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Name Course Instructor Date Louis Vuitton in Japan The Japan market is ranked the greatest consumer of luxury items. In order to supply the needs of this market, the top global luxury companies have in recent years, scrambled the Japanese market to establish their own brands in this country.
The Japanese market is promising and mature, as it was able to survive the long global economic recession. Therefore, luxury firms are all competing to earn more profits in Japan. Louis Vuitton (LV), of French origin, is the biggest international luxury company, which has equally managed to establish its market in Japan. This company has one of the highest exposures in Japan, standing at 33 per cent. This relatively high exposure rate has had an impact on the overall Japanese market. Luxury items are important as they correlate with a country’s GDP. During the period of economic booms, the demand of customers for luxury goods often peaks. On the other hand, recession results in a lower demand for luxury products. However, this is not the case for Japan market, which maintains a constant demand for luxury during both recession and boom periods (“Japan Venture” Web). Therefore, luxury companies, including Louis Vuitton, experience steady profits in Japan, despite the occurrence of strain on the global economy. Today, many market experts and analysts have predicted that the effect of global recession on consumption of luxury will continue to be negligible in Japan. They attribute this to three major factors, including Japan’s mass consumption of luxury items, the global travel of its consumers, and the influence of Japan markets and other Asian markets. ...
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