Luxury branding: the industry, trends, and future conceptualisations
Purpose – The purpose of this paper is to examine the emergence of a global luxury brand industry and discusses previous conceptualisations of luxury brands. In this endeavour, the study illustrates the unique context of luxury consumption, to highlight several developments in extant literature, and to advocate for the advancement of the consumer-centric paradigm of luxury branding. Design/methodology/approach – The study reviews the emergence of a global luxury brand industry, discusses macro-environmental trends that have influenced luxury brand consumption, critically evaluates the existing literature on luxury brands, and offers directions for future research. Findings – The study highlights that luxury brands have emerged as a special form of branding that conveys the unique sociocultural and individual meanings to their adherents. Moreover, it was found that these meanings have been shaped by a number of important cultural, social, and external trends, which call researchers and practitioners to con...
Opportunistic Luxury branding: Understanding perceptions of brand authenticity in an emerging market context : Understanding perceptions of brand authenticity in an emerging market context
INTRODUCTIONInterest in luxury branding has led researchers to explore the meaning of luxury brands from a consumer perspective (Hudders, Pandelaere & Vyncke, 2013), in order to develop key attributes associated with creating and maintaining luxury fashion brands from an industry perspective (Fionda & Moore, 2009). Researchers also endeavoured to question the sustainability and longevity of luxury brands (Berthon, Pitt, Parent & Berthon, 2009) and to quantitatively examine the ways in which luxury brands can be used to facilitate status (Han, Nunes & Dreze 2010; Truong, Simmons, McColl & Kitchen, 2008). While the product categories examined have spanned cars, fashion and watches as well as handbags, lingerie and cosmetics, luxury brands are "one of the most profitable and fastest-growing brand segments, yet at the same time they are poorly understood and underinvestigated" (Berthon et al., 2009:45). Although the historical context, symbolic significance and experiential activities associated with luxury brands have been explored, what is less well known is how those consumers in emerging markets access, use and interpret global luxury brands and the extent to which these brands are 'authentic' luxury products.Previous studies on emerging markets and brands have questioned how and in what ways companies engage with country image to promote products (Hynes, Caemmerer & Martin, 2012), and have observed how multinational brands have been revived following damage to the brand through issues associated with quality, distribution and performance (Andrews & Daekwan, 2007). Marketing strategies previously employed in advanced countries do not always work as effectively as expected in emerging markets (Erdogmus, Bodur & Yilmaz, 2010) and the branding of luxury items is likely to be no exception to this. Global brands are favoured as a consequence of their widespread recognition and distribution in emerging markets (Winit, Gregory, Cleveland, & Verlegh, 2014) with their hedonic attributes offering aspirational benefits and affording the consumer higher esteem. However, in emerging markets the extent to which all luxury brands are 'authentic' in their product offering, is subject to interpretation. That is, the positioning of the product as a luxury global brand will be dependent on the cues available to the consumer, such as awareness of the brand as a global offering, the quality of the product, availability (or not) of the brand, as well as individual and collective perceptions of the brand, country of origin and advertising strategy.In the current global marketplace, enhancing a favourable worldwide brand image will not only develop continuity across products and product categories, but has the potential to grow brand equity (Andrews & Daekwan, 2007). As such, adopting a cohesive and consistent approach to luxury branding would appear to be a prudent marketing strategy. However, it has been observed that fashion brands not considered to be 'luxurious' in their country of origin, are being opportunistic in positioning their brands as luxury items in emerging markets. Gap for example in South Africa, is perceived by some as a luxury brand. This research seeks to develop (i) an understanding of what motivates global luxury brand consumption in the South African market, (ii) to identify the types of authenticity and cues used to establish the authenticity of fashion luxury brands, and (iii) to offer brand image implications of adopting an opportunistic marketing approach to luxury branding.This article has the following structure: Initially, we provide support for the relationship between luxury and authenticity by means of an overview of the relevant literature. Secondly, we detail the interpretive methods employed to address our research objectives. Thirdly, the findings are examined illustrating South African consumers' motivation to purchase global luxury brands, the types of authenticity and authentic cues used by consumers in this market to authenticate luxury brands, and consumers' perceptions of opportunistic luxury brands in the South African market. …
In business, luxury can be seen as a pronounced ambition of those companies that cater to the market of highly affluential consumers. Luxury branding is the critical managerial tool to express the individual company’s interpretation of that ambition. Branding has valuable inward- and outward-oriented functions, providing identification within and advertising outside the company. This mirrors luxury’s two-sided nature which integrates individual hedonism with ostentatious communication. This chapter introduces several facets and cases of luxury branding; outlines the contemporary research landscape on luxury branding (based on a review of 143 articles); proposes a system of five luxury branding core tasks leading from brand targeting to shaping, experience design, extension, and protection of luxury brands; follows modern publications’ roots to their most notable sources (based on analysis of 7,248 references); and discusses the topic from five stakeholder perspectives. The key insight for successful luxury businesses emerges on the subject of carefully balancing commercial growth with qualitative ambition.
Status of Luxury Branding in India
Luxury branding is a term associated with a business that is concerned with high-end products. In business sense, the term is related to luxury product(s). In general, global companies are aware of luxury products and services, whereas in India, the concept of luxury branding is appreciated by very few companies. This study addresses the reasons as to why the concept of luxury branding is in its nascent stage in India.A review of the literature reveals that there is a clear difference between social classes and elite classes, and the consumption of luxury is limited to the elite classes. Luxury goods sector came into being in the 19th century with the introduction of many highly valuable luxury brands.Alleres (1990) indicates that luxury goods can be interpreted from a socioeconomic perspective and puts in a hierarchical form to explain the three levels of luxury goods based on the degree of accessibility (Figure 1). Level 1 (inaccessible luxury) is associated with products which are extremely high priced and offer the owner an exceptional social prestige. The target market in level 1 is the set of people who come under elite group and it reflects product distinctiveness. The middle level (intermediate luxury) describes a category of luxury products that is attainable by the 'professional' socioeconomic class. The bottom level (accessible luxury) describes the products that are accessible easily as compared to the middle level. The degree of accessibility reflects the social class.Renand (1993) categorizes inaccessible luxury products as personalized luxury products that are characterized by an extremely high purchase price besides being highly customized. On the other hand, accessible luxury products can be owned by virtually everyone. Bearden et al. (1995) discuss this relationship and identify two classes of consumer luxury goods products: private luxury goods and public luxury goods.Keller (2009, p. 2) describes that luxury branding typically involves the creation of many intangible brand associations and an aspirational image related to the brands. Silverstein and Fiske (2003, pp. 4-6) indicate that "the higher the price, the lower the volume". Luxury brand is generally highly priced because of its intrinsic value. Perhaps people who buy the luxury product look into the aspect which is over and above the basic tangible features.Wiedmann et al. (2007) focus on understanding the term 'luxury' from the consumers' perspective. It is a multidimensional concept which encompasses financial, functional, individual, and social value components, aimed at identifying and conceptualizing the dimensions which influence the consumers' individual perception of luxury value.Radon (2010, pp. 17-18) indicates that Dubois and Kapferer were among the first to recognize the importance of international luxury products and brands in academic literature. They were also the first to endeavor to characterize them. These contributions to the field of luxury research are among the most significant.In the literature on luxury, a concept of exclusivity or rarity is well documented (Pantzalis, 1995). Referring to personal and interpersonal-oriented perceptions of luxury, it is expected that different sets of consumers would have different perceptions of the luxury value for the same brands, and that the overall luxury value of a brand would integrate these perceptions. It can be said that 'perceptions of luxury value' differ from one set of consumers to another.Mandel et al. (2006, p. 57) opine that luxury products are often purchased because they cost more, without providing any additional direct utility over their cheaper counterparts. Americans are increasingly taking to luxury brands (Silverstein and Fiske, 2003), regardless of their economic status, because these products are seen as symbols of status and prosperity (Schwartz, 2002).It is evident that the consumption of such products displays individuals' wealth, differentiating them from others (Leibenstein, 1950). …
The effect of brand personality congruence, brand attachment and brand love on loyalty among HENRY's in the luxury branding sector
PurposeThe purpose of this research study is to empirically investigate a hypothesized theoretical framework that captures the impact of brand personality congruence, brand love and brand attachment on brand loyalty in the luxury branding sector.Design/methodology/approachEmpirical data were gathered from 416 millennial shoppers with incomes from US$100,000 and above (High-Earners-Not–Rich-Yet). Structural equation modeling was used to test the hypotheses of the framework developed for the study. Dubai is chosen as the context of the study based on the fact that the luxury brands sector is one of the leading industries in the country, and has a sizeable population of HENRY's.FindingsThe findings of this study revealed that brand personality congruence is a critical determinant of brand love and brand loyalty, suggesting congruence between the consumer's personality and the brand is essential to the luxury branding sector. The study also establishes a relationship between brand attachment and brand loyalty.Research limitations/implicationsThis study offers new empirical support for the proposition that consumers' emotional aspects like brand personality congruence and brand love are critical for enhancing brand loyalty toward luxury. The findings from this study can provide brand managers with a guide to managing their branding strategies and understand the strategic role of these variables on communication strategies for a new emerging segment of the HENRY's customer segment.Originality/valueThis study contributes to luxury branding and a new segment of millennials by examining the relationship between brand personality congruence, brand love, brand attachment and its effect on brand loyalty in the luxury branding context.
THE CONCEPT OF THE LUXURY BRANDING IN SAMSUNG GALAXY S 6 EDGE SERIES THROUGH TRIADIC MODES OF SIGN
This thesis mainly deals with the iconisation of signs and naturalisation process in order to reveal the way Samsung Galaxy S6 Edge is naturalised as a luxury product. This thesis also involves analysis of the luxury branding concept through the analysis of a product which conceptualises its advertisement using the concept of luxury identifiers. The focus of the writer’s analysis is the advertisements themselves as the writer will use the triadic modes of signs, naturalisation process, and the concept of luxury identifiers which also involves process of signification, and metaphor in its analysis. Those theories will help the writer in analysing the meaning of the advertisement first, and then figure out the aim of the luxury branding strategy in the product, then figure out how the expressions are used in the luxury concept of advertisement. The writer analyses the advertisement of Samsung Galaxy S6 Edge which was published in 2015. From the analysis, the writer found out that the luxury branding strategy of Samsung Galaxy S6 Edge utilises naturalisation process to naturalise the luxury identity of Samsung Galaxy S6 Edge which is a masstige product. Using that as a basis, the expressions in the advertisement focus on selling the idea that Samsung Galaxy S6 Edge is a luxury product which is an innovative idea designed for professionals and to display superiority within the social group. Samsung Galaxy S6 Edge aims to provide the user with a display of social superiority within the social group through the consumption of Samsung Galaxy S6 Edge. In that regards, the user will be seen as a person who is wealthy, stand out in terms of taste, and a professional who is fully aware of the technology.
An Empirical Exploration of Consumer Buying Behaviour in the Age of Luxury Branding – with Special Reference to the Chennai Retail Market
Luxury branding seems to be the emerging trendsetter in the Indian Retail sector. With the growth in India’s consumer market primarily driven by a favorable population composition and rising disposable incomes, luxury brands have started getting a foothold in the Indian market. Luxury brand owners see growth opportunities in cities like Bangaluru, Hyderabad, Kolkata and Chennai after serving the most important luxury markets of Delhi and Mumbai. This study focuses on the entry of luxury brands in the Chennai retail space and the strategies that luxury brands are employing to target customers who want to purchase luxury brands because of their brand image, exclusivity and excellent quality. The paper discusses how luxury brands with high quality, uniqueness and social value will appeal to people of different age groups, occupations, income groups and gender. Structural Equation Modelling has been employed to help marketers to understand how consumers perceive luxury brands and what features are considered most important by them. The study also provides insights for further research in the field of consumer behaviour and luxury branding
An Investigation of Web Atmospherics in Online Luxury Branding
Having an online presence for a retail store has transitioned from serving as simply a new avenue through which a profit can be made, to a tool that can be harnessed to express a brand’s personality. So how do luxury brands manage to maintain a high-end, exclusive status on the highly available landscape of the internet? The intention of this research is to identify whether luxury brands are currently taking advantage of differential web atmospherics cues, in a way that significantly sets them apart from non-luxury brand websites. To do this, we measured elements including screen space, reduction of elements, logo placement, etc. Results suggest that there are several visual and textual elements which may be used to connote luxury branding online. Thesis Mentor: ______________________________ Dr. Lindsay Larson Honors Director:______________________________ Dr. Steven Engel December 2018 Marketing University Honors Program Georgia Southern University
Conditions for Luxury Branding by Japanese and French Companies
We aimed to define the requirements for achieving luxury branding by evaluating and comparing leading brand companies. We analyzed and considered the conditions needed to achieve luxury branding through case studies and comparative analyses of the brand companies Louis Vuitton (the leading French luxury brand company), Goyard (a French premium brand company), and SOMES SADDLE in Japan. We also use the tools of marketing strategy and customer experience for the case studies. We propose here the main points that contribute to the development of luxury brands in Japan. This information should be useful for Japanese companies interested in developing luxury brands.
Guest Editorial: Luxury Branding – Strategy, Innovation and Sustainability
Welcome to the Australasian Marketing Journal Special Issue, ‘Luxury branding: strategy, innovation and sustainability’. Luxury brands have spent decades turning design, aspiration and high-quality goods into multi-billion dollar industry. However, the coronavirus pandemic changed it all in a few short months. As a result, a major pivot is underway in the luxury marketplace as global brands and start-ups will need to rethink what luxury means to a highly coveted consumer and more importantly how to manage and adapt to rapidly changing preferences and a technologically-driven dynamic marketplace. A much stronger focus on sustainable luxury is needed to help protect the environment, increase care for animals and reuse or recycle wherever possible. However, it is also necessary because of a radical change in consumer expectations. Concurrently, promoting and selling luxury products via ever-evolving digital marketing channels is also increasingly paramount for brands to engage digitally-native and tech-savvy audiences, which inherently mandates the adoption of innovative digital tools and methods in everyday tasks. These factors are highly important for luxury brands and businesses as they weather and adapt to the Covid-19 crisis and its as-yet unrealised long-term consequences. Luxury will be redefined and expanded to mean more than it used to and, consequently, so will the competitive and consumer landscape. With these impending and imposing challenges in mind, this special issue presents seven papers that examine different aspects of luxury branding that will help guide academics’ and practitioners’ thinking as they navigate these uncertain waters. This issue opens with an article by Workman and Lee (2021), who propose a working definition of non-luxury product brand charisma and examine a non-luxury product brand charisma scale that had been adapted from a generic human charisma scale within the contextual framework of consumer–brand relationships incorporating the variables of gender, brand category (mass market vs. masstige) and related brand variables (brand engagement, brand love and brand prestige). Findings of this study provide evidence that all brands have charisma to some degree. Marketers might use this insight as they strive to create consumer–brand relationships within masstige and mass market brand categories. Following this, across two studies, Lim et al. (2021) investigate how green messages in advertisements conveying a firm’s commitment to the environment can effectively influence consumer attitudes and behavioural intentions. Further, this study examines the psychological mechanism underlying such an effect. The results of two studies show that firms’ eco-friendly efforts as revealed in advertisements for luxury products generate favourable attitudes in consumers and increase their behavioural intentions more than firms’ eco-friendly efforts as revealed in advertisements for mass products. The findings suggest that fast fashion brands should focus on building trust more than anything to increase the persuasiveness of their green message. The subsequent article by Phau et al. (2021) investigates positive and negative reciprocal effects of extensions on brand personality by varying levels of congruency and typicality, while controlling for the effects of motivation processing. The findings show that brand personality dilution occurs in response to incongruent information as well as in response to congruent information. The paper suggests that brand managers need to ensure that the extension category is congruent with the parent brand to minimise the risk of brand personality dilution. The following article by Vincent and Gaur (2021) examine consumers’ motives for using closet sharing services to satisfy their desire for luxury fashion brands. A thematic analytic procedure is carried out in six phases. The results indicate that there are eight main categories of motives for sharing closets: fashion innovativeness, hedonic experience, economic, sustainability, utilitarian, social, need for uniqueness and no burden of ownership. The authors recommend that collaborative fashion consumption platforms should position their service offerings in their promotion campaigns to reflect a fashion innovator’s lifestyle (e.g. evolving fashion sense) and their values (e.g. never wearing the same item twice). The next article by Cooper et al. (2021) examines the management of heritage brand paradox in the context of luxury corporate heritage brands. The three cases – Paspaley, the Huka Lodge and Percy Marks – offer evidence supporting the resolution of brand paradox through strategic brand management. The study provides insight into how management can remain true to the brand’s authentic core and innovatively extend the brand’s heritage, developing a three-part strategic luxury brand heritage management framework. Then Chu Lo et al. (2021) describe a discrete choice experiment examining the luxury product preferences of Chinese consumers, the largest market segment for luxury products. The authors propose and test a theoretical model investigating how product characteristics (logo prominence, price and brand), peers’ attitudes and behaviours and other individual characteristics influence consumers’ choice of a luxury bag. The paper suggests that luxury brands may benefit from reviewing whether their brand value might be extended by the addition of a high-priced line with subtle branding but with recognisable design features, to address the desires of consumers who do not want Guest Editorial: Luxury Branding – Strategy, Innovation and Sustainability