Louis Vuitton Expansion Strategy in India Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction
Louis Vuitton is a Luxury brand operating in many international markets. It generates over 50% of group’s profits. It has beenlabeled as Luxury brand not as traditional brands due to the image of brand that have been built upon heritage. Moreover, the brand is exclusively associated with affluence. Moreover, there is no promotional discounts or sales discounts on Louis Vuitton’s items. The distribution of merchandisesover customers are strictly held and maximum 5 pieces per customer can be sold in order to avoid parallelselling market. Lastly, the luxury brand has increased its product pricing from 10-15%.
The company is planning to further expand its brand in order to increase its availability. The next target of company to expand itself in is India. The reasons for Indian expansion includes the increase in company’s net income which had resulted in the expectation of company’s growth rate sustaining in double digits, which would increase the consumer’s wealth. Moreover, company wants to enter new market beyond Japan, Europe and United States. Also, the company desires to enter emerging markets of China and India. In history, company has received orders from Indian Royals and wealthy citizens. In addition, India had been a familiar market within royal brands such as Versace and Gucci. Lastly, it had been analyzed that the rich Indians have been flying to different wealthy countries in order to make purchases according to their status and these markets are not available in India. (Mahbubani, 2013)
Challenges in India
There are many challenges that have been faced by the company in order to expand itself. These challengesinclude that 87% of Indian population has been living on less than the minimum wage rate that is $2.50 per day. Moreover, 266.5 million people in India have been living under poverty line which indicates that their daily income is less than $1 per day. In addition, the question has been arising in the mind that how Indian citizens would welcome luxury brands. There are also management issues that have been occurring in India. Such as there are high custom duties on imported items which exists between 30%-70%, which acts as disincentive to customers. An official ban on leather goods has been announced by the Government.Lastly, the entry of MNC could risk the domestic leather at trade. (Krishnamurthy, 2008)
Problem Statement

Despite of challenges that could be faced by Louis Vuitton company, Company has planned to expand its business in some cities of respective country. However, there is a need of appropriate channel that would help the company to make successful entering in India in order to face challenges and make strong expansion by using strengths of respective country.
Analysis
Louis Vuitton have been a successful luxury brands company. The reason of choosing this company is to know how the company can expand itself in such a market with strong challenges, and how the company have faced these challenges and compete strongly.................

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