The products that we buy are an important part of our popular culture. The spread of Coca-Cola, Levi's, and McDonald's outside America symbolized the world's growing dependence and acceptance of America (Kelman). Now, America is no longer just the internationalizer, but also the internationalized(Kelman). Intense competition from Asian auto manufacturers for a piece of the U.S market has dramatically changed the way many cars are being built today. For one, cars are being built with higher quality and efficiency with more selections for cheaper prices from both U.S and Japanese car makers.
Over the years, Louis Vuitton has been known as the European’s sector most leading line within the market specializing in the sales of luxury products and services throughout Japan as well as the multi-national firm as a whole. The mission of Louis Vuitton states that the organization has a representation of offering the most refined qualities of Western “Art de Vivre” around the world (www.sliclvmh.blogspot.com). The organization has become the most profitable business in Japan due to its superior ratings in the European market with the delivery of unique features and special branding management styles that have integrated culture beyond the norms of the consumers’ mindsets and craftsmanship ideas. The company has focused its business model success on the adaption and willingness to change and adapt to the growing demands of the economy. Since 2008, Louis Vuitton has been listed as the top selling brand in the luxurious marketing sales earning a net profit of 165 billion yen, which was 2.7 times as much as Hermes, 3.1 times as much as Tiffany and 2.5 times the sales of Coach.
In doing so, Japan hopes to revitalize its economy as well as to compete with other major countries, like China for influence in Asia. Labor Markets A steady increase of labor productivity, particularly in the manufacturing industries, contr... ... middle of paper ... ...and returning visitors and residents, has grown considerably in recent years. The total number of entrants was 3.5 million in 1990 and increased to 5.27 million in 2000 (migration information). By 2005, the number had grown to 7.45 million. As the Japanese gradually and grudgingly open their country to foreigners, they understand the importance of an open door nation.
At this time, it is believed that those Japanese investors own 64% of the prime downtown real estate in that city. Although they are driving real estate market prices up by paying top dollar for the land, it is hard to find another area where the U.S. gains as much as when the Japanese invest in real estate. The dollars that end up in Japanese hands, as a result of Americans preferring some of the luxury products produced by Japan, are reinvested back in the U.S. through real estate purchases. The Japanese interest certainly does not stop at real estate. The most important one to our economy would be their investment in U.S. bonds.
Niche markets have to be determined in order to reach the Chinese consumer who is unafraid to purchase goods that appeal to the senses, covey status, wealth and higher quality. According to the Best of the Best Hurun Report, Luxury brands such as Giorgio Armani, Louis Vuitton, Boss, Dunhill, Hermes, Prada, Zenga and Chanel are amongst top favorites for the Chinese consumers in China. Also Jewelry brands such as Cartier, Piaget, Tiffany, Bulgari, Dior and Van Cleef & Arpels have gained market share in China as well as the Chinese are well aware of these brands than ever before (Chadha, 2006). In China the key consumers are the 700,000 households with assets of more than 1 million dollars. Although the 700,000 households are just 0.2 percent of all households in the country, they control over 48 percent of its wealth (Silverstein,2012).
Japanese consumers love to consume luxury brands and therefore they are open and curious about the luxury brand’s marketing strategies in Japan. Furthermore, when it comes to luxury consumer’s main characteristics in Japan “loyalty and understanding” are the main specialities of luxury consumers. (Bollen and Salsberg 2013-online). It is important to highlight that Louis vuitton has been in Japanese market for 35 years. (Chadha and Husband 2006:16).
"In 2015, Japan was the second-largest luxury goods market in the world, worth €20 billion (about $22.7 billion)" (https://www.businessoffashion.com/articles/global-currents/in-japan-luxury-flourishes-while-economy-flounders). One of the main reasons for this boost is the increase of Chinese tourism in the country, due to a weakness in yen and relaxed rules of visa. The devaluation of the yen against yuan, made the luxury goods in Japan cheaper for them and, as a consequence, they spend more in luxury brands (representing 40% of total sales). Japan has always been one of the leading markets in luxury consumerism. The biggest global companies such as LVMH, Richemont and Kering have a strong presence in the country through retail.
Industry background Luxury goods market has been on an upward move since a long time. Separated from the setback brought about by the 1997 Asian financial Emergency, the business has performed well, especially in 2000. In that year, the world luxury products market – which incorporates beverages, style, makeup, aromas, watches, adornments, baggage, purses and handbags– was worth near $170 billion and these developed 7.9 ... ... middle of paper ... ...s with famous models . Besides, Louis Vuitton pushes its items with Chinese stars Zhang Ziyi to draws in Chinese market. 4.
Due to the increasing of inflows rate in 1992 and go on growing until the year of 1999 had reduce the gaps of these two rates... ... middle of paper ... ...ent that is shown naturally in the Japanese economy, and also FDI has given employment opportunities in Japan. Besides that, because of the effective investments it has brought to the existence of business ooportunities to that country. (Naoko et al., 2000). FDI in Japan also had give positive impact since the past year of 1899 to 1931 as mentioned by Mason (1987) in his study on FDI and Japanese Economic Development: . .
These consumer beliefs have opened the doors for functional and health-focused beverages like ours. RTD teas such as President, Master Kong and... ... middle of paper ... ...et as, from the analysis on the China market. Also from our analysis we know that people of China with their high disposable incomes will willingly pay a premium price for the latest products. Chinese consumers regularly have demonstrated a keen desire to pay a significantly higher price for products that provide a sense of prestige and sophistication. In 2011, China became the third largest market for global luxury brands, accounting for almost 25 percent of global sales of consumer luxury products.