Louis Vuitton

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Case 14: Louis Vuitton in Japan American Military University Abstract Established in France in 1854, Louis Vuitton, known as the oldest supplier of French luxury fashion goods, became known for its exquisite leather bags and trunks. Louis Vuitton opened its first overseas location in 1885 located in London, England. In 1888, Louis Vuitton developed the Canvas Damier Pattern which provided brand recognition and a symbol of product excellence. In 1977, Louis Vuitton expanded into the Japanese market. Opening stores in Tokyo and Osaka. Louis Vuitton has experienced a great amount of success in the Japanese market. This case study will analyze the Japanese luxury market, Louis Vuitton’s business model in this market and…show more content…
Included were small leather goods such as wallets and purses. These items were also branded with the new Monogram Canvas in 1959 and by the mid 1970’s Louis Vuitton had become the world’s biggest luxury brand. In 1987, Louis Vuitton merged with Moet et Chandon and Hennessy, the leading manufacturers of champagne and brandy, creating Louis Vuitton Moet-Hennessy. The merger resulted in a 49 percent increase in profits compared to 1987. (2013) One of the most important business decisions made, which revolutionized the business strategy, was the implementation of automated production. With a manufacturing productivity increase of 5 percent a year, what used to take Louis Vuitton 12 months to accomplish was reduced to about 6 months in 5 short years. Challenges and Opportunities in the Japanese Market To better evaluate these, following is a SWOT analysis: Strengths: International brand recognition High quality Weaknesses: Dependence on Japanese market Opportunities: Spending habits of Japanese consumers Enlarged product lines Threats: Saturation in the luxury product market Counterfeit products Global economy Current challenges in the Japanese luxury market are mounting and consumer behavior is changing. The Japanese consumer once purchased Louis Vuitton product as form of social expression. Today, the Japanese consumer is wiser to the value of the yen and unwilling to pay for the high price for a Louis Vuitton product. In response, Louis

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