Initially, LV did not perform well in the Japanese market. Later, LV changed its head, and during his tenure, Rekamil successfully improved LV's market position in Japan through expansion and mergers and acquisitions.
Around 2005, there was a boom in buying LV in Japan, which lasted for about 5 years. This is mainly because the Japanese economy was very prosperous at that time, and people had strong purchasing power, and LV was highly recognizable and symbolic as a luxury brand, so it was sought after by many Japanese people.
As time passed, LV was absent from Japan, and market demand gradually declined. The main reasons for rational analysis are as follows:
1. Change of consumption concept: As Japanese society enters the third consumption era, people have begun to pursue personalized and differentiated consumption, not just the symbolic meaning of the brand. LV is a luxury brand that is gradually losing its appeal.
2. Economic recession: In the 90s of the 20th century, Japan's economic bubble burst, the economy fell into a long-term downturn, consumer purchasing power declined, and the demand for luxury goods also decreased accordingly.
3. Cultural changes: With the changes in Japanese society and culture, some new consumption hotspots have emerged, such as animation, games, **, etc., these new forms of consumption are more attractive to young people, and correspondingly reduce their demand for traditional luxury goods.
4. The proliferation of fakes: Due to the emergence of a large number of counterfeit products of luxury goods such as LV, it is difficult for consumers to distinguish the authenticity, which makes the market demand for the first class further decline.
5. Environmental awareness: Modern consumers are increasingly concerned about environmental protection and sustainability, and some people have begun to boycott luxury goods such as animal fur, which has also caused a certain impact on the market position of brands such as LV.
6. New competitors emerge: With the emergence of some new luxury brands and designer brands, consumers have more choices, which further distracts the market.
At present, LV still has a certain market share in the Japanese market, but it is no longer one of the mainstream luxury brands. However, with the continuous change of consumer demand and the intensification of market competition, the performance of LV in the Japanese market is still subject to certain volatility. In other countries and regions, LV still has a high market position and attractiveness.