Louis Vuitton in India

In: Business and Management

Submitted By Supercool
Words 1486
Pages 6
Louis Vuitton in India

Retail Marketing Strategy

1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall?
A. Opportunities
1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment.
2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015
3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward.
4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands

Threats
1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products.
2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than abroad. No price differentiation to the brands in India, where customers are still price conscious and are looking for better deals
3- lack of world-class luxury customer service experienced by the well travelled Indian consumer hence preferring to shop while traveling abroad.
4- lack of Lrc - luxury retail clusters or high streets in India and the increasing rentals. Rentals in…...

Similar Documents

Louis Vuitton

...2. The strength of Louis Vuitton is in its strong, established brand image and international presence. Brand name is what allows the company to de-commoditize luxury products and extract premium from the market. Throughout its history Louis Vuitton has developed a reputation for providing its customers both quality and unique product image. Louis Vuitton products distinguish themselves on five key traits: high prices, excellent quality, aesthetic and emotional value, rich brand history and uniqueness. Solid business model and rapid expansion overseas proved to be a great platform to help establish a high-end international brand image. Ability to control its distribution channels allows Louis Vuitton to capture value added instead of giving it to the middlemen such as suppliers and retailers and to deliver the best quality goods to the customers. Owning shops gives Vuitton control over level of stock, presentation and pricing. Additionally, LVMH is the most highly diversified luxury goods company. Even though LVMH is an acronym of three brands: Louis Vuitton Moet Hennessy, the company owns over 50 brands: 13 apparel and leather goods brands, 20 wines and spirits, 6 retail brands, 10 perfumes, 5 watches and jewelry. This multi-brand strategy that LVMH adopted is another company’s strength. Opportunities exist for Louis Vuitton to continue with its current strategies of establishing large branches worldwide. Louis Vuitton products are designed for wealthy individuals, who......

Words: 409 - Pages: 2

Louis Vuitton

...implementation that a company can differentiate itself from the rest of the competition, as well as fostering strong brand awareness and recognition. Indeed, thanks to its organizational values, clear strategic mission and vision, plus its brilliant and flexible planning, a company like Louis Vuitton (LV) could manage to craft and maintain a highly recognized brand for more than 150 years. In fact, its logo is internationally recognized as an icon of style and exclusivity. The commitment of the company to “absolute quality” made its customers adopt a “Louis Vuitton or nothing” mindset rendering its comparison with the rest of the competition obsolete. It was named the most valuable fashion brand for seven years in a row throughout 2006 to 2012. Currently, Louis Vuitton brand is worth more than Rolex, Tiffany, Fendy, Cartier, and Chanel combined. (Soegaard, 2011) In the fashion industry, crafting a successful strategic plan means the difference between success and failure. In a constantly changing and highly competitive environment, fashion companies are in a never-ending struggle to distinguish their brands from others and create ways to attract incredibly demanding customers. With that in mind, Louis Vuitton has realized the necessity of building a solid business culture that clearly communicates the company values, mission, vision, and objectives to all the company stakeholders to align all their actions to its strategic plan. Without a clear and efficient strategic plan......

Words: 1491 - Pages: 6

Louis Vuitton

...Louis Vuitton Malletier , or the history that we are also a favorite as ' Louis Vuitton ' , but there are many girls who like to short the LV (LV) bags , Louis . Vuitton is a brand that was established at the year of 1854 when France by Louis Vuitton malware Lake Fortier present bags brand Louis Vuitton is a brand that can be considered a giant . most people around the world know . LV logo is just tremendous value it. This product brands that are available . Packaging bag , clothing , handbags , clothes , shoes, watches and jewelry. By all bags of Louis . Vuitton has potential inspiration that "Art of Travel" , which is the core of the design and concept of the design handbags , Louis Vuitton , all leaves and designers , the current of Louis . Vuitton 's Marc Jacobs , which is the design of his people , it is the favorite of the celebrities . Around the world. Bag Louis . Thailand women 's values ​​, rather than just a bag . Believe that in a number of various bags brand bags Louis is one of the most popular women purse Thailand . Most women want to have the most possession . But with the price of the bag has a very high price to make a purchase using the card , it will not be easy , but if I do not pay for quality and a long history of the brand. Thailand had to accept that women are not less patience to collect money in order to have a pocket or purse LV logo Louis Vuitton itself....

Words: 253 - Pages: 2

Louis Vuitton in India

...Louis Vuitton in India Retail Marketing Strategy 1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities 1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands Threats 1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more......

Words: 1486 - Pages: 6

Louis Vuitton Case Study

...these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they can withstand wear and tear, and that there are no imperfections. The company markets its product through its own stores throughout the world and through company’s own website, LouisVuitton.com. Louis Vuitton has three (3) boutiques in Malaysia which is located lofty departmental stores such Starhill, Bukit Bintang, KLCC and The Garden, Midvalley. The locations of these......

Words: 9151 - Pages: 37

Louis Vuitton

...October 14, 2013 Louis Vuitton Case Study 1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? Louis Vuitton’s business model in Japan is truly extraordinary in the way they use product, price, place, and promotion. The company was founded on producing products of the highest quality by Louis Vuitton Malletier in 1854. LV continuous effort to innovate their product through partnerships with local artist to create limited product lines and never deviate from the founding father’s vision is directly related to LV’s success. Louis Vuitton’s product image in the consumers mind is so important that they are taken huge measures in preventing counterfeiting of their product globally. The next portion of the LV’s business model is price. For a majority of company’s price is determined all by market demand and can fluctuate in order to stimulate or maintain consumer demand. For LV it is different, their products are priced unnecessarily high all the time despite what the market demand is. They do this because LV products are luxurious status symbols and in this sense offer absolute value out of a purchase. If the company prices their item any lower than what the current price is then the LV label will hold its social value. LV’s choice of place is unique because they only sell from a very small number of stores of which are mostly owned by the company. This is unique because traditionally an increase and sales can directly...

Words: 738 - Pages: 3

Louis Vuitton Case Study

...Introduction: We The A-Team are going to explain how Louis Vuitton, the world renounded luxury brand with a long history of producing luxury goods has left its mark on the world. Louis Vuitton started out as a single product brand of making leather bags which were all handmade. As Shin-Fen Chen states, “Louis Vuitton combined the artistic creativity of its designers with a rigorous management of resources to produce brands that were the most profitable in the world in the luxury genre.” Since the company’s creation, time has shown people will spend the extra money for the extra benefits that the handmade luxury leather bags provide them. Louis Vuitton has gained success due to communication and expertise between managers and designers. They currently have four business segments which include an array of goods. These goods consist of wines and spirits, watches and jeweler, perfumes and cosmetics, and fashion and leather goods. (Chen, 2008) Also, the brand has expanded into new markets, the two largest being the United States and Europe. We are going to dig deeper and see how this well-oiled machine we call Louis Vuitton functions. Question: 1. Why do people buy luxury goods? In analyzing why people buy luxury goods we can break down the people’s reasoning for doing so into several different categories. First we look at what a luxury good entails. A luxury good is not a good necessary to live, but it is viewed as a desired item by the society that the people......

Words: 1233 - Pages: 5

Louis Vuitton Case

...LOUIS VUITTON IN JAPAN -CASE #14 REVIEW LOUIS VUITTON IN THE JAPANESE MARKET ABSTRACT The purpose of this paper is to review the Louis Vuitton business model and the success experienced in the Japanese marketplace. This paper will discuss opportunities and challenges that have been realized by the Louis Vuitton brand while located in Japan, and the specifics to the Japanese luxury market. A review of how the Louis Vuitton brand first entered the Japanese marketplace, the cultural aspects related to social status and luxury goods, which that have helped with the sales growth for the company’s products. Along with tactics embraced later on to strengthen its brand will also be reviewed. The appeal of the Louis Vuitton luxury high priced product, and how the French company’s image helped to sell itself to Japanese consumers with disposable income will be analyzed. The success of various marketing strategies, utilizing the images of actresses to help launch a successful sales campaign will be reviewed. Along with a review of the company’s success by working with various fashion designers to create colorful fashion trends with Japanese inspired themes, through the collaborative work with well-known Japanese artists. The global recession, its effect on the Louis Vuitton product line and sales will be analyzed along with new challenges the company faces for the future. Finally, a discussion on the future success for...

Words: 2754 - Pages: 12

Louis Vuitton- a Case Study

...3/14/2013 JITESH ANAND 10IB-033 CASE STUDY: LOUIS VUITTON IN INDIA Louis Vuitton in India | Jitesh Anand 1. INTRODUCTION: Luxury Brands in India If it was few decades ago, there was a very limited scenario one could see with respect to the luxury market in India. Those days luxury market was associated with the rich class and with very few upper-middle class people. However, with the involvement of number of international luxury brands in the country, the shape of the luxury market in India has undergone a dramatic transformation. When it comes to the word luxury it is mostly misunderstood with the meaning beyond the reach of common man. With every year passing by, the so called beyond the reach of common man is proving to be a false fact. Luxury products are becoming the necessities not only for the rich class or upper middle class but also for the middle class people. Luxury market in India is build up on basic four elements which are quality, value for money, customer satisfaction and the most important creativity. In order to be successful in Indian market luxury brands should be able to sustain and fulfill these criteria on a long term basis. The Indian luxury market is growing at a rate of 25% which simply implies the consumption of luxury products has been increasing at a fast pace. India is becoming the new destination for luxury brands across the globe and Indian government opening Foreign Direct Investment (FDI) in retail has resulted in many......

Words: 3072 - Pages: 13

Louis Vuitton

...The Luxury Goods market has witnessed exceptional growth over the decades. The extremely wealthy, for a long time, were the traditional customers of Luxury goods. However, on account of progressively opening up the market to wider audience, the luxury industry has witnessed exponential growth opportunities, resulting in unprecedented increase in the bottom-line of these luxury companies. Louis Vuitton has exemplified this over 20 years. However, the company faces a lot of challenges with respect to optimizing its supply chain so as to ensure mitigation of losses on account of lost sales & stock outs. We have identified the following challenges: The time for the raw materials to get from the supplier to the facilities is very long. However, because LV stands for high quality of the goods, this is a factor the company does not wish to compromise on The time it takes for the products to go from the warehouse to the company owned stores is also too long. This is the main cause to the inventory stock outs, which results in loss in revenues. The logistics cost is a too high. This is because LV uses one main warehouse, which delivers to most, if not all retailers, no matter where they are located. The time it takes for the order to go through between the retailer and the warehouse is too high, especially for a luxury good. Since their order time is a month, it becomes an inconvenience for the customer to wait, and it might come as a disadvantage. The held inventory......

Words: 333 - Pages: 2

Louis Vuitton Case Study

...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000......

Words: 2043 - Pages: 9

Louis Vuitton

...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, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, representing almost half of its profits, but it seems that the global economic crisis has resulted in a decline in sales. Other European brands in the luxury and fashion sectors have also been generating one third of their profits from Japan. Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market, taking into account consumer behaviour patterns. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works. Louis Vuitton may be French, but Japan has become a land full of Louis Vuitton lovers. Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s......

Words: 329 - Pages: 2

Louis Vuitton

...Louis Vuitton Analysis Mary Askew American Public University Abstract Louis Vuitton is a brand of luxury items. It was started by an avid trunk makers and is now currently the top luxury brand provider for the tenth year straight. Louis Vuitton has been able to sustain its leadership in this competitive field by being innovative and garnering the best team the company can have. The leaders keep close tabs on the inner workings and control all aspects of products from manufacturing to sales.They are always looking to expand and increase market share. This paper will take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the......

Words: 1268 - Pages: 6

Louis Vuitton

...concern for Louis Vuitton’s stock in the near term. v  Louis Vuitton is undertaking a transformation strategy to evolve into a global lifestyle brand anchored in accessories. However, we believe this transformation will take at least a few more quarters to reap the desired results. v  Increased private label offerings by wholesale customers also increase the competition for Louis Vuitton.  BARGAINING POWER OF CUSTOMERS: LOW v  Louis Vuitton sells through both, the direct-to-consumer channel and the wholesale channel. The direct channel, which includes Louis Vuitton operated stores and e-commerce sales accounted for around 89% of its total sales in fiscal 2012. v  Since wholesale customers account for only around 10% of the total sales, we believe their bargaining power is limited. v  We think the bargaining power of end-customers is moderate. Louis Vuitton has positioned itself as an exclusive luxury brand and enjoys strong brand recognition due to its high quality products. v  We believe that the customers’ bargaining power will remain low in the future as Louis Vuitton’s efforts to reinvigorate its brand appeal will be offset by rising competition in the market. THREAT OF NEW ENTRANTS: LOW                               v  To start up a new brand, significant capital expenditure is required for marketing and floor space. v  Brand recognition and loyalty are among the main factors that drive middle-to-high income earners towards luxury companies such as Louis......

Words: 1149 - Pages: 5

Louis Vuitton

...1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? ლუის ვიტონის არჩეული ბიზნეს მოდელი მართლაც წარმატებული აღმოჩნდა იაპონურ ლაქშერი ბაზარზე, რომელზეც 2004 წლის მონაცემებით მთელი ფუფუნების საგნების 55% მოდიოდა. ეს ბრენდი გამოირჩეოდა იმითაც რომ მისი მოგების მარჟა შეადგენდა 45% - ს, როდესაც ანალოგიურ ბაზარზე 25% იყო ნორმა. რით იყო ეს გამოწვეული? თავდაპირველად დავიწყოთ ამ ბრენდის პროდუქტის განხილვით. Louis Vuitton- ის ჩანთები იკერებოდა საფრანგეთში, სადაც წარმოება გაცილებით ძვირი ჯდებოდა, მაგრამ სამაგიეროდ ბაზარზე მისი პოზიციონირება ხდებოდა როგორც ნამდვილი ფრანგული საქონლის. რაც შეეხება მის ხარისხს, აქცენტი უფრო დეტალებზე კეთდებოდა, მის მოსახერხებლობზე. შეუძლებელია იმის თქმა, რომ მისი მაღალი ფასი კონკურენტებთან შედარებით უშუალოდ შესამჩნევი ხარისხით იყო გამოწვეული. შედეგად ლუის ვიტონის ჩანთები იყო ძვირი, თუმცა ეს ფასი იყო სრულიად გამართლებული და მომგებიანი. ამ ჩანთებში გადახდილი ფული მომხმარებლისთვის იყო გამართლებული. ის ხდებოდა ახალი სოციალური ფენის ნაწილი და იღებდა საზოგადოებაში სტატუსს. ასევე მან წარმატებით მოახერხა დაპირისპირებოდა მის გაყალბებულ ვერსიებს. შემდეგ, გაამართლა შეზღუდულმა გამოცემებმა. ბრენდი ყურადღებას უთმობდა ადგილობრივ მომხმარებელს და ადგილობრივ ბაზარს, რაც საკმაოდ დადებითი იყო აზიური კულტურისთვის. კომპანია შეიტანა სიახლე იაპონიის ლაქშერი ბაზარზე, როდესაც „shop-in shop“ დანერგა. მართალია მისი მაღაზიები ყოველთვის წარმატებული იყო და გაყიდვების აღმატებოდა......

Words: 606 - Pages: 3

最もよく売れているアクセサリー | Mon premier jardin en permaculture | 足の靴下