Exhausted leather bags Louis Vuitton propose recovery bears fruit

Includes new efforts to strengthen the Louis Vuitton bags offer expensive leather positioning themselves as classy and exclusive - as recently Gucci - first to achieve positive results.Louis Vuitton new arrival An informal survey by Reuters Louis Vuitton stores in Milan, Paris and London have a shortage of 3500 euros ( $ 4600 ) Capucine showed bags since its launch in June with a waiting list is long. The New Bond Street in London , there was only one sample bag with a "not for sale" sticker on it and 40 people had already booked but staff said that the bags were likely to be available in late September or early October. Capucine handbag with leather calf Federalist , a material is also used by rival Hermes is many times more expensive than Louis Vuitton bag 600 € LV embossed with the brand that has built its name and profitability. Bernard Arnault , the head of the parent company LVMH, said in January that Louis Vuitton plans to prune its portfolio bags, which represent two-thirds of the business and generate gross margins of 90 percent. Analysts expect that gross margin leather bags such as Capucine be somewhat lower . The dealer said they have the supply of only a handful of bags Capucine made ??every two weeks in the summer , suggesting , Louis Vuitton might have deliberately caused shortages to create a buzz around the product - under a leaf out of book of Hermes . Louis Vuitton monogram idylle Officially appeal production constraints , Hermes is known worldwide for its luxury shortages and waiting lists , especially for its popular 7000 30.000 € Kelly bags , which help improve the attractiveness of the brand and Birkin . "I take that as very positive that the bag is empty Capucine " sign, said Exane BNP Paribas analyst Luca Solca . " Louis Vuitton had on his perception of exclusivity and the creation of products for which there is a high demand and not enough volume to work all happy , certainly helps . " LVMH shares below average since the beginning of the year , partly due to concerns of consumers lose their appetite for the French brand, which some consider too ubiquitous. Since 1 January LVMH shares have risen by only 1.4 percent, while shares of Lancel and Cartier owner Richemont increased by 28 percent and the Gucci Kering mother's shares climbed 23 percent, while the share Burberry increased by 31 percent. Louis Vuitton which more than half of the operating profit generated LVMH has seen slow sales growth this year , by about 5-6 percent after posting decades, more than 10 percent growth, driven in part an active campaign of new openings . Analyst estimate Louis Vuitton generates around 7 billion euros in annual sales,Louis Vuitton monogram bag more than double its rival Gucci, concerns that Louis Vuitton is so big and the world there is little room for them to develop .