Case Study Of Louis Vuitton

1419 Words 6 Pages
Louis Vuitton
What has made Louis Vuitton’s business model successful in the Japanese luxury market? Louis Vuitton’s success in Japan can best be attributed first to the fact that “Japanese women have a psychological need to own something considered to be beautiful” (Coovert, Kelley and Assoc., 2012). This is coupled with the prestige and exclusivity which the Louis Vuitton brand has been able to convey and maintain throughout the ages. And the fact that their products are perceived to be of the highest craftsmanship and quality possible anywhere has helped to generate and perpetuate the utter mystique and pride in owning a Louis Vuitton hand bag for Japanese luxury shoppers who are affluent enough to afford one. Additionally, Japanese culture
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Louis Vuitton’s ability to excel in this premier luxury market place can be attributed to; its business model which begins with highly skilled and hand crafted products which are made exclusively in France. And are then then sold in Louis Vuitton original shop-in-shop designed destination stores. These are operated by local managers whom are empowered with great autonomy in product selection and daily shop operations. Louis Vuitton has further cultivated its image by marketing in trendy fashion magazines, and by product placement and association with the celebrity elites and moguls of; the Hollywood movies and entertainment industries, Professional Sports athletes, entertainers, fashion icons and the world’s royalty. This has combines to make them the most profitable luxury brand world-wide, with $3.8 billion in annual sales for 2004. This was double the combines totals for both Prada and Gucci (Paul & Feroul, 2008, …show more content…
Louis Vuitton in the nation of France. Louis Vuitton focused the company’s efforts on the design, manufacture, distribution and sale of flat bottom canvas trunk luggage and leather hand bags, of the highest quality, functionality and durability possible. The product line carried the uniquely recognizable Louis Vuitton logo and unique balance of form and function for travelers. The Louis Vuitton entered the Japanese market place by establishing and opening limited subsidiary shop-in-shop sales locations. This was done through existing department stores. And was a revolutionary practice in the luxury business world. These locations were unique in the level of autonomy granted to local individual shop managers, while depicting a shop ambiance consistent with the original flagship store which focused solely on their single product brand offering exclusively. This served to make the shops a destination in their own right for shoppers seeking European luxury wares. Following this strategy the company was able to directly own and operate a network of fifty-four stores in premier locations throughout Japan by 2007 (Paul & Feroul, 2008, pp.687). This was later further expanded with the Louis Vuitton Moet Hennessy (LVMH) merger which brought an additional 250 Japanese store locations into

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