Keeping the story of luxury alive

Three years ago, the development team at French luxury brand Louis Vuitton decided to pay homage to fans in the Middle East by launching a unique black scarf. The fashion item, with a discreet signature LV monogram was an immediate success and, according to the brand's European President Jean-Marc Gallot, cemented its relationship with long-time patrons in the region.

There's more where that came from, it seems, although this time it is in the form of what Louis Vuitton calls a "global store" – one that offers all of the brand's lines including ready-to-wear for both men and women, watches and jewellery and men's and women's accessories and leather goods.

"When we launched the scarf especially for Middle Eastern women, we wanted to show our respect for the culture. Now, we think they deserve more and that it's high-time for a global store," says Gallot, who was in Dubai to oversee the store's soft opening.

"We want our customers here to get the full taste and flavour of Louis Vuitton."

Located in The Dubai Mall, with more than 645 square metres of selling space, the latest store is Louis Vuitton's ninth in the Middle East, bringing the "global store" count to 86 worldwide, with four others set to open by the end of the year. The company currently operates more than 431 Louis Vuitton boutiques in 61 countries.

"The Middle East has been and will always be a key region for us," says Gallot, who declines to divulge any specific numbers or figures from the company's more than 25 year history in the region.

"People from here have a tradition of travel and a passion for luxury, which are still the essence of the brand," he says.

While the sector staggers with sales of luxury goods expected to drop 10 per cent this year and the market not expected to recover fully until 2012, according to a new report by Bain and Company, Louis Vuitton Malletier it seems, is still going strong.

"This is the third store we've opened in the past four weeks, after London and Padova [Italy]," adds Gallot. "We want to keep the ball rolling. We want to move ahead."

Louis Vuitton bags, which have proven relatively resilient to the consumer downturn, are estimated to generate gross margins of about 45 per cent, according to Reuters – a figure LVMH, the parent company, refuses to confirm officially.

LVMH or Moet Hennessy Louis Vuitton, which reported €17 billion (Dh87bn) revenues last year, is the world's biggest luxury company with a portfolio of more than 60 brands. In the perfume and cosmetics sector, LVMH operates the French houses Christian Dior, Guerlain and Givenchy as well as the Kenzo brand. The fashion and leather goods business group includes Louis Vuitton, Donna Karan, Fendi, Loewe, Celine, Marc Jacobs, Givenchy and Thomas Pink among others, while watches and jewellery unit sells products from TAG Heuer, Dior Montres, Chaumet, and De Beers. The selective retailing business operates in the travel and retail sectors.

Group Chairman Bernard Arnault, who is the richest man in France, has recently stressed on the evolution of the luxury market and the appearance of an even more discerning customer ?a trend Gallot is confident his company will continue to lead.

"Our goal, since the beginning, is to bring the very best in terms of quality. And there's no denying that we are obsessed about it," he says. "Everything that we do and in every communication, we have tried to sell the story and inject back its meaning into products." Founded in 1854 in Paris by trunk-maker Louis Vuitton, the eponymous brand, now embodied by its monogram, has indeed become a by-word for luxury and elegance more than a century and a half later.

Bucking licensing trends, common among fashion houses to increase exposure and expand brand names, Pietro Beccari, Vice President of marketing and communication, says the company is passionate about maintaining control of every aspect the brand's lines.

"We do not license out anything and will never do in the future. To maintain the respect and the quality, we have to have total control of our savoir faire," he says.

Baccari adds that the company is also immune to the predicament facing some of its rivals, where creative directors have warred with business heads on how to cut costs in the current environment.

"We have a clear strategic direction and the financial backing, so we live in peace with our creative director," he says.

American designer Marc Jacobs, who joined as creative director in 1997 and who also designs for his own label, has often been credited with Louis Vuitton's global success.

But the brand's popularity has also led to the proliferation of fake goods bearing its name and monogram, something group chairman Arnault has defined as the biggest danger to the luxury industry post recession.

"Counterfeiting is an abuse of freedom of expression and a theft of creativity. In fighting counterfeiting, Louis Vuitton is protecting creation," says Beccari. "We employ a dedicated team of 40 people in key locations around the world to protect the brand's intellectual property assets. They are based in Paris, with regional offices in Tokyo, Hong Kong, Dubai, Guangzhou, Milan, Buenos Aires and New York and supported by a worldwide network of 250 lawyers, trademark agents and investigators."

Thousands of raids are performed each year involving the seizure of counterfeit products, machines, raw materials and obtaining criminal sentences against manufacturers, wholesalers and retailers, says Beccari. "This fight is part of a worldwide sustainability strategy to preserve innovation, creativity and expert know-how and to encourage the development of a legitimate trade respectful of employment and environment," he says.

While refusing to confirm whether Louis Vuitton will release another special Middle Eastern edition product, Europe President Gallot says the custom-made and made-to-order departments have always been an important element of the brand.

Luois Vuitton also recently launched the "Mon Monogram" service where patrons have the option of personalising their bags by painting them with stripes of their choice or with artistic lettering of their names.

"We want to keep surprising our clients, be on the edge of innovation and still be a lot of fun," says Gallot. "Louis Vuitton is much more than a lifestyle, it's all about sophistication, beauty, good taste, quality, emotion and passion."