The Value For Money Strategy

As slowdown takes its toll,luxury brands like Louis Vuitton are rising prices and curbing retail expansion to be perceived as Veblen Goods and hence turn a profit.

However Longchamp, the French company known for its folding nylon Le Pliage handbags, is sticking to its strategy of value for money luxury and in the process clocking larger revenue growth than companies like LMVH and growing their stores worldwide on the basis of better real-estate deals for retail locations.They especially  prefer locations in Europe frequented by travelers from Asia and the Americas since sales to non-Europeans are rising faster than sales to Europeans though Europeans account for a larger share of the total.