LVMH
1. LVMH is so successful in china because of the following reasons:
Premium positioning
Louis Vuitton is positioned as a luxury brand with the steep prices and the glamorous prestige that appeals to wealthy Chinese and even the China’s middle class.
Exclusive distribution
LVMH is successful in China because it opened its 16th global ‘maison’ at Shanghai’s plaza 66, a mega luxury mall. In order to capture the luxury lovers in Beijing and Shanghai it opened stores in second tier provincial capitals and wealthier third tier cities in the west where rapid growth was expected.
Younger crowd as the target market
Chinese Louis Vuitton customers are younger target market who spend a lot of higher amount of their disposable income on LVMH.
2. Due to the changing consumer tastes, LVMH offered more exclusivity by opening less stores and launching the Shangha Maison with invitation only floors. It offered custom made to order bags using exotic animal skins to project exclusivity for the very top end customers. It started branding leather products with high value added. The logo free product helped to attract the market group who were moving away from logo heavy mega brands and who were increasingly sophisticated consumers.
3. LVMH can use its strengths to overcome threats from counterfeiters by manufacturing its leather goods in company owned factories in France, Switzerland, Germany, Italy, Spain and USA. LVMH’s Chinese ani- counterfeiting team together with its global specialists and investigators, they can raise public awareness about counterfeits.
4.LVMH encourage Chinese customers to purchase LVMH products in China rather than abroad by providing premium services and enhancing their shopping experience. Yes these strategic initiatives will be successful as there is huge target market to serve in China who loves Louis Vuitton. The other ideas I think LVMH should pursue to encourage Chinese customers is to increase distribution.
5. The other actions LVMH might take
Premium positioning
Louis Vuitton is positioned as a luxury brand with the steep prices and the glamorous prestige that appeals to wealthy Chinese and even the China’s middle class.
Exclusive distribution
LVMH is successful in China because it opened its 16th global ‘maison’ at Shanghai’s plaza 66, a mega luxury mall. In order to capture the luxury lovers in Beijing and Shanghai it opened stores in second tier provincial capitals and wealthier third tier cities in the west where rapid growth was expected.
Younger crowd as the target market
Chinese Louis Vuitton customers are younger target market who spend a lot of higher amount of their disposable income on LVMH.
2. Due to the changing consumer tastes, LVMH offered more exclusivity by opening less stores and launching the Shangha Maison with invitation only floors. It offered custom made to order bags using exotic animal skins to project exclusivity for the very top end customers. It started branding leather products with high value added. The logo free product helped to attract the market group who were moving away from logo heavy mega brands and who were increasingly sophisticated consumers.
3. LVMH can use its strengths to overcome threats from counterfeiters by manufacturing its leather goods in company owned factories in France, Switzerland, Germany, Italy, Spain and USA. LVMH’s Chinese ani- counterfeiting team together with its global specialists and investigators, they can raise public awareness about counterfeits.
4.LVMH encourage Chinese customers to purchase LVMH products in China rather than abroad by providing premium services and enhancing their shopping experience. Yes these strategic initiatives will be successful as there is huge target market to serve in China who loves Louis Vuitton. The other ideas I think LVMH should pursue to encourage Chinese customers is to increase distribution.
5. The other actions LVMH might take