Scribd
Upload
1K views12 pages

Louis Vuitton's Market Entry in India

Louis Vuitton is looking to expand into the Indian market by opening high-end stores. However, India presents challenges as a low-income nation without established luxury retail clusters or effective media for brand building. Louis Vuitton's initial stores are located inside luxury hotels in New Delhi and Mumbai, but it plans to open a third store in a luxury mall. While India offers opportunities with a growing number of wealthy individuals, establishing the Louis Vuitton brand and identifying customers will be difficult without traditional high-end shopping areas.

Uploaded by

Sarthak Bundela
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
1K views12 pages

Louis Vuitton's Market Entry in India

Louis Vuitton is looking to expand into the Indian market by opening high-end stores. However, India presents challenges as a low-income nation without established luxury retail clusters or effective media for brand building. Louis Vuitton's initial stores are located inside luxury hotels in New Delhi and Mumbai, but it plans to open a third store in a luxury mall. While India offers opportunities with a growing number of wealthy individuals, establishing the Louis Vuitton brand and identifying customers will be difficult without traditional high-end shopping areas.

Uploaded by

Sarthak Bundela
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Louis Vuitton in India

Rahul Majhajan DM-195


Sachin Gupta DM-131
Sarthak DM-139
Shallabh Agarwal DM-143
Shantanu Shekhar DM-145
Shekhar Sinha IB-056
Flow of Presentation
• The Case
• About Louis Vuitton
THE CASE
• Marketing of a high-end brand into a low-income
Nation
• Louis Vuitton facing challenge of identifying potential
customers, the lack of media to build its brand, and
the absence of high streets to open stores in India
• Initial two stores in New Delhi and Mumbai inside
two luxury hotels
• Planning to open third in a luxury mall as a
replacement of luxury retail clusters
About Louis Vuitton
• French luxury brand
• Company of LVMH Group:
• 5 Business segments i.e. Fashion and leather goods, Perfumes and
cosmetics, Watches and jewellery, Wines and spirits, Selective retailing
• More than 60 brands, each ‘STAR’ performer
• 382 LV stores out of 2,048 LMVH Group stores
• Fashion and leather group has a high contribution in LMVH Group
profits
• High demand for LV products
• Same merchandise in all stores
• No markdowns on LV products
• Labour intensive process
• More focus on craftsmanship than mass manufacturing
• Self managed supply chain. Delivered directly to stores
Before 2004 : Underlying issues

• Low brand awareness


• In Luxury hotels, shop space was a constraint
– 3,000 [Link]. compared to an Asian avg of 20,000 [Link]. in
hotels
• Rentals were twice compared to that of luxury malls
– Competition with other luxury brands
– Inexperience of developers in luxury retailing
– Absence of high streets in India negates feasibility of
showroom
Decisions in International Marketing

Which How to Which Which


Whether to
market to enter the Marketing Marketing
go aboard
enter market Program organization
Whether to go aboard
Need to enter new Market

• Pressure from the investors Needed double-


digit growth.
• By 2000, Company have acquired over 60
brands.
• Needs a larger customer base.
• Markets like America, western Europe & Japan
already covered.
Which market to enter
Strategic window for Asian Market
• Emergence of high net worth individuals
• Declining trade barriers
• Changes in communication
• Better information and transportation
technologies
• Increasing middle class income
• Increasing young population
• Growing sophistication in lifestyle needs
Indian Market – New Venture
• 20000 families with annual income greater
than INR 100 million.
• Number to be expexted to grow to 53k by
2005 & 140000 by 2010
• Recorded second fastest growth( 19.3%) in the
number of of HNW( High-net-worth)
• Size of luxury market was $4 billion, expected
to grow to $30 Billion by 2015

You might also like