Louis Vuitton plans to build new factories in France Bag Twist Louis Vuitton
28.03.2018 2236

Louis Vuitton plans to build new factories in France

The brand is looking for ways to reduce the time of production and delivery of goods. In the domestic market, the company plans to reduce the time it takes to service orders by up to two weeks, writes businessoffashion.com.

The largest French luxury goods supplier, the LVMH Group, is expanding its leather goods and handbags and launching at least two new workshops for this, said Louis Vuitton brand representatives on Tuesday.

The brand, which began with the production of travel bags, will hire 500 people for two of its production sites in the west of France, as a result of which the number of leather brand specialists will grow to 4000 people. Thus, the brand seeks to meet the growing demand for its products. One production site will open by July of this year, the second by the beginning of 2019. The third should earn next year. This was told by Louis Vuitton Production Director Emmanuel Mathieu.

LVMH, whose brand portfolio also includes Givenchy and Christian Dior, reported record sales and profit results for the 2017 year that were achieved thanks to growing demand for luxury goods from Asian customers.

Fashion brands earn high margins from the sale of leather goods - handbags and wallets.

Louis Vuitton manufactures most of these products domestically, following the example of Hermes, which focuses on the “Made in France” label, the latest brand also intends to open several new production sites in 2020.

By the start of 2019, Louis Vuitton is about to grow the number of its tanneries in France to 16. The opening of the last workshop took place in 2017, the previous one was in 2011.

Handbag models, including the popular Twist bag or Palm Springs mini backpacks, are hand-assembled by approximately 250 workers who sew products on specialized sewing machines.

Louis Vuitton also has several manufacturing sites outside of France. Two of them, in California, are serving the needs of the US market; another new factory is planned for construction in Texas.

Four brand sites are also located in the Spanish region, in Catalonia, there are production facilities in Portugal and Romania, where components are made, in particular, luggage handles.

LVMH does not disclose the revenue of its brands, but according to analysts, Louis Vuitton sales last year amounted to at least 8 billion euros.

The brand is looking for ways to shorten production and delivery times. In the domestic market, the company plans to reduce the period for servicing orders to two weeks, - writes ...
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