Louis Vuitton position in the Japanese market Case Study - 1

Louis Vuitton position in the Japanese market - Case Study Example In light of the market trends, Louis Vuitton has strategically adapted new market approaches to the Japanese market. Following the global economic recession of 2008-2009, Japanese luxury goods consumers have become more price conscious. Vis a vis, Louis Vuitton has been forced to re-evaluate its primary marketing strategy of premium brands in the case of the Japanese economy. The company lacks a comprehensive Japanese culture-oriented marketing strategy that would differentiate between the dynamics of the western market and the Japanese market. Employment of the Louis Vuitton global strategy fails to incorporate the cultural aspects of Japanese consumers in terms of price, quality and value addition. The company’s success in the Japanese market has been driven principally by the group- culture that strongly promotes possession of luxury goods by consumers (Paul and Feroul, 2010). However, the market has been characterized by consumers increased value for their money, thereby a voiding premium-priced luxury goods. Louis Vuitton position in the Japanese market has further been weakened by new marketing strategies by rival brands who have lowered their prices to attract price-sensitive consumers. To maintain its customer base, Louis Vuitton has been forced to also reevaluate its pricing strategies. To cushion themselves from harsh trends in the luxury goods market, rival firms have diversified their services and product portfolio to include non-traditional products. Chocolatier Godiva had announced plans to open up cafes in Tokyo while Vertu a mobile phone company had plans to open up shops in Ginza. Therefore, Louis Vuitton runs the risk of solely depending on luxury goods market. The Japanese market has been identified to be cyclical, characterized by periods of extensive consumer spending, which are followed with reduce consumer expenditure.