branson, British business magnate and seasoned world traveler who has a strong foothold in the travel industry as both the founder of the Virgin Group and leader of daring world exploration endeavors.

BAR HEMINGWAY Paris

THE AMERICAN BAR London

KING COLE BAR New York

Launch event invitation

City guides

Artistic installation

On-the-spot personalization

Trunk retail fixture

la CONCLUSION. 90

KEY SUCCESS FACTORS In terms of measuring the success of this brand extension, a few different metrics may be employed. First and most obviously, sales will provide a numeric measure of the extensionâ&#x20AC;&#x2122;s viability and strengths versus weaknesses within the first year. Additionally, the usage of the Voyage app and the subsequent sales generated by the app can be measured in order to gauge consumer engagement. Peripherally, social media activity and website/app traffic can be measured with respect to Voyage content, which can speak to the effectiveness of promotions and advertising. The use of concierge services as a means for building relationships with consumers can also be used as a measure of the success of this brand extension.

SALES FORECAST The following table represents a conservative one year sales forecast assuming a 100 store tiered product rollout. MEN’S APPAREL

WOMEN’S APPAREL

ACCESSORIES

MARKETING BUDGET The following is a one year marketing budget based on 11.5% of a conservative estimate of first year sales.

CONCLUSION In launching the Voyage collection, Louis Vuitton will not only expand its market share and product depth, but will also further ingrain itself in the life of the luxury traveler. This line will combine the brandâ&#x20AC;&#x2122;s unparalleled quality with worldclass service to set a new standard for luxury apparel. By addressing a clearly unmet need in the luxury industry, Louis Vuitton will undoubtedly create a new generation of signature products and innovations that will carry it forward into the twenty-first century. In launching the Voyage line, Louis Vuitton will demonstrate that it is a brand that is there for its consumers wherever they may roam. With classic French styling and modern innovation, its two greatest strengths, Louis Vuitton will create a new form of customer experience that will amaze consumers across the world.

NOTES de FIN.

LINE SHEETS

Current LVMH stock performance (MarketWatch)

LVMH highest grossing brand data (Business of Fashion)

2016 LVMH fashion and leather goods data (LVMH) 100

Travel purchasing statistics (Hospitality Net)

Travel apparel perceptual map

101

PAULINE SISSON INTERVIEW January 25, 2018

1. What are the most important ways that your work increases the quality of a luxury traveler’s experience? By making sure that what they demand is on time and anticipating demands that they might not know about – that’s what makes you successful in the luxury industry. If you can provide things they didn’t know they needed, you will wow them and they will return to you. Mind reading is key! 2. How do you feel the needs of the luxury traveler are currently being unmet by the travel industry? In our market, there are so many people trying to nickel and dime them and get money off them because they know that they have massive resources - that can be very frustrating to them and it diminishes their experiences. Plus, they get very frustrated because they’re smart enough to know what’s going on. 3. Are there any consistent concerns or questions that you receive from luxury travelers? They actually are very price conscious! They’re flying on multi-million-dollar aircrafts and they want direct quotes. You can’t just price however you want, you actually have to be logical and justify your prices. If you can give them incentives, they respond really well to that. They didn’t get wealthy by spending money willy nilly and paying too much for things – usually those that overpay are spending other people’s money. 4. What would you like to see more of in terms of offerings for your traveling customers? In the area that we are in, they’re coming in for a vacation and they’re in a bad mood when they’re leaving. People are used to solving huge problems and being catered to, so they get really frustrated with the inefficiency and everyday hassles that come along with traveling. The thing that’s missing is personalized pacification. When they don’t have their personal assistants around and they’re not used to doing menial things for themselves, they can get frustrated. They often have a “do as I say, not as I do” mentality so if you can anticipate that and help smooth things over it’s a lot easier. Virgin and Emirates have really set the bar where that’s concerned. Also, people are really concerned about germs! They want pillows, blankets, etc. that are individually packaged that will be comfortable and luxurious but sanitary. 5. What do you think are the biggest motivating factors for the luxury traveler when it comes to purchasing luxury goods and services either before or during their trip? For travel specifically, habit is a big one. They don’t want to think about their purchases. Spontaneity can also be a big factor – they want new experiences. Also trends and what their peers are doing are huge motivators to their purchasing behavior – they want to keep up with the Joneses and fit into their social set. We see a lot of people that order the exact same things as other clients from their area.

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PAIGE TILLUNG INTERVIEW January 20, 2018

1. What are the most important ways that your work increases the quality of a luxury traveler’s experience? The traveler is usually missing something – in sales you have to determine if that is a NEED or a want. Sale tactics may change based on whether the client has a need or a want. If it’s a need, we’ll do whatever we need to do to find it because they’ve come a long way and in a luxury environment they expect their needs to be catered to. If it’s a want, I can upsell them because I want them to take my brand with them all over the world and share it with their peers. Finding out the two different types of traveler types is critical. Want is usually for themselves or a spouse, a take home gift. Often, they want to take home a gift that says they’ve been here. Also, how are they traveling is important – if they’re flying it means a different protocol than if they’re driving, which I can upsell more. 2. How do you feel the needs of the business traveler are currently being unmet in terms of apparel? The leisure traveler? In the hotel industry, there is not a shop or a location that they can go to and find those necessities that they want for travel. There’s nobody out there doing that. The industry is just starting to recognize this group of needs that have been ignored. With most resorts, sometimes ours included, you have to leave the property in many cases to get what you need. For us, the spa often can meet those needs but to be honest there’s nothing being done to really anticipate them. Also, the older generation does not travel the way the younger generation does. Boomers are not of the mindset to come in and be creative about travel apparel – they are still coming in looking for dress pants. Younger people are willing to mix it up more and dress down a little – they’re kind of redefining dress codes that way. There is nothing out there for either generation and there’s a need for both genders to be catered to as well. 3. Are there any consistent concerns or questions about apparel that you receive from traveling customers? Sizes are important to them and color. They don’t need a lot of colors, they want basic colors that travel well, wash well, and are low maintenance. They don’t want to have to iron clothes or send them to the hotel laundry. They also are looking for an easy, comfortable fabric that walks well and wears well and looks good. In the men’s Peter Millar line, the five-pocket pant, which is made with elastane, is a good example of how men’s pants have gotten better for the traveler – they’re soft and stretchy but they look dressy. The traveler’s decision to purchase comes down to price for a need purchase or product for want purchase – they often want a higher end product than the need purchase. 4. What would you like to see more of in terms of apparel offerings for your traveling customers? Interchangeable outfits. Mix and match tops, bottoms, etc. that can go from night to day. If a woman can come in the shop and find something she can wear to work or on the plane that fits in her suitcase and is easy to take care of that would be ideal. For him, Peter Millar is making nice dress shirts for travelers (summer comfort) because they don’t wrinkle – lots of guys don’t want to iron and in a place like Sea Island we often end up doing it for them. 5. What do you think are the biggest motivating factors for the luxury traveler when it comes to purchasing apparel? For spontaneous shopping, inspiration. Many travelers are under stress when they travel, especially for business, so they sometimes buy things they normally wouldn’t normally buy as a result. Travelers are seeking new experiences and exploring new venues and merchandising and windows can draw people into your shop. If you’re a shop that sells mostly to travelers, you have to have unique pieces and merchandising to draw them in and make them feel like they can’t get it anywhere else. Travelers also buy by season and destination of course.

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ILYSE SCHUMAN INTERVIEW January 26, 2018

1. What would you consider the greatest luxuries while traveling in terms of apparel? I have to have good shoes when I travel. They have to be comfortable and stylish and dependable. I don’t want to worry about them falling apart or hurting my feet, but they need to be nice looking because I’m often traveling for business. 2. What issues do you have with apparel when it comes to traveling? Going between temperatures and different environments and levels of formality is big – because often you don’t have room in your bag for multiple climate zones or work and play clothes! It’s a big issue when traveling for business because usually you’re living out of a carry-on and you just don’t have the time or the space to deal with it. 3. Do you find choosing apparel that meets all your needs while traveling to be difficult? If so, which needs most frequently go unmet? Yes! If you have to go from a meeting to a flight right after or vice versa, it’s a dilemma between looking presentable and comfortable – or you face trying to change in an airport bathroom! Both seem kind of daunting when you’re going across the country to negotiate a big deal or have an important meeting – you’ve got other things to worry about. Comfort and style being synonymous are the biggest ones that are currently unmet to my knowledge. 4. In terms of apparel, what would make travel easier for you? When it’s hot outside and cold on airplanes or going from different temperature zones is a huge issue for me! There’s noting that currently addresses that and it’s a pain to have to carry cold weather clothes when you don’t need them for the entire trip. Also a blanket wrap that isn’t cashmere but is cozy but lightweight and meant for airplane travel would be amazing. There are plenty of cashmere wraps out there and they’re soft but they’re hot and the fabric is awfully high maintenance. 5. When traveling, do you purchase more apparel in anticipation of a trip or while on the trip? Probably both! It seems like I never have everything I need once I get where I’m going. Often, we’re so preoccupied when we pack that we inevitably forget something important. Also, when I get somewhere, I usually see something that I want.

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JULIA TANDY INTERVIEW January 28, 2018

1. What would you consider the greatest luxuries while traveling in terms of apparel? I would say loungewear and comfortable clothes inspired by loungewear but don’t look like loungewear are the biggest luxuries. I don’t travel a lot for work, so most of the time it’s socially acceptable for me to dress down. If I can be wearing loungewear that doesn’t look like it, that’s ideal though. 2. What issues do you have with apparel when it comes to traveling? Discomfort and adaptability are the biggest issues I have while traveling. I want to layer but I don’t like to deal with the layers, especially if I don’t need them and have to carry them around. Also, I always stress about being too hot or too cold, which can cause major packing anxiety for me. 3. Do you find choosing apparel that meets all your needs while traveling to be difficult? If so, which needs most frequently go unmet? Yes! I am often traveling to outdoor and remote destinations, so comfort for long days of walking and other activities is a big one for me. Also, longevity of my clothes is often a problem: I need things that won’t wrinkle or stain or look like I’ve been wearing them for a week. Durability of travel apparel is also an issue for me. 4. In terms of apparel, what would make travel easier for you? Functionality is key for me. Things like hidden pockets would be HUGE improvements, as well as being able to convert items as I go. 5. When traveling, do you purchase more apparel in anticipation of a trip or while on the trip? I’m often in remote locations or I have so much exploration to do that I don’t focus on shopping, so I almost always buy in anticipation of a trip.

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MAHENDRA SRIVASTAVA INTERVIEW January 21, 2018

1. What issues do you have with apparel when it comes to traveling? Comfort and style in long distance travel abroad. I need to be comfortable during long flights but may also have “business casual” meetings upon arrival with no time to change. 2. What would you consider the greatest luxuries while traveling in terms of apparel? Comfortable trousers and underwear make a big difference to me. 3. Do you feel that finding apparel that meets all your needs while traveling is difficult? Yes. Being able to dress appropriately everywhere I have to go in an efficient way doesn’t really exist. 4. In terms of apparel, what would make travel easier for you? Stretch, non-iron, fabric that is both comfortable and low maintenance would be the biggest game changer for me. 5. When traveling, do you purchase more apparel in anticipation of a trip or while on the trip? Usually when I’m traveling I’m so busy with meetings and site visits that I don’t have much time, so I do my purchasing in anticipation.

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STEPHANIE MAXWELL INTERVIEW January 29, 2018

1. What would you consider the greatest luxuries while traveling in terms of apparel? As a longtime customer, do you associate Louis Vuitton with luxurious and comfortable travel? A luxury while traveling, in my opinion, would be a designer pair of shoes for an evening out and a large handbag for the airport. I would consider Louis Vuitton comfortable luxury. It’s durable, iconic, and made to fold, squeeze, and bend without losing its shape. 2. What issues do you have with apparel when it comes to traveling? Small handles. But seriously - Am I right? I will never carry a bag with satchel style handles while traveling! The bruises and headaches they cause - I would much rather have a cross body or a fashion forward backpack. 3. Do you find choosing apparel that meets all your needs while traveling to be difficult? If so, which needs most frequently go unmet? Yes, I would say so. Shoes or a heavy coat when the temperature changes are the items that I struggle the most with. 4. In terms of apparel and accessories, what would make travel easier for you? Probably a really functional carry on piece of luggage - or a personal assistant! 5. When traveling, do you purchase more apparel in anticipation of a trip or while on the trip? I’m guilty of both. I want to look and feel great and those feelings increase when I have new pieces to wear. I also enjoy picking up something “special” while away so when I wear what I purchased I think of that specific vacation!

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REFERENCES Reuters. “Louis Vuitton Sues Counterfeit Online Sellers in China.” The Business of Fashion, 10 Jan. 2016, www.businessoffashion.com/articles/news-analysis/louis-vuitton-sues-counterfeitonline-sellers-in-china. Reuters. “Louis Vuitton Targets Middle-Income Shoppers With Perfume Launch.” The Business of Fashion, 2 Sept. 2016, www.businessoffashion.com/articles/news-analysis/louis-vuittontargets-middle-income-shoppers-with-perfume-launch. Reuters. “LVMH Sets High Bar for Luxury Peers as It Trumps Revenue Forecast.” The New York Times, The New York Times, 9 Oct. 2017, www.nytimes.com/reuters/2017/10/09/ business/09reuters-lvmh-results.html?_r=0. Scarano, Genevieve. “These 10 Trends Will Drive the Global Fashion Industry in 2018.” Sourcing Journal, 8 Jan. 2018, sourcingjournalonline.com/these-10-trends-will-drive-the-globalfashion-industry-in-2018/. Shannon, Sarah. “Louis Vuitton and Hermès Lead Interbrand Ranking, as Ralph Lauren Is Dropped.” The Business of Fashion, 25 Sept. 2017, www.businessoffashion.com/articles/newsanalysis/louis-vuitton-and-hermes-lead-luxury-while-ralph-lauren-dropped-from-interbrand-ranking. Solca, Luca. “The Anatomy of Travel Retail.” The Business of Fashion, 31 July 2015, www.businessoffashion.com/articles/opinion/the-anatomy-of-travel-retail-market-luxury-goods. “Survey Results: 8 Global Consumer Types for Marketing in 2018.” Euromonitor, 27 Nov. 2017, 0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab. Trunzo, Brian. “Global Streets A/W 17/18: Jackets & Outerwear.” WGSN, 2 Jan. 2018, 0-www.wgsn.com.library.scad.edu/content/board_viewer/#/76634/page/1. Varga, Clare. “Active Forecast A/W 19/20: Free Style.” WGSN, 15 Dec. 2017, 0-www.wgsn.com.library.scad.edu/content/board_viewer/#/76130/page/14. WGSN Menswear Team. “Men’s Forecast A/W 19/20: Free Style.” WGSN, 2 Jan. 2018, 0-www.wgsn.com.library.scad.edu/content/board_viewer/#/76352/page/3. White, Farley, and Stephanie Maxwell. “Stephanie Maxwell Interview.” 29 Jan. 2018. White, Farley, and Ilyse Schuman. “Ilyse Schuman Interview.” 26 Jan. 2018. White, Farley, and Pauline Sisson. “Pauline Sisson Interview.” 25 Jan. 2018. White, Farley, and Mahendra Srivastava. “Mahendra Srivastava Interview.” 21 Jan. 2018. White, Farley, and Julia Tandy. “Julia Tandy Interview.” 28 Jan. 2018. White, Farley, and Paige Tillung. “Paige Tillung Interview.” 20 Jan. 2018. Williams, David K. “How Dropel Fabrics Is Reinvigorating The Fashion Industry With Tech.” Forbes, 22 Oct. 2017, www.forbes.com/sites/davidkwilliams/2017/10/22/how-dropelfabrics-is-reinvigorating-the-fashion-industry-via-tech/#6d2747e95899. Winston, Andrew. “An Inside View of How LVMH Makes Luxury More Sustainable.” Harvard Business Review, 12 Jan. 2017, hbr.org/2017/01/an-inside-view-of-how-lvmh-makesluxury-more-sustainable. Zimmerman, Kaytie. “How Millennials Are Creatively Approaching Their Business Travel.” Forbes, 7 June 2017, www.forbes.com/sites/kaytiezimmerman/2017/06/06/how-millennialsare-being-creative-with-their-travel/#5ff61da018a8. 110

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