The Target of Louis Vuitton in the Global Context and India, Research Paper Example

Louis Vuitton targets the super rich globally especially those who travel abroad to do their shopping. It often operates in protective environments made of such locations as luxury hotels. The luxury brand is, however, going into a totally new environment. The environment is that of India which has been labeled by a magazine as being that of the lower level. The executives of the company, however, view the move as the tipping point for the organization.

How a luxury brand can operate in a financially challenged economy like India

The company is one that is way beyond fashion. The reason why it ventured into the Indian market despite the challenges it was bound to face. The company examined the country and made an observation which formed the basis for their establishment. The company did not take long to articulate its long term goals.

Initial challenges faced by LV in India

The country has 87 per cent of its population living on an income that is less than $2.50 a day. This means that the country did not provide a hospitable environment for the fashion products company. The company did not make any direct local sale despite having been established four years down the line. Demand was extremely low hence, the company decided to focus mapping a route to take in order to achieve its goals. The custom duties on luxury imports were exceptionally high in India hence the prices of their products were expensive than expected. The country did not also allow foreign direct investment in any retailing venture. There was also an official ban on leather products importation which was Louis Vuitton’s traditional forte.