We’ve cleared the Hermés and Hilfiger out of our closets to make way for Next and New Look. Yet, despite the luxury market’s decline, the Louis Vuitton net worth remains high.
Big name fashion brands such Prada, Gucci, Ralph Lauren and Burberry have been plagued by falling profits in recent years, as penny-pinching consumers opt for cheaper alternatives.
Louis Vuitton isn’t exempt from the decline. The luxury brand saw sales fall in 2016. However, their powerful brand image has since helped to claw back some of their losses.
Regardless of the industry’s recent slump, LV still recorded revenue of $37.6 billion in 2016, up from $35.7b in 2015. Those figures are hardly surprising, given that Louis Vuitton is the world’s most popular luxury brand.
How Louis Vuitton took his brand the top
Louis Vuitton left home at the age of 13 to travel to Paris on foot. Two years later, he arrived in the French capital with nothing but his dreams and desires.
He took up a job as a box-maker’s apprentice and stayed with the company for 16 years, earning himself a reputation as an expert in his field. He left in 1854 to set up his own store, which rose in popularity due to Vuitton’s innovative designs.
The legendary designer eventually opened up a second store in London. However, it was his son, Georges Vuitton, who turned LV into a global brand.
The LV logo is now recognised around the world. In fact, it is so popular that Louis Vuitton is one of the worst victims of counterfeiting. 99% of products bearing the company’s logo are said to be fakes.
How does that affect the Louis Vuitton net worth?
The counterfeit goods industry is thought to be worth almost $500 billion. That figure is growing, with the quality of fake good improving and the amount of people willing to spend big decreasing.
Counterfeiting costs companies like LV a lot of money. However, their biggest concern is high street brands which produce similar designs for a fraction of the cost.
Despite numerous threats cutting away at their profits, the Louis Vuitton net worth is higher than ever. LV’s share price dropped to €39.20 in 2008. However, it has since climbed above the €230 mark.
As a result, LVMH’s market cap currently stands at €116.6 billion.