Analysis of the implementation of Louis Vuitton in India

Résumé du document

India is an emerging country with a fast growth. The standard of living and the number of very rich people are increasing whereas the poverty line is decreasing. Indeed, the High Net Worth Individuals represented 19% of the Indian population in 2005. Moreover, an ambitious youth interested in brands is currently appearing thanks to the rise of individualism. Then, the system of cast is also getting less and less power. Hence, India is expected to be the fifth country in luxury consumption in 2025.

However, two main threats are present in the Indian market. There are still a lot of political regulations. High custom duties remain and a limitation of 51% ownership for a foreign company prevents firms from settling in India. Then, there are many languages and dialects. India is a very diverse country.

Extraits

[...] - Thanks to viral marketing, which is while the main way of communication in India. - By opening flagship which become real symbols and showcase of the brand - Louis Vuitton should communicate a lot before implementing new stores in new cities. It was the strategy of Jimmy Choo before going to India: the brand made a huge communication to arouse its target, and to have customers immediately responsive to the brand and its offer. - The most effective communication media are Bollywood stars, famous businessmen - Sponsoring main Indian events such as the “Airtel Indian Grand the target of Louis Vuitton has an easy access to those events. [...]

[...] IV-Internal analysis: Strengths Louis Vuitton's brand DNA, its products, they way it does its promotion are really important for Louis Vuitton because they are its main strengths to integrate the luxury Indian market. In 2011 it did 3.5 billion in Asia because of them. With its brand DNA, which is the journey, emotion, excellent quality and raw-materials Louis Vuitton proves its authenticity. With its icon products (with the monogram and damier canvas) it shows that it easily recognizable and famous which is another important point for Indian consumers. Moreover Louis Vuitton offers a huge range of products (Leathergoods, Ready to wear, Shoes, Accessories, Jewellery, Watches . [...]

[...] A luxury brand has to prove its authenticity to customers as they are afraid of counterfeit, especially in India. Besides, the new rich Indians are not necessarily aware of the brand heritage, its know-how, its craftsmanship etc As they are not aware of these specificities which characterize a luxury product, they may not purchase it. Moreover, they will not purchase the product if the brand is infamous. VI- Recommendations: We identified 3 main categories of recommendations, relative to: - the specific Indian consumption - the geographical place of Louis Vuitton in the country - the importance of the awareness and the authenticity of the brand It's essential to integrate the cultural diversities of India: - The country is composed of 28 states in India and counts 1952 languages and dialects (Hindi, maïthili, Meitei, penjabi That's why Louis Vuitton should take in consideration the differences and specificities of each main regions and states. [...]

[...] The standard of living and the number of very rich people are increasing whereas the poverty line is decreasing. Indeed, the High Net Worth Individuals represented 19% of the Indian population in 2005. Moreover, an ambitious youth interested in brands is currently appearing thanks to the rise of individualism. Then, the system of cast is also getting less and less power. Hence, India is expected to be the fifth country in luxury consumption in 2025. However, two main threats are present in the Indian market. There are still a lot of political regulations. [...]

[...] Then, the second issue is about places / locations. India lacks infrastructures, especially in term of retail environment. It seems that local managers are unskilled or not experienced enough to deal with luxury product and to run luxury retail stores. As they are not able yet to embody the prestigious image of the brand, they act as a deterrent for luxury brands to open DOS in India. So, can local distributors and more generally Iocal workforce limit the expansion of Louis Vuitton in India? [...]