While its shares have slightly risen since the start of 2013, Moet Hennessey Louis Vuitton (LVMH) reported lacklustre sales for its third quarter, $9.5 billion, which is in stark contrast to sales growth of at least 10% over the past 20 years. Growth for the company’s fashion and leather division quarter slowed to an optimistic 4% for the first nine months of 2013 over the same period last year. Some blame the super-saturation of the classic logo, diminishing its exclusive luxury appeal. But demand from its biggest market — Asia and the Far East — has diminished because of slowing Chinese growth and a greater appetite for more subtle branding, which is having the greatest impact, according to CFO Jean-Jacques Guiony. As an initial reaction, the company raised prices to help negate losses, rather than reduce branding. But strategies to slow retail expansion, include more precious materials in its collections and add products with fewer logos are in the pipeline and will take another year to yield tangible results.
