CASE BLAZER IICASE: LOUIS VUITTON JAPAN

TEAM 6:INVINCIBLEABHISHEK KYAL

NISHANT NAGDAUNIVERSAL BUSINESS SCHOOL

QUOTE:

•“If you control your factories, you control your quality” and “If you

control your distribution, you control your image.”

– Bernard Arnault

HISTORY Louis Vuitton was born in 1821 in

Anchay France. He acquired personal “savoir-

faire” about leather luggage. Louis Vuitton was established in

France in 1854. It was famous for craft work

leather bags and trunks. It has become the oldest French

luxury fashion house.

CASE SYNOPSIS• LV leading luxury global brand entered Japan and became the land

of Louis Vuitton lover.• LV in mid 70’s became the worlds luxurious brand in terms of market

share.• In 1885, firm opened its first overseas store in London, England.• In 1987, Louis Vuitton conglomerate with Moet-Hennessy which

resulted in increase in profit of 49% in 1988.• By 1989, Louis Vuitton entered into 130 countries across the world.

CASE SYNOPSIS

• Japan was the most lucrative market in the decade for LV but it has let to decrease in sales because of global economic crisis.

Company Growth

In 2002, With in few days of opening sales crossed 1 million Yen.In 2003, company managed to maintain high operating margin of

45%In 2004, with annual sales of about $3.8 Billion. company was charging high premium for their product which

were adding up to to companies bottom line.LV hired best designer in the market to attract young buyers.Increased in marketing budget by 20%.

DATA ANALYSIS

DATA ANALYSIS

Competitors

Louis Vuitton has the highest

percentageIn Revenue

Strengths· Internationally recognized fashion Brand Image· High quality products achieved high quality control standards· Distribution is company owned· Collaboration with Renaud Japanese Artists.· Attention to the distribution stores location, layout, architecture etc.

Weaknesses· Very High Reliance on Japanese market· Brand dilution· Challenges in controlling multinational business.

Opportunities· High disposable income of Japanese customers· Solid proportion of middle class.· Social and Cultural relations with fashion.

Threats· Economic downturn and strong Yen against $ and Euro· Competition with other similar luxury brands or low range brands.· Counterfeiting items· Cyclic nature of the JAP economy.

SITUATION

Problem AnalysisCurrency FluctuationFake ProductLow growth rate Growth potentialMarket dilutionLimit of limited edition

CASE SYNOPSIS

Diversity in productShould Focus on different market.Marketing champagnes to educate people about the

counterfeited items.Price adjustments to gain customers.

Suggestion