Case Study Analysis Case #14 Louis Vuitton in Japan

Topics: LVMH, Economics, Luxury good Pages: 1 (300 words) Published: February 17, 2013
1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? The company has been successful by using a business model that includes adaptation to the changing economy. They have had to create lower priced items to sell during rough economic times. They are constantly improving quality of the product to please the customer. 2. What are the opportunities and challenges for Louis Vuitton in Japan?

There are times when spending is low due to the economy, but Japan’s market shows peak times of spending as well.

The challenges LV market in Japan is the number of competitors like Coach and Gucci. Other companies such as H@M offer low prices for more money conscious consumers.

3. What are the specifics of the Japanese fashion luxury market? In the Japanese culture there is a need to show your status. This is done by purchasing expensive luxury items to wear. In Japan it is socially acceptable to be a shopaholic because this is a part of their culture.

4. How did Louis Vuitton enter into the Japanese market originally? What were the other entry strategies it adopted later to strengthen its presence?

LV originally entered the Japanese market as a shop-in-shop. This allowed them to conduct business without a Japanese distributer. The merchandise was shipped from France to Japan to a store that LV had full control over. Later other entry strategies were used. One was using a famous Japanese fashion designer to head a collection in 2008.

5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges?

Due to the global financial crisis, LV could see a decrease in customers. They will have to lower their prices in order to remain competitive.
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