2. Opportunities and challenges for Louis Vuitton in Japan
The strength of Louis Vuitton in Japan can be broadly divided into two categories. The first one has been the long attachment of Louis Vuitton to the country and its society, traditions, history, art and many other aspects. The Japanese consumers are mostly loyal clients — shoppers who think that one Louis Vuitton bag in the closet just looks too lonely. Louis Vuitton’s strategy has been able to move such shoppers up from the classic tan-and-brown monogrammed bags to newer lines. The firm has always been trying to establish a true relationship with Japanese consumers.
Secondly, Louis Vuitton has formulated a wise marketing strategy in Japan. It came up with the idea of special limited editions for the market. The collaboration between Marc Jacobs and Takashi Murakami was the starting point of Louis Vuitton’s success in Japan. They created a colourful pop version of Louis Vuitton’s monogram for the 2003 spring/summer collection. The collection showed the company’s attachment to and recognition of the art and traditions of Japan. Following the massive success of the line, Louis Vuitton renewed its collaboration with the Japanese artist, aiming for further success.
However, Louis Vuitton faces two serious menaces. Market dilution is the main threat to Louis Vuitton. As thousands of handbags have spawned in the past decades, it seems that Japanese consumers’ preferences are shifting. Mass expansion and mass distribution have become an issue as some specialists claim that Louis Vuitton has entered an era characterized by disposable “it” bags with a shelf life of two fashion seasons at most. Those accusations seem to be contrary to the essence of Louis Vuitton, which is about tradition and longevity. Yet, it is a true reality that Japanese women are more and more likely to purchase niche brands that retain a sense of exclusivity. As a leader of the luxury sector, the challenge for Louis Vuitton will be to continue growing in the Japanese market and still preserve the exclusivity and great quality that the brand has always offered.