This case study deals with the opportunities and challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials.
Hire Writer First of all, the specifics and advantages of Japanese market played a significant role in facilitating Luvs success. These advantages of Japanese market will be discussed further in Question 3.
With these specifics and advantages facilitating its operation and production principles, Louis Button L V was able to adapt to the Japanese market and quickly occupy the Japanese luxury market. Ere success of Luvs business model also benefited from the first mover advantage in Lebanese luxury market.
LB entered the Japanese market inand it met the Lebanese economy boom in the following years. The pioneer advantage arose as the company established its own subsidiary in Japan while other foreign companies only manufactured and distributed their products by licensing.
The advantage enabled LB to build solid brand image and to increase the market share. Meanwhile, the company accumulated experience in Japanese market, which would have positive influence on the further development in Japanese market and the later expansion to new Asian markets. LB has been committed to the quality control.
As Japanese arrest emphasized greatly on the product quality, good quality made LB acceptable and popular in Japan.
Through achieving high quality, LB nurtured an addiction of the Japanese to luxury and built the loyalty to the brand in order to sustain its profitability. This made Japan the largest market of LB for a long period. According to the smile curve of value creation, LB insisted adding value to its brand and products to sustain its profitability.
To keep the brand new and attractive to Japanese customers, Louis Button strove to add fashionable elements into its products and maintain the tradition and heritage of the brand.
With such innovation, Louis Button started to reach more local customers and continuously motivate purchases since most Japanese women are beauty-conscious. Also, as believing that productivity Mould not sustain growth, the company built the brand image through great expense in advertising.
In addition, the efficient structuring of the company led to the management efficiency, which guaranteed the normal operation to LB and Provo De d the solid foundation to its success in Japan. Besides, production efficiency is another key factor of Luvs successful business model. The production was completed through teamwork, ND the employees were trained to be autonomous and multi-skilled so that the problems of the product could be found by the front-line workers and solved timely Ninth their knowledge and experience.
What are the opportunities and challenges for Louis Button in Japan? The inherent advantages of Japanese market brought Louis Button great success. While the market is growing rapidly and gradually come to be mature, challenges, which also imply opportunities, appear to LB in Japan.
For the weak economy, the consumer preferences began to shift, and the Japanese consumers became not to endure high prices. The young generation began to lose its appetite on L. Ft, however, an opportunity can be seen that the wealthy old generation gained increasing purchasing power as Japanese population aging.
Meanwhile, as the competition from foreign brands rose, the consumers tended to turn to the brands like H and Ezra for its good quality with affordable prices. Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality.
The situation of LB in Japan seems to be fierce, however, with effective solutions, LB can also seize the opportunity to sustain profitability in Japanese market rather than Just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Button.
As the scandal of counterfeit sold on the websites in led to a cline in the sales of Louis Button products, it can be viewed as a valued opportunity for Louis Button to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.
Another challenge tort Louis Button is the market and brand dilution as I t NAS already entered and successfully fit in the Japanese market. The figure provided in the case showed that nearly half of the Lebanese have Louis Button-monogrammed items by the time of This seemed to make LB prevalent but not luxury any more.
To maintain its brand image, it is also an opportunity for Love reposition itself as a fashion luxury brand by offering fashionable and up-to-date design without abandoning its heritage. Since most Lebanese females are beauty-conscious, the fashionable design can help Louis vitiation regain the profits and the market shares.
Besides, in this case, providing limited editions is another good way to stimulate consumption. This forces Louis Button to seek new strategies to attract customers. Additional opportunities for LB rise as solutions to this problem. LB can either expand the market by opening stores in middle-size cities or grow customer base by developing new products such as products for Children in order to increase the revenue.
What are the specifics of the Japanese fashion luxury market? Ere distinctiveness of Japanese fashion luxury market contributes a lot to the success of LB. Or consider the overall Japanese market, the consumers have large demand for high fashion products because of the social culture, social structure and shared value in Lebanese society.
First, Japanese women were conscious to beauty and willing to purchase things that could be considered beautiful.SYNOPSIS CONTD This case deals with the opportunities and challenges of Louis Vuitton in japan, a top player in the European luxury fashion industry, taking into account the unique features of brand management,integrating culture and consumer behaviour.
Louis Vuitton Future Challenges. LV faced many challenges since entering the Japanese market, but, at the same time, they have thrived with-in the market. Globally, one of the biggest challenges that LV faces is their dependence on the Japanese market%(13).
LVMH Moët Hennessy Louis Vuitton Company Profile - SWOT Analysis: LVMH Moët Hennessy Louis Vuitton SA opportunities and threats. Inform your marketing, brand, Category and country opportunities for growth; Challenges and threats from current competition and future prospects;.
Louis Vuitton is the world's most valuable luxury brand and is a division of LVMH.
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To project the consumption of Luxury Fashion submarkets, with respect to key regions (along with their. Feb 19, · LVMH Moet Hennessy Louis Vuitton SA raised some prices by an average 12 percent at its flagship brand in Japan, the unit’s biggest increase, to .