Lv Case Study
CASE 2: LUXURY RETAILER LOUIS VUITTON IN CHINA: LOSING LUSTRE OR ADDING COLOUR? – Due date: Session 6
1
What are the strengths and weaknesses of Louis Vuitton Retail strategy in general, and in China in particular?
The retail strategy LV adopted is the direct store management, they have exclusive channel of distribution. It is Located in high street locations or exclusive shopping malls with other designer brands.
Strengths:
Direct control of every retail operation process
Advantage to manage brand experience easily
Higher brand awareness
Weakness:
More challenging to manage
Exclusive distribution may limit its presence, limited coverage and network
Huge investment on staff training
Louis Vuitton adopted ‘big store’ strategy in China, focusing on “inland expansion”.
Recently, it slows the expansion in China. Reasons may include the lack of well-trained sales force, and diffusion of brand image by the widely availability.
Moreover, it adopted a differentiation strategy, to separate Chinese consumers into 3 categories. The three segments are: aspirational buyers, male customers, and shopping for gift giving purpose. These different profiles determine how they would emphasize on different appealing factors.
2
After your visit to “Louis Vuitton Maison” at Plaza 66, please list the pros and cons of such an investment for such a well-known brand as Louis Vuitton.
Pros
The Maison would be impressive and possibly it would be a destination itself to most people, help to give a comprehensive artistic and cultural presentation of the brand: the heritage, brand identity, and range of products.
Inside the Maison, they set up a workshop, where they showcase the procedures to customize the product. This is would put emphasize on the craftsmanship they have and value.
For a new Louis Vuitton customer, the Maison would introduce them to the history, heritage and brand universe of Louis Vuitton.
Shopping experience at Maison would
1
What are the strengths and weaknesses of Louis Vuitton Retail strategy in general, and in China in particular?
The retail strategy LV adopted is the direct store management, they have exclusive channel of distribution. It is Located in high street locations or exclusive shopping malls with other designer brands.
Strengths:
Direct control of every retail operation process
Advantage to manage brand experience easily
Higher brand awareness
Weakness:
More challenging to manage
Exclusive distribution may limit its presence, limited coverage and network
Huge investment on staff training
Louis Vuitton adopted ‘big store’ strategy in China, focusing on “inland expansion”.
Recently, it slows the expansion in China. Reasons may include the lack of well-trained sales force, and diffusion of brand image by the widely availability.
Moreover, it adopted a differentiation strategy, to separate Chinese consumers into 3 categories. The three segments are: aspirational buyers, male customers, and shopping for gift giving purpose. These different profiles determine how they would emphasize on different appealing factors.
2
After your visit to “Louis Vuitton Maison” at Plaza 66, please list the pros and cons of such an investment for such a well-known brand as Louis Vuitton.
Pros
The Maison would be impressive and possibly it would be a destination itself to most people, help to give a comprehensive artistic and cultural presentation of the brand: the heritage, brand identity, and range of products.
Inside the Maison, they set up a workshop, where they showcase the procedures to customize the product. This is would put emphasize on the craftsmanship they have and value.
For a new Louis Vuitton customer, the Maison would introduce them to the history, heritage and brand universe of Louis Vuitton.
Shopping experience at Maison would