Louis Vuitton is the world’s biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors (Nagasawa, 2009a). LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer for the Japanese Market products. In fact, LV tired to localize their products for Japanese to attract more customers as they saw the demand for the luxury in this market. One way LV localized their products was the use of Japan’s Classic Monogram Canvas Print on their bags, which was inspired by Japanese floral print. One way to show the success of LV’s business model is by using the four Ps.
How did LV enter into the Japanese market originally? What are the other entry strategies adopted later to strengthen its presence?
Enter of LV in Japanese market started in mid of the year 1970 however thanks to Vuitton Recamier family who was concentrated majorly on building the Japanese clientele. LV opted for the newer strategy through opening their individual shop in shops in between Japan without help of the Japanese distributor. Louis Vuitton turned out towards being the pioneer in establishing their individual subsidiary as well as exporting products directly from the France to Japan.
However, hiring the domestic Chief Executive Officer along with managers for leading Louis Vuitton within Japan permitted brand for doing business much more efficiently trusting they have been much more capable of making market driven decision, as they have been capable of better understanding domestic people (Saillard, 2009). However, through providing architectural stores with the interior design comparable to found in their flagship stores within Paris, Louis Vuitton has been capable of revolutionizing entire buying experience in store matching emotion brought out through products.
For strengthening their presence within the Japan Louis Vuitton opted for many others strategies, like hiring Marc Jacob who was created new energy for every ready to wear collection, mixing tradition as well as innovation however in addition through collaborating with the Japanese artists along with launching lesser editions products (exclusivity perceive through consumers) that allows Louis Vuitton to enhance their profit right away.
With Japanese economic boom of 1980, Louis Vuitton saw the real option along with decided for entering within this Asian market. However the strategy adopted through company had been totally separate along with uncommon from rest of the world wide actors. Rather, Louis Vuitton had been initially multinational for opening their individual shop in shops through establishing their own subsidiaries, concentrated on only 1 brand of their portfolio. LV did not use usual supply chain schema along with help of the Japanese distributors however exported their products, straightly from France to Japan.
Such a strategy provides real benefit to company, underlying higher quality of their production along with distribution systems. LV strategy had original in fact, which that gave the stronger autonomy towards their subsidiaries, and power about market driven decisions. LV trusted Japanese managers along with started on its perfect comprehension as well as knowledge of domestic people, domestic culture along with local consumer behavior. For strengthening their presence in...
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