LOUIS VUITTON: LUXURY REIGNS IN INDIA Case Solution
This case is about Business
In a nation that views luxury as a benefit and has 21.2% of the populace under the poverty line, choice of Louis Vuitton (LV) to get in India appeared oxymoronical. Yet with a history of serving maharajahs and the Indian royalty, the business chose to risk in 1999. However, the retail high street was not yet all set for luxury in India and therefore the business chose to participate in the nation just in 2003, through luxury hotels, by opening its very first shop in Delhi’s Oberoi hotel. Today there is an increasing variety of high net worth people in India and the nation’s luxury market is anticipated to reach USD18.3 billion by end of 2016, at a CAGR of about 20%, inning accordance with a brand-new research study launched by the ASSOCHAM. The business’s long-lasting objectives consist of opening shops in every city with the population of over 10 million. With the existing barriers in regards to low client base, minimal retail existence, absence of luxury shopping centers, regulative concerns, inexperienced retail force, pricey property, and fake market in addition to the entry of significant rivals including Gucci, Hermes and Prada, all posture a fantastic risk to the income generation objectives and target audience acquisition objectives of the business. Omnichannel selling and principles like reselling of utilization luxury items over e-Commerce platforms are likewise crucial for obtaining brand-new client base however simultaneously position a danger in preserving the exclusivity of the brand name overall. Threatened by numerous components, should LV alter its present technique to incorporate the brand-new measurements of competitors likewise like reselling of luxury products, collective intake, and so on or must it proceed with its existing method?