Luis Vuitton Case

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Louis Vuitton Case

1) Specifics of Japanese fashion industry:

Overview of the Japanese market: “Luxury and a mass market paradise for luxury brands.” Estimate by HSBC is that Japanese luxury market is the final destination of 45 percent of luxury goods sold worldwide.(*19). Claudia D’Arpizio also justifies the same argument saying that Japan is the world’s largest market and has the highest per capita spending for luxury goods.

Competition:
Bulgari makes 26 percent of their total revenues in Japan with 34 stores. Other competitors of Louis Vuitton are Baccarat, Burberry, The Gucci Group with 49 stores, 64 Salvatore Ferragamo boutiques, 37 Chanel stores, 115 Coach stores, 50 Tiffany& Co. boutiques, on the other hand there are 252 stores of LVMH group.

Quality is the most outstanding factor in the Japanese fashion industry. New foreign brands (Zara, H&M or Uniqlo) try to get shares in the Japanese fashion market by offering higher quality products for comparative prices. 2) What has made the Louis Vuitton business model successful in the Japanese market?

The qualities that Louis Vuitton brought to the Japanese market were matching with the consumer behavior in Japan, which is the pressure to possess luxury status-driven brands. Since Japanese people could not afford to buy homes, they were mostly focusing into increasing their life standards, which in this case is focusing on luxury brands. For Japanese customers buying more expensive products was expected within the society, so the sales of the high quality, luxury brand Louis Vuitton have been growing up in Japan. In short, the consumer behavior in Japan was perfectly matching the target market of Louis Vuitton. Another reason for Louis Vuitton success is the fact that young women in Japan are beauty-conscious. 3) How did Louis Vuitton enter into the Japanese market originally? What were the other entry strategies it adapted later to strengthen its presence? Louis Vuitton has entered...
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