Market Analysis: Louis Vuitton

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One of the primary goals of a market analysis is to determine how attractive a market is for potential entrance. Currently, more consumers want not only branded fashion but also branded homeware in order to express their identity (Posner, 2013)

By analyzing the market one can adopt the strategy according to different global opportunities. According to E. Kasper ’’The high-end furniture industry recorded increasing growth due to the growing number of high net worth individuals, internationalization of consumer behavior and the growing influence of emerging markets.” (Kasper, 2006)

In the emerging markets, real estate is booming and purchasing power is increasing continuously. Brand name luxury furniture is no doubt the next big status symbol. (Chinadaily.com.cn, 2014). Here Louis Vuitton can use lifestyle motives to appeal to certain customer groups.

Another market which currently has interesting Opportunities is Africa. Currently, luxury brands are looking at Africa as the next big market (Paton, 2014). It is estimated that the number of billionaires in Africa will grow up to ’’117% over the next decade’’ This means it has the second-fastest regional rate of growth in the world after Asia. (Business, 2014).

In 2010, Hermes developed a sub brand called ‘’Shang Xia’’ which has had a great success. Highlighting the importance of traditional Chinese craftsmanship. Hermes strategy is an attempt to enter the Chinese luxury market which is currently on the rise, by highlighting the uses of traditional Chinese materials such as ’’embroidery, china and bamboo woven crafts’’ (Shang Xia). Their dedication to ‘’Made in China’’ was a risk but at the same time a way to connect with the domestic target group. In the luxury world ’’Made in...

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...A. and Trout, J. (2000). Positioning. 1st ed. New York, N.W.: McGraw-Hill.
Roberts, A. (2012). Louis Vuitton Risks Logo Fatigue as Chinese Tastes Mature. [online] Bloomberg. Available at: http://www.bloomberg.com/news/2012-09-24/vuitton-gucci-risk-first-mover-disadvantage-in-china.html [Accessed 6 May. 2014].
Thunderbird.edu, (2014). Time for Louis Vuitton to come home | Thunderbird School of Global Management. [online] Available at: http://www.thunderbird.edu/blog/faculty/washburn/2010/12/14/time-for-louis-vuitton [Accessed 24 Apr. 2014].
Unitymarketingonline.com, (2014). Home Is Where the Luxury Is: A Study of Luxury Consumers & Their Home Furnishings, Redecorating and Remodeling Purchases, Lamps & Lighting, Unity Marketing. [online] Available at: http://www.unitymarketingonline.com/catalog/product_detail.php/pid=158~subid=167/index.html [Accessed 25 Apr. 2014].

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