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How a Poor boy became a Billionaire by selling bags? : Louis Vuitton Business case study
Hi everybody,
Louis Vuitton is one of the most iconic luxury brands in the world!! And while most Think of louis Vuitton as just another overrated brand that sells bags for 2 lakhs rs, what we dont realize is that Louis Vuitton is a luxury brand that was started by a homeless boy and it has sustained for 200 years, 1 franco-prussian war, 15 revolutions, 2 world wars and 18 recessions including the great depression!! And While most people think of Louis vuitton bags to be the liability of the rich, you would be shocked to know that, if you invested in this louis vuitton bag in 2007 for 625 dollars or 25,000Rs, you would have got more returns than both gold and the S&P index!! You don’t believe me look at this chart,
From 2007 to 2024, While the price of gold shot by 172%, S&P went up by 167% where as the price of this bag has shot up by 214%
And LVMH today is so big and so powerful it is more valuable than Gucci Prada Hermes and its next 5 competitors combined!!!
And this begs the question?
How did a homeless boy go on to build the biggest luxury brand in the world?
Why were Louis vuitton bags considered to be super special during the 19th century?
And what are the business lessons that we need to learn from the rise of Louis Vuitton?