The key success factors(KSFs) in the Japanese marketplace is that Levi’s have successfully implemented the localization strategy.
As Japan is such a country that the consumption of the world’s luxury goods maintain in the first place.Many brands in Japan have a strong tendency. So if one product want to sell successfully in Japan, it must modify to meet the Japanese local needs and preferences. And they don’t mind whether the price is expensive or not. Hence Levi’s success is also due to the localization strategy. Levi’s is a great mix with the Japanese environment.
Levi’s opened a corporation under a wholly owned subsidiary in Japan at the time when Levi’s entrance was considered impossible. They make the products to meet the Japanese people’s body size because the Asian people are more fitter than Americans. And all the products are produced by Japanese people. Furthermore, Levi’s products in Japanese was taking in high-end line which attract a lot of fashion people to buy.
The Bicentennial in the mid 1970s created a large demand for American goods and American Culture. During the mid-1980’s jeans grew because of the changing trends or Japanese adolescence. Casual wear and leisure time became more popular during this time period. The Decade after this the market for jeans shrunk.
Levi Strauss moved into Japan in 1991
Japan was already a competitive market with brands like Edwin, Big John, Bobson, Wrangler and Lee already there Denim in seen as premium fashion item
In the beginning Levi Strauss used specialty stores to sell merchandise. Because of the premium image denim was priced significantly higher than it was in the United States.
By selling in small urban specialty stores Levi Strauss had an image of high quality . All other brands were sold in specialty stores as well so Levi Strauss never lost when compared with their competition. Later National Chains began to pop up in Japan.
Levi Strauss would begin to sell to them and leave the specialty stores. Selling in the national chains damaged the perception of quality but allowed for better control of inventory and quicker response times. Also gave Levi Strauss the ability to sell a full line of products instead of just Jeans.
2. To what extent do the Levi Strauss’s FSA’s and CSA’s match the KSFs? How has Levi’s been able to leverage its country-of-origin to become a leading brand? Can other American jeans do the same? 8 marks.
Levi’s is a history of 100 years old brand. The brand can be crucial in the FSAs occupy the position. The Japan market and the Unites States market have essential difference. They are not only fanatical pursuit of the West, but also have trandional oriental culture of the East.
As a developed country of the East, Japanese market have two attractions for the United States in the CSAs strategy. There are Market potential and Potential market segmentation.
Over all, the expansion strategy of Levi’s not only take into account of their own advantages, but also make full use of Japan’s cultural environment. Finally achieved the desired objectives of the KSF’s.
Levi’s is relying on the interaction between FSAs and CSAs to match the development of KSF’s. That is why Levi’s can become the leader of the jeans brand in Japan.
Firstly, Market potential: Japan belong to developed countries, and the Japanese per capita income is relatively high than another Asian countries. Besides, the Japanese fanatical pursuit of trendy things and japan is the birthplace of the trend in Asia. So here has a great market potential.
Secondly, Potential market segmentation: the Potential market segmentation also attracts U.S. exporters. Although, Japan has a lot of local jeans brand. United under the banner of “trend” slogan into Japanese market, and inviting the Japan’s superstar to do the spokesman foe the jeans. There are attract a lot of chasing the...