What: The FT reviews what is currently at stake at Louis Vuitton and how the brand plans to reach the €30bn mark.

Why it is important: LV is increasingly identifiying itself as a “cultural brand” rather than a luxury one. Department Stores should observe and apply some of LV’s recipes to their own branding.

Louis Vuitton, a fashion house owned by LVMH, has experienced impressive growth, doubling its size in the past five years to surpass €20bn in annual sales.

Its success is attributed to its positioning as a cultural brand, rather than just a fashion label. In recent times, Louis Vuitton's visibility has been boosted by stars like Zendaya and collaborative ventures such as the appointment of entertainer Pharrell Williams to design menswear, even though men's fashion only accounts for about 5% of the brand's sales.

Despite these successes, LVMH sales slowed to a 9% growth in the recent quarter, down from 17% in the previous three months.

Regardless, HSBC predicts the brand will achieve €30bn in sales in upcoming years. Expansion opportunities in areas like perfume, cosmetics, and potentially hospitality are also on the horizon.

However, there are challenges ahead. The brand's womenswear line is perceived as weaker, and there's concern that the brand's growth could make it seem less exclusive. Recent market trends also show a softening in the luxury sector, with LVMH's share prices falling.

Louis Vuitton juggles volume and value as luxury boom ebbs