...LOUIS VUITTON IN JAPAN -CASE #14 REVIEW LOUIS VUITTON IN THE JAPANESE MARKET ABSTRACT The purpose of this paper is to review the Louis Vuitton business model and the success experienced in the Japanese marketplace. This paper will discuss opportunities and challenges that have been realized by the Louis Vuitton brand while located in Japan, and the specifics to the Japanese luxury market. A review of how the Louis Vuitton brand first entered the Japanese marketplace, the cultural aspects related to social status and luxury goods, which that have helped with the sales growth for the company’s products. Along with tactics embraced later on to strengthen its brand will also be reviewed. The appeal of the Louis Vuitton luxury high priced product, and how the French company’s image helped to sell itself to Japanese consumers with disposable income will be analyzed. The success of various marketing strategies, utilizing the images of actresses to help launch a successful sales campaign will be reviewed. Along with a review of the company’s success by working with various fashion designers to create colorful fashion trends with Japanese inspired themes, through the collaborative work with well-known Japanese artists. The global recession, its effect on the Louis Vuitton product line and sales will be analyzed along with new challenges the company faces for the future. Finally, a discussion on the future success for...
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...Louis Vuitton is the world’s biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer...
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...turn your head and Louis Vuitton is everywhere. The celebration of the 30th anniversary of the presence of the illustrious, glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship Louis Vuitton store. When Louis Vuitton, the world’s biggest...
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... CASE STUDY: LOUIS VUITTON IN INDIA Louis Vuitton in India | Jitesh Anand 1. INTRODUCTION: Luxury Brands in India If it was few decades ago, there was a very limited scenario one could see with respect to the luxury market in India. Those days luxury market was associated with the rich class and with very few upper-middle class people. However, with the involvement of number of international luxury brands in the country, the shape of the luxury market in India has undergone a dramatic transformation. When it comes to the word luxury it is mostly misunderstood with the meaning beyond the reach of common man. With every year passing by, the so called beyond the reach of common man is proving to be a false fact. Luxury products are becoming the necessities not only for the rich class or upper middle class but also for the middle class people. Luxury market in India is build up on basic four elements which are quality, value for money, customer satisfaction and the most important creativity. In order to be successful in Indian market luxury brands should be able to sustain and fulfill these criteria on a long term basis. The Indian luxury market is growing at a rate of 25% which simply implies the consumption of luxury products has been increasing at a fast pace. India is becoming the new destination for luxury brands across the globe and Indian government opening Foreign Direct Investment (FDI) in retail has resulted in many global luxury retail brands to plan and strategize...
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...Positioning of Louis Vuitton Company on the Digital World Students Name Institute Affiliation Date ABSTRACT 1. The study utilizes an investigative approach to finding out the positioning of the luxury brand in the digital world; a case of Louis Vuitton Company. Louis Vuitton is one of the best luxury brands in the market with a worth estimate of $24.7 billion. Many luxury brands have not bought the idea of going online and utilizing the digital platform in marketing their products. Nowadays it is very crucial and as well relevant for any luxury brand to go digital. With the world’s economic changes, people have revised their spending and diverted to a rather more relevant daily survival practices. In such a scenario, Luxury brands need to do an aggressive marketing and making their presence be felt all over the world. The technological advancements in the business sector are playing a bigger role rather. The digital platform has been in use for decades now with many business sectors going online. It is noted that as many business sectors would like to venture in the e-commerce, many luxury brands haven’t bought the same idea. Luxury brand companies have the notion that the digital marketing is made for small and middle-level range of commodities. In the year 2014, only three luxury brands gained their strength in the market with Louis Vuitton taking the lead. Therefore, we ask this question, what makes Louis Vuitton take the lead in the market in this transforming technological...
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...PLAN24 8.0 CONTIGENCY PLAN28 9.0 REFERENCES28 1.0 CASE SUMMARY In recent years, modern customers are no longer acquiring shopping only for their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they can withstand wear and tear, and that there are no imperfections. The company markets its product through its own stores throughout the world and through company’s own website, LouisVuitton.com....
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...ASSESSMENT 1: INDUSTRY RESAEARCH INVESTIGATION SELECTED LABEL: LOUIS VUITTON LOUIS VUITTON WAS A FRENCH ENTREPRENEUR AND DESIGNER WHO’S NAME HAS BECOME ICONIC IN THE FASHION WORLD. STUDENT NAME: HARIS BIN NAJEE STUDENT ID: 131504007 STUDENT NAME: HARIS BIN NAJEE STUDENT ID: 131504007 INTRODUCTION: Louis Vuitton one of the biggest name in fashion luxury brands was born on august 4, 1821 in Anchay, a smallest town in eastern France mountains. Louis Vuitton belonged to a family of working people; most of his family members were farmer, millers and carpenters. His father Xavier Vuitton used to work as a farmer and his mother, Coronne Gillard was a miller. START AS LUGGAGE PACKER: Louis Vuitton started his career as a luggage packer. During that time rich people used to travel a lot and they always needed someone expert to pack their luggage so that their suits and dresses would not winkle. Louis Vuitton started getting famous and was respected in Paris upper class people. In 1853, Vuitton became a personal packer for French emperor Napoleon’s wife. Vuitton also created personal luggage for her. INVENTION OF FLAT-TOPPED TRUNK: After establishing his name in field of luggage packing Louis Vuitton opened his own workshop in Paris. And soon Louis Vuitton established himself as a designer of strongly built luggage. Vuitton introduced a new and modern style of trunk. In the days of coach...
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...Luxury Brand Strategy of Louis Vuitton Shin'ya NAGASAWA* * Graduate School of Commerce, Waseda University Tokyo, Japan, nagasawa@waseda.jp Abstract: By systematically breaking down th e strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a busi ness m odel for success. Showing that the current rise of Louis V uitton is not a coincidence but rath er so mething ach ieved th rough strat egy will su rely b e of in terest to firm s struggling with lack of brand power or those looking to boost brand power. Key words: luxury brand, brand management, Louis Vuitton. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word “brand” to refer to the likes of Coca-Cola and McDonald’s, there is a vast gulf between these brands and the luxury brands we e xplored i n t he p revious b ook. I n researchers’ brand m anagement theories, one r arely fi nds m ention o f representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although small in scale...
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...Zhengyi Fang Marketing 350 Prof. Eguchi Aug 8th 2013 Marketing Analysis of Louis Vuitton Classic Handbags Louis Vuitton handbags and luggages are known and recognized throughout the world as the symbol of extreme quality, prestige and luxury. It is one of the biggest and most profitable luxury brands in the world right now. Mr. Vuitton established the company in 1854, and he designed and introduced flat-bottom luggage trunks made with trianon canvas. The flat-bottom luggage became the favorite of Empress Eugenie, and it has become the luggage choice for the wealthy. In 1867, the company won an award at the World Exposition in Paris and its influence spread out in France. In the following year, Louis Vuitton opened its first overseas store in London. In 1892, Louis Vuitton passed away, and his son George Vuitton took over the company and build the company into a worldwide corporation. In 1893, it entered the U.S market. In 1896, it launched its signature Monogram Canvas print, and secured worldwide patents for it. In this essay, I shall analyze the micro and macro environment of the Louis Vuitton classic handbags, and discuss the its marketing mix. Microenvironment It consists six actors, which are the company, suppliers, marketing intermediaries, customer markets, competitor, and public, these factors are close to the company and can affect the company’s ability to serve its customers. * The company The company itself is the first force in the company’s microenvironment...
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...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families...
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...2. The strength of Louis Vuitton is in its strong, established brand image and international presence. Brand name is what allows the company to de-commoditize luxury products and extract premium from the market. Throughout its history Louis Vuitton has developed a reputation for providing its customers both quality and unique product image. Louis Vuitton products distinguish themselves on five key traits: high prices, excellent quality, aesthetic and emotional value, rich brand history and uniqueness. Solid business model and rapid expansion overseas proved to be a great platform to help establish a high-end international brand image. Ability to control its distribution channels allows Louis Vuitton to capture value added instead of giving it to the middlemen such as suppliers and retailers and to deliver the best quality goods to the customers. Owning shops gives Vuitton control over level of stock, presentation and pricing. Additionally, LVMH is the most highly diversified luxury goods company. Even though LVMH is an acronym of three brands: Louis Vuitton Moet Hennessy, the company owns over 50 brands: 13 apparel and leather goods brands, 20 wines and spirits, 6 retail brands, 10 perfumes, 5 watches and jewelry. This multi-brand strategy that LVMH adopted is another company’s strength. Opportunities exist for Louis Vuitton to continue with its current strategies of establishing large branches worldwide. Louis Vuitton products are designed for wealthy individuals, who demand...
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...Louis Vuitton Analysis Mary Askew American Public University Abstract Louis Vuitton is a brand of luxury items. It was started by an avid trunk makers and is now currently the top luxury brand provider for the tenth year straight. Louis Vuitton has been able to sustain its leadership in this competitive field by being innovative and garnering the best team the company can have. The leaders keep close tabs on the inner workings and control all aspects of products from manufacturing to sales.They are always looking to expand and increase market share. This paper will take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the LV...
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...Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH faced in Japan and established some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis...
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...Louis Vuitton in Japan Case Study Student’s Name Instructor’s Name Course Title Date What has made LV’s business model successful in the Japanese Luxury Market? Japanese luxury market has often placed the greater deal about value on quality along with exclusivity of the products that are being offered as well as it is the critical success factor for the luxury brands within Japan. Fact, which Louis Vuitton has regularly concentrated on enhancing the quality of their product portfolio, has been the important element towards brand’s success in between Japanese luxury market. What made LV’s business model successful within Japanese Luxury has been most important because of the aggressive marketing strategy that they have adopted in the entire nation. Rather with its heritage, “savoir-faire à la française”, constant innovation, quality of its products along with the offered lifetime repair guarantees, LV’s has managed making their Japanese consumers loyal to brand along with succeeded to build their empire within the Japan. What are the opportunities and challenges for LV in Japan? Opportunities Features of evolution of ageing Japanese population might be the option for Louis Vuitton, like wealthier families along with old women with enhanced buying power, however establishing the Internet business, application for the smart phones and also expending the newer range of products for men as well as kids might be next step for enhancing growth within the...
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...MODULE TITLE: Strategic Management MODULE CODE: MAN4169M MODULE LEADER: Dr. Nikolaos Papageorgiadis DEADLINE FOR SUBMISSION: Tuesday, 30th April, 2013 TOPIC:Strategic Evaluation of Louis Vuitton STATEMENT OF AUTHENTICITY: I certify that this assignment is the result of my own work and does not exceed the word count noted below. PAGE COUNT: 24(Including Title Page) UB NUMBER:12017925 EXECUTIVE SUMMARY The personal luxury goods industry is one in which the luxury products created are goods of very high quality but are very expensive as a result of these high levels of quality. The customer range in this particular industry is usually of high net worth or high earners. Louis Vuitton is a French company that is one of the major producers of personal luxury products and as of recent data, is the industry leader in sales and revenues worldwide. At all times, their mission is to keep their values which is basically to provide refined quality products to the customers that they know can obviously afford to pay large amounts for these levels of quality. The company seeks to stick to their core values while remaining at the top of this particular industry and continue to make their high amounts of revenues and sales. The main objective of this report, is to advice the company on the factors that will possibly affect the company internally and externally before we use this to lead to a strategic plan of implementation for the company to attain its goal of remaining...
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