Global Fashion Industry with a Focus on Moet Hennessy Louis Vuitton Essay

Global Fashion Industry with a Focus on Moet Hennessy Louis Vuitton - Essay Example The essay "Global Fashion Industry with a Focus on Moet Hennessy Louis Vuitton" examines the industry of fashion. The company owns over sixty brands and some of them, like Veuve Clicquot Ponsardin (1772), Chateau d'Yquem (1593), , Guerlain in 1829, Louis Vuitton (1854), Hennessy (1765), Moà «t et Chandon (1743) the have been in the market since the past two centuries (McCrone, 2006). It operates 5 different category of products including wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. LV had been following a strategy of innovation, differentiation and strategic mergers to become a market leader in the fashion industry (Lent, Tour and Perrin, 2009). The company offers exclusivity and high quality and is driven by the motto of attention to detail to deliver the best quality. It follows a policy of developing a brand image that is shared across its brands and supported by all the activities undertaken by the company. T his report contains an analysis of the macro environment (using PESTEL framework) for the global fashion industry to assess the threats and opportunities that an organization like LV may face. It also contains a micro analysis or industry analysis of the fashion industry to evaluate the business environment and the challenges that LV faces. Finally, an internal strength and weakness analysis is conducted to assess how the strengths of LV can be used to capture the opportunities proffered by the macro and the micro environment., and what it needs to do to overcome its weaknesses in order to combat the threats posed by its business environment.   Finally, the report discusses the current strategy of LV in the light of the SWOT analysis and makes appropriate recommendations.    PESTEL Analysis    Political Environment The fashion industry has seen a revolution in terms of its penetration and reach across the diverse cultures and markets globally (Kapferer and Bastien, 2009). The advent of globalization and liberalization of economies across the world have made it possible for products from one end of the globe to be displayed and bought at the other end. The fashion industry too has seen a rapid proliferation across the borders owing to the political liberalization and increased acceptance of the Western lifestyle by the growing middle class in the developing countries (Kotler and Keller, 2011). The political liberalization on one hand has made it possible for brands like LV to be sold across diverse regions like China, India, Brazil and Africa, while on the other hand there has been an increased political activism at the grassroots level in several countries against high fashion and the trend of consumerism (British Standards Institution, 2011). Foreign brands, especially the luxury brands are often the target of censure and attacks in countries where movements are under way or where there is widespread resistance to liberalization. It can be seen that whi le there is scope for international expansion, there is also a need to understand the local sentiments and culture so that the brands can become acceptable and likable internationally.    Economic Environment The recent financial crisis of 2008-2009 saw the fashion industry too see a slow down in sales and business. Large and popular organizations like the Australian Hrringbone and Centro have posted large losses during the crisis period. In addition to loss of revenues, there was also a potent impact on the trends in the fashion –