Luxury Business in Japan

Abstract

Since the 1980s, Japan has been one of the largest markets for the luxury business. It made a large contribution toward shaping this global industry. Most international research in management and social sciences on the Japanese luxury market emphasises its specificities, regarding Western markets, in terms of consumer behaviour, distribution system, and adaptation of goods. Based on case studies of Burberry, Christian Dior, and Louis Vuitton, this chapter discusses the various strategies adopted by Western companies to enter the Japanese market, how they changed their strategy over time, and what they learnt from this market. At the same time, Japanese luxury companies faced difficulties to expand outside their domestic market. Exploring the examples of Mikimoto and Seiko, this chapter argues that cultural factors and brand management are the most important factors accounting for this weakness.