Louis Vuitton Relationship Marketing Research In The Chinese Market

With the fast development of China's economy, the luxury industry shows high potential in China. Most of the luxury brands face the challenge of how to establish long-term relationship with their consumers to gain a constant benefit, while they are expanding dramatically in China.Since its entry into mainland of China in 1992, Louis Vuitton has set up 19 stores in the last 16 years. The annual plan of the new-store-opening number in 2008 is 10, which indicates that Louis Vuitton's business in China is speeding up. A review and analysis of Louis Vuitton's success will offer a guideline for its future development, as well as for the whole Industry.Basing on some research findings of luxury consumption characteristic, this paper applies two models in relationship marketing, which are the value-loyalty model and the customer value construct model, to analyze Louis Vuitton's marketing strategy in China. Through the innovative perspective, the reasons of Louis Vuitton's success in adding customer value and in increasing the customer loyalty are obvious. Meanwhile, there are also some obstacles and challenges for Louis Vuitton to overcome.At the end of the thesis, the author tries to propose some suggestions for Louis Vuitton to develop constantly in China. These suggestions can also serve as reference for other brands in the industry.