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Old Jun 23, 2019 | 7:38 am
  #796  
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Originally Posted by hornillas1
The distribution description from the agent at La Voyagerie is not entirely accurate.

The terms and conditions for third party retailers has greatly changed and have become more selective.

La Voyagerie likely does not have the sales turnover to justify LVMH approving their contract request to sell RIMOWA. All third-party retailer contracts were terminated last year. LVMH directed all third-party retailers/distributors to apply for a new contract, based on revised LVMH criteria.

Selected retailers must have an annual gross sales revenue of 400,000 EUR of RIMOWA product, at least 20 square meters of dedicated retail space, and sell other brands that meet the market LVMH is selling to (think Tumi, Montblanc and other luxury lifestyle retailers).

Third-party authorized dealers are required to carry the same in-store livery concept that the LVMH flagship stores maintain (displays, arrangements and presentation schemes). Designed by Universal Studio Design, and originally showcased at Berlin Fashion Week, the displays require significant modifications to current store layouts.

For example, Lederwaren Hetzenecker, in Munich, has retained its authorized retailer status. The retailer has completed one of its renovations, 1x in progress, 1x still requiring renovations at its downtown retail locations.

Qualifying third-party retailers are having these upgrades completed by the end of 2019 to align with LVMH's requirements.

The redesign of its distribution network shifts to more selective systems and promotes the "shop-in-shop" concept.
As far as I know, La Voyagerie has reapplied and was approved to continue to sell Rimowa, they have redone their store to Rimowa standards, even their website and Google searches now prominently mentioned Rimowa. As far as business turnover on Rimowa, I don’t know how much they sell but judging from the frequent replenishment of their stock and the average selling price of Rimowa pieces, I can see how they would sell north of 500,000 euros in Rimowa per year without any difficulty.

What they told me is a new retail & distribution strategy set to go into effect by the end of 2019.
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