Analysis of opportunity in
Japanese Market for
LOUIS VUITTON
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Master in Marketing ManagementUniversità Cattolica, Milan
Early Days - 1854
Louis Vuitton opens the first store in Paris
Brand’s Key History
Golden Age - 1893 LV becomes a worldwide
corporation
Modern Age - 1978 LV opens its first stores in Japan, in Tokyo and Osaka
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CLASSIC ICON150 years of Hystory, never going out of style
EXCLUSIVE LUXURYExclusive locations and experiences
INSPIRING BEAUTY
Feel beautiful like a star
RICH HERITAGEEuropean couture and
French savoir–faire
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Louis Vuitton is…
STATEMENT“LV must continue to be synonymous of both elegance and creativity, blend tradition and innovation, and kindle dream and fantasy”
Japan has the biggest amount of middle class people
JAPAN AND LUXURY
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Highest pro-capita spending amount on luxury goods
In 1970s started to travel abroad and buy maniacally in Europe
Japanese tourists represented more than 80% of Louis Vuitton’s Champ Elysées store sales (2006)
Paradox between show off and conformity
Japanese Women: low “status”, luxury grants the “experience to be served”
High willingness to pay full price: 1.4x French price
Success in Japan
94% of women in Tokyo has a Louis Vuitton
bag
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TARGETFond of luxury brands
Louis Vuitton is ‘The brand’
Fashion magazines readers: Magazines dictate fashion
To gain social stature they need to show the world what
they own Louis Vuitton addicted
They buy the latest trend in luxury fashion
Social group is crucial for them, they aspire to belong
to that group
These women are called ‘Parasite singles’.
They postpone marriage in order to be able to afford
luxury and to continue living in comfort
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MAIN PROBLEM SALES DECLINE IN JAPAN
Aging of the Japanese population: the number of the parasite singles is slowly decreasing
Global economic crisis and recession
Important shifts in consumer attitudes: 1.The decline of conformity and rise of individuality2.An increasing preference for luxury experience
rather than luxury goods 3.Increasing popularity of counterfeit goods
LV has become a luxury mass market brand Loss of brand image and diluition.
Caused by
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Long term Marketing Goals
Increase of Sales after previous drop
Brand Heritage re-align values and
status
Brand Relationship re-focus on customer
brand relationship
Brand Perception
increase prestige and positioning
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Marketing Initiatives (1)Limited Edition Lines
Limited amount, for a limited period of time, sold in exclusive locations.
Collaboration with Japanese Artists
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Handmade bags in shop by French CraftsmenOld times artisans will allow you to assist to the creation of the
product right under your eyesExclusive experiences: invitation to take part in your own bag birth
Marketing Initiatives (2)Increase Quality – Increase Price
Costumers request higher and higher quality that justifies the price
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Create In-shop Experiences
Shops in Smaller CitiesExploit the newfound success of the logo
SUCCESS MEASUREMENT
Sales and Market Share Monitoring
Amount of Limited Edition Lines sold
Number of appointments for bespoken models
In-store affluence
Value increase of the average receips
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Bibliography• The success of luxury brands in Japan and their uncertain future Article, University of Paris, 2009 Link: University of Paris Research
• Japan’s luxury consumer: Detecting a pulse? Article, McKinsey, 2010 Link: McKinsey Research
• No seismic shift for luxury in postquake Japan Article, McKinsey, 2011 Link: McKinsey Research
• Cult of the Luxury Brand: Inside Asia's Love Affair with Luxury Book by Radha Chadha and Paul Husband, 2015 Link: Book preview from Google
• Louis Vouitton in Japan, Ivey Case Article, University of Western Ontario, 2012 Link: University of Ontario Research
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THANK YOU
Sara BonatoCarlotta CitterioSelene
LombardiGiulia SacconeViktoria Spiess