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June 20, 2015
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LVMH has used licensing deals in order to make this products not only accessible, but at the same exclusive or prestigious to own.
2. How do LVMH executives adjust prices in response to changing economic conditions?
In response to changing economic conditions executives have raised wholesale prices to make sure that discount retailers do not purchase designer products for resale in outlet stores...
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LVMH has also raised prices in countries that have experienced currency devaluation like Japan. Also in Japan LVMH cut back on advertising and other promotional expenses to maintain profitability. In some cases LVMH was able to renegotiate leases for longer terms and saving up to one third of the cost...
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