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Louis Vuitton in Japan Case Solution

Solution Id Length Case Author Case Publisher
2490 1828 Words (8 Pages) Justin Paul, Charlotte Feroul Ivey Publishing : 910M67
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As a luxury luggage brand founded in 1854, Louis Vuitton pioneered both elegant and roomy alternatives for its customers. The creator of this firm worked mostly for Empress Eugenie de Montijo, the wife of Napolean III, and hence has ties to royalty in France. The Louis Vuitton company has had a succession of generations that have led the company into new markets and new heights. When Louis Vuitton merged with Moet-Hennessey, the world's foremost champagne and brandy producer, this marked a turning moment in the company's history. A key participant in the luxury goods business, LVMH became the biggest company. The company's worldwide expansion began in London, and it hasn't looked back since. For over a century, they grew and prospered as a result of their reputation for excellence. They relied on celebrities to promote their goods in high-profile media outlets, such as newspapers and magazines. Customers from all around the world have fallen in love with the brand's cult-like following. Louis Vuitton relied on the Japanese market for a significant portion of its sales.

Following questions are answered in this case study solution

  1. What has made Louis Vuitton’s business model successful in the Japanese luxury market?

  2. What are the opportunities and challenges for Louis Vuitton in Japan? 

  3. What are the specifics of the Japanese fashion luxury market? What are the opportunities and challenges for Louis Vuitton in Japan?

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

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

Case Analysis for Louis Vuitton in Japan

1. What has made Louis Vuitton’s business model successful in the Japanese luxury market?

LV's success may be attributed to several factors, including the unique characteristics and benefits of the Japanese market. When Louis Vuitton (LV) entered the Japanese luxury market, it had certain characteristics and advantages at its disposal that allowed it to adapt swiftly and easily to the Japanese market.

Additionally, LV's business approach was helped by the fact that it was the first luxury brand to enter Japan's market. In 1977, LV joined the Japanese market, and in the following years, the Japanese economy boomed. Before this corporation, other foreign firms could only produce and market their goods via licensing agreements, giving it an early edge. Advantage helped LV to gain market share and develop a strong brand image. In the meanwhile, the firm gained valuable expertise in the Japanese market, which would have a good impact on the company's future growth in Japan and its entry into other Asian markets.

LV places a high priority on its consumers' well-being and places a high value on the psychology of its customers. For LV, quality assurance has always been a top priority. Because the Japanese marketplaces such a high value on product quality, LV's high quality became widely accepted and appreciated in the country. To retain its profitability, LV achieved exceptional quality and developed an addiction to luxury in the Japanese. Since then, Japan has been LV's greatest market. The smile curve of value creation dictated that LV would continue to add value to its brand and goods to maintain profitability. 

When Louis Vuitton first launched in Japan, it sought to keep the brand fresh and appealing by incorporating trendy components into its goods while preserving the brand's history and tradition. Louis Vuitton was able to attract a wider audience in Japan because of this invention, and the beauty-conscious nature of most Japanese women helped to keep buyers coming back. As a result of the company's belief that productivity alone would not be enough to maintain expansion, significant advertising expenditures were made to enhance the company's brand image.

2. What are the opportunities and challenges for Louis Vuitton in Japan?

In Japan, there are several prospects for the Vuitton brand. The increased discretionary cash available to young Japanese is one of the most important changes. As a result of the unaffordability of the property market, more and more individuals are spending money on mid-range luxury products. Another significant possibility area is directly tied to the Japanese emphasis on aesthetics and functionality. Frequently, Japanese consumers seek the ideal blend of premium style and quality of workmanship. Vuitton seems to have identified profitable opportunities in each of these sectors.

In addition to possibilities, the corporation must overcome several difficulties to maintain its market leadership. In the last several years, the whole world has been experiencing a recession, which has affected both customers and shops. Customers were growing more conscious of the worth of their money and the constraints they faced, notwithstanding the continued desire for luxury goods. This change has radically transformed the Japanese market by bringing it into line with western buying practices.

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