CASE STUDY

INTRODUCTION

It examines the possibility and difficulties that the well-known European

premium international business Louis Vuitton had in the country, the second-
biggest nation in the globe. It demonstrates its tactical positioning in a
significant market, taking into account the unique brand managing aspects with
the merging of Japanese culture and buyer behavior. Japanese has become s
most lucrative region in the last ten years, making up over half of company
earnings. Sales have decreased as a result of the worldwide financial crisis,
impacting not just Louis Vuitton as well as many European premium and
fashion businesses that heavily rely off the Japanese industry.

The luxury brand has been forced to change its distinctive business approach in
order to keep up with the shifting patterns of client behavior within Japan due
to the country's economic slump and evolving tastes among consumers.. The
business has introduced less priced collections that use more cheap materials
in an effort to increase sales. In addition, it has actively increased its shop
footprint in smaller locations where the appeal of the company's distinctive
trademark continues to be strong.

But having a French company, it has impressively won over Japanese

customers, who have shown a profound interest and affection for the
renowned luxury label. By highlighting the major components of its company's
approach that have struck a chord with Japanese customers, it aims to shed the
spotlight on the aspects that have created Louis Vuitton's effective operation in
the Japanese industry.
PROBLEM STATEMENT

This Japanese marketplace, which is the second-biggest in the entire globe,

presents a number of difficulties for Louis Vuitton, the premier European
premium firm. In addition, other premium and fashion companies from
European rely significantly on that Japanese marketplace, therefore it is vital
for it to handle new issues and maintain its competitive edge.

The failing market and changing consumer tastes in Japan pose the biggest
challenges for the luxury brand. The conventional approach of depending solely
on brand names and charging exorbitant fees is not as successful as it once
was. Consumers now admire craft and want the most for their money, which
has increased the desire for cheaper collections made of cheaper materials.

ANSWERS

1.

 Learning and Responding to Culture: They realized the need of

knowing and adjusting to the society. The company reflected
their habits design, and tastes, which was warmly received by local
customers. The capacity of the corporation to blend its worldwide
image with an element of culture helped to its popularity.

 High Image of Excellence and Legendary Status: Their reputation

conveys an impression of grandeur, confidentiality, and richness to
buyers. The famous LV initials emblem become an emblem of
wealth and a tool for people to demonstrate their social position.
This premium symbol was liked by the buyers, adding towards the
brand's development.
  Durability and artistry: The buyers admire production, regard to
specifics, and reliability. The devotion of the brand to superior
supplies and flawless craft fit into these choices, increasing its
popularity in business. The company's renowned for creating
eternal, strong, and carefully constructed items drew in wealthy
consumers.

 Response to Evolving Choices: it displayed agility by modifying

their approach as buyer tastes changed in sector. The trend out of
logo-centric styles and toward workmanship as well as value for
price represented a recognition of shifting consumer preferences.

2.

 It maintains a great affection for expensive products, which makes

it an attractive market of theres. With worries about the economy,
the prestige sector is strong and has potential for growing.

 Intercultural Collaboration: They may continue integrating parts

of culture onto its goods and advertising techniques, which will
increase the company's appeal for residents there.

 Need for Superior Items: The marketplace loves excellent,

carefully designed products, which matches repute for exclusivity
and skill.

 Extending Outside Large Areas: It may reach fresh audiences and

boost its visibility by venturing into lesser towns and villages as
well.
3.

 Premium Companies' Social Value: The finest brands were

extremely important in Japan. The idea of "omotenashi," meaning
relates to great welcome and assistance, is highly valued there.
Luxury goods are viewed as indicators of wealth and expressions
of class.

 Brand Allegiance: Consumers are renowned for being extremely

loyal to their favorite products. They want to stay for an item
when they establish an affection for it, resulting in periodic
purchases and ongoing relationships.

 Quality and Handiwork: The clients admire complex components

and fine workmanship in expensive products. Durability and
concern to specifics are going to be popular by brands.

 Minimalist and Beauty: The designs is often defined by minimal

design, clarity, and grace. Luxury names that adhere to such visual
standards are more likely to connect with customers.
4.

With showcases of its imported goods in designated parts of the stores,

shopping centers like Mitsukoshi were where Louis Vuitton initially
entered the Japanese market. The LVMH company provided a unique
aesthetic that elevated the shopping experience. After gaining access to
Japan's extensive network of department stores, Louis Vuitton executives
got down to business when it came to growth. In Tokyo's Ginza
neighborhood, Louis Vuitton launched its first upscale retail location in
1981. The majority of the brand's over fifty exclusive outlets in 2007
belonged to its Japanese branch. The Lv team, however, owned over 250
outlets across the nation as a total. Since that there was a desire for the
opening of more franchises, the leadership team also experimented with
creating stores under the franchisee model during the past ten years,
with local businesspeople providing capital for franchises. Prices, goods,
and merchandise imported from French to Japan were strictly regulated
by the parent company. The luxury brand is still shipping goods from
European to Japan for local consumers to purchase. It doesn't have a
production facility in Japan or any of the nearby nations. This business
strategy still succeeds despite the high cost of shipping since the
company commands high pricing for the brand.

5.
Client expenditures Reductions: Throughout recessions, people
frequently become more frugal when it comes to their expenditures.
These items are often considered optional expenditures, and a
worldwide financial crisis might decrease interest in expensive goods
such as those sold by them.

Market Interests might Shift: Financial instability might cause an

alteration in the needs of consumers. Customers may prefer necessities
above fancy purchases, affecting the business's revenue and market
share.

Decreased Tourist: Luxurious firms frequently profit from traveling, as

tourists pay greatly to sales, particularly in popular tourist areas. The
economic downturn may limit international tourism, affecting sales in
areas that rely largely on tourism expenditure.