Louis Vuitton : The World's Largest Individual Consumers Of Luxury Brands

1998 Words Mar 17th, 2016 8 Pages
Case Analysis The Japanese - the world’s largest individual consumers of luxury brands (Mauchauffée, Lemaire, & Magnier-Watanabe, 2012). Around the mid 1970’s, the Japanese warmly welcomed Louis Vuitton, the originally French luxury brand. Being the first multinational luxury shop with its own subsidiary, Louis Vuitton enjoyed Japan’s incredible demand for luxury status-driven brands, high fashion, and innovative trends. Using celebrity endorsements and promotion of high quality and exclusivity, Louis Vuitton built a very large Japanese clientele, accounting for 55 percent of its revenues in 2004. Slowly, Japanese consumer behavior shifted and the traditional way of thinking became influenced by more Western ideas. The Japanese changed their attitudes towards luxury brands and no longer saw it as a necessity to “show off” or “fit in”. With declining sales and a change in the Japanese mindset, Louis Vuitton believed local adaptation and an understanding of the local customer to be the road to future growth and success.

Louis Vuitton’s Marketing Mix
What are the factors that contributed to LV’s exceptional success in the Japanese market? Let us carefully assess the brand’s four P’s before we look at more specific strengths and weaknesses. In general, marketing seeks for average quality, one that conforms to usability and functionality standards (Nagasawa, 2009). For an average 1000 Japanese Yen handbag, it means that the bag simply needs…
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