Louis Vuitton in Japan

Louis Vuitton in Japan Abstract Japan is a lucrative market for global luxury brands. Many companies have realized this fact and have concentrated most of their operations in this country. Louis Vuitton is no exception. It succeeded in this market. This paper shows that the unique demographics of the Asian country and the company’s aggressive marketing campaigns have contributed to its Japanese success.Advertising We will write a custom essay sample on Louis Vuitton in Japan specifically for you for only $16.05 $11/page Learn More Evidences from this paper also show that poor economic conditions and changing customer preferences, in Japan, threaten the French-based company’s profitability. Nonetheless, there are many opportunities for increasing its sales growth. This paper suggests that the company should open new stores in mid-sized towns to increase its brand presence in the market. Similarly, it suggests the need to improve the popularity of Louis Vuitton brands by undertaking more local marketing campaigns. Overall, this paper shows that although Japan accounts for most of Louis Vuitton’s profits, the company could increase its dominance in this market by adopting new marketing strategies. Introduction Louis Vuitton is a global luxury brand that has operated in the Japanese market for more than four decades (Ivey, 2008). As a case study, this paper explores how the French-based company started its operations in the Asian nation and why it has achieved tremendous success in this market. Since Louis Vuitton is a successful global entity, this paper also investigates whether global economic conditions affect its operations. Similarly, it highlights how the company can overcome some of these challenges and exploit the demographics of the Japanese market to improve its market success. These analyses give a comprehensive understanding of Louis Vuitton’s operations in Japan. Why Louis Vuitton Succeeded in the Japanese Market Japan i s an important market for Louis Vuitton because it accounts for almost 50% of the company’s profits (Ivey, 2008). Aggressive marketing campaigns have boosted the brand’s profile in the country’s fashion industry. The success of the Omotesando marketing campaign, in Japan, attests to this fact (Ivey, 2008). Such campaigns have provided a platform for introducing extravagant stores in several parts of the Asian country (including successful outlets in Ginza and Roppongi) (Ivey, 2008). Besides its aggressive advertising strategy, Louis Vuitton’s success, in Japan, also stems from the company’s pricing strategy.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the past, the company adopted a premium pricing strategy for its branded products, but uncertain economic conditions have made it untenable for the company to continue doing so. Since then, i t has changed its strategy and now adopts a flexible pricing plan that portrays the Louis Vuitton brand as affordable. This strategy largely boosted the brand’s sales. Opportunities and Challenges for Louis Vuitton in Japan Challenges: Poor economic conditions and changing customer preferences present the most notable challenges for Louis Vuitton’s operations in the Japanese market. These challenges affect the company’s sales and make it difficult for the brand to understand the nature of future fashion trends. Opportunities: Undoubtedly, there is a notable market presence of the Louis Vuitton brand in Japan. However, there is a lot of potential for the company to expand its operations in mid-sized cities and other locations where the brand does not have a notable market presence. This move would popularize the brand (further) and increase its revenue streams. Specifics of the Japanese Fashion Luxury Market The Japanese fashion market has accepted Louis Vuitton because of its unique social and economic dynamics that differentiate it from western markets. For example, besides being fashion-conscious people, the Japanese society buys luxury brands as a status symbol. Moreover, a demographic analysis of the market shows a large middle-income population that affords luxury brands, such as Louis Vuitton. Furthermore, there is a huge population of middle-aged women who prefer to update their fashion, often (Ivey, 2008). Lastly, the Japanese culture requires people to dress according to their social status. People who have a high income prefer to have fashionable products like Louis Vuitton. This is why many global luxury brands depend on Japan to support their global operations (Ivey, 2008). Original Entry Strategy of Louis Vuitton in Japan and the Strategies it adopted to strengthen its Market Presence Louis Vuitton’s entry into the Japanese market started in 1977 through a direct market entry strategy. Albeit controversial, this strateg y allowed the company to acquire two stores. The stores were departmental and stocked a few brands. They accounted for more than $10 million (in annual profits) after selling directly exported fashion products from France (Ivey, 2008). The success of the stores paved the way for expanding the company’s network of outlets. Statistics, from 2007, show that Louis Vuitton owns more than 54 stores in Japan (Ivey, 2008). However, as a group, the company manages about 250 stores in the same market (Ivey, 2008). In the last decade, the brand has changed its operational strategy by operating some stores as franchises. Most of them are in Nagoya, Osaka, and Tokyo.Advertising We will write a custom essay sample on Louis Vuitton in Japan specifically for you for only $16.05 $11/page Learn More Will the Global Financial Crisis Affect Louis Vuitton and how will the Company Overcome it? Louis Vuitton is vulnerable to the intrigues of the global economy. Its vulnera bility stems from its reliance on tourist markets and disposable income fluctuations. Therefore, when the global economy suffers from terrorism threats and poor economic outcomes, the company suffers declined sales. Louis Vuitton learned this lesson in Japan after the 2001 terrorist attack in the US and the 2007/2008 economic crisis. It suffered decreased sales from low tourist numbers and a growing hesitation by shoppers to spend their money on expensive luxury items. To overcome such challenges, the company needs to localize its marketing strategy and grow its domestic markets (Melicher Norton, 2014). This strategy would make most of its global stores independent. For example, instead of relying on tourist markets to support the Japanese stores, the company should popularize its products to the Japanese people and make its stores independent. Therefore, when, an economic crisis happens in one part of the world, other stores (that do not operate in the affected regions) are not af fected (Pearce Robinson, 2013). Conclusion Louis Vuitton’s Japanese success mirrors the success of other global luxury brands in the same market. This paper shows that the unique demographics of the Asian country largely contribute to a growing demand for Louis Vuitton products in Japan. Poor economic conditions and changing customer preferences emerge as the main challenges of the French-based company. However, there are many opportunities for increasing its sales numbers. Consequently, this paper suggests that the company should open new stores in mid-sized towns to increase its brand presence in Japan. Focusing on improving Louis Vuitton’s popularity in the country would also reduce the company’s reliance on overseas markets. Overall, although Japan accounts for most of Louis Vuitton’s profit, the company could benefit from adopting new strategies to improve its dominance in this market. References Ivey, R. (2008). Louis Vuitton in Japan. Retrieved fr om https://www.asiapacific.ca/Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Melicher, R. W., Norton, E. A. (2014). Introduction to Finance: Markets, Investments,  and Financial Management. Hoboken, NJ: John Wiley. Pearce, J., Robinson, R. (2013). Strategic Management: Planning for Domestic   Global Competition. Boston, MA: McGraw Hill.

Definition and Examples of Business Jargon in English

Definition and Examples of Business Jargon in English Business jargon is the specialized language used by members of corporations and bureaucracies. Also known as corporate jargon, business-speak, and bureaucratese. Business jargon typically includes buzzwords, vogue words, and euphemisms. Contrast with plain English. Examples and Observations Hes successful in interfacing with clients we already have, but as for new clients, its low-hanging fruit. He takes a high-altitude view, but he doesnt drill down to that level of granularity where we might actionize new opportunities.Clark winced. I remember that one. I think I may have had a minor stroke in the office when he said that.(Emily St. John Mandel, Station Eleven. Alfred A. Knopf, 2014) The Poisonous Spell of Business Jargon The next time you feel the need to reach out, touch base, shift a paradigm, leverage a best practice or join a tiger team, by all means do it. Just don’t say you’re doing it.If you have to ask why, chances are you’ve fallen under the poisonous spell of business jargon. No longer solely the province of consultants, investors and business-school types, this annoying gobbledygook has mesmerized the rank and file around the globe.Jargon masks real meaning, says Jennifer Chatman, management professor at the University of California-Berkeley’s Haas School of Business. People use it as a substitute for thinking hard and clearly about their goals and the direction that they want to give others.(Max Mallet, Brett Nelson and Chris Steiner, The Most Annoying, Pretentious And Useless Business Jargon. Forbes, January 26, 2012) Laser-Focused At companies ranging from children’s book publishers to organic-food purveyors, CEOs are increasingly training powerful beams of light on their targets. The phrase laser-focused appeared in more than 250 transcripts of earnings calls and investor events this year, according to data compiled by Bloomberg, on pace to eclipse the 287 in all of 2012. It’s business jargon, says L.J. Rittenhouse, CEO of Rittenhouse Rankings, who consults with executives on communication and strategy. What would a more candid disclosure be? We are focused. What does a laser have to do with it? . . .David Larcker, a professor at the Stanford Graduate School of Business who has studied deception on investor conference calls, says that when executives start using a lot of jargon, it makes you wonder about the believability. Rittenhouse, who analyzes shareholder letters for an annual report on CEO candor and reviews about 100 conference-call transcripts each year, has found that companies that use fact-deficient, obfuscating generalities have worse share performance than more candid companies.(Noah Buhayar, The CEOs Favorite Clichà ©. Bloomberg Businessweek, September 23-29, 2013) Business-Speak In an infamous December 2012 press release, Citigroup announced that it would begin a series of repositioning actions that will further reduce expenses and improve efficiency, resulting in streamlined operations and an optimized consumer footprint across geographies. Translation: 11,000 people would be repositioned out the door.Business-speak, with its heartless euphemisms and empty stock phrases, is the jargon that everyone loves to hate. . . .For several years, Mark Liberman, a linguist at the University of Pennsylvania, has been keeping an eye on the words and phrases that are condemned as business-speak, and he has noticed that as much as mission statements and deliverables, what gets under people’s skin are expressions like impactful, at the end of the day, and low-hanging fruit. As he has investigated these expressions, he noted in a post last month on the blog Language Log, he has found that they are as common in sports, politics, social science, and other spheres as th ey are in business.(Joshua J. Friedman, Jargon: It’s Not the Business World’s Fault! The Boston Globe, September 15, 2013)Dharmeshs culture code incorporates elements of HubSpeak. For example, it instructs that when someone quits or gets fired, the event will be referred to as graduation. This really happens, over and over again. In my first month at HubSpot Ive witnessed several graduations, just in the marketing department. Well get an email from Cranium saying, Team, Just letting you know that Derek has graduated from HubSpot, and were excited to see how he uses his superpowers in his next big adventure!(Dan Lyons, Disrupted: My Misadventure in the Start-Up Bubble. Hachette, 2016) Business-Speak in Higher Education As universities are beaten into the shapes dictated by business, so language is suborned to its ends. We have all heard the robotic idiom of management, as if a button had activated a digitally generated voice. Like Newspeak in Nineteen Eighty-Four, business-speak is an instance of magical naming, superimposing the imagery of the market on the idea of a university–through ‘targets, ‘benchmarks, time-charts, league tables, ‘vision statements, ‘content providers. We may laugh or groan, depending on the state of our mental health at the thickets of TLAs–three-letter acronyms, in the coinage of the writer Richard Hamblyn–that accumulate like dental plaque. . . .The code conceals aggression: actions are undertaken in its name and justified by its rules; it pushes responsibility from persons to systems. It pushes individuals to one side and replaces them with columns, boxes, numbers, rubrics, often meaningless tautologies (a form will ask first for ‘aims, and then for ‘objectives’).(Marina Warner, Learning My Lesson. London Review of Books, March 19, 2015) The Epic Poetry of Modern Business Jargon is an invaluable tool in massaging meaning for marketing purposes. Investment is a particularly fertile field. Promoters may describe a start-up with no customers as pre-revenue, optimistically implying that sales are inevitable. Hoped-for turnover will be projected in a business plan, a document used for raising finance and scrupulously ignored thenceforth.Terminology that deflects criticism while bestowing spurious professionalism is essential to the manager. Hence the phrase Im outside the loop on that excuses knuckle-dragging cluelessness. Im afraid I dont have the bandwidth is a polite way of saying: You arent important enough for me to help you. And It is my understanding that . . . allows the speaker to assert vague suspicions as solid facts...Jargon is the epic poetry of modern business. It can turn a bunch of windbags in a meeting room into a quick wins taskforce. I once asked a handyman toiling in an office doorway whether he was installing a wheelchair ramp. No, he said solemnly, its a diversity access feature.(Jonathan Guthrie, Three Cheers for the Epic Poetry of Jargon. Financial Times, Dec. 13, 2007) Financial Jargon: Reversification The images and metaphors keep doing headstands. To bail out is to slop water over the side of a boat. That verb has been reversified so that it means an injection of public money into a failing institution; taking something dangerous out has turned into putting something vital in. Credit has been reversified: it means debt. Inflation means money being worth less. Synergy means sacking people. Risk means precise mathematical assessment of probability. Noncore assets means garbage. These are all examples of how the process of innovation, experimentation, and progress in the techniques of finance has been brought to bear on language, so that words no longer mean what they once did. It is not a process intended to deceive, but . . . it confines knowledge to a priesthood- the priesthood of people who can speak money. (John Lanchester, Money Talks. The New Yorker, August 4, 2014) Greenspans Fed-Jargon A special area of financial jargon is Greenspeak, the terms and phrases of Federal Reserve Board Chairman [1987-2006], Alan Greenspan. For decades a small group of economists known as Fed-watchers, pored over the statements made by the Federal Reserve, looking for indications of changes in Federal Reserve policy. Today, almost every investor and business person in the U.S. listens to the latest Fed pronouncements. From his 1999 description of the technology stock market as irrational exuberance, to his considerable period, soft patch, and short-lived descriptions of the economy and monetary policy in 2003-2004, the words of Alan Greenspan [became] common in American business jargon. (W. Davis Folsom, Understanding American Business Jargon: A Dictionary, 2nd ed. Greenwood, 2005)