Louis Vuitton In Japan

Topics: LVMH, Luxury good, Gucci Pages: 16 (644 words) Published: April 15, 2015
Louis Vuitton in Japan
Presented by:
Rahul Sheth
Karishma Ankleshwaria
Dheeraj B Varma
Sagar Dua
Bhavika Chandriani
Sonam Thakkar
Nihal Ahamed Abbas

Agenda


Case synopsis and key issues – Bhavika



Industry Overview and competitive landscape – Sonam



SWOT Analysis - Dheeraj



Recommendations on Key issues- Sagar



Alternative Options – Nihal



Facts and analysis – Sagar



Potential risk – Rahul



Minimize the risk - Karishma

Case Summary


Overview of Louis Vuitton’s entry in the Japanese
Market



Success of the biggest luxury brand



Opportunities and Challenges

Key Issues faced by Louis Vuitton


Economic Crisis



Change in consumer preferences



Worldwide Counterfeiting



Brand dilution



Increased Competition

Industry Overview


Louis Vuitton was an international well-established brand famous for its craftwork leather bags and trunks.



It was established in France by Louis Vuitton and became known as one of the old French luxury fashion house



In the modern age of Louis Vuitton the company expanded its product line



The creation of LVMH in 1987 established the largest luxury goods conglomerate in the world



The merger resulted in an increase in profits of 49% in 1988 compared to 1987 



In 1998 American designer Marc Jacobs was appointed as Louis Vuitton’s art director



Research in the early 2000’s showed that an astonishing 94% of the women in

Competitive Landscape


Japan represented the biggest market for other luxury goods such as Baccarat, Burberry, the Gucci group, Louis Vuitton and Salvatore Ferragamo. In addition Japan was the second biggest market for Coach and Tiffany & Co.



20% or more of total revenues of the top ten multinational luxury brands comes from Japanese consumers



Over 600 luxury store locations in an area the size of Montana. Within this tiny territory, Japan was sprinkled with 34 Bulgari stores, 37 Chanel stores, 115 Coach stores, 42 Gucci stores, 64 Salvatore Ferragamo boutiques, 50 Tiffiny & Co and 250 stores of the LVMH group 



Competing with prices, while keeping up the quality had been a key factor for successful brands in the Japanese market.



The entry of H&M into the market completely revolutionized it

SWOT
Analysis

• Strengths 

• Weaknesses

• Internationally recognized fashion Brand
Image

• Very High Reliance on Japanese market

•High quality products achieved through
high quality control standards
•Distribution is company owned

•Challenges in controlling multinational
business
•Brand dilution

•Collaboration with well known Japanese
Artists
• Opportunities

• High disposable income of Japanese
customer

•Solid proportion of middle class
•Social and Cultural relations with fashion

• Threats
• Economic downturn and strong Yen
against $ and
Euro
•Competition with other similar luxury
brands or low range brand
•Counterfeiting items

Recommendation


Go green



Sustainability



Corporate Social Responsibility



Purchasing Power Parity



Innovation & Design



R&D



Focus on Profitable Brands



Marcs Jacob



Dior



Bulgari



TAG Heur



Sephora



Hublot

Recommendation


Focusing of Limited edition Products



Increasing Brand Advertisements



Franchising at high End mall all over the world



Manufacturing In Cheap Labor countries for other brands.



Sub Branding may help up to small Extent to Stop Counterfeiting

Automated Alternative


Shift Production to a more assembly line model

Pro: Higher customer base
Con: Likely loss of high end market

Heritage Based Alternative


Luxury goods use more artisan labor (making things
by hand), as when the company was founded

Pro: Please high end customers
Con: lose accessible or...
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