...1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? ლუის ვიტონის არჩეული ბიზნეს მოდელი მართლაც წარმატებული აღმოჩნდა იაპონურ ლაქშერი ბაზარზე, რომელზეც 2004 წლის მონაცემებით მთელი ფუფუნების საგნების 55% მოდიოდა. ეს ბრენდი გამოირჩეოდა იმითაც რომ მისი მოგების მარჟა შეადგენდა 45% - ს, როდესაც ანალოგიურ ბაზარზე 25% იყო ნორმა. რით იყო ეს გამოწვეული? თავდაპირველად დავიწყოთ ამ ბრენდის პროდუქტის განხილვით. Louis Vuitton- ის ჩანთები იკერებოდა საფრანგეთში, სადაც წარმოება გაცილებით ძვირი ჯდებოდა, მაგრამ სამაგიეროდ ბაზარზე მისი პოზიციონირება ხდებოდა როგორც ნამდვილი ფრანგული საქონლის. რაც შეეხება მის ხარისხს, აქცენტი უფრო დეტალებზე კეთდებოდა, მის მოსახერხებლობზე. შეუძლებელია იმის თქმა, რომ მისი მაღალი ფასი კონკურენტებთან შედარებით უშუალოდ შესამჩნევი ხარისხით იყო გამოწვეული. შედეგად ლუის ვიტონის ჩანთები იყო ძვირი, თუმცა ეს ფასი იყო სრულიად გამართლებული და მომგებიანი. ამ ჩანთებში გადახდილი ფული მომხმარებლისთვის იყო გამართლებული. ის ხდებოდა ახალი სოციალური ფენის ნაწილი და იღებდა საზოგადოებაში სტატუსს. ასევე მან წარმატებით მოახერხა დაპირისპირებოდა მის გაყალბებულ ვერსიებს. შემდეგ, გაამართლა შეზღუდულმა გამოცემებმა. ბრენდი ყურადღებას უთმობდა ადგილობრივ მომხმარებელს და ადგილობრივ ბაზარს, რაც საკმაოდ დადებითი იყო აზიური კულტურისთვის. კომპანია შეიტანა სიახლე იაპონიის ლაქშერი ბაზარზე, როდესაც „shop-in shop“ დანერგა. მართალია მისი მაღაზიები ყოველთვის წარმატებული იყო და გაყიდვების აღმატებოდა დაგეგმილს...
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...LOUIS VUITTON IN JAPAN -CASE #14 REVIEW LOUIS VUITTON IN THE JAPANESE MARKET ABSTRACT The purpose of this paper is to review the Louis Vuitton business model and the success experienced in the Japanese marketplace. This paper will discuss opportunities and challenges that have been realized by the Louis Vuitton brand while located in Japan, and the specifics to the Japanese luxury market. A review of how the Louis Vuitton brand first entered the Japanese marketplace, the cultural aspects related to social status and luxury goods, which that have helped with the sales growth for the company’s products. Along with tactics embraced later on to strengthen its brand will also be reviewed. The appeal of the Louis Vuitton luxury high priced product, and how the French company’s image helped to sell itself to Japanese consumers with disposable income will be analyzed. The success of various marketing strategies, utilizing the images of actresses to help launch a successful sales campaign will be reviewed. Along with a review of the company’s success by working with various fashion designers to create colorful fashion trends with Japanese inspired themes, through the collaborative work with well-known Japanese artists. The global recession, its effect on the Louis Vuitton product line and sales will be analyzed along with new challenges the company faces for the future. Finally, a discussion on the future success for...
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...study; they include Porter's 5 forces model and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis 10 Consumer behavior analysis 12 Recommendation 16 Conclusion 19 References 20 Appendixes 22 Appendix 1: For example 22 Appendix 2: Competition – Porter’s 5 forces analysis 23 Appendix 3: SWOT analysis of Louis Vuitton 28 Appendix 4: Case study - “Louis Vuitton in Japan” 29 Introduction ...
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...3/14/2013 JITESH ANAND 10IB-033 CASE STUDY: LOUIS VUITTON IN INDIA Louis Vuitton in India | Jitesh Anand 1. INTRODUCTION: Luxury Brands in India If it was few decades ago, there was a very limited scenario one could see with respect to the luxury market in India. Those days luxury market was associated with the rich class and with very few upper-middle class people. However, with the involvement of number of international luxury brands in the country, the shape of the luxury market in India has undergone a dramatic transformation. When it comes to the word luxury it is mostly misunderstood with the meaning beyond the reach of common man. With every year passing by, the so called beyond the reach of common man is proving to be a false fact. Luxury products are becoming the necessities not only for the rich class or upper middle class but also for the middle class people. Luxury market in India is build up on basic four elements which are quality, value for money, customer satisfaction and the most important creativity. In order to be successful in Indian market luxury brands should be able to sustain and fulfill these criteria on a long term basis. The Indian luxury market is growing at a rate of 25% which simply implies the consumption of luxury products has been increasing at a fast pace. India is becoming the new destination for luxury brands across the globe and Indian government opening Foreign Direct Investment (FDI) in retail has resulted in many global...
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...Introduction to Louis Vuitton and LV Luggage Introduction to your brand and definition of the product category or sub-category the brand competes in in the UK. Maison Louis Vuitton most commonly referred to as ‘Louis Vuitton’ (LV) is a French fashion house. Currently, Louis Vuitton is ranked 14th on the Forbes World’s Most Valuable Brands list along with being the most valued luxury brand in the world; gaining profit margins of 40%, making it one of the most profitable brands globally. Louis Vuitton produces a vast amount of products including travel luggage, handbags, accessories, shoes, jewellery and books (as defined from their sales website subcategories). The brand associates themselves with the ‘explore and travel’ notion, offering suitcases or holdalls. Introduced in 1924, Louis Vuitton identify their holdalls as ‘Keepalls’ thus providing a feature to differentiate it from holdalls designed by competitors. The range of holdall sizes also have specific identifications to specify the size of each holdall; they are named by ‘45, 50, 55, 60’ associating with the length of the holdall in centimeters. Brand History A brief history of the brand: when it was created and any significant events or changes, changes in ownership etc. Louis Vuitton has a strong heritage of over 150 years. Louis Vuitton decided to open his first Paris workshop in 1854. Louis Vuitton was made popular through Vuitton’s flat-bottomed trianon canvas trunks, which are easy for stacking....
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...Louis Vuitton in Japan Q1. What has made LV business model successful in the Japanese luxury market? Ans. I would like to demonstrate the success of the Business Model of ‘LV’ via the concept of Four Ps (Product, Price, Place, and Promotion). Product – In general marketers seeks ‘adequate quality’, ‘faintness of use’ etc., and too much of quality can be undesirable because it increase the cost. However, ‘LV’ handbags represented ‘products of distinctive qualities’ and ‘attention to details’. In general the concept of ‘relative quality’ is challenged by the ‘absolute quality’ which has forced customers to LV or nothing attitude. To back their products ‘LV’ has taken action against counterfeiting item by ‘Enlightenment Champagne’, involvement of French trademark authorities etc., make there product defendable. Partnership with local artist and Limited edition products has demonstrated that Product Line up and innovation are very strong parts of ‘LV’ business model in Japan. Price – Market Demands “Low Price”, this is achieved by reducing costs and off-shoring production to China and elsewhere. Louis Vuitton handbags, on the other hand, are priced high. Such high prices are unnecessary for merely stowing and carrying things. In essence, the Louis Vuitton difference is value, not price—this being absolute value, not relative value. Many of the principles for Price were innovations that came about after Kyojiro Hata became president of Louis Vuitton Japan and...
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...WASEDA BUSINESS & ECONOMIC STUDIES 2009 NO.45 Luxury Brand Strategy of Louis Vuitton - Details of Marketing Principles by Shin'ya Nagasawa* Abstract: By systematicallybreaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word "brand" to refer to the likes of Coca-Cola and McDonald's, there is a vast gulf between these brands and the luxury brands we explored in the previous book. In researchers' brand management theories, one rarely finds mention of representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although * Shin'ya Nagasawa is a professor of MOT (Management of Technology) at...
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...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. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. 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. 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...
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...Overall strategy of LVMH LVMH’s website states the following as their missiom statement, “The mission of the LVHM group is to represent the most refined qualities of Western ‘Art de Vivre’ around the world. LVMH must continue to be synonymous with both elegance and creativity.Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. “ In 1987, Racamier agreed to a merger with Moët Hennessy, a company that was much more larger than LV, to form the Moët Hennessy Louis Vuitton group. Bernanrd Arnault, ranked as the fourth richest man in the world ( by Forbes, 2007) , was invited to invest in LVMH by the company’s chairman, Henri Racamier. Investing through a joint venture, Arnault ousted Racamier in 1990 and started to sweep a slew of fashion companies into the LVMH fold. Arnault is the chairman and Chief Executive Officer of Lvhm since 1989. Moët Hennessy-Louis Vuitton (LVHM) ; a world leader in high-quality products, possesses a unique portfolio of over 60 prestigious brands. The Group is active in five differentsectors: -Wines & Spirits -Fashion & Leather Goods -Perfumes & Cosmetics -Watches & Jewlery -Selective retailing First of all, the target audience is comprised of well to do individuals with high disposable incomes. Demographics of this target audience have some variability based on cultural differences in different geographical locations. The target audience is relatively focused...
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...Task specification Read the real business situation analysis for Louis Vuitton below. Voice of the Customer from Louis Vuitton Shoppers By Sampson Lee on January 29, 2009 If you ask people what they think about the Louis Vuitton shopping experience—and we did—you hear a lot about Service. Below are real comments from people who took a survey we organised with CustomerThink on the Louis Vuitton shopping experience. "No one bothered to greet me other than the security guard at door!" "I guess I did not fit the image - I was not wearing all labels." "Messy store, impolite sales assistants and poor attention to customers." "Long queue, slightly condescending assistant - not the VIP experience it should be." "I don't look like a typical LV customer, so the salespeople were in a hurry to have me out of 'their' store as fast as possible." Figure 1 breaks down the attributes customers like the least about their shopping experience at Louis Vuitton stores. We collected 2,318 valid responses across the globe. And, as you can see, Servicing Attitude was the No. 1 attribute (39 %) respondents like least about the Louis Vuitton shopping experience; the No. 2 attribute had to do with thePrice/Value issue (21 %). . (Source: http://customerthink.com/what_drives_customers_buy_louis_vuitton/) Assume you are a marketer of Louis Vuitton. 1. Perform an analysis to solve the CRM problem mentioned above. Your analysis should include: Identification...
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...Louis Vuitton Analysis Mary Askew American Public University Abstract Louis Vuitton is a brand of luxury items. It was started by an avid trunk makers and is now currently the top luxury brand provider for the tenth year straight. Louis Vuitton has been able to sustain its leadership in this competitive field by being innovative and garnering the best team the company can have. The leaders keep close tabs on the inner workings and control all aspects of products from manufacturing to sales.They are always looking to expand and increase market share. This paper will take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the LV...
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...2. The strength of Louis Vuitton is in its strong, established brand image and international presence. Brand name is what allows the company to de-commoditize luxury products and extract premium from the market. Throughout its history Louis Vuitton has developed a reputation for providing its customers both quality and unique product image. Louis Vuitton products distinguish themselves on five key traits: high prices, excellent quality, aesthetic and emotional value, rich brand history and uniqueness. Solid business model and rapid expansion overseas proved to be a great platform to help establish a high-end international brand image. Ability to control its distribution channels allows Louis Vuitton to capture value added instead of giving it to the middlemen such as suppliers and retailers and to deliver the best quality goods to the customers. Owning shops gives Vuitton control over level of stock, presentation and pricing. Additionally, LVMH is the most highly diversified luxury goods company. Even though LVMH is an acronym of three brands: Louis Vuitton Moet Hennessy, the company owns over 50 brands: 13 apparel and leather goods brands, 20 wines and spirits, 6 retail brands, 10 perfumes, 5 watches and jewelry. This multi-brand strategy that LVMH adopted is another company’s strength. Opportunities exist for Louis Vuitton to continue with its current strategies of establishing large branches worldwide. Louis Vuitton products are designed for wealthy individuals, who demand...
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...rivals in the luxury brand industry such as Versace, Hermes, Burberry, Chanel, Prada, Gucci, Versace, Hermes and so on. v We believe the rising competition handbags and accessories market is an overriding concern for Louis Vuitton’s stock in the near term. v Louis Vuitton is undertaking a transformation strategy to evolve into a global lifestyle brand anchored in accessories. However, we believe this transformation will take at least a few more quarters to reap the desired results. v Increased private label offerings by wholesale customers also increase the competition for Louis Vuitton. BARGAINING POWER OF CUSTOMERS: LOW v Louis Vuitton sells through both, the direct-to-consumer channel and the wholesale channel. The direct channel, which includes Louis Vuitton operated stores and e-commerce sales accounted for around 89% of its total sales in fiscal 2012. v Since wholesale customers account for only around 10% of the total sales, we believe their bargaining power is limited. v We think the bargaining power of end-customers is moderate. Louis Vuitton has positioned itself as an exclusive luxury brand and enjoys strong brand recognition due to its high quality products. v We believe that the customers’ bargaining power will remain low in the future as Louis Vuitton’s efforts to reinvigorate its brand appeal will be offset by rising competition in the market. THREAT OF NEW ENTRANTS: LOW v To start up a new brand, significant capital expenditure...
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...challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, the second largest economy in the world. The case illustrates the business strategy of Louis Vuitton in an important market, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, representing almost half of its profits, but it seems that the global economic crisis has resulted in a decline in sales. Other European brands in the luxury and fashion sectors have also been generating one third of their profits from Japan. Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market, taking into account consumer behaviour patterns. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works. Louis Vuitton may be French, but Japan has become a land full of Louis Vuitton lovers. Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s successful...
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...October 14, 2013 Louis Vuitton Case Study 1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? Louis Vuitton’s business model in Japan is truly extraordinary in the way they use product, price, place, and promotion. The company was founded on producing products of the highest quality by Louis Vuitton Malletier in 1854. LV continuous effort to innovate their product through partnerships with local artist to create limited product lines and never deviate from the founding father’s vision is directly related to LV’s success. Louis Vuitton’s product image in the consumers mind is so important that they are taken huge measures in preventing counterfeiting of their product globally. The next portion of the LV’s business model is price. For a majority of company’s price is determined all by market demand and can fluctuate in order to stimulate or maintain consumer demand. For LV it is different, their products are priced unnecessarily high all the time despite what the market demand is. They do this because LV products are luxurious status symbols and in this sense offer absolute value out of a purchase. If the company prices their item any lower than what the current price is then the LV label will hold its social value. LV’s choice of place is unique because they only sell from a very small number of stores of which are mostly owned by the company. This is unique because traditionally an increase and sales can directly...
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