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Copy of LV in Japan

Global
by

Hanwei He

on 14 November 2012

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Transcript of Copy of LV in Japan

LV in Japan Louis Vuitton 1.Established in France in 1854
2.Products: Luxury Goods
3.Headquarters: Paris, France 4.The world’s leading luxury brand
5.Brand Value: 25.9 billion USD (Roberts, Andrew, 2012)
6.Revenue: €2.5 billion (Louis Vuitton, 2011)
7.The leading brand of the LVMH group, the world’s largest luxury goods producer Louis Vuitton in Japan Entered the Japanese market in 1968
Entry mode: Joint Venture
No. 1 luxury brand in Japan
Average growth of 300% from 1991 to 2004
Annual Turnover: € 850 million, 30 percent of Louis Vuitton’s worldwide sales (2004)
Enjoys a 28 percent share of the Japanese market (2005) Business Strategy Matrix S W O T Innovation is the Ever Lasting Power 2009-Collaboration with Takashi Murakami Multi Color Spring Pallet It can satisfy young lady’s vanity and show her loveliness. It combines with marketing strategy and psychological strategy. Reinventing the classic LV logo, using hip artists to constantly reinvigorate the brand and create the next big new thing. The Louis Vuitton Japan Multimedia Box Set Combines Luxury And Nature Cares about the environment. See the new Louis Vuitton Multimedia Box Set made in conjunction with the More Trees initiative in Japan. 28% Localization is Key Success Factor Hofstede Cultural Dimensions Analysis of Japanese women Consumption ability
Paradise singles
Even high school students new target customers

Life attitude
Pursuit of high quality life

Psychological factor
Sense of social identity Preciseness in Manufacturing LOUIS VUITTON’S ATTENTION TO QUALITY Tight Control Unique Work Process Employees Mechanical arms would hold handbags loaded with weights half a meter off the floor then drops it.

Another machine would bombard the handbags with ultraviolet rays to test resistance to fading.

Still another would tests zippers by opening and shutting them 5000 times. Preciseness in Manufacturing Each product must pass a rigorous control to check for default and consistency.
Any bags or wallets that do not conform to the standard are destroyed.
Louis Vuitton keeps its quality under tight control is by manufacturing most of its products in France, despites the high cost of labor. Tight Control Quality lies Louis Vuitton’s work process that is unique and not easily imitated.
Each team works on one product at a time and the teams are encouraged to suggest improvements. Unique Work Process Employees Every employee is briefed on the performance of Louis Vuitton’s products such as its retail price and how well it is selling to promote continuous improvement.
This in turn makes the employees autonomous for their work and responsible for the quality demanded by the luxury market. What the Japanese consumers seek from LV is a European luxurious image and lifestyle which can enhance their status. In order to maintain its image, is a basic requirement for consumers to recognize the brand’s value. Therefore LV maintains high quality products and most of them were manufactured in France. LV Mantains High Quality Luxury Market and Brands in Japan Marketing Approach



Use more efficient CRM systems to reach out to consumers. The brand is also planning a Marc Jacobs-directed fashion show in Tokyo to generate market buzz.
Add more product categories. Merchandise selection will differ by store. Product
Customizing shop design Shop Design
Continue opening locations in mid-sized markets like Saitama City and Mito. In major cities, LV will still be introducing large-scale "Global Stores." Place/ Distribution Promotion Specialty Cases Localized at certain areas for the Japanese: LV’s classic Monogram Canvas pattern was inspired by Japanese floral print and the collaboration with Japanese artist.
Pink cheery blossom bag. The Obsession with Dots: Yoyoi Kusama x Louis Vuitton-2012
http://www.louisvuittonkusama.com/en_WW/home 1. Brand image
2. High quality
3. Scientific management
4. Innovative design
5. No.1 store number in Japan
1. Expensive
2. Undiversified Channels Weaknesses Strengths Japanese young generation's sense on luxury products Opportunities 1.Fake products in Asia
2. Frequent natural disasters in Japan
3. Poor Japanese economy
4. Grey market
5. Competitors Threats Area of Improvement Enhancing CRM;
Enhancing retail store economics;
Launching new products/categories;
Accelerating e-commerce efforts;
Adjusting and enhancing marketing spend effectiveness. Questions What were the other entry strategies Louis Vuitton adopted later to strengthen its presence in China- a very similar market compared with China?
How should luxury goods companies respond in the current environment?
What are the special features of the Japanese fashion luxury market compared with other markets?
Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges? Thank you! Standardization is the Tradition Principle to Eliminate Grey Market in Japan Prohibiting Downward Expansion Prohibiting Entry-Level Branding Principle of Proper Pricing Principle of Special Orders How to Tackle Counterfeits and Grey Market? Channel management

Selective distribution

High-quality standards and distribution. Problems Have to Tackle During the Localization Process 1.04 million Importance of Brand Attibutes for Japanese Consumers 1.Grey Market
2. Not so popular now Anti-counterfeiting Approach and Techniques LV Has Its Own Way to Localize According to Japanese Market and Culture Top 10 Luxury Brands
Popular in Japan: 1.Louis Vuitton
2.Coach
3.Hermes
4.Gucci
5.Chanel
6.Bottega Veneta
7Bulgari
8.Cartier
9.Christian Dior
10.Tiffany Marketing Approach



Use more efficient CRM systems to reach out to consumers. The brand is also planning a Marc Jacobs-directed fashion show in Tokyo to generate market buzz.
Add more product categories. Merchandise selection will differ by store. Product
Customizing shop design Shop Design
Continue opening locations in mid-sized markets like Saitama City and Mito. In major cities, LV will still be introducing large-scale "Global Stores." Place/ Distribution Promotion Marketing Strategies Not so popular now “ Louis Vuitton now ranks 9th in Japan, the only country where the brand does not rank in the Top 5 ”
Japanese consumers are beginning to move beyond their famed affection for Louis Vuitton handbags Why? 1. The 2011 earthquakethe triple disaster has jolted the Japanese a focus on helping others and a mood of back to basics.
2. Other fast-retailing brands such as Uniqlo are flooding and conquer the market share of luxury brands.
3. The global economic crisis.
4. The change of consumer psychology.
5. Other competitor luxury brands take up market share.
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