On the otherhand, South Korea is on the fit in stage which means they use and consume luxury brands to show their status, wealth to the other people in their environment. Japan is in the fifhth stage of “ The spread of Luxury Model” which is named as a “a way of life”. (Chadha and Husband 2006: 46). Therefore, Japanese people have high expectations from luxury brands according to the characteristics above.
South Korean women are addicted to the luxury goods. According to (Chadha and Husband, 2006) South Korea in a luxury consumption glass defined as “most of the women in the metropolitan areas ranging as Seoul and Pusan posses LV goods, Ferragamo shoes, Gucci bags, Burberry dominance, Cartier watches, Hermes Kelly bags and beauty is the stepstone of the women in South Korea” (Chadha and Husband 2006:178). Moreover, South Korean women loves to consume Louis Vuitton prodcuts so that according to (Chadha and Husband 2006) “%50 of them purchase LV bags (Chadha and Husband 2006:17). “There are consumer segments in South Korea luxury market ranging as, “gold miss” , “gold moms” , “VVIP” ” (Luxe brand advisors 2012:16). Furthermore, “a love of luxury and peer pressure” are the two factor which shapes the South Korean luxury consumption (Salsberg and Shin 2010-online). Gold Misses segment of females in South Korea are the latest popular group who are permanently dedicated their lives to quality living. “ The income of the gold miss is approximately over $93.000” (Luxurydaily 2012b). According to (Chang and Sproule 2013) these women surrounded every aspects of their lives with “culture, beauty, fashion” (Chang snd Sproule 2013:3).On the otherhand, a group called “doenjang girls” are the other younger luxury lovers in South Korea....
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...ng term orientation index, South Korea’s score was 75 and Japan’s was 80 (Hofstede 2001: 356). In this regard, South Korea is a long term oriented country whereas the main characteristics can be seen in the working environments where the authorities in corporations are willing to conduct long term relations with their “stakeholders”(The Hofstede Centre 2013b).On the otherhand, Japanese society is on the same ideology for the long term orientation of the country and they tend to build long term relationships in the working environment in order to save and continue their future success (The Hofstede Centre 2013a). Moreover, East Asian countries are induced to “long term orientation” and especially this dimension of characteristics is revealed in east asia as “acceptance of change, perseverance, thrift, pursuit of peace of mind”(Mooij and Hofstede 2002:64).
Lululemon, a premium yoga-focused retail chain, serves two market segments. One segment consists of consumers who are characterized as “trendy urban” and the other segment consists of “wealthy” consumers. The “trendy urban” segment, in summary, is fashion oriented or active women who live in metropolitan areas. The “wealthy” market segment is affluent women who live in either urban or suburban areas. As discussed below, these two market segments are defined by differences in demographics, geography as well as behavioral and psychographic characteristics.
In 1899 Thorstein Veblen wrote The Theory of the Leisure Class: An Economic Study of Institutions. In this work, Veblen presented critical thinking that pertains to people’s habits and their related social norms. He explores the way certain people disregard the divisions that exist within the social system, while subsequently emulating certain aspects of the leisure class in an effort to present an image of higher social status. He also presented the theory of conspicuous consumption, which refers to an instance when a person can fulfill their needs by purchasing a product at a lower cost that is equal in quality and function to its more expensive counterpart; however, said person chooses to buy the more expensive product, by doing so, they are attempting to present an image of a higher social status. The almost 110 year cycle between 1899 and 2010 reveals few differences in buying behaviors, other than the differing selection of luxury goods to indulge, or over-indulge in.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
By 2002, Moet Hennessy Louis Vuitton was the world’s largest luxury products company, enjoying annual sales of 12.2 billion euros. LVMH carries the most prestigious brand names in wine, champagne, fashion, jewelry, and perfume. Upon entrance of this luxury product industry, LVMH was aware that they produced products that nobody needed, but that were desired by millions across the world. This desire in some way fulfills a fantasy, making consumers feel as though they must buy it, or else they will not be in the moment, and thus will be left behind.
Soh, C. S. (2001). South Korea. In C. R. Ember & M. Ember (Eds.), Countries and Their Cultures (
90) describes people in collectivist cultures rely heavily on “in-groups which look after them in exchange for loyalty.” China and Japan are high power distance cultures. They have a hierarchical structure where societal movement is minimal. Hao (2015) describes collectivist cultures to place emphasis on “what is best for the social institutions that [an individual] belongs to over personal ambitions and goals.” Both Chinese and Japanese cultures are motivated and driven by success as seen by evidence on each countries emphasis on the importance of education (Country Comparison. n.d.). Long-term orientation allows both countries to prepare for the future and achieve long-term goals. While practical in their efforts they are “working to serve [future] generations” (Country Comparison. n.d.). Leisure time is not an emphasis in either culture and leads to “self-restraint and the emphasis on hard work and achievement” defining both China and Japan as restrained cultures (Hao,
-Status symbols: Sophisticated customers who value the distinctive, exclusive collection seem to value the corporate-branded version of luxury. –Philip Martiz, chairman of the board
Calvin Klein is a known expensive brand that the upper class would be more likely to wear. The upper class is a term for “upper-income households [that] had incomes greater than $125,608”(Richard Fry & Rakesh Kochhar, Pew Research Center). Using Kendall Jenner as the model in its advertising, gives consumers and potential consumers the idea that owning something from Calvin Klein means you are wealthy because it is a brand that celebrities wear and endorse. This makes the product very attractive to teenagers who are trying to impress their
...specific, the prices of leather goods, accessories, watches, jewelry, shoes and ready-to-wear of Louis Vuitton dropped by seven percent in 2008. Besides, Fujii takes some actions to face the challenges. For example, he sets an Internet business to follow the world trend and to enlarge the distribution channel. Also, he increases the product line to cover the children clothes and enlarges the market by opening stores in mid-size and small cities. Since Japan is still a developed country with wealthy families, the Japanese luxury market would still be a healthy and attractive market for Louis Vuitton and these challenges could be overcome in large extent.
It also hints at the average American’s values, as he regards materialistic goods higher than basic essentials. So why do consumers spend money—typically on credit, money they do not have—on these glamorous objects? Julia Halpert, a journalist writing for The Fiscal Times, has the answer in her article “Millennials: Young, Broke, and Spending on Luxury”. Halpert expertly employs Jason Dorsey, a millennials expert, who explains that “brands represent a lifestyle and luxury goods provide a strong visual representation ‘that either I've made it’ or ‘I want to tell you I've made it’”. This justification demonstrates the common narcissist agenda, that possessing material goods are essential and it makes you socially above another person. A narcissist purchases luxury goods to show off, to display his elevated status and wealth in comparison to others. He wants to garner the jealousy and attention of others and create an environment that concentrates only him. And he, the narcissist, learns through celebrities and the
Designer handbags are both envied and enjoyed by women across the country. With prices ranging from a few hundred dollars to well over $15,000, handbags can be seen as a representation of wealth and social status. In 2014, handbag sales amounted to approximately 9.2 billion dollars, 30% of all revenue generated by women’s accessories (Statista). As sales increase, industry leaders, such as Louis Vuitton, Coach, and Dior, must ensure their marketing strategies attract consumers to their brand and handbag styles. Louis Vuitton, Coach, and Dior’s advertisements portray the need for prominence, autonomy, and aesthetic sensations to depict a luxurious lifestyle.
They also see their managers as task masters and expert problem solvers rather than as motivators and they value production roles more than leadership roles (Hofstede, 1993, p. 83). In Japan, they value employee loyalty. They expect their workers to join a company and remain there for the duration of their working life. They have a groupthink outlook and spend a lot of time working in groups. They value what is good for the company and the team rather than looking for individual recognition and tend to be more peer led than manager led, which means that US management cultures are not a good fit for countries like Japan (Hofstede, 1993, p. 83-84). In France, employees who are educated are more highly respected and their workers are divided into two categories. There are the properly educated workers (cadres) and the not properly education workers (non-cadres). There is no crossing between the two and the cadres are given privileges that the non-cadres are not regardless of their actual job title or task (Hofstede, 1993, p. 84-85). In Holland, they manage by consensus (Hofstede, 1993, p. 85). China has many smaller, family run businesses and because of this, many times the manager and the owner are the same. They tend to be more specialized and less global, and most of the decisions are made by the most dominant member of the family that owns the business. They are very thrifty when it comes to cost and spending and apply Confucian values on money. Their management system is very lacking of modern business management practices (Hofstede, 1993, p. 86). In short, all these comparisons can be summed up by saying that all companies everywhere have a concept of management, but what it means and how it’s practiced is different around the world (Hofstede, 1993, p. 88-89). So, if
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s employment relations model (Wiley, Wilkinson, & Young, 2005). Cognizant of the fact that neither Japan nor China has given up on its external (protectionism or parity) adjustment tools, it is posited that they can nonetheless coexist since both “produce different things and in different ways” and as such avoid the cited perilous US and Mexico competition; but due to globalization, the operating environment portends a convergence or divergence of Industrial Relation (ER) strategies between China and Japan (Lipietz, 1997; Zhu & Warner, 2004).
Dubois and Czellar (2002) refer to luxury brands as those goods that can offer comfort, beauty and refinement. On the other hand, a prestige brand is referred to as a brand that has achieved a definitive level of accomplishment, either in the quality or performance. O’Cass a...
For one, luxury can be defined through good health. For another, luxury can be defined through comfort. To many, luxury is defined through lavish possessions such as cars or jewelry. Regardless of how we perceive luxury, there is a journey behind how we achieve it. Cartier produced an exquisite commercial to celebrate the brand’s history. With the worldwide icon, the leopard, we went through the odyssey of Cartier’s history. The commercial started with a leopard statue of diamonds and jewels coming alive which symbolized the birth of the legacy of Cartier, the start of the odyssey. Then we start watching the leopard visit significant places of Cartier’s history: China, India, and France. All these places are important to the luxury industry. After the journey across different continents, we finally arrive in Paris where Cartier was founded, where