LOUIS VUITTON: LUXURY REIGNS IN INDIA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

LOUIS VUITTON: LUXURY REIGNS IN INDIA Case Solution

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 go into 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 prepared 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 due to the 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 much more than 10 million. With the existing barriers in regards to low consumer base, restricted retail existence, absence of luxury shopping centers, regulative problems, inexperienced retail force, pricey realty, and fake market along with the entry of significant rivals for example, Gucci, Hermes and Prada, all posture a terrific danger to the profits 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 essential for getting brand-new client base however simultaneously posture a danger in preserving the exclusivity of the brand name overall. Threatened by a lot of components, should LV alter its present technique to incorporate the brand-new measurements of competitors likewise like reselling of luxury items, collective usage, and so on or must it proceed with its existing method?

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