Louis Vuitton Case Study

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Louis Vuitton Case Study

By | March 2012
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Louis Vuitton(LV) was est. in 1854 in France and is known as one of the oldest French luxury fashion houses. The brand became famous for its exclusive leather bags and trunks. Over the years the LV line expanded from leather goods to fashion, selective retailing; wines & spirits; perfumes & cosmetics; watches & jewellery making the brand one of the most luxurious brands worldwide.

The LV brand is most recognizable for its logo, quality, uniqueness and price. It resonates a sense of prestige, quality and longevity in the minds of the consumer and in the fashion world.

Previously tailored to the more affluent social strata, LV is now tapping into a more youthful middle class demographic by setting new trends in global high fashion.

The core of the case is about the restructuring of the LV brand in the Japanese market after the economic downturn since 2002 and the increase in competition. The Japanese Market is known as the ‘Capital of Luxury’, it is the leading market for Louis Vuitton products. Over 20 million Japanese women currently owns a signature LV bag and each year five million units of the class monogrammed bags are sold.

The Japanese market is known for having a high demand for fashion and it is the source for new trends and creative ideas. However, because of the decline in the economy and numerous competitors surfacing in the Japanese market sales for the LV brand have significantly declined. Therefore, the LV brand needs to restructure itself in the Japanese market to ensure future profits.

There are a few major hiccups the Louis Vuitton company faced in Japan. A major issue it encountered was market and brand dilution. As it ventured into product line expansion Louis Vuitton was challenged with upholding the prestige, exclusivity and quality its name epitomised, and growing its market share. A clear example of this problem was the repetition the ‘Limited Edition’ products which caused confusion in people’s minds as well as damage to...
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