The fashion trend Fashion, the term to coin clothes, shoes, accessories, and makeup to make someone look trendy, beautiful, and other synonymous adjectives. The fashion trend constantly changes too, and it had been around for longer than one might think.
The culture of Japan is such that the buyers are very quality conscious. Japan is technologically very advanced. Japan is a developed country with high economic growth. Counterfeiting also prevails in Japan. Individualism and self expression are curtailed. North Korea is technologically backward.
The economy is not booming due to minimum external trade relations. It is still following the communist regime. Hence a lot of political restrictions prevail here. LMVH in Asia faced a lot of challenges for example transfer of tacit knowledgecross border resource transfer, lack of cultural understanding, environmental factors.
Hence, in order to deal with such a situation in a volatile but booming Asian economy, LMVH adopted a flagship strategy for expansion rather than direct foreign investment. This strategy involves creating partnerships or a network with the domestic or regional constituents.
The MNE relies on four types of cross-border partners to increase its international expansion rather than on bureaucratic vertical integration. The flagship recognizes in them the ability to produce value added inputs and services in an efficient manner. Key customers are businesses specializing in distribution and intermediation with final consumers.
These partners can be government agencies, universities, research centers or trade associations. In china luxury market its all about the face value with less emphasis on quality.
It is western image of the product. Hence LMVH avoided made in china labels on it products.
Brian Schwarz, Insight magazine, December In Japan however, more emphasis is on quality rather than face value. The buyers are more stringent. Another aspect that LMVH considered while entering this market was the predominance of departmental stores and the reliance of customers on them even for luxury items.
Hence, in Japan, LMVH made alliances with departmental stores to satisfy customers other that their own flagship stores.
Girod and Alan M. Rugman,regional business network and the multinational retail sector, long range planning journal, 38, In India, the situation is similar to that of china.
A lot of emphasis is on the face value of clothes and its appeal to other groups of the society for approval.
Previously India had a lot of trade restrictions to boost its internal sectors for high end value added products, but now they are eased to allow foreign investors to fulfill the huger of India which is getting westernized by the day.
There is great opportunity in India as it develops it party culture particularly the rich and the affluent. Political scene also is very different for Louis Vuitton. For example due to nuclear test by North Korea, the United States had put sanctions on its luxury goods directly affecting Louis Vuitton.
Its products are counterfeited and made available in the local markets of Asia at very cheap price which affects the basis of its existence- that is luxury brand available only to the elitist of the society.
Also in china, it filed a case against such activity and the government took action favoring LMVH by cutting the supply of counterfeited products in that particular region. Today, the luxury market in Asia is booming as more and more people are interested in possessing brand name shoes, apparel, watches etc.
Due to rapid social and economic changes, your place in society … now depends only on how much money you have.Case Louis Vuitton in Japan American Military University Abstract Established in France in , Louis Vuitton, known as the oldest supplier of French luxury fashion goods, became known for its exquisite leather bags and trunks.
As the number of urban households continues to surge across many economies, residents and state structures are facing rising challenges. Poverty, the decline in the concept of the family, higher unemployment, lower fertility rates, and the increased need for social, environmental and economic development are the unfortunate consequences of.
What are the opportunities and challenges for Louis Vuitton in Japan? The first opportunity that presents itself to Louis Vuitton is the change in the ageing Japanese population.
The Japanese are consisting more and more of wealthier families and older women with larger discretionary income%(9).
The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual estimates and forecasts are provided for the period.
Q: What are the opportunities and challenges for Louis Vuitton in Japan? To do this, follow the sections described below (make sure your report is clearly divided into each section and all . Louis Vuitton Supply Chain Management In: Business and What are the opportunities and challenges for LV in Japan?
challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, the second largest economy in the world.
The case illustrates the business strategy of Louis Vuitton in an important market.