opportunity in japanese market for louis vuitton

Analysis of opportunity in

Japanese Market for

LOUIS VUITTON

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Master in Marketing ManagementUniversità Cattolica, Milan

Early Days - 1854

Louis Vuitton opens the first store in Paris

Brand’s Key History

Golden Age - 1893 LV becomes a worldwide

corporation

Modern Age - 1978 LV opens its first stores in Japan, in Tokyo and Osaka

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CLASSIC ICON150 years of Hystory, never going out of style

EXCLUSIVE LUXURYExclusive locations and experiences

INSPIRING BEAUTY

Feel beautiful like a star

RICH HERITAGEEuropean couture and

French savoir–faire

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Louis Vuitton is…

STATEMENT“LV must continue to be synonymous of both elegance and creativity, blend tradition and innovation, and kindle dream and fantasy”

Japan has the biggest amount of middle class people

JAPAN AND LUXURY

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Highest pro-capita spending amount on luxury goods

In 1970s started to travel abroad and buy maniacally in Europe

Japanese tourists represented more than 80% of Louis Vuitton’s Champ Elysées store sales (2006)

Paradox between show off and conformity

Japanese Women: low “status”, luxury grants the “experience to be served”

High willingness to pay full price: 1.4x French price

Success in Japan

94% of women in Tokyo has a Louis Vuitton

bag

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TARGETFond of luxury brands

Louis Vuitton is ‘The brand’

Fashion magazines readers: Magazines dictate fashion

To gain social stature they need to show the world what

they own Louis Vuitton addicted

They buy the latest trend in luxury fashion

Social group is crucial for them, they aspire to belong

to that group

These women are called ‘Parasite singles’.

They postpone marriage in order to be able to afford

luxury and to continue living in comfort

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MAIN PROBLEM SALES DECLINE IN JAPAN

Aging of the Japanese population: the number of the parasite singles is slowly decreasing

Global economic crisis and recession

Important shifts in consumer attitudes: 1.The decline of conformity and rise of individuality2.An increasing preference for luxury experience

rather than luxury goods 3.Increasing popularity of counterfeit goods

LV has become a luxury mass market brand Loss of brand image and diluition.

Caused by

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Long term Marketing Goals

Increase of Sales after previous drop

Brand Heritage re-align values and

status

Brand Relationship re-focus on customer

brand relationship

Brand Perception

increase prestige and positioning

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Marketing Initiatives (1)Limited Edition Lines

Limited amount, for a limited period of time, sold in exclusive locations.

Collaboration with Japanese Artists

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Handmade bags in shop by French CraftsmenOld times artisans will allow you to assist to the creation of the

product right under your eyesExclusive experiences: invitation to take part in your own bag birth

Marketing Initiatives (2)Increase Quality – Increase Price

Costumers request higher and higher quality that justifies the price

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Create In-shop Experiences

Shops in Smaller CitiesExploit the newfound success of the logo

SUCCESS MEASUREMENT

Sales and Market Share Monitoring

Amount of Limited Edition Lines sold

Number of appointments for bespoken models

In-store affluence

Value increase of the average receips

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Bibliography• The success of luxury brands in Japan and their uncertain future Article, University of Paris, 2009 Link: University of Paris Research

• Japan’s luxury consumer: Detecting a pulse? Article, McKinsey, 2010 Link: McKinsey Research

• No seismic shift for luxury in postquake Japan Article, McKinsey, 2011 Link: McKinsey Research 

• Cult of the Luxury Brand: Inside Asia's Love Affair with Luxury Book by Radha Chadha and Paul Husband, 2015 Link: Book preview from Google

• Louis Vouitton in Japan, Ivey Case Article, University of Western Ontario, 2012 Link: University of Ontario Research

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THANK YOU

Sara BonatoCarlotta CitterioSelene

LombardiGiulia SacconeViktoria Spiess