Producer-to-Consumer Margin Capture

"It already shows the desire to remain in control of his business and to be close to the final consumer, in order to capture the entire margin."

"In 1987, 45% of the company's sales were made in the Asia-Pacific region, with crazy margins. In Japan alone, the profits displayed reached a third of the turnover, which amounted to 9 billion francs! Louis Vuitton will also create stores in the United States and Europe. Racamier's strategy is clear: directly from producer to consumer. To make more money, Vuitton's CEO wants to combine the margins of the manufacturer, wholesaler, and retailer."

""In the perfume world, Bernard Arnault broke a taboo. The idea that a manufacturer should remain a manufacturer and not compete with its customers.""