Analysis of new opportunities in Japanese Market for Louis Vuitton, that was the most successful luxury brand in Far East 1900s.

1. Analysis of
opportunity in
Japanese Market for
LOUIS VUITTON
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Master in Marketing Management
Università Cattolica, Milan

2. 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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3. CLASSIC ICON
150 years of Hystory, never going out of style
EXCLUSIVE LUXURY
Exclusive locations and experiences
INSPIRING BEAUTY
Feel beautiful
like a star
RICH HERITAGE
European 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”

4.  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

5. 94%
of women in Tokyo has
a Louis Vuitton bag
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6. TARGET
Fond 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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7. 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 individuality
2. 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.
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8. 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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9. 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 Craftsmen
Old times artisans will allow you to assist to the creation of the
product right under your eyes
Exclusive experiences: invitation to take part in your own bag birth

10. 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 Cities
Exploit the newfound success of the logo

11. 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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12. 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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13. THANK YOU
Sara Bonato
Carlotta Citterio
Selene Lombardi
Giulia Saccone
Viktoria Spiess