The Success of Louis Vuitton in the Japanese Market - Assignment Example

? Louis Vuitton Louis Vuitton The success story of Louis Vuitton in major cities around the world is something worth noting. In Japan, the story is still the same. Extravagant stores have been opened in some of the major cities in the region, which have allowed the multinational corporation to have a foothold in the region than any other chain store. Japan has boasted of being Louis Vuitton’s most profitable market, and after the economic downturn, Louis Vuitton had to adapt to the Japanese market to allow it to sustain its consumer market. The iconic brand is considered French, but over the past decade, Japan has demonstrated its love and passion for its products (Feroul & Paul 2010, p. 1). This love is not about to die anytime soon, as the corporation is still making sales and profits in the region. Louis Vuitton’s success in the Japanese market In the world, Japan is considered as being the most concentrated source of revenue, especially when it comes to luxury goods. In some cases, it has been mentioned as the market paradise for luxury brands. In Japan, the success of Louis Vuitton became possible as a result of the region’s consumer behaviour. As a result of the group-oriented culture, countless Japanese folks feel the need to possess luxury brands. This can be considered as a way for them to make a fashion statement (Feroul & Paul 2010, p. 6). Fashion consciousness among people in the region, especially women, seemed like a way of social expression that could not be matched by any city that was considered developed, for example; New York or Paris. The social and cultural consistency in Japan assisted the multinational corporation to explain the attachment people in Japan have to luxury brands. In Japan, looks are highly important especially among the middle class, which means that most of the people involved in the purchase of products always go for quality and sophistication (Feroul & Paul 2010, p. 8). The trends in the choices made by women when it comes down to Louis Vuitton products always had an impact on the sales of the segments that were produced. It was crucial for the corporation to note these changes and make changes that suited their current situation, thus increasing sales and ultimately, profits. Opportunities and challenges faced in Japan There are opportunities that arise with the market in Japan. One of the most crucial opportunities would be the mergers of different corporations/brands/people that are already well-known in different regions in Japan (Feroul & Paul 2010, p. 11). In doing so, the corporation may likely venture into different territory in terms of products, which enable it to make more money. One of the major challenges that the multinational corporation faces is its overdependence of the Japanese market. Relying too much on the Japanese market makes the corporation forget about other markets that are already familiar with their products, for example; America, and emerging markets such as India. Also, counterfeiting is a challenge for almost every luxury brand present in the world. For Louis Vuitton, the fashion label was synonymous with status. This means that only a few people get to be part of the luxury experience. Counterfeiting makes this impossible for the corporation (Feroul & Paul 2010, p. 12). Specifics of the Japanese fashion luxury market Japan represents the largest and most sought after market for luxury brands. Louis Vuitton, a brand synonymous with style and a lavish repertoire, claims to have its biggest share in the region as compared to any other region. The affordability of most of the brands is a factor in the Japanese market that plays a tremendous role in its growth. It is imperative that quality be one of the main concepts behind these brands, because consumers want something they can feel close to, and at the same time, feel like they are equal to some of the famous people they admire (Feroul & Paul 2010, p. 8). Luxury brand consumption in Japan seems like a compulsory action among most individuals. The jewellery and cosmetics used have to be identified with a specific brand. Louis Vuitton offers this to most of its consumers. The exclusive and unique nature of luxury brands pushes people to always want for more. This works toward ensuring that these fashion houses are always keen on bringing something new to the table, which might keep consumers interested and ready to purchase new products. Average prices, in the future, might be the way to go for most of the corporations in Japan (Feroul & Paul 2010, p. 9). Louis Vuitton’s initial entry into the Japanese market Louis Vuitton can boast of being the first multinational corporation to enter the Japanese market without the aid of any Japanese distributor. At first, the corporation made its way into the market through department stores through one single brand. By 2007, the corporation was responsible for over 250 stores in the region (Feroul & Paul 2010, p. 10). The creative and trendy ideas that come up in the fashion oriented region make it possible for the corporation to grow as it was the perfect laboratory to test new products. The few rules that surrounded architecture made it possible for the Louis Vuitton Corporation to build new and amazing stores, which were received by the public who demanded more of the products designed. The culture and tradition of the region made it possible for designers to incorporate trend with tradition. Marc Jacobs, a well-renowned designer, combined the brand with the heritage of the region (Feroul & Paul 2010, p. 11). This was a step that saw an increase in the growth of the corporation’s popularity. New energy and enthusiasm was created as this phenomenon hit the region. The corporation had in place strategies that would boost their sales and increase their consumer base in the foreign region. As a result, Japan became one of the biggest consumer bases for this corporation and its luxury brands. Understanding local consumers was the best chance the corporation had of maintaining its presence and control over the Japanese market. New challenges after the global financial crisis It is true that Japan offers the best market for its luxury products, but times are changing. Unlike their western counterparts, Japanese luxury-brand consumers were not mature in their consuming behaviour. However, as times change, their awareness for the value of money has also changed. They are now cautious of the money they spend trying to look fashionable (Feroul & Paul 2010, p. 6). This may make them opt for cheaper, yet stylish products offered by the corporation’s competitors. Brand dilution is also something that the corporation should consider a challenge. As the brand focuses on getting into different product lines, the luxury brand runs the risk of being seen as having lost its grip on the quality and exclusive aspect of the business (Feroul & Paul 2010, p. 7). Reference Feroul, C & Paul, J 2010, Louis Vuitton in Japan, Richard Ivey School of Business, University of Western Ontario. Read More