Louis Vuitton’s entry into Japan
The first entry of Louis Vuitton into the Japanese market was through department stores like Mitsukoshi with displays of Louis Vuitton’s imported products at specific areas within the stores. The LVMH group offered an interior design that made the purchasing experience special. Once they got entry to Japan’s strong departmental store network, the Louis Vuitton management started working seriously on business expansion. In 1981, Louis Vuitton opened its first exclusive retail store in Japan in Ginza, Tokyo. By 2007, the brand had more than 50 exclusive stores, most of which were owned by LVMH’s Japanese subsidiary. However, the LVMH group as a whole controlled more than 250 stores in Japan. Since there was demand for opening more franchisees, the management also ventured into opening stores through franchisee mode, with local businessmen investing capital for franchisees during the last decade. The parent firm exercised tight control on prices, products and items exported from France to Japan. Louis Vuitton still continues to export its products from Europe to Japan to sell to customers in the country. It does not have a production unit in Japan or neighbouring countries. Even though the cost of transportation is high, this business model still works because the firm charges premium prices for the brand.