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Longchamp Case Solution

Solution Id Length Case Author Case Publisher
2754 1520 Words (6 Pages) Jill Avery, Tonia Junker, Daniela Beyersdorfer Harvard Business School : 316086
This solution includes: A Word File A Word File

Longchamp materialized into a fashion retail brand selling handbags, clothes and shoes with many other potential extensions. It introduced femininity in its brand in 1970 via the launch of LM, the woman handbag. Longchamp hit the jackpot with the foldable nylon bag Le Pliage, which became its best-seller. 50% of its production was in France, while the rest was in China, Mauritius, Morocco and Tunisia. Handbags were made by hand with great craftsmanship, while outside parties made shoes and clothing. With a presence in 100 countries, it operated via its own outlets, departmental stores and stores carrying multi-brand leather goods. Longchamp onboarded Kate Moss and Alexa Chung for its marketing campaigns to add more personality and class to its brand. To become a 1 billion Euros company, it aims to streamline its brand extension strategy, refine its distribution strategy and find a way to sell more of its premium leather offerings.

Following questions are answered in this case study solution:

  1. Why has Le Pliage been so successful? To what do you attribute its popularity and longevity? What is the role of the Longchamp brand in its success?

  2. How should Longchamp best manage its Le Pliage product line to ensure that it maintains its mythical status?

  3. How strong is Longchamp's current value proposition in the marketplace? What do you think of its aspiration to change its position to move the brand up market and away from accessible luxury brands? Is this a wise move? Does the company have what it takes to do so? What defines a high luxury brand?

  4. How should Longchamp manage its product portfolio and distribution strategy to best achieve its goals? What is the right mix of products and what is the right mix of distribution channels for Longchamp?

Case Study Questions Answers

1. Why has Le Pliage been so successful? To what do you attribute its popularity and longevity? What is the role of the Longchamp brand in its success?

Le Pliage had a very attractive price point, generating remarkable sales, awareness of the brand and footfall. It was made of Nylon, which was an exception, and was foldable with ease. It was spacious and embodied simplicity. 12 different colours and 6 different sizes were available in which handbags, shopping bags and travel bags were included. Prices hovered from €55 to €125 in France, which was quite economical relative to the leather handbags. Le Pliage was introduced in various colours, fabrics and patterns, which always kept customers interested. Longchamp partnered with promising artists to produce refreshing articles. Schoolgirls played a big role in its shot to fame as they approved of Le Pliage as the "It bag" in 1998 and made it cool. It was perplexing because the rich wouldn't be turned off if the poor wore it, and young people wouldn't be turned off if the elderly wore it, which usually doesn't happen in the universe of luxury fashion. It was practical and light yet stylish and timeless. It had a brilliant quality-to-price ratio and was fitting for so many occasions. 

For some, it is an aspirational buy, and for some, it is a routine buy. It worked wonders in Asian countries like Indonesia and Bangkok and followed a similar route in European countries. Longchamp had a big role in Le Pliage's success as it instilled the correct values of being innovative, fun and elegant. The selection of Kate Moss was a big surprise as she was involved in controversy, but the Longchamp management showed faith in her abilities and predicted that her international status would give the brand the attention it needed. Consequently, Le Pliage saw another rise in 2006 when Kate Moss appeared in advertisements, which positively affected the whole line because of her modern traits being associated with Le Pliage.  

2. How should Longchamp best manage its Le Pliage product line to ensure that it maintains its mythical status?

Le Pliage should be managed very wisely. The owners have been very cautious with it, and that is the right way to go. They made sure that its distribution was limited in such a manner that it was not present in huge quantities everywhere. They made it difficult to get.

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