Vuitton Japan 's new CEO sees growth potential

Kiyota Fuji, the new president and chief executive of Louis Vuitton Japan Co,, believes the luxury retailer still has room for growth in that market. The brand currently operates 52 stores, including 40 shop-in-shops in department stores, in Japan . It is now also making inroads into new markets such as jewellery, watches and eyewear. According to Fuji the sales of these product categories are booming. "Ready-to-wear is another category to grow, and this communicates the message from Louis Vuitton to consumers and increases the brand value of Louis Vuitton," Fuji told WWD. "Business on the web is another possible approach to consumers."

Fuji 's appointment signified the first change in top management at the firm's Japanese branch since its establishment 28 years ago. With a background in consulting and information technology and as a Japanese national, Fuji is ideally suited to his new role. He is also president of the Japanese arm of parent LVMH Moët Hennessy Louis Vuitton. The brand has recently expanded aggressively in the Japanese market, with high-profile flagship store openings in the Ginza , Omotesando and Roppongi districts. Earlier this year, Louis Vuitton opened two new shops and renovated four more. The company currently employs 2,000 people in that country. "We are very positive in marketing in this market," Louis Vuitton chief executive Yves Carcelle told WWD. "The economy is growing and the market has become more sophisticated, but we invest a lot in creation, quality control and distribution control as well as opening stores. Introducing new products is also important."

Analysts also believe that there is further growth potential for Vuitton in Japan . Luxury analyst Kana Sasaki at Mitsubishi UFJ Securities told WWD, "For Louis Vuitton, the Japanese market is not considered saturated yet. The strength of Louis Vuitton is its high recognition among people of wide generations, so opening more shops in middle-size cities makes sense. That's the integrated power of the brand that includes product development and image management." Sasaki also said that consumption has been on the increase since last winter, as has been the number of visitors to Japanese department stores, adding, "And when the market warms up, it's time for the brand to expand business."