Louis Vuitton in Japan Essay

1127 Words Apr 13th, 2011 5 Pages
MKT 321 International Marketing Management
Case Study 2: Louis Vuitton in Japan

1. What are the key success factors of LV in Japan?

Since Louis Vuitton entered the Japan market in 1968, it became the most popular luxury brand in Japan by having 28 percent share in Japan’s market. The key success of LV in Japan is mainly contributed by the appropriate balance in keeping the brand globalized while localized at certain areas for the Japanese. To achieve this outcome, the consistency in product quality, fashion appeal and brand image were carefully controlled and ultimately the Japanese developed an obsession towards LV.

Being a world-class luxury brand having a long history, LV does not need to localize its brand image in order
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Therefore, Japanese consumers are more willing to accept the brand and have a positive attitude towards LV.

2. What accounts for the two tiered economy? Why are Japanese consumers (especially women) purchasing luxury goods during economically instable times?

The two tiered economy is a global phenomenon which is similar to the idea of M-shaped society in Japan. It refers to the polarization of the economy in two tiers. The two tiered economy was shown in this case by the increasing number of demand for the luxury product while the income of the Japanese was decreasing and the unemployment rate is increasing. Globalization is the main factor contributed to the two tiered economy as it stimulate the strength and speed of competition in different industries and also the shifting of wealth.

There are several reasons for Japanese consumers to purchase luxury goods during economic downturn. The first reason is that some of the young Japanese women who are living with their parents were given money to spend. They are not directly affected by the economic conditions and therefore they are still affordable for the luxury goods. Also, some of the Japanese women may have no faith in the future and believe that they should concentrate on fulfilling their current need only.
Some Japanese consumers even purchase luxury goods to maintain their identity and status in groups and social contact. If everyone in a

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