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LVMH looks to burnish Vuitton mystique and buoy sales

French luxury giant LVMH is struggling to retain its image as exclusive and high-end creators of USD10,000 alligator handbags and goat-lined fur coats, while opening enough stores and reaching enough customers to keep profits high.

Thus far LVMH has managed the balance well, but it is taking no chances, offering customers increasingly expensive and bespoke services in an effort to retain a high-end mystique around brands in danger of becoming ubiquitous.

LVMH is taking particular care to protect the image of Louis Vuitton, the group’s signature brand, which accounts for 45 percent of operating profit, and has boasted double digit percentage growth through the financial crisis.

(Source: CNBC)