Luis Vuitton in Japan
To: Dr. Summer Zwanziger From: Andrew Miring’uDate: August 25, 2015Subject: Louis Vuitton in Japan Louis Vuitton brand has been a huge success in the Japanese market, this comes as a result of the company placing greater deal on quality and exclusivity of the products that are being offered. Quality of their product portfolio has always been a key factor for the brands success in the Japanese luxury market. Louis Vuitton’s business model seems to be following the marketing concept of the Four Ps (Product, Price, Place and Promotion).Product: As the case mentions, quality of the product portfolio has been the key factor for the success of the brand. As a means of countering counterfeiting, eleven out of thirteen factories that made Louis Vuitton bags were in France, as the quality control standards in France were very high. Also partnering with the local artists in Japan and the production of limited editions, has demonstrated that innovation plays a crucial role in Luis Vuitton business model in Japan.  Price: Louis Vuitton products are expensive, but what makes the brand stand out from the rest is the value. During the 2008-2009 economic crisis, where the brand was facing a weak economy and a shift in consumer preference, Louis Vuitton adapted its strategy in the Japanese market, the brand launched relatively low-priced collections to boost sales.
Place: The case mentions that Japan had been known for a group-oriented culture in which there was a real pressure to possess luxury status-driven brands. Prada, Hermes or Louis Vuitton are some of the brands that had made Japan their mass market. Also with the appointment of Fujii as the new CEO, the brand established an internet business.Promotion: As the brand went global, it had to develop a successful advertising strategy. It increased its ad spending by 20 per cent. The company cultivated a celebrity culture and employed famous models and actresses, such as Jennifer Lopez and Madonna in its advertisement campaigns. Louis Vuitton used print ads in magazines and billboards in large cities. The advertisement on television was translated into thirteen different languages which helped Luis Vuitton to build a brand. Challenges and Opportunities Counterfeiting is one of the challenges that Louis Vuitton as a brand has had to deal with. Japan is no stranger to counterfeiting business. The case states that there has been a flood of fake Louis Vuitton products coming from Seoul, Hong Kong, Tokyo and Los Angeles. China is recognized as the largest producer of Louis Vuitton counterfeited bags, but South Korea is the largest producer in terms of high quality bags which are shipped to Japan. Even with the economic crisis that rocked Japan, Japanese people still bought luxury and high priced items. This is not to say that they will not buy imitations. The high quality counterfeits are hard to distinguish from the authentic items. Living in a society where you are judged by your appearance it is more likely that the authentic items will be worn to formal events while the counterfeits will be for use on rainy days, or to go to the supermarket for milk.