Paris based, world’s largest luxury goods conglomerate, LVMH, constituted in 1987 by merging 102 years old, Louis Vuitton Malletier (“Louis Vuitton Trunk-Maker”) with the champagne producer Moët et Chandon and Hennessy, has been permitted by the FIPB to open duty free shops in India at Mumbai and Delhi international airports. These duty-free shops will be operated by DFS Venture Singapore- a LVMH subsidiary based in Singapore. LVMH is already present in the Indian retail sector having entered earlier through single brand FDI route.
LVMH will set up the airport shops by investing Rs 40.5 crore, divided between Delhi (18 crore) and Mumbai (22.5 crore). LVMH will build infra-structure facilities including warehouses. LVMH is also expected to offer quality merchandise at reasonable prices by leveraging on its sourcing network spread across the world.
Louis Vuitton’s signature leather goods are highly regarded in the fashion world and have created a cult-like following among consumers, who proudly display the logo and designs and refer to the products as “Louis.” The Louis Vuitton “monogram canvas” design, which was created in 1896 with the intent of preventing counterfeiting, is considered the very first designer label on a product in the world. Ironically, the Louis Vuitton brand has, however, become the most counterfeited brand in fashion history as more than 98% of all items branded with the Vuitton logo are counterfeit.
Unlike other less exclusive brands, Louis Vuitton products are sold only through Louis Vuitton boutiques in upmarket locations in wealthy cities and in concessions in other luxury goods shops like Harrods in London.