Global Marketing

Louis Vuitton Pricing Strategy

Well, you may be contemplating on buying Louis Vuitton products but you are not sure about the price being charged in your locality. On this note, it is important noting that Louis Vuitton brands are charged differently in different countries. The price charges are largely dependent on several factors ranging from costs of production, expenses incurred, and profit and among other factors. Additionally, a country factors such as tax among other things will come into play when determining the price charges for Louis Vuitton products. Nonetheless, it is essential understanding that Louis Vuitton unique brand, originality and identity play a major role in the price charges. This is what makes Louis Vuitton brands a bit expensive as compared to other brands available in the market.

Moreover, the durability, quality and market demand contribute to the price being charged. For example, in Japan, a canvas goes for 139, 320 yen and China 9,050 yen. This is affected by the cost of production in these countries and the overall demand for the canvas in the market. China, for example, has low production costs resulting from low labor costs, which make the products being sold cheaper. On the other hand, Japan cost of production is high, due to a number of factors such as access to raw materials and labor costs, which make the products expensive.

The above information is a clear manifestation that Louis Vuitton brands do not have fixed prices. The price charged in any given country will depend on factors in play in that country such as ease of doing business, cost of production, labor costs among others. The pricing strategy of Louis Vuitton, therefore, is aligned to country factors in terms of cost production and is market specific in nature.