A conceptual framework on the influence of authenticity and rarity on luxury brand value

Abstract

The luxury goods market has been expanding globally since the early 1990s. Luxury consumption has witnessed a phenomenon of democratisation with the recent progress of civilisation and technology. It is easier now than 50 years ago to discover a scarce resource or purchase a refined item. Luxury marketers are faced with the challenge of the dilution of rarity and authenticity. This exploratory study is based on existing studies that discuss the definitions and associations of luxury, luxury brand, brand rarity, brand authenticity. The present study proposes a conceptual framework illustrating the internal relations of luxury brand authenticity, rarity and brand behaviour. It emphasises that in post-scarcity world, the nature or technical scarcity will tend to zero. The gap in the quality and functional value between each brand will diminish or even disappear. Intangible value generated by brand authenticity became the brand kernel, thus placing a price tag and attracting consumers, especially for luxury brand. Authenticity becomes the dominant factor distinguishing a luxury brand from others and whether the brand behaviour reflects its authenticity consistently, continuously and individually determines how consumers judge this brand.JEL codes: M30, M31