Luxury Fashion Companies Research Articles

The nature and determinants of user-generated content for dissatisfied customers: evidence from second-hand luxury fashion brands

PurposeThis study examined the links between user-generated content (UGC), dissatisfied customers and second-hand luxury fashion brands. A central premise of luxury fashion brands is the perceived status and privilege of those who own such items. Despite their marketing logic emphasising exclusivity and rarity, they have broadened their reach by integrating new digital marketing practices that increase access to luxury brand-related information and create opportunities for consumers to purchase products through second-hand sellers.Design/methodology/approachBuilding on an inductive qualitative study of 59 millennials from three European countries (France, Italy and the UK) and by examining the mediating role of UGC and dissatisfied customers, this paper develops a conceptual framework of three clusters of second-hand luxury fashion goods customers: spiritual consumers, entrepreneurial recoverer consumers and carpe diem consumers.FindingsThe proposed SEC framework (spiritual consumers, entrepreneurial recoverer consumers, and carpe diem consumers) illustrates how the emerging themes interconnect with the identified consumers, revealing significant consumer actions and attitudes found in the second-hand luxury goods sector that influence the usage of UGC and its integration into service failure and recovery effortsOriginality/valueThis study suggested that the perceptions of consumers seeking second-hand luxury fashion products differ from those who purchase new or never previously owned luxury fashion products. Overall, this research sets the stage for scholars to forge a path forward to enhance the understanding of this phenomenon and its implications for luxury fashion companies.

MOTIVATION OF LUXURY FASHION BRAND CONSUMPTION AMONG YOUNG SRI LANKAN CONSUMERS

Investigating the motivational elements that influence young Sri Lankan fashion customers’ desire to purchase from luxury fashion companies is the goal of this essay. In terms of three dimensions, this study characterized two key luxury reasons as internal and external. This takes into account, on the one hand, the value of self-identity and hedonic pleasure, which correspond to the consumption of high-end clothing as personal style, and prestige value, which refers to a social statement. The study also explores which incentive has a bigger impact on young Sri Lankans’ intention to purchase premium fashion brands. To reflect the suggested linkages among linked variables, a conceptual model was created. For the investigation, the convenience sampling approach was employed. at addition to using Google forms, mall agents delivered survey questionnaires for completion and return at high-end clothing stores. Young consumers between the ages of 18 and 30 make up the population of this study, and respondents who were shopping in Colombo were called in order to gather data. 138 of the 200 surveys were returned, and SPSS 16 was used to analyze the data. This study provides some insight into the reasoning behind fashion purchases and the luxury fashion consumption habits of young Sri Lankan consumers in particular. According to the study’s findings, the variable that describes external worth and has a higher significant value than the other two factors is prestige value. It has been discovered that external motivation has a greater influence on the intention to acquire luxury fashion brands than internal motivation, indicating that the young Sri Lankan was motivated by external factors to buy ostentatious luxury fashion labels.

Fashion Benefaction: Luxury and Brand Heritage in the Eternal City

In 2011, the exclusive Italian shoe and accessory brand Tod’s pledged €25 million towards the cleaning and restoration of the Colosseum. They were the first among several luxury fashion companies who have recently lent major sponsorship support to the restoration and upkeep of Roman monuments. The list of patrons grew longer after 2014, when Italy’s Ministry of Culture introduced the ‘Art Bonus’ programme. The act invited would-be benefactors to contribute to the restoration and maintenance of any one of dozens of archaeological sites, theatres and concert halls in the country, in exchange for a generous tax break. Fendi took on the Trevi Fountain and several other urban water features, as well as the Temple of Venus and Roma; Bulgari shouldered the bill for the refurbishment of the Spanish Steps and mosaics in the Baths of Caracalla. This patronage of iconic cultural heritage sites permits luxury fashion firms to centre their brand narratives and identities on Italy, monumentalise their reputation for good craftsmanship, cultivate exclusivity and create tensile and dynamic relationships to the past.

Supply chain strategy in the luxury fashion industry: impacts on performance indicators

PurposeThe purpose of this paper was to investigate what types of supply chain strategies (SCS) are implemented within luxury fashion companies, according to the drivers that regulate competitiveness in this sector (brand positioning, distribution channel, type and line of product). Moreover, the objective was to define which key performance indicators (KPIs) should be measured according to the chosen strategy, and finally to evaluate the alignment of luxury fashion companies with the proposed indicators.Design/methodology/approachThe literature review was the first step performed. Thereafter, a case study was conducted and the sample, composed of six companies, was selected, a questionnaire was then developed to guide the interviews, after which the data were collected. From the data, a primary case analysis was conducted, from which cross-case patterns were also researched.FindingsFrom the results obtained, it was possible to state that companies involved in the case study adopted different SCS within the same company according to the drivers that regulate the sector competitiveness. As a result, the product line was shown to be the only driver that affected both the alignment between the expected and implemented SCS, respectively, and the alignment with the selected KPIs.Originality/valueThe paper provides valuable insights to companies that are trying to align SCS and KPIs. The close link between these aspects had not yet been explored previously. In particular, there were no indications about the KPIs that have to be measured for a specific SCS.

THE INFLUENCE OF MATERIALISM VALUES TOWARDS YOUNG CONSUMERS’ LUXURY FASHION PURCHASE INTENTION IN INDONESIA

Indonesia became one country of luxury fashion global expansion to developing markets. Indonesia has a large number of high-net-worth individuals that continue rising steadily, boosting sales of luxury fashion products. The luxury fashion industry in Indonesia is forecasted to expand by 7.98% annually. Indonesia's young consumers have shown their potential to be attracted by luxury fashion companies. Aligned with greater income and higher exposure of luxury fashion obtained by young consumers in Indonesia, it is predicted to be aligned with the increase of materialism values. Materialism values have proven to positively influence luxury brand consumption in several countries and are composed of social recognition, appealing appearance, financial success, defining success, acquiring centrality, and pursuit of happiness. Yet, it is unclear whether materialism values are also influential towards young luxury fashion consumers' in Indonesia. This research has the purpose to identify the variables of materialism values that positively influence purchase intention and give recommendations that can be implemented by luxury fashion companies to generate stronger marketing strategies. The quantitative method using an online questionnaire is used with the judgemental sampling technique. The data gathered from 317 respondents is tested using PLS-SEM. The research findings show the influential variables of materialism that positively influence brand engagement in self-concept as the mediating variable and have a positive indirect effect towards purchase intention from the strongest to weakest effects respectively are acquisition centrality, appealing appearance, the pursuit of happiness, and social recognition. The recommendation that can be implemented by luxury fashion companies is designing the advertisements and campaigns that are able to bring out the luxury consumers’ feelings regarding these influential materialism values variables.

A focused supply chain strategy for luxury fashion management

PurposeGlobalization and advanced manufacturing capabilities changed industrial dynamics. To this end, not only were new retail concepts developed to broaden the distribution toward larger consumer bases, but alternative ways were also sought to reorganize supply networks for a balance between local and global production. Yet, the choice of supply network configurations must be coherent with a fashion companies’ critical success factors. Hence, it is pivotal to understand how such large brand portfolios and global supply networks could be effectively managed in a united way. In this vein, the purpose of this paper is to explain how the triplet of product, brand, and retail channel could affect SC performance, and how the positioning of a luxury company could depend on managerial attitudes.Design/methodology/approachSubsequent to an extensive literature review, 30 most frequently quoted key performance indicators (KPIs) were derived. A Delphi study was then employed to reach a consensus and 17 key KPIs were derived considering the key SC performance areas and marketing dimensions. Survey technique was deployed to examine the impact of strategic combinations of product, brand, and retail channel on SC strategy. Survey results were analyzed through factor analysis where five principal components emerged to represent performance areas. ANOVA technique was then employed to explore the dependence between product-brand-retail channel and key performance areas.FindingsBrand, retail channel, and product directly affect operational performance. The positioning of a fashion company would depend on its management attitude toward strategy segmentation and considered stage of the SC. The respondents’ profile analysis further showed a preference to segment the SC based on products. Interestingly, this finding is not aligned with earlier research (Brun and Castelli, 2008) suggesting that the brand was to become the most relevant driver for SC segmentation.Originality/valueAcademic development and empirical testing is rather rare in the luxury fashion context. Undeniably, SC strategies represent a very relevant issue for fashion companies, and the present study could be considered a first statistical step toward SC segmentation for luxury fashion companies.

국내 패션 기업과 글로벌 럭셔리 패션 기업의 사회적 책임활동 비교ㆍ분석 - 기업 웹사이트를 중심으로 -

본 연구는 국내 50개 패션 기업과 다국적 글로벌 럭셔리 50개 기업의 웹사이트 조사를 통하여 패션 기업의사회적 책임활동 내역을 ISO 26000의 핵심 주제에 따라 분류, 분석하고 이를 비교하여 국내 패션 기업의 사회적 책임활동을 위한 방향성을 찾고자 하였다. 연구를 위한 문헌조사는 사회적 책임활동에 대한 개념과 세계적인 경향, 그리고 사회적 책임활동의 분류 척도에 대한 연구와 함께 의류학 분야의 기업의 사회적 책임관련 연구로 이루어 졌다. 본 연구는 선정된 100개 기업에서 수집된 604건의 사례를 ISO 26000의 조직 거버넌스, 인권, 노동 관행, 환경, 공정운영 관행, 소비자 이슈, 지역사회의 참여 및 발전의 7개 주제를 척도로하여 분류, 분석하였으며 연구의 결과는 다음과 같다. 국내 기업의 경우는 사회참여 및 발전(70.9%)이 가장높은 비율로 치중되어 있었으며 뒤를 이어 환경(14.1%)과 공정운영 관행(9.5%), 조직 거버넌스(5.0%), 인권(0.5%) 순으로 나타났다. 그리고 노동 관행과 소비자 이슈와 관련된 활동은 전혀 없는 것으로 조사되었다. 반면 글로벌 럭셔리 패션 기업은 국내 기업과 마찬가지로 사회참여 및 발전(39.0%)이 가장 높은 비율을 차지하나 뒤를 이은 환경(34.8%)과 큰 차이를 보이지 않았다. 그리고 그 다음으로 노동 관행(11.6%), 공정운영관행(6.4%), 조직 거버넌스(4.0%), 인권(2.5%), 소비자 이슈(1.7%)의 순으로 나타났다. 이를 통해 국내 패션기업을 위하여 다음을 제시하고자 한다. 첫째, 국내 기업은 CSR에 대한 보다 심층적인 접근과 함께 자사의활동을 소비자와 이해관계자를 대상으로 공표할 필요에 대해 인식하여야 한다. 둘째, 국제 사회의 일원으로서 사회적 책임 이행에 대한 국제적 경향을 인지하고 기업 경영과 관련한 인권, 환경, 지배 구조 등 기업내외부적인 운영에 있어 윤리를 바탕으로 하는 근본적인 책임 이행을 촉구한다. 셋째, 단편적인 자선활동에서 벗어나 장기적 태도로 사회적 책임을 이행해야 한다. 마지막으로 사회적 책임, 지속가능성을 비즈니스안으로 통합하는 근본적인 문제에 대한 이해가 필요하다.

The role of design similarity in consumers’ evaluation of new green products: An investigation of luxury fashion brands

Luxury companies and consumers' increasing attention and commitment toward environmental issues substantiate the notion that luxury and sustainability are compatible concepts. However, academic research suggests that sustainable luxury is still perceived by consumers as a contradiction. This article explores the role of sustainability in the design of luxury fashion products, investigating the type of environmental sustainability practices that luxury companies should adopt in order to galvanize consumers' interest in environmentally sustainable versions of their products. In particular, this research investigates the differential effectiveness of two strategies that luxury fashion companies might adopt when introducing new green products: First, the green new product might be similar in design to a luxury company's previous non-green products. Second, the green new product might be similar in design to models made by non-luxury companies specializing in green production. The results from three experiments show that the recommended strategy is to make the new green luxury product similar to the luxury company's previous models rather than to models made by green companies, especially for consumers who are knowledgeable about the brand and for products that are durable rather than ephemeral. This research contributes to extant research by investigating a previously overlooked driver of new green product acceptance, product design, and by empirically investigating the conditions that lead to the successful market introduction of new green luxury products.

Exploring replenishment in the luxury fashion Italian firms: evidence from case studies

Purpose– The purpose of this paper is to investigate how luxury Italian fashion companies manage the replenishment process, and how they leverage supply chain (SC) to be able to match supply and demand of fashion products.Design/methodology/approach– Literature review was the first step performed; then, a case study research has been conducted in order to have a comprehensive view of the real context of luxury Italian fashion companies concerning merchandise planning and replenishment processes. After the sample was individuated, a questionnaire has guided the interviews and then data have been collected. Analysing data has concerned a primary case analysis and then cross-case patterns have been searched. Finally, several variables coherent to the aim of the study have been pinpointed and a framework has been designed.Findings– The paper provides a characterization of the luxury Italian fashion industry concerning merchandise planning constraints and the replenishment processes. To guarantee the flexibility required to match supply and demand when there is a high percentage of seasonal products in the collection, companies leverage on both downstream and upstream SC alignment.Originality/value– The enhancement of performance within the fashion SC is a topic not too much examined in depth, in particular referring to the luxury fashion companies and to the Italian context. Aligning upstream and downstream activities, information sharing between vendor and retailer and securing strategic alliances with the suppliers constitute important steps to reach flexibility and reactivity and to be in step with the market needs. The paper provides valuable insights to companies that are trying to decrease their lost sales and to increase their sell-out and customer service through a review of their SC processes.

A Case Study on the Business Model of Chloé

Abstract Luxury fashion companies are today part of a dynamic and fast growing industry. The competition of international market shares is tough, and only the fittest survive. There are three large luxury groups in the world: LVMH, PPR and Richemont. Chloe is a French luxury fashion company belonging to Richemont, since being acquired by the group in 1985. Chloe was founded in 1952 by a Parisian claiming that the contemporary fashion was too stiff and formal. Her name was Gaby Aghion and she opted for changes and started to design garments which she called “luxury ready-to-wear”. This became a huge success in the market and other fashion houses followed her. The house reached its first peak in the 1970s with Karl Lagerfeld at the designer helm and later on in the 2000s with Phoebe Philo as the chief designer. A business model is defined by three basic components; value creation, value architecture and revenue model. Osterwalder and Pigneur (2009) extend these three components into a nine point business mo...

The Effect of the Lifestyles of Social Networking Service Users on Luxury Brand Loyalty

Currently, various luxury brand players are beginning to develop their own effective ways of communicating with and introducing their values to customers. Because of its effectiveness, i.e., providing easier access for keeping up with the constantly changing personal needs of customers as well as better economic feasibility in customer relationship management or maximizing customer satisfaction and brand loyalty, social networking services (SNSs) have become the most prominent communication medium for luxury fashion companies. This study focuses on the marketing application potential of SNSs by analyzing their influence on brand loyalty. The field research targeted subjects in their 20s and 30s who have experience with both luxury brands and SNSs. The 331 responses were analyzed by descriptive statistics, exploratory factor analysis, reliability analysis, cluster analysis, one-way ANOVA and multiple regression analysis. The results are as follows: First, an SNS could be summarized as having 4 characteristics: interaction, word of mouth, entertainment, and customization. Excluding the entertainment factor, the degree of influence SNS characteristics could exert on brand loyalty could be listed as interaction, WOM, and customization. Second, dividing SNS users into lifestyle groups, our research also examined whether the user's lifestyle affects the degree of SNS influence on brand loyalty. These user groups were the active leisure-oriented group, the ego-expression group, the fashion leader group, and the early adopter group. The active leisure-oriented group had a high proportion of young, high-income earners. Additionally, this group's members tended to use SNSs to check others' information and participate in communities for socialization. The ego-expression group had a higher proportion of females, and its members enjoy updating their pictures and sending personal messages. In addition, they showed a relative openness to disclose private information. The fashion leader group included a high proportion of females in their middle to late 20s and 30s. They possessed self-oriented and appearance-oriented values and stressed privacy. The early adopter group had a balanced ratio of sex and age. They had no aversion to digital equipment and thus actively used SNSs. Third, there were significant differences by user lifestyle in the relationship between SNS characteristics and brand loyalty. Specifically, the active leisure-oriented cluster perceived all SNS characteristics as highly important. The fashion leaders related reliability highly, which seems to result from their tendency to protect their privacy. In addition, all lifestyle groups, excluding the ego-expression group, showed that SNS characteristics had significant effects on brand loyalty. This study analyzed the characteristics of SNSs that act not only as communication tools among humans but also as new spotlighted promotion channels and determined which SNS characteristics influence luxury brand loyalty; therefore, this work also provided basic information for companies when planning social media marketing strategies. In addition, the present study is significant in analyzing SNS users' lifestyle groups to predict consumer behavior toward luxury brands' SNSs and in providing essential data to establish basic target marketing strategies by consumer segmentation.