Louis Vitton in India Harvard Case
Louis Vuitton and the Indian market for luxury goods Louis Vuitton redefines luxury. The Louis Vuitton Moet Hennessy (LVMH) group is a global leader in a variety of luxury industries spanning across various categories including: fashion and leather, wines and spirits, perfumes and cosmetics, and watches and jewelry[1]. The LVMH group has thrived in conventional markets such as Europe and the United States because both markets are characteristically and densely populated with high-income individuals. However, given that India is a developing economy, the success of Louis Vuitton in India is dubious. The analysis of Indian luxury goods’ market with respect to Louis Vuitton is essential for uncovering this case.
The 5 Cs The Indian elite serves as a familiar market for Louis Vuitton given the historic connection between the two. In the late 19th century, many maharajahs ruling the regional provinces in British India had a taste for luxury. They were the international customers of Louis Vuitton, who purchased custom made leather interiors for their cars and leather bags. Although the maharajahs are no longer present in India, Louis Vuitton is targeting a similar demographic and customer, the super-rich people in India. These include professional CEOs, non-resident Indians, small and medium retailers, Bollywood actors and closet spenders like politicians and bureaucrats. Because the luxury market in India is in the initial stages of its growth, there is very little competition in the market. Other global brands like Versace, Gucci, Dolce & Gabbana, Armani, Chanel and TAG Heuer are entering the Indian market. However, their entrance into the Indian market does not serve a substantial threat due to Louis Vuitton’s historical brand imaging throughout India. As a company, Louis Vuitton, headquartered in Paris, has a strong value proposition of exclusivity and prestige associated with its luxury products. Because the company is under pressure
The 5 Cs The Indian elite serves as a familiar market for Louis Vuitton given the historic connection between the two. In the late 19th century, many maharajahs ruling the regional provinces in British India had a taste for luxury. They were the international customers of Louis Vuitton, who purchased custom made leather interiors for their cars and leather bags. Although the maharajahs are no longer present in India, Louis Vuitton is targeting a similar demographic and customer, the super-rich people in India. These include professional CEOs, non-resident Indians, small and medium retailers, Bollywood actors and closet spenders like politicians and bureaucrats. Because the luxury market in India is in the initial stages of its growth, there is very little competition in the market. Other global brands like Versace, Gucci, Dolce & Gabbana, Armani, Chanel and TAG Heuer are entering the Indian market. However, their entrance into the Indian market does not serve a substantial threat due to Louis Vuitton’s historical brand imaging throughout India. As a company, Louis Vuitton, headquartered in Paris, has a strong value proposition of exclusivity and prestige associated with its luxury products. Because the company is under pressure