Asia-particularly Japan-is a key region for LVMH and its competitors. The financial turmoil of the late 1990s and the subsequent currency devaluations and weakening of the yen translated into lower demand for luxury goods. Because price perceptions are critical component of luxury goods'appeal,LVMH executives made a number of adjust ments in response to changing business conditions. For example,Patrick Choel,president of perfume and cosmestics division, raised wholesale prices in individual Asian markets. The goal was to discourage discount retailers from stocking up on designer products and then selling them to down-market consumers. Also, expenditures on perfume and cosmetics advertising were reduced to maintain profitability in the face of a possible sales decline.
Louis Vuitton chairman Yves Carcelle also made adjustments. He canceled plans for a new store in Indonesia, and group managers
Asia-particularly Japan-is a key region for LVMH and its competitors. The financial turmoil of the late 1990s and the subsequent currency devaluations and weakening of the yen translated into lower demand for luxury goods. Because price perceptions are critical component of luxury goods'appeal,LVMH executives made a number of adjust ments in response to changing business conditions. For example,Patrick Choel,president of perfume and cosmestics division, raised wholesale prices in individual Asian markets. The goal was to discourage discount retailers from stocking up on designer products and then selling them to down-market consumers. Also, expenditures on perfume and cosmetics advertising were reduced to maintain profitability in the face of a possible sales decline.
Louis Vuitton chairman Yves Carcelle also made adjustments. He canceled plans for a new store in Indonesia, and group managers
การแปล กรุณารอสักครู่..