Group Members:Simone Clarke

Lara Chahine

Kerri-Ann Norman

Saurabh Mali

Harmanpreet Kaur

LOUIS VUITTON IN JAPAN

Agenda for Presentation❏Company Overview ❏Case Synopsis❏Key Issues in the Case❏Industry Overview❏Competitive Landscape❏SWOT Analysis❏Team Recommendation

-Other Options-Risks-Next Step-LV in 2016-Key Learnings of case

History of Louis Vuitton❖Established in 1854 by Louis Vuitton

➢Started out as a Trunk Maker➢Pioneered his gray canvas trunk➢Opened first store in London in 1885➢Died in 1892

❖Georges Vuitton took over ➢Aimed to take the company to another level➢Created Monogram Canvas & Noe

champagne holder bag➢Died in 1936

History of Louis Vuitton❖Gaston-Louis Vuitton took over

➢Expanded product lines ➢Died in 1970

❖Company biggest came the biggest in luxury brands

❖Conglomerate created with Louis Vuitton & Moet Hennessy

❖First creative Director Marc Jacobs

https://youtube/bs-jGPVeL6w

Louis Vuitton Products

Louis Vuitton Products

Louis Vuitton Products

Video-Making of LV Baghttps://www.youtube.com/watch?v=HQ00ZbKrp8c

Case Synopsis❖Louis Vuitton has been a dominant player in

Japan’s luxury market since it set up shop in 2002

❖Sales exceeded the initial estimate of ¥1 million during the first few days

❖The company continued to open multiple stores in Japan’s most fashionable districts such as Aoyama and Comme des Garcons.

Case Synopsis❖The firm’s focus was production and quality

control, quality products and efficient management practices

❖The company faced competition from Burberry, Gucci Baccarat and Salvatore Ferragamo

❖The company faced multiple challenges which lead a new perspective, new strategic approach and a change in management.

Case Synopsis

❖Louis Vuitton collaborated with Japanese artist Takashi Murakami in creating a colorful pop version of Louis Vuitton’s monogram in 33 colours

❖To further its growth, the company decided to establish an internet business and expanded its product and created a line for children

❖ Major economic crisis of 2008-2009➢ Counterfeit ➢ Scandal of 2008 of fake products offered online

https://youtu.be/lyIn60WfQJg

Key Issues

Key Issues

❖ Decline in sales due to September 9, 2011 attack

❖ Overdependence on the Japanese Market

❖ Brand Dilution

Industry Overview

Inludes:- Fashion- Cosmetics- Fragrances - Jewelry

For Louis Vuitton- Fashion - Handbags- Luggage

Industry Overview

Based on your experiences and knowledge, what are the top 3 brands you would consider to be the most luxurious?

https://www.youtube.com/watch?v=4DxHQWsSy8s

Japan and Luxury..

❖Japan is the world’s LARGEST market for luxury brands- 12 - 40 % of the world’s sales

❖Evident for the past 10 years

Competitors

❖2006: Other Luxury brands introduced to the Japanese market

Baccarat - Burberry - Gucci - Salvatore Ferragamo - Michael Kors

COACH and Tiffany & Co. 2nd largest market in Japan

Competitors

Other Competitors

Foreign Brands- ZARA- H&M- Uniqlo

Some of these brands created products that resembled LV and other luxury brands

SWOT ANALYSIS

SWOT ANALYSIS

STRENGTHS

❖ Strong Foundation

❖ Successful Mergers

❖ Successful Expert Designer

❖ Lavish store infrastructure

❖ Brand Growth

❖ Exclusive Distribution Network

❖ High Quality

❖ Effective Advertisements

❖ First Mover Advantage

❖ Perfect Architecture

SWOT ANALYSIS

WEAKNESSES

❖ Shift in Consumer Preferences

❖ Expensive Labour Market

❖ Strong dependence on Japanese Market

❖ Fight against Counterfeiting

❖ Departure of Designer

❖ Control of Multinationals

❖ Brand Dilution

❖ High prices

SWOT ANALYSIS

OPPORTUNITIES

❖ Unique Consumer Behaviour

❖ Powerful Culture

❖ Purchasing Power

❖ Internet Business

SWOT ANALYSIS

❖ Counterfeiting

❖ Scandal

❖ Increasing Competitors (Gucci,Prada etc)

❖ Advocating against the use of animal skin for products

THREATS❖ Global financial

crisis and sluggish Japanese economy

❖ Global Economic Slowdown due to Terrorist Attacks such as (9/11)

❖ Dana -Sulphurous Book

LV Stores

LV Store in Tokyo

LV Stores LV Store in

Manhattan & New York

LV Stores LV Store in Nagoya

Midland Square

Results:Overall Analysis of LV

Inside LV Success -Feb 24,2014(end of swot)

https://www.youtube.com/watch?v=UfyOpfSRLdE

Recommendation

❖ Use unique identification number for all their

products➢ Use an impeccable product code scanning system

to control counterfeiting of products.

❖ Control the number of limited editions➢ Make seasonal launches of products.

Recommendation

❖ Reduce dependence on free lance designers.

➢ Train new interns.➢ Introduce certain competitions among fashion

institutes to discover and acquire new talent.

❖ Create and nurture new markets

➢ Lower the dependence on the Japanese market.

Other Options Explored

❖ State of the art anti-counterfeiting measures.❖ Getting common people to send their designs

through some competitions.❖ Lowering the prices to capture new markets❖ Maintain the uniqueness of products.

Facts and analysis leading to recommendations

❖ A study conducted by Organization for Economic Growth and Development (OECD) identified forfeiting to be one of the greatest challenges of Globalization.

❖ The analysis in this report indicated that international trade in counterfeit products could have been USD 200 billion in 2005.➢ Poor and weak Japanese laws making the

problem worse

Facts and analysis leading to recommendations

❖ The case study clearly states that the “limited

edition” strategy would confuse consumers.➢ hinder their ability to differentiate between an

actual limited edition and a marketing ploy

Facts and analysis leading to recommendations

❖ Mark Jacob’s tenure as the artistic director coming to an end in 2018.➢ Leaving the fashion house highly vulnerable and

at potential risk from fellow competitors.❖ LV’s dependence on the Japanese market is

phenomenal.➢ Making it a lot riskier, as the well being of the

brand is greatly associated with just one economy.

Potential Risks related to Recommendations

❖ Recommendation 1 :Technology upgrade to scan products.Risk involved:

The products at store are legit and authentic, so there seems to be no need to scan the ones at store.

Potential Risks related to Recommendations

❖ Recommendation 2 :

Hiring more Intern Designers.❖ Risk involved:

Losing the reputation of Elite and Luxury designer store as the idea sounds more like Zara, which doesn’t even stand as a competition any closer.

Potential Risks related to Recommendations

❖ Recommendation 3 :

Excluding the concept of Limited Edition❖ Risk involved:

With a brand like Louis Vuitton, which provides a feel of exclusivity with the limited number of products it introduces to the market, the company by far has only benefitted from the concept of Limited Edition.

How to minimize the identified risks?

❖ Providing a certificate of authenticity with every product sold.

❖ Relying on experienced designers.❖ Only introducing few products in large amounts.

LV 2016

❖ An article published on 3 February 2016, stated that

LVMH’s revenue rose by 16% to €35.7bn (27bn) in 2015. Likewise the sales were also reported to have risen by 6%.

❖ In 2015 LVMH declared a 3.55 EUR, representing an

increase of 10.94 % over the last year.

LV 2016

❖ Another article published at TheWire.com stated that

for nine staright years Louis Vuitton had been the biggest and the most profitable brand in the luxury rankings. Hermes being the second and Gucci being third on the list.

Feel the Luxury!!!

LV leather goods

https://www.youtube.com/watch?v=l12FFKJQEYg

LV Jewellery

https://www.youtube.com/watch?v=A_-1gSGN7lc

LV Women shoes

https://www.youtube.com/watch?v=SYcrN5YU3hQ

THE END