What Are the Specifics of the Japanese Fashion Luxury Market

What are the specifics of the Japanese fashion luxury market?

The specifics are divided into two aspects: Firstly, the main characteristics of luxury markets and secondly the consumer behavior of Japanese consumers. In terms of markets, Japan is the largest market for LV. Japan has the highest per capital spending on luxury goods and this figure is even estimated to consume approximately 40% of global annual sales. Secondly, Japan provides the most concentrated and constant revenue for major luxury brands, including some major competitors of LV. Furthermore, geographically compared with other brands, LV has more stores in Japan’s geography. Lastly, Japanese market emphasizes emphasis intrinsic value which is the high quality of product. Affordability also guarantees that Japanese market is capable of pursuing latest items in order to meet its fashion need.

Due to being well educated and having proper salary level, Japanese consumers have strong demand of luxury goods. Japanese consumers are largely affected by group-oriented culture, which shows that famous luxury brands can represent owners’ social status. Under this environment, consumers are encouraged to pursue luxury goods to manifest their social identities or view luxury goods as necessities. Moreover, consumers in Japan are beauty-driven and this mindset is rooted and reflects consumers’ purchasing habits. Consumers especially females have immense and compulsory demand of having a luxury goods. They believe that owning a piece of luxury can make them more gorgeous or wealthier if they aren’t. In recent decades, young generation might be more cautious of purchasing luxury, however, older and richer people made emerging contribution to boost sales in Japanese luxury market.

Combined with these two specifics, Japan grows to be a strong market with stable demand. Facing with global-wide downturn in 2008 and 2009, LV’s revenue remains