Louis Vuitton in Japan
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 a la francaise”, 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?
Louis Vuitton in Japan Essay Example
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 Japanese Luxury market. Challenges Changes within the Japanese society along with mindset have been the biggest challenge for Louis Vuitton.
New generation does not have similar vision as earlier one along with with gloomy economic context they have lesser inclined towards tolerating the high prices, which was earlier developed desirability. However, entry of the fast fashion brand like ZARA, H&M, UNIQLO in Japanese market, providing the quality at the competitive price shook up market share of present luxury organizations within the Japan. Saturated market within the Japan for the fashion luxury, regular lesser editions of products along with feasible departure of the Marc Jacobs might in addition be pointed out like challenges for LV.
What are the specifics of the Japanese fashion luxury market? Consumer behavior has been one of biggest specific of Japanese fashion luxury market. Japanese method of consumption has been separate from Western one, as they have been called to be the group related culture in that there had been actual pressure for possessing the luxury brands, its methods of consuming those looks more like the compulsory form of the social expression.
And with sufficient marketing strategies successful luxury brand had made Japanese luxury market big market. Apart from that, Japanese customers have often been sensitive towards quality, price, and creativity along with higher fashion these have been the important factors for the successful brands in Japanese market. How did LV enter into the Japanese market originally? What are the other entry strategies adopted later to strengthen its presence?
Enter of LV in Japanese market started in mid of the year 1970 however thanks to Vuitton Racamier family who was concentrated majorly on building the Japanese clientele. LV opted for the newer strategy through opening their individual shop in shops in between Japan without help of the Japanese distributor. Louis Vuitton turned out towards being the pioneer in establishing their individual subsidiary as well as exporting products directly from the France to Japan.
However, hiring the domestic Chief Executive Officer along with managers for leading Louis Vuitton within Japan permitted brand for doing business much more efficiently trusting they have been much more capable of making market driven decision, as they have been capable of better understanding domestic people. However, through providing architectural stores with the interior design comparable to found in their flagship stores within Paris, Louis Vuitton has been capable of revolutionizing entire buying experience in store matching emotion brought out through products.
For strengthening their presence within the Japan Louis Vuitton opted for many others strategies, like hiring Marc Jacob who was created new energy for every ready to wear collection, mixing tradition as well as innovation however in addition through collaborating with the Japanese artists along with launching lesser editions products (exclusivity perceive through consumers) that allows Louis Vuitton to enhance their profit right away. With Japanese economic boom of 1980, Louis Vuitton saw the real option along with decided for entering within this Asian market.
However the strategy adopted through company had been totally separate along with uncommon from rest of the world wide actors. Rather, Louis Vuitton had been initially multinational for opening their individual shop in shops through establishing their own subsidiaries, concentrated on only 1 brand of their portfolio. LV did not use usual supply chain schema along with help of the Japanese distributors however exported their products, straightly from France to Japan. Such a strategy provides real benefit to company, underlying higher quality of their production along with distribution systems.
LV strategy had original in fact, which that gave the stronger autonomy towards their subsidiaries, and power about market driven decisions. LV trusted Japanese managers along with started on its perfect comprehension as well as knowledge of domestic people, domestic culture along with local consumer behavior. For strengthening their presence in the Japan, LV gave some flexibility towards Japanese market through designating that the place for test newer products and for opening open avantgardist stores, with help of renowned Japanese designers as well as artists. Will LV have any new challenges arise due to the global financial crisis?
How does it overcome the new challenges? As described earlier there has been the shift within the Japanese customer preferences along with this has been even much more highlighted because of the global financial crisis. Rather, days of charging the higher price for products having proprietary logo looked to be gone within the Japan. In the time of recession Japanese customers have been becoming much more aware about value of money. However, counterfeiting seemed even in Japanese market in which quality has been one of important factors within act of buying the luxury goods along with this became the bigger challenge for LV.
Now that fake bags have been hard to differentiate from genuine ones, Japanese customer would purchase fake LV bags, which they would use for daily life, even if they own authentic, which they would save for important occasions. As there had been sustained slowdown in demand for luxury goods in the year 2008 to 2009 because of the global recession, Japanese luxury market would remain the healthy as well as increasing industry along with strategic decisions may overcome those challenges.
On the contrary LV has decided to reduce their prices however they had made 7% price reduction on their range of products. On the contrary LV designated Kiyotaka Fujii the new CEO that initial change in Japanese management team. Such a change in the management allows brand to have the newer vision along with newer concepts such as expanding range of the products for children, sales of smaller products (wallets, sunglasses), spreading the business on web, expanding their strategies as well as opening the newer stores in the mid size cities in which brand has not been well know.