In 1854, Louis Vuitton, a Parisian trunk maker, opened his store on Place Vendome. Over the years the brand has grown significantly and is now attached to the LVMH group, the number one luxury group in the world, owned by Bernard Arnault. Louis Vuitton is one of the first commercial brands to have come to settle in Japan in 1977. With an average growth of 300% since 1991, and an annual turnover of approximately EUR 850 million (one third of global sales of Louis Vuitton), Japan is a market of choice for Bernard Arnault .
With a GDP of 4600 billion, Japan is currently the second largest economy in the world.
The population is very large and it represented a little over $127 million in 2008, of which 80% were from urban areas. The main characteristic of the Japanese market is that the consumers are very homogeneous since 90% of Japanese consider themselves the "middle class". A strong middle class purchasing power of Japanese households is 32,000 euros against 28,000 euros in France.
Market weight:
In 2007, the luxury market in Japan was 448.3 billion yen (2.9 billion euros), approximately 15% of the global luxury market. However, taking into account all of the "diaspora", the market potential is much greater than perceived . It is estimated today that 40% of luxury goods sold worldwide are bought by the Japanese.
Categories of buyers:
Traditionally, two types of buyers are particularly targeted by luxury homes. On one hand, senior citizens over 65 years represent 20% of the Japanese population i.e. 25 million potential consumers. On the other hand, the young working women between 20-35 represent 8% of the population, that is approximately 8 million.
A difficult and paradoxical market:
Japanese luxury market is demanding, unpredictable and relatively mature. Indeed, it was during the great Asian crisis that the luxury market exploded in Japan. However, the Japanese economic situation was rectified (2000-2007) but even then, sales of luxury goods have dropped steadily in the archipelago.
Paradoxes of the Japanese market:
"Paradoxically, in the decade of the 90s, recession had exploded in Japan. "
Colasse Richard, CEO of Chanel Japan
"Luxury in Japan comes across as a mystery to everybody "
Carcelle, president of Louis Vuitton.
Effect of second-hand markets and cross selling:
The prices of luxury goods in Japan are, on average, 60% higher than in Europe. As a result of these exorbitant prices, it allows consumers to buy luxury goods that are slightly used, for a quarter of their original price.
Sales development which is a parallel phenomenon is probably more a cause for worry in luxury homes. The consumer market consists of thousands of individual buyers, sometimes mere tourists and some are luxury goods that are shipped from overseas in small quantities. It ignores the market volume of parallel networks but it seems important to point out "qu'additionne counterfeiting", the fact that they could make up 20% of sales of luxury products in the archipelago.
Tags: Louis Vuitton, luxury goods, sales development, Japanese luxury market, luxury homes, commercial brands, Asian crisis
[...] " Kensuke Kojima, Kojima founder of Fashion Marketing "Now the only way to grow in Japan is to take market shares from competitors" Patrizio Bertelli, Prada's CEO C - The characteristics of the environment Types of Japanese consumer behavior: Primacy of the group over the individual: After centuries of Confucian influence, Japan is a society where the group is more important than the individual. As a result, the needs of Japanese consumers need to be addressed differently from the West. [...]
[...] Each store of Louis Vuitton is unique, designed by renowned architects and is located in a prestigious area which contributes to the prestige of the brand. The stores are now mostly located in megacities but the brand is beginning to open stores in smaller cities to meet demands better. To properly monitor the evolution of the distribution, Louis Vuitton does not open more than two stores per year in Japan. Meanwhile, the area of warehouses has been extended. Louis Vuitton is also developing original consumer trends with the introduction of a "bag's bar" in the new store in Roppongi Hills, a district of Tokyo known for its bars and restaurants. [...]
[...] The biggest Louis Vuitton store in the world is located on Omotesando in Tokyo, the equivalent of the Japanese Champs-Elysees, it has an area of Louis Vuitton called for the architect Jun Aoki, representative of contemporary Japanese architecture. The objective was to create a harmony between Japanese culture and the symbol of French luxury. The building was designed as a stack of Vuitton trunks, and to exalt a different side of Omotesando, trees are visible regardless of where one is in the store. [...]
[...] " Kyojiro Hata, CEO of Louis Vuitton Japan - Sensitivity to craftsmanship According to a survey by the Economic Mission in Tokyo in 2006, major Japanese consumer expectations with regard to luxury goods (2006) are: The traditional skills & product quality The history of the brand Similarly, the Japanese are characterized by their thorough research for information before their purchase of luxury products, and therefore have built a reputation of extremely demanding consumers. ? Luxury goods meet the constant quest for perfection among Japanese consumers. [...]
[...] B-positioning Its progress since its start (from the outset, a trunk maker). The French elegance Creativity and innovation Slogan of Louis Vuitton in Japan (since 1996) "Always full of novelties and surprises. " This slogan highlights the creative effort of Louis Vuitton in Japan to meet its target which is very sensitive to fashion trends. C-The perceptual map of luxury brands VI - The marketing mix: A. Product-policy- Louis Vuitton is the most popular representative of French luxury. Each product must therefore be unique and have quality. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
