INDIAN LEATHER INDUSTRY

LOUIS VUITTON

The Leather Industry holds a prominent place

in the Indian economy. This sector is known for

its consistency in high export earnings and it is

among the top ten foreign exchange earners for

the country.

With an annual turnover of over US$ 7.5

billion, the export of leather and leather products

increased manifold over the past decades and

touched US$ 4.86 billion in 2011-12, recording a

cumulative annual growth rate of about 8.22% (5

years).

The Leather industry is bestowed with an

affluence of raw materials as India is endowed

with 21% of world cattle & buffalo and 11% of

world goat & sheep population.

The leather industry is an employment

intensive sector, providing job to about 2.5

million people, mostly from the weaker sections

of the society. Women employment is

predominant in leather products sector with

about 30% share.

India is the second largest producer of

footwear and leather garments in the world .

India accounts for a share of close to 3% in

the global leather import trade of US$ 137.96

billion (2010)

Second largest footwear producer

after China.

Annual Production 2065 million pairs.

Huge domestic retail market 1950

million pairs (95%) are sold in domestic

market.

Footwear export accounts for 45.05%

share in India’s total leather & leather

products export.

The Footwear product mix Gents 52%,

Ladies 39% and Children 9%

Second largest producer with annual

production capacity of 16 million pieces.

Third largest global exporter.

Accounts for 10.43% share of India’s

total leather export

Fifth largest global exporter.

Annual production capacity - 63

million pieces of leather articles, 52

million pairs of Industrial gloves & 12.50

million pieces of Harness & Saddlery

items.

Accounts for 23.44% share of India’s

total export.

Annual production 2 billion Sq.ft.

Accounts for 10% of world leather

requirement.

PREPARATORY

STAGES

CRUSTING

TANNING

SURFACE COATING

4 P “KELLY” BAG

PRODUCT Precisely stitched up using high quality materials, achieving a

level of “product” element.

PRICE Super high price of up to 7,00,000 yens(the most expensive of

all the bags)

PLACE Sold mainly at directly managed stores.

PROMOTION Conduct less mass advertising.

4 P PARTICULARS

PRODUCT Ignores consumers who cannot purchase the high-priced items; Follows

the Principle of Special Orders.

PRICE Fixes the price to stimulate demand of customers at once they are

interested in the products and prevent them to postpone the purchasing

habit. , LV does not adopt pricing in odd numbers; Sales in Value Sets.

PLACE Uses its flagship stores, which are larger than normal in scale, in order to

respond to the need of a great number of customers; stores located in

Prime Area to maintain brand image as exclusive luxury brand.

PROMOTION LV accentuates publicity in newspapers and magazines; queuing up in

front of the store is the one of the strategies that LV employs to appeal to

the general public.

4 P PARTICULARS

PRODUCT Uses Handcraft Leather for manufacturing of the products;

New concept of the brand was "Fun, Feminine and

Fashionable."

PRICE Advocated “Accessible Luxury” thus made available to those

classes of people who could afford luxurious items as a style

quotient.

PLACE Mainly through retail outlets; at a later stage it imbibed the

concept of Flagship Stores as well at various places of the

city.

PROMOTION Used Radical Marketing Strategy Policy for its Promotional

Activities.

Hermes achieves satisfactory results

Louis Vuitton is more successful than Hermes

at the moment.

Furthermore, Coach's marketing strategy

exploded faster than Louis Vuitton's despite

marketing being Louis Vuitton's greatest

strength.

MODULE HERMES L.V COACH

SENSE Smooth

touch of

superior

materials.

Monogram

used not to

define the

product, but

to smarten the

product.

Monogram

used not to

define the

manufactu

rer, but to

smarten

the

product.

FEEL Design and

shop display

evoking

horse

carriage

and horse

ride

Trunk design

and shop

Interior

evoking

travel.

Accessible

luxury.

MODULE HERMES L.V COACH

ACT Suitable

shape of

handle for

use; can

express

elegance.

Patrican

Trunk style

produces

grace travel.

Expression

of Active

Atmospher

e ;

i.e.

working

class

people.

RELATE Sponsorship

of horse

races as

cultures of

noble

society.

Sponsorship

of Yaont Race.

Street

posters;

outdoor

advertising

media

used.

MODULE HERMES L.V COACH

THINK Many

variations of

colours,

material,

sizes.

Collection of

Monograms

Collection

of

Signature

Lines.

While group established companies, such as

Louis Vuitton, adopt modern product making

methods and ways of selling which are close to

the traditional marketing principle, they

consistently present extremely advanced and

varied customer experience based on their own

traditions.

1) The luxury fashion brands are divided into

three categories:

traditional established companies, such as

Hermes,

the group established companies like Louis

Vuitton and

new companies like Coach.

2) Although established companies like

Hermes tend not to conform to

traditional marketing theory, they

consistently present extremely advanced

and varied customer experience based on

their traditions.

3) New enterprises, such as Coach, adopt

rational product making methods and ways of

selling based on the fundamental marketing

principle, and present a modern and tradition-

independent customer experience to a wide

variety of customers.

4) New enterprises, such as Coach, adopt

rational product making methods and ways of

selling based on the fundamental marketing

principle, and present a modern and tradition-

independent customer experience to a wide

variety of customers.

5) Hermes's ways of creating customer

experience are helpful to companies which

have traditional arts and produce high-class

products.

6) Louis Vuitton sets a good example of

more aggressive customer expansion

strategies.

7) Coach's ways of creating customer

experience provide useful information

for companies which are rather -new and

actively trying to develop a market for

products positioned halfway between the

high and moderately priced products.

The leather industry must keep up with the changes

around, in order to survive and compete against its

rivals.

Marketing activities and e-marketing efforts

following the general tendencies of our time are

among the leading issues that should primarily and

carefully be considered in the leather industry.

In business-to-business marketing activities, initially

the deficiencies of companies in marketing may be

identified and training may be provided in this regard

at various levels in order to recover this deficiency.

A portal, which works actively in global terms, can be

created to accelerate cooperation between enterprises

in the global sense.