The document provides an overview of Louis Vuitton's expansion into Japan. It discusses LV's history and product lines. The case synopsis outlines LV's success in Japan since 2002 and increasing competition. Key issues facing LV include counterfeiting and overdependence on the Japanese market. The team performs a SWOT analysis and recommends strategies like improving anti-counterfeiting measures and expanding into new markets to address weaknesses.

2. Group Members:
Simone Clarke
Lara Chahine
Kerri-Ann Norman
Saurabh Mali
Harmanpreet Kaur
LOUIS VUITTON IN JAPAN

3. 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

4. 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

5. 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

6. Louis Vuitton Products

7. Louis Vuitton Products

8. Louis Vuitton Products
Video-Making of LV Bag
https://www.youtube.com/watch?v=HQ00
ZbKrp8c

9. 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.

10. 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.

11. 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

12. ❖ Major economic crisis of 2008-2009
➢ Counterfeit
➢ Scandal of 2008 of fake products offered online
https://youtu.be/lyIn60WfQJg
Key Issues

13. Key Issues
❖ Decline in sales due to September 9, 2011 attack
❖ Overdependence on the Japanese Market
❖ Brand Dilution

14. Industry Overview
Inludes:
- Fashion
- Cosmetics
- Fragrances
- Jewelry
For Louis Vuitton
- Fashion
- Handbags
- Luggage

15. 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

16. 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

17. 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

18. Competitors

19. Other Competitors
Foreign Brands
- ZARA
- H&M
- Uniqlo
Some of these brands created products that resembled LV and
other luxury brands

20. SWOT ANALYSIS

21. 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

22. 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

23. SWOT ANALYSIS
OPPORTUNITIES
❖ Unique Consumer
Behaviour
❖ Powerful Culture
❖ Purchasing Power
❖ Internet Business

24. 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

25. LV Stores
LV Store in Tokyo

26. LV Stores
LV Store in
Manhattan & New
York

27. LV Stores
LV Store in Nagoya
Midland Square

28. Results:Overall Analysis of LV
Inside LV Success -Feb 24,2014(end of swot)
https://www.youtube.com/watch?v=UfyOpfSRLdE

29. 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.

30. 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

31. 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.

32. 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

33. 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

34. 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.

35. 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.

36. 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.

37. 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.

38. 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.

39. 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.

40. 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.

41. 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

42. THE END