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


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

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


• Strengths 

• Weaknesses

• Internationally recognized fashion Brand

• Very High Reliance on Japanese market

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

•Challenges in controlling multinational
•Brand dilution

•Collaboration with well known Japanese
• Opportunities

• High disposable income of Japanese

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

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


Go green


Corporate Social Responsibility

Purchasing Power Parity

Innovation & Design


Focus on Profitable Brands

Marcs Jacob



TAG Heur




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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