Sources of equity in fashion markets

Abstract

PurposeThe aim of this research is to identify sources of differentiation in the fashion market as well as finding out sources of brand equity to distinguish the offer, enabling a better competitive position to be achieved.Design/methodology/approachTo reach this objective, qualitative research was first carried out with 36 sector executives. Based on the results from the initial stage, 250 surveys were then carried out with potential consumers in order to analyze sources of brand equity.FindingsIn the fashion industry, the variables that show great potential for differentiation are excellence in the delivered finished product, brand image and design. In addition, loyalty and brand associations, in which image and design stand out, have been shown to be the most outstanding sources of brand equity.Practical implicationsThe allocation of financial resources to the intangible assets of brand image and design should be profitable for the company. The creation of networks of designers and stylists would allow first‐hand information on market evolution. This input would be the basis for identifying new opportunities (e.g. fashionable colours, etc.) and also for anticipating new trends in clothing.Originality/valueDiscovering the sources of equity and their contribution to differentiating and developing high added‐value products for the consumer represents an original contribution in research into fashion markets and brand equity.