Case Study: Case Of Louis Vuitton In Japan

1376 Words6 Pages
Louis Vuitton in Japan Overview Louis Vuitton is a luxury French brand that produces bags, fashionable clothes and shoes, accessories. This case deals with the problem of adopting LV to Japanize culture. Many years ago LV stores were really popular among people in Japan and bring to the company 55% of revenue (2004) , however global crisis has changed everything, as a result sales dropped and consumer behavior changed. Despite of efficient management practices, quality of products, great advertising campaigns with celebrities they faced some problems on their way to Japan market. The weak economy and changes in consumer behavior contribute to changes in LV strategy and now they have to adapt to this market again in order to get reputation…show more content…
It is widely recognized by the people in Japan’s market. The company is assumed to have the greatest promise for growth of all the word’s luxury brands. It has stores in the leading world markets of luxury goods – in New York City, Sao Paolo, Brazil, Johannesburg, South Africa, Shanghai, China, of course in Paris, and, Tokyo. Opened a good number of stores in Japan (e.g., in the shopping district Omotesando, Ginza, Roppongi, Tokyo and one in Nagoya) is assumed to enhanced the dependence of Louis Vuitton on the Japanese market. It maintains the highest sales in the market of luxury brands. In 2003, its earnings rose by 30% boosted by an operating margin of 45% . Thanks to a well-organized company structure, Louis Vuitton demonstrates efficient management practices. In the 21st century, it has managed to reduce the launch of a new product to only six months, having achieved the ideal balance between machine and labor performance. This have been a good premise for future opportunities for the company with the designation of Kiyotaka Fujii as the new CEO of Louis Vuitton,…show more content…
It is case to affect the company’s image and prestige. High prices on the company’s branded goods may be met with Japanese unwillingness to buy high-end Louis Vuitton bags, which is led to the situation when Japanese shoppers started to buy high quality counterfeited bags imported from South Korea. Being a multinational company, Louis Vuitton has to maintain control over the multinational commerce and set prices for different markets. Japan is being considered as the world’s biggest luxury brands market. Ignore young generation and their preferences. LV pay attention only on adults with high income. Louis Vuitton company opportunities Declines in the luxury market tend to rebound. “Luxury has to reinvent itself every few years, and … it will return to the traditional meaning of something unique and exclusive.” Prices of lines of luxury products will always fluctuate but the luxury market prices are inevitably level

More about Case Study: Case Of Louis Vuitton In Japan

Open Document