Louis Vuitton and Gucci: Country Origin Impact on UK Consumers

This report investigates the impact of a country's origin on consumer choices within the UK clothing market, focusing on Louis Vuitton and Gucci. The research examines various factors influencing consumer behavior, including economic conditions, marketing strategies, and personal preferences. The report explores how the country of origin creates an impact upon customer preference for these luxury brands, analyzing the influence of geographic and human components of a country's image. Furthermore, it identifies different strategies adopted by Louis Vuitton and Gucci to determine customer choice in the retail market, such as promoting product uniqueness and developing effective distribution networks. The study highlights the importance of understanding consumer behavior in the UK market, especially in the context of luxury brands and the evolving retail landscape. It also provides a justification for the research, emphasizing its relevance in the current UK market environment and the strategies needed for targeting customers in Europe and Britain post-Brexit.

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INTRODUCTION
Business management is related to managing the coordination as well as organisation of
business activities. It includes managing production material, machines, money and also include
both innovation as well as marketing. In addition to this, management is charge of planning,
organizing, directing and controlling resources of company so that their goals and objectives will
meet in effective manner. In management of business both manager and director are responsible
as well as they also have power of taking decision. This research is based on how the country of
origins affects Louis Vuitton and Gucci consumer choices in the UK clothing market. For an
business firm it is essential to determine their customers choice, taste and preference in effective
manner. Along with this, they should have to ensure that all these are getting fulfil in appropriate
manner and customers are also getting satisfy.
Furthermore, present research gives brief summary related to each and every key point of
research which includes aims as well as objectives. Along with this research will going to define
that how origin of nation gives impact on behaviour of customers and also retail sector. In
relation of selected research topic, aim and objective of research and been designed in
appropriate manner for gaining satisfactory outcomes. Apart from this, according to the data of
2019 it has been determine that fashion industry in United Kingdom is try to set their market
value around 63.6 billion Euros as well as sales of respective industry also get enhanced from
last year. Fashion of clothes not change every year but every season and in this manner
companies also have to follow current trends for making customers satisfy in appropriate
manner.
For this research selected companies are Louis Vuitton and Gucci which are part of retail
industry and serving at global level. They serve their offerings to customers after analysing their
taste, preferences, needs and wants in effective manner. Motive of both organisations is to make
customer satisfy and increase their financial performance. Moreover, research will help to
analyze the themes in a better manner and describe the research methods in order to reach the
final conclusion. Along with this it include research approach, strategy, sample size and target
population who will help to determine whether the country's origin affect the Louis Vuitton and
Gucci consumer choice of UK clothing market. Lastly, the study will help to determine how the
customer choices affect on the UK market.

Theoretical background
Research Aim:
“To investigate the impact of the country's origin affect the consumers choice in clothing market
of UK”. A case study on Louis Vuitton and Gucci
Research Objectives:
• To analyse the different elements which affect consumer selection in the retail market of
the UK
• To analyse the impact of a country's origin which create an impact upon customer
preference in Louis Vuitton and Gucci
• To identify different strategies adopted by Louis Vuitton and Gucci to determine
customer choice in the retail market.
Research Questions:
• What are the different elements which affect consumer selection in the retail market of
the UK?
• How the country's origin creates an impact upon the customer preference in Louis
Vuitton and Gucci?
• How different strategies adopted by Louis Vuitton and Gucci to determine customer
choice in the retail market?
Theme 1: Different factor that affects customer choice in the retail market of the UK
According to the view point of Bouranta, Psomas and Vouzas (2019) it has been
determine that taste and preferences of customer get change in several manner. Along with this,
there are several customers who prefer to purchase low cost products with long durability.
Within all these factors economic factor is that which have wide impact on customer behaviour
as it involve main foundation of buying decision. It is because customers sometimes cannot
afford such product which they want to purchase. Thus, at that time taste dosen’t matter and
affordability of individual person play important role. Because middle class people cannot afford
premium offerings this is the main reason that affordability play important role in buying
behaviour of customers. Furthermore, positive economic environment is also essential as it is
known for building confidence of customers and indulges buyers to purchase irrespective of their
personal financial liabilities.

Along with this, as per views of Brito, McGoldrick and Raut (2019) it has been analysed that
marketing mix is also another factor which have impact on customers buying behaviour within
retail market. It includes 4 components i.e., product, pricing, promotion and place. For instance,
Gucci offers the product at a reasonable rate and also attract a wide range of people towards it.
Moreover, its customer also considers various things such that characteristics of products,
changes in the product's price and availability of the product in the required location and many
more. Further, different companies in the UK organise different marketing campaigns in order to
influence the purchasing decision and shift the customer choice in the opposite way.
Thus, it has been identified that retail industry of United Kingdom is providing best
product range at affordable price. Then it will be easy for people to invest their money in buying
fashion items and fulfilling their requirement in effective manner. On the other side, Njoki,
Simon and Mary (2019) stated that the personal preference of the customer is another factor that
also affects the choice of the customers. It is so because, at a personal level, consumer behaviour
is influenced through different shades such as like, dislikes, priorities, morals and values. For
that, this factor may easily influence through the advertisement which changes the preference of
the customers.
Theme 2: Impact of country's origin that affect the customer preference in Louis Vuitton and
Gucci
As per the view of Sansone and et.al., (2019) it has been determine that customer buying
behavior is the procedure that starts with stimuli as well as get ends with the response. Buying
behavior will not affect the market of brand such as Gucci and Louis Vuitton may not increase
the price of their products and as a result, the customer may easily purchase the products. In the
term of marketing, higher the price, higher will be quality of product and services.
Furthermore, Larsen and Sigurdsson (2019) defined two-component of the country image
i.e. geographic component and human component. In which, geography includes climate and
landscape whereas; human component describes the skill, competence and creativity level of the
people. If these both get positively evaluated then it will help in creating favorable evaluation of
the product. In addition to this, population of UK belong to different religion and they all want to
use the best product, that is why it is quite important for the company like Gucci and Louis
Vuitton to provide the same products with creative mind.

The image of a country of origin directly influences the attitudes of customers on the basis of
consumer tendency of being ethnocentric. When customer is familiar with in that case image of
the country creates Halo Effect. The term Halo Effect is used to explain the situations in which
evaluation of a specific object or a person on a multitude of dimensions is dependent upon a
single object. This effect forms the beliefs of the consumer in respect of the specific goods.
As per the view of Hult and et.al., (2019) the country of origin will have a positive impact
on the evaluation of the product when a product country match happens. It means the dimensions
on which a country is being evaluated by the people. Further, the image of the country also
develops perceptual distortions in the manner of national stereotype. The term stereotype refers
to the human tendency of overgeneralization. It happens when customers evaluate the product on
the basis of the level of development of that country.
Theme 3: Different strategies adopted by Louis Vuitton and Gucci to identify customer choice in
the retail market
As per the views of Crewe (2019) it has been determine that, there are a several strategies
which an fashion retailers as well as luxurious brands can adopt for attracting and targeting their
customers in effective manner. The authors identified some common factors that consumers keep
in mind while shopping for these luxurious brands and these are not at all concerned or limited t
the price factor. The quality is the most important factor that motivates or demotivates a shopper
intending to shop in these luxurious brands and they ensure that whatever they are buying is
worth the amount that they are spending. This is also followed by the durability factors where
they identify that what is the duration that is expected form the product when they are buying it.
The fashion trends and comfort are two integrated things that consumers look in a product when
they are buying form such luxurious brands (The power of fashion, 2019). The researchers,
therefore, concluded that these are some of the key factors that the fashion retailers should keep
in mind while targeting the consumers for their market segment.
As per the research paper of Kim, Lloyd and Cervellon (2019) it has been determine that the
luxurious fashion retailers can adopt several strategies for accomplishing their goals and
objectives. In that, first prominent marketing strategy is to promote and advertising the product
based on its fashion as well as uniqueness. The luxurious brands generally tend to present the
uniqueness of the product i.e. limited editions, selling a fixed number of pieces etc. are some of
the common strategies that are adopted in the luxury fashion retail sector. These act as an

influencing factor for the consumers and motivate them to buy the particular piece. In addition to
this, Louis Vuitton involves incorporation of innovation in the designing and manufacturing the
products and clothing items accordingly. These ensure that newer technologies are adopted and
consumers are influenced by shops form these luxurious brands over other competitors such as
Prada etc. Some strategies that the Gucci has used were development of good channels and
distribution networks so that customer will get their products within required time period,
segregating the perception that consumers hold regarding the image of the company is another
strategy that can be adopted and lastly, quality of personnel and the training that they have
received also influence the working strategies and the manner in which these companies target
the potential market segment.
Justification & contextualization
The above mentioned investigation questions as well as objectives assist in identifying the
present objective on the basis of which the research is going to be conducted which is the
influence of customer’s nation& origin on there decision making & choices in a retail sector. The
existing investigation questions help in determining what are the elements which influences the
decision making especially in reference to UK’s customers. The main aim behind selecting this
research topic is that it will aid in examining how organizations like Louis Vuitton & Gucci
target their luxury class or high society customers. Also these companies within the marketplace
of UK come from various other countries where the market environment was different. In
context of Louis Vuitton, the existing market condition within France is highly different to UK.
On similar note, Gucci who comes from Italy identify various sort of issues and challenges
within the marketplace of UK. Along with this, it is a research which highlights changes within
the marketplace specifically in reference to UK as compared to other market environment in the
world. After, Brexit scenario importance of the investigation has been raised as it assist in
dividing various sort of strategies which needs to be adopted by the organizations in order to
target their customers in Europe as well as in Britain. Hence, the present investigation title was
chosen by keeping in the current UK environment in mind. Also how it influences the process of
decision making of customers. Furthermore, the current business entity which have been chosen
in order to conduct the investigation and attaining their goals. Since both Gucci as well as Louis
Vuitton excellently operating its business functions within the marketplace of UK &they capture
the marketplace in fashion retails in most effective manner. Apart from this, another most

essential reason behind choosing both the organization is that it assist in identifying the biggest
proposition of customers based on marketing. It has been concluded that selection of both the
companies which are Gucci and Louis Vuitton help in covering wide range of consumers
commonly based in the marketplace of UK.
Methodology
Research Methodology
It is said that the term research method or methodology refers to a specific tool, procedure or
technique which are used by researcher in order to choose, examine, identify as well as process
the gathered information associated with the research topic. In an investigation methodology
assist a reader in order to examine the whole reliability, authenticity& validity of the
investigation or study.
Research Paradigm – It defines as a research model or approach used to perform investigation
which is verified in society of research along with also practiced by the researcher for a longer
period of time. It has been analyzed that there are different kinds of research paradigms which
are interpretivism, positivism, pragmatism, critical subjectivism and many more. In context of
Positivism paradigm, it shows that understanding is usually based on natural relations
&phenomenon. Whereas, Interpretivism paradigm says that it combines the interest of human
into a particular study. Along with this, it is associated to interpreting as well as manipulating
information in order to create an understanding of realistic.
In reference to the present investigation, researcher adopt Interpretivism research paradigm as it
assist the scholar in order to examine as well as interpret various factors of the current
investigation. With the help of this methodology, investigators can easily identify the influence
of nation’s origin which impacted the decision making of consumers related to clothing.
Research approach – It define as a process which consist of different stages of wide
assumptions in order to elaborate the data collection method, analysis as well as interpretation. It
has been said that deductive approach, is associated with the creation of assumptions based on
the current theory. Whereas, Inductive approach starts with assumptions as well as theories
which was introduced at the end of research as a result of overall observation of the research. At
last, the adductive approach assist in identifying the weaknesses which are associated with both
deductive and inductive approaches.

The investigator in this present research will choose Inductive research approach in order to
complete the whole research in an effective manner as there is no need to follow any sort of
predefined information. Along with this, it also assists researcher to identify the influence of
country's origin which affect the choice of consumers related to clothing market within UK.
Sampling -
It is a particular principles or method which is commonly used by researcher in order to select
members from large population so that they can be included within the research investigation.
Reason behind this is that populations of similar interest are large in order to implement the tools
related to statistical sampling. By choosing probability sampling, each and every person from the
population get equal opportunity and chance for participating in the present research. On the
other hand, Non-probability sampling is another method where participants got selected based on
non-random way. Hence in this case, each and every respondents didn’t get equal change to
participate in the research.
In the context of current investigation, researcher adopt random sampling method in order to
select 30 employees within retail sector so that the research aim and objectives will be
accomplished in an effective manner.
Data Collection -
It refers to a procedure of collecting data and information from different sources in order to get
the outcome of research issue. Commonly there are two main methods, primary as well as
secondary. In case of primary data collection method, investigators collect information for the
very time whereas in reference to secondary method, information is collected by different
researchers. In the present research context, investigator adopts both primary as well as
secondary research methods so that they can effectively conclude the whole research aim in an
effective manner.
Data Analysis -
It refers to a systematic procedure of logical as well as statistical techniques in order to illustrate,
examine, define and condense the information. Qualitative data analysis is a method where
information is being gathered by interpreting the situations in an effective manner. On the other
hand, Quantitative data helps in collecting all the information in the form of numerical. In this
context, investigator select Thematic analysis in Qualitative data as it is one of the most flexible
approach and can easily be modified according to the situation.

Ethical considerations -
While conducting a research it is very much essential for a researcher to conduct their research in
an ethical manner. This will assist in enhancing the confidential of respondents towards the
research.
Limitations -
There are various types of limitations arise which are linked with funds, time, cost, resources.
These might affect the whole research in a negative manner.
CONCLUSION
With the help of above dissertation it has been concluded that it is quite essential for every
business organization to consider the external environment before expanding their business
operations at new marketplace. Therefore, effective research need to be conducted by them so
that they can develop effective strategies and policies so they can get best and suitable results in
an effective and appropriate manner.

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