StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Louis Vuitton Japan - Essay Example

Cite this document
Summary
The Louis Vuitton has one of the highest exposures in Japan, standing at 33 per cent. This relatively high exposure rate has had an impact on the overall Japanese market…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Louis Vuitton Japan
Read Text Preview

Extract of sample "Louis Vuitton Japan"

Louis Vuitton in Japan The Japan market is ranked the greatest consumer of luxury items. In order to supply the needs ofthis market, the top global luxury companies have in recent years, scrambled the Japanese market to establish their own brands in this country. It is estimated that Japan consumes close to 30 per cent luxury goods, which is twice the percentage consumed by Europe and America. Therefore, this is another factor, which has contributed to many companies struggling to establish their market and brands in Japan. The Japanese market is promising and mature, as it was able to survive the long global economic recession. Therefore, luxury firms are all competing to earn more profits in Japan. Louis Vuitton (LV), of French origin, is the biggest international luxury company, which has equally managed to establish its market in Japan. This company has one of the highest exposures in Japan, standing at 33 per cent. This relatively high exposure rate has had an impact on the overall Japanese market. Luxury items are important as they correlate with a country’s GDP. During the period of economic booms, the demand of customers for luxury goods often peaks. On the other hand, recession results in a lower demand for luxury products. However, this is not the case for Japan market, which maintains a constant demand for luxury during both recession and boom periods (“Japan Venture” Web). Therefore, luxury companies, including Louis Vuitton, experience steady profits in Japan, despite the occurrence of strain on the global economy. Today, many market experts and analysts have predicted that the effect of global recession on consumption of luxury will continue to be negligible in Japan. They attribute this to three major factors, including Japan’s mass consumption of luxury items, the global travel of its consumers, and the influence of Japan markets and other Asian markets. According to Japan Market Resource Network, the sources of identity for both men and women in Japan have continued to change because of the change from traditional social codes (4). The type of luxury brand Japanese choose today is influenced by their desire for self-expression and their high individualism. Japanese consumers today, unlike in the past, are highly individualistic, and therefore, this aspect influences their choice of product. A research by Japan Market Resource Network (JMRN) indicated that many Japanese consumers love a sense of uniqueness. Therefore, most adult and single women do not buy brands that are common with other people (5-6). In the case of Louis Vuitton, the aspect of individualism of the Japanese resulted in considerable adverse results since this company did not embrace that in its brands. The CEO of Louis Vuitton in Japan once claimed that 44 per cent of women in Japan own a Louis Vuitton bag, without the inclusion of other accessories from Louis Vuitton. Considering the level of individualism in Japan, the JMRN research showed that this kind of high penetration might have a negative impact on the Japanese market. An interview with different Japanese women showed that the high visibility and penetration of luxury brands results in the decrease of it aspirational value, thereby evoking unresponsiveness in the market (7). The JMRN’s research identified Botega Veneta, an Italian luxury company as one that is capable of succeeding in the Japanese market due to its responsiveness in addressing the need of Japanese consumers for unique brands. Japanese consumers therefore have claimed that the high penetration and visibility brands of LV, Polo, and Prada, are not worth their premium prices. Nonetheless, this market dilution of LV did not rhyme with the Japanese individualistic nature (8). According to Husband and Chadha, the Japanese and other Asians adore luxury products of European origins and not Asian (96). The local fashion designers in Japan have no influence in the fashion industry. Nearly all the Japanese shop their luxe from the foreign fashion companies such as Louis Vuitton, Hermes, Gucci, among others, which are established in Japan. The reason for this is that western brands are more superior in the fashion world, as compared to Japanese and Asian brands. This country-of –origin effect has seen many Japanese shop their luxury gods from Louis Vuitton, the world’s largest luxury company (97). The Japanese appreciate European luxury goods, as they believe Europe is the origin of a luxurious tradition and luxury goods as well. This saw the local designers imitating and incorporating the European designs in their own design, in order to attract more sales (98-99). Similarly, the JMRN research discovered that the Japanese would equally not purchase European luxury brands manufactured elsewhere, such as French brands manufactured in Japan or China (8). They wanted to buy the original imported brands. Since Louis Vuitton brands were imported, high quality, and were expensive, many Japanese shopped here. This also was in addition that Louis Vuitton is the largest luxury company in the world, and hence the assumption that its brand is trusted. This aspect led to increased counterfeiting and falsification of the Louis Vuitton brand in the Japanese market. The greatest producer of Louis Vuitto counterfeit products was China. It was hard to differentiate between the fake Louis Vuitton bags and the genuine Louis Vuitton bags. The Japanese therefore bought fake Louis Vuitton bags; however, they used them for events that are more informal. This played a big role in transforming the Japanese perspective of quality of luxury brands. In addition to the effects of the Asian recession, the Japanese gave up on their attachment to high quality products (“Japan Venture” Web). This change in the perspectives of the Japanese consumers about product quality, concurrently affected the Japanese market, with its players (“Japan Venture” Web). Nonetheless, this situation called for government intervention. In conclusion, the Japanese market was the greatest buyer of Louis Vuitton luxury products during its golden age. This was influenced by the Japanese value of quality and taste. Louis Vuitton is known to produce high quality products, an aspect that the Japanese were drawn to. However, things changed when Japan was hit by an economic recession, which lasted for quite long. Louis Vuitton could not make the vast sales it made before the recession as most Japanese consumers had changed their perspectives on different aspects of luxury products. Nonetheless, Louis Vuitto greatly contributed to the changes witnessed in the Japanese market, since it had a big influence, being the world’s biggest luxury company. The high penetration and visibility of Louis Vuitto did not measure up to the market demands of the Japanese, as they were a highly individualistic society, which embraced uniqueness. This led them to think that shopping for Louis Vuitton was a waste of their money, and hence, resulted in the change of buying patterns in the Japanese market as people looked for brands that would satisfy their needs. Similarly, this high penetration and visibility of Louis Vuitton led to the further decline of local luxury brands. This resulted in the production of counterfeit Louis Vuitton products in the Japanese market in order to compete with the Louis Vuitton brand. The Japanese were compelled to compromise their value for quality, as it was hard to distinguish between the real and the fake brands of Louis Vuitton. Works Cited “Japan Market Resource Network.” Japan’s Changing Consumer. Drivers of Change for Luxury Brands. n.d. Web. Retrieved 10 December 2012 “Japan Venture.” The Japanese Market. n.d. Web. Retrieved 10 December 2012 Husband, Paul & Chadha Radha. “The Cult of the Luxury Brand: Inside Asia's Love Affair with Luxury.” New York: Nicholas Brealey Publishing, 2006. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Louis Vuitton Japan Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Louis Vuitton Japan Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1464858-louis-vuitton-japan
(Louis Vuitton Japan Essay Example | Topics and Well Written Essays - 1000 Words)
Louis Vuitton Japan Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1464858-louis-vuitton-japan.
“Louis Vuitton Japan Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1464858-louis-vuitton-japan.
  • Cited: 0 times

CHECK THESE SAMPLES OF Louis Vuitton Japan

Marketing mix of Louis Vuitton

Marketing Mix of louis vuitton [University] [Instructor] Marketing mix of louis vuitton The paper is aimed at analyzing the marketing mix of louis vuitton, the world famous brand of leather goods and other related accessories.... Introduction Designer and entrepreneur louis vuitton was the personal box-maker and packer of the wife of famous French Emperor, Napoleon.... The louis vuitton Malletier (LVM) was established in 1854 in Paris, which is now considered the world-renowned lifestyle brand dealing in luxury leather (louis vuitton, 2013)....
4 Pages (1000 words) Assignment

The Success of Louis Vuitton in the Japanese Market

louis vuitton Name: Institution: louis vuitton The success story of louis vuitton in major cities around the world is something worth noting.... hellip; 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.... 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....
4 Pages (1000 words) Assignment

What is Global Impacts of Marketing

Levitt, 1983) In order to effectively evaluate these challenges this essay will use the scenario of louis vuitton entering India.... louis vuitton is a luxury fashion and leather goods company headquartered in Paris and France.... (louis vuitton) India is fast becoming an international fashion destination, coordinating efforts with international designers so that Indian designers are exposed internationally and foreign designs are exposed in India....
15 Pages (3750 words) Essay

The Louis Vuitton Market Strategy

The author of the current case study "The louis vuitton Market Strategy" points out that louis vuitton Malletier, universally referred as louis vuitton, shortened to LV, is a French luxury fashion company founded in 1854 is also renowned as one of the oldest fashion houses in the world.... hellip; louis vuitton brand is about reliability, quality, style, innovation, and authenticity.... Their mission statement is “louis vuitton must continue to be synonymous with both elegance and creativity....
20 Pages (5000 words) Case Study

The Position of Louis Vuitton Moel Hennessywith Respect to Its Competitors

The paper focuses on the position of louis vuitton Moel Hennessy with respect to its competitors.... nbsp;… louis vuitton the French luxury goods manufacturer has not only restricted its operations in the European market.... The world's largest luxury commodity retail group, louis vuitton Moet Hennessy (LVMH) functions on the basis of four parameters viz.... louis vuitton had used its distribution and communication styles to lure huge groups of customers to its beautifully ordained stores spread along the region....
17 Pages (4250 words) Case Study

Louis Vuitton (LV) in Japan

This makes Japan the world's largest luxury goods… All of these factors have contributed to the success of louis vuitton in the Japanese market.... The reason for this is that the Japanese consumers are already used to spending on luxury goods so there is no need louis vuitton in Japan The reason why louis vuitton has been so successful in the Japanese luxury market is that Japan is the capital of luxury goods.... All of these factors have contributed to the success of louis vuitton in the Japanese market....
2 Pages (500 words) Case Study

Louis Vuitton position in the Japanese market

This essay describes louis vuitton marketing strategy has been significantly impacted by the dilution of the limited edition sales tactic.... hellip; Traditionally, louis vuitton has strategically located, its prestige in the major cities of Japan and avoiding minor cities and towns.... This has resulted in reduction of louis vuitton market share in the country.... In light of the market trends, louis vuitton has strategically adapted new market approaches to the Japanese market....
5 Pages (1250 words) Case Study

Strategic Management: Focus on Louis Vuitton

In this research study of business organizations and strategic management, Strategic Management: Focus on louis vuitton, there is probably no undertaking more replete with paradoxical undercurrents than that of the luxury retail industry.... nbsp;… In this paper, the business of louis vuitton Moët Hennessy (LVMH) Group will provide a context for the application of strategy paradox theory....
16 Pages (4000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us