3924 Words Apr 7th, 2014 16 Pages

Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and laying out schemes for LV’s entry into China market by initially examining the internal and external environment for LV;
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Anyway, when it comes to China consumers' rational attitude towards luxury goods purchasing, it may be an opportunity for LV if it succeeds in drawing out their desires and needs for LV's products, otherwise it may turn out to be a threat for LV's expansion in China.
Internal environment based on national level
The advantages of internal environment for LV on national level lie in the its preference and prospect to greatly expand its business in China, its experiences of operating in China market for about twenty years, and its strong influence on and temptation to the China consumers, as well as customer loyalty for it. On the contrary, the disadvantages lie in its high price which will greatly influences China consumers’ will to purchase the products, and in its could-be easily imitated appearance and style which is made used of by some China manufacturers in producing fake goods.
Internal environment based on firm level
The nature of LV’s products
Dubois and Czellar and Laurent (2001) delineated Luxury goods as products with extraordinary quality as well as high price, rareness and uniqueness, aesthetic appeal, respectful long history, and the sense of being superior to others (p156). Yacine and Johnathan and Motohiro (2004) argued that luxury goods manual crafting and diligence should be involved into

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