DeBeers made the right move to move to China. It has a stable political environment; it has a relative climate and geographical order that is favorable and able to attract foreign investors. I t also has a diverse cultural framework where it can accommodate every other culture from every part of the country. Its location in the world map is strategic in that it is easy to locate it from all the angles of the country. Also it has no history of being threatened by terrorism therefore transportation to and from the country is not threatened. In addition to all these, they have highly skilled manpower which will provide adequate labor for the company once established there. Since it is known for manufacturing of goods and exporting them to other countries it will attract consumers who will readily buy their products. China also had a strong and large economic background where they are bound to attract investors.
IMPLICATIONS OF LOUIS VUITTON MOET HENNESSEY AS RETAIL VENTURE PARTNER FOR DEBEERS IN CHINA
Louis Vuitton Moet Hennessey is a manufacturing company which deals with luxury goods mostly clothing line, handbags, jewelry and generally goods involved in the fashion industry. Since the main concern of DeBeers is production of diamonds, Louis Vuitton may be the best retail partner since it manufactures fashion products it will buy some raw materials from DeBeers which in turn it will use to improve their products.
Both have established a high-end retail jeweler joint venture through DeBeers Diamond Jewelers, with stores cities like Dubai, New York, Paris and Tokyo. With the advancement of technology, the best strategic move will be to use an online market to advertise their products. Similarly, they may open more retails stores in other parts of the world not necessarily the rich cities. Also a venture into the poor countries will be in handy since it will have attracted more consumers and expanded its proficiency through the Louis Vuitton stores. (William, 2006)
COMPARING DIAMOND TRADE IN CHINA AND KOREA