CRITICAL SUCCESS FACTORS OF LEADING AND ASPIRING FASHION BRANDS IN THE ASIAN LUXURY MARKET - THE CASE OF KOREA, CHINA AND JAPAN

Abstract

Sales of luxury goods have increased drastically in the Asian marketplace over the past decade and therefore imply high potential for further future developments. While Japan has been an important market to luxury brands for a longer period of time, especially China and South Korea have gained in importance due to high sales volumes and increased desire to purchase luxury goods. Especially due to the economic crisis in Europe, luxury brands have to focus on the potential of these emrging Asian countries. In order to adapt and improve the marketing communication strategies successfully to the respective countries, an intensive analysis of the local luxury market, local competitors and the performance of leading luxury brands have to be examined. This is especially crucial to luxury brands since consumers are highly sensitive to the brand image and identitty which is why marketing strategies and brand positioning have to be considered carefully. The purpose of this study is 1) to examine the current luxury market in Japan, China and South Korea according to major fashion industries; 2) to analyze the critical success factors and marketing strategies of leading and aspiring local and global fashion luxury brands in the respective country 3) to give meaningful implications for existing and aspiring luxury brands. For that, after giving an overview of the luxury market in the respective country, case studies on leading and aspiring luxury brands in the major fashion cities (Shanghai, Beijing, Seoul and Tokyo) will be conducted to examine critical success factors. By that, we will give an overview on the market entry and marketing strategy, such as social media, the usage of IT, and general ads as well as retail trends and communication channels. The findings indicate the current trends of luxury fashion brands in China, South Kore and Japan. Through this data review, case studies and suggestions, both academia and industry will gain important insights of the current tendencies of brands and consumers. Global marketers will understand the Asian luxury market better; local brands may find implications of how to enter other Asian markets and aspiring brands can learn about the critical success factors in the market.