The value of luxury brands: the study of the brand Louis Vuitton

Abstract

[Abstract]: Luxury brands have experienced many transformations in the last few years especially due to the digitalization, the power of e-commerce, and democratization of luxury. The research aims to analyze how brands in the luxury sector create value and how they achieve to maintain value in a dynamic environment. The study uses Louis Vuitton as an example, as it is a luxurious brand, founded in 1854. With this, some elements once considered important for value creation of luxury brands are now essential for maintaining a competitive position and cannot be longer used as a differentiation factor. In this study, focusing on the key dimensions of David Aakers Brand Equity model such as loyalty, perceived quality, awareness, associations, it is analyzed which components have direct relationship in the value creation today of the luxury brand Louis Vuitton, seeing if there are any elements that contradict the authors theory. The research was conducted through a structured questionnaire. The answers of the investigation allowed us to find what elements are in fact important to today's customers and which elements do not create brand equity.