Luxury Fashion Retailers Research Articles

From personal to corporate social responsibility: (de)individuation in luxury retailing

PurposeThe New York Times has suggested replacing sustainable fashion with responsible fashion, emphasizing the need for joint efforts by both individual consumers and retailers to take responsibility for their own decisions and actions. This study seeks to investigate the mechanism that activates individuals' personal social responsibility (PSR) and its association with their perceived corporate social responsibility (CSR) from a responsible luxury fashion retailer.Design/methodology/approachAn online experiment was conducted with a nationwide US sample of luxury consumers who were randomly assigned to either individuation or deindividuation groups. Covariance-based structural equation modeling (CB-SEM) and multi-group SEM were employed to test the hypotheses.FindingsIndividuals' universalism positively affected PSR, which then enhanced their recognition of a responsible luxury retailer’s CSR and led to a greater willingness to pay a premium. More importantly, the positive effect of universalism on PSR was strengthened when consumers’ unique individuality, rather than their deindividuated state, was emphasized. Moreover, the moderating effect of individuation was indirectly transmitted through PSR to perceived CSR, hence reinforcing the relationship between PSR and CSR.Originality/valueThis study significantly advances existing scholarship on sustainable luxury retailing and adds rigor to deindividuation theory by demonstrating the central role of PSR and the moderating effect of individuation in enhancing recognition of a luxury fashion retailer’s CSR commitments. The findings provide luxury fashion retailers with communication and marketing strategies that highlight consumers' unique individuality to more effectively activate their sense of personal responsibility and thereby increase their recognition of the retailer’s CSR.

Localised multiple channel distribution strategies of luxury fashion retailers – evidence from China

PurposeThis empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.Design/methodology/approachThrough case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.FindingsStrong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.Research limitations/implicationsThe results are potentially challenged by relatively small sample size.Practical implicationsPractitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.Originality/valueThis paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

Marketing communications in luxury fashion retail in the era of big data

Marketing communications in luxury fashion retail in the era of big data

“I like to buy pre-owned luxury fashion products”: Understanding online second-hand luxury fashion shopping motivations and perceived value of young adult consumers

ABSTRACT The second-hand luxury fashion market has continued to gain popularity in the past decade. Many luxury fashion retailers have been pursuing ways to get involved in the second-hand goods market. However, little is known about what drives consumers to shop at online second-hand luxury fashion stores. This study applied the uses and gratification and mental accounting theory to develop a theoretical framework investigating young adult consumers’ motivations and the perceived value that lead to their willingness to recommend and purchase intentions toward online second-hand luxury fashion retailers. This study collected data via an online survey and analyzed 190 samples to test hypotheses using structural equation modeling. The results indicate that critical and fashion motivations positively influence perceived value for shopping at online second-hand luxury fashion retailers among young adult consumers. The perceived value significantly influences young adult consumers’ willingness to recommend and purchase intentions. The results reveal that fashion motivation indirectly influences willingness to recommend and purchase intentions via perceived value. The findings provide empirical evidence of the importance of perceived value for young adult second-hand luxury shoppers. Managerial implications offer insights on how to appeal to these consumers to recommend and purchase second-hand luxury fashion products from online retailers.

Exploring phygital omnichannel luxury retailing for immersive customer experience: The role of rapport and social engagement

Omnichannel retailing has revolutionized the way retailers create strategies for engaging customers in making purchase decisions. Phygital is a new-age transformative form of omnichannel retailing that emphasizes combining the physical and digital elements, with a particular focus on the human touch to satisfy social and symbolic consumer needs. Extant research has not fully addressed the role of phygital in luxury fashion retail. We explore the research question regarding how human interactions with experienced salespeople add value to the phygital experience. In doing so, we contribute to the luxury marketing literature by addressing the research gap by elucidating the role of phygital functionality in enhancing rapport building, social engagement, and developing trust and commitment, which results in a seamless customer experience, along with enhanced loyalty and patronage. Through 18 in-depth qualitative research interviews conducted with luxury retail managers and senior retail leaders, we provide guidelines to managers and practitioners at retail firms, to create actionable growth-oriented strategies focused on leveraging phygital capabilities.

A strategic framework for technological innovations in support of the customer experience: A focus on luxury retailers

Luxury organizations have traditionally resisted technology, as they perceived it to be antithetical to the values of luxury. Recently, however, competitive and market pressures, compounded by the global pandemic, have prompted luxury organizations to utilize significant technological innovations to enhance their customer experience, mostly on an ad hoc basis. Across four case studies in the luxury fashion retail sector, we conduct 12 interviews with managers. This paper advances a framework that encourages luxury organizations to consider technological innovation in retailing from a strategic point of view. Such a view involves contemplating questions regarding what technology type to adopt (radical vs. incremental) and when the best timing is to adopt the technology (pioneering vs. following technological leaps). The framework identifies four retailer roles that emerge from the innovation process: facilitator, enabler, explorer, and initiator. Each role comprises a different set of risks, resource implications, and expected returns.

Compromise pricing in luxury

PurposeGoing beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in “50” or “80” in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the anticipated guilt luxury consumers associate with luxury shopping while also protecting their brand luxury. The authors label these prices compromise prices and formally define compromise pricing as the practice of choosing a price’s ending so that the price falls below (but not just below) a round number to boost sales without damaging brand luxury.Design/methodology/approachFollowing the observation of the overrepresentation of prices ending in “50” and “80” in the luxury clothing category, an experiment explores the impact of compromise prices on anticipated guilt and brand luxury in the luxury watch category. Then, to identify when luxury pricing managers typically favor compromise prices, multinomial regressions investigate prices collected on two online luxury fashion retailers for the luxury clothing and handbag categories.FindingsCompromise prices reduce the anticipated guilt luxury consumers associate with luxury shopping compared with even prices while enhancing brand luxury compared with odd prices and interestingly, with even prices also. This finding gives rationale to luxury managers’ preference for compromise prices in the ninth hundred (i.e. €X950, €X980), especially for higher-priced products, i.e. when the potential for price underestimation and/or the risk of damaging brand luxury are more important.Originality/valueThis research contributes to the field of luxury pricing by providing evidence to an original price-ending practice, coined compromise pricing, which consists in agreeing to a slight reduction in prices and unit margin to protect brand luxury.

Luxury fashion retailers' localised marketing strategies in practice – evidence from China

PurposeFrom an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.Design/methodology/approachUsing case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.FindingsBoth standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.Research limitations/implicationsAs the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.Practical implicationsThe study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.Originality/valueThis paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.

Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

PurposeThis empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.Design/methodology/approachThe researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.FindingsIt is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.Research limitations/implicationsVery few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.Practical implicationsThis paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.Originality/valueThis empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

Configurations of cognitive and affective responses forming customer attitudes toward a luxury brand

ABSTRACT Although most relationships are not symmetrical but interrelated, studies on the antecedents of customer attitude using SOR framework have focussed on the main effects and primacy issues of particular predictors, such as cognitive and affective responses, and few studies have examined configuration effects of cognitive and affective responses during shopping. To fill this gap in the research, this study elucidate on the combined effect of cognitive responses, affective responses and personal traits, which have been identified as important moderators for customer attitude, on customer attitude toward the brand, particularly in the luxury fashion retail context. Employing fuzzy-set qualitative comparative analysis (fsQCA), which is a set-theoretic method, this study offers six combination patterns of cognitive responses, affective responses, and personal traits leading to customer’s positive attitude toward a luxury brand. Results of six combinations show three major findings as follows: (1) cognitive responses are more important than affective responses, (2) avoiding negative emotions is more important than evoking positive emotions, and (3) the combinations leading to positive attitudes differ by the level of brand familiarity.

Motives behind retailers’ post-entry expansion - Evidence from the Chinese luxury fashion market

This study aims to examine the motives behind retailers’ post-entry expansion in foreign markets. Through case studies of eleven participating luxury fashion retailers in China, qualitative data was collected from twenty-two executive interviews. Although their initial market entry was driven by both reactive (push) and proactive (pull) factors, the motives behind their post-entry expansion have become predominantly proactive, especially long-term growth strategies, the ambition to extend their brands and retail formats to more cities, and the experiences gained in entry markets. The desire to optimize the retail store portfolio through multiple channel strategies have slowed down the expansions of physical stores.

Direction of luxury fashion retailers' post-entry expansion – the evidence from China

PurposeThis empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.Design/methodology/approachThe research adopts qualitative multiple case studies.FindingsAfter initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.Originality/valueThe paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

Internationalization strategies of emerging market multinationals in luxury fashion retailing—Case study of Shandong Ruyi Group

AbstractThis article aims to examine internationalization strategies of emerging market multinationals (EMNCs) in luxury fashion retailing via their motives, direction, and entry modes. Through the case study of the Shandong Ruyi Group, data were collected using 10 in‐depth executive interviews between 2018 and 2019. The research finds that the internationalization of EMNCs in luxury fashion retailing is predominantly motivated by proactive factors, including the vision to develop to a global luxury fashion conglomerate, and the ambition to control the whole value chain from sourcing, to manufacturing and retailing. The international expansion direction in terms of production is strategic and driven by resource availability and production capability, and in terms of distribution was opportunist but is increasingly strategic. High cost entry modes are preferred, including internal organic growth, external expansion strategies such as mergers and acquisitions, and strategic alliances with a majority of equity, because of the high degree of control.

Rapport-building in luxury fashion retail: a collectivist culture case

PurposeLuxury companies have expanded globally, but little attention is given to the difficulties associated with expansion to culturally different countries, especially when focusing on training salespeople in rapport-building behaviors. To address this discussion, we answer these research questions: (1) Does the luxury fashion brand country of origin affect the rapport-building strategies of salespeople?; (2) How do luxury fashion employees classify customers from collectivistic cultures with emerging economies, such as that in Brazil?; and (3) What are the rapport-building strategies used by these salespeople for each of these luxury fashion customer segments?Design/methodology/approachThe authors conducted in-depth interviews with salespeople, managers and team supervisors from four global luxury retailers from Britain, France and Italy that operate in Brazil. In total, the authors interviewed 20 employees with an average of greater than 7 years of experience in luxury sales. The authors based their analysis on a theoretically generated coding guide and content analysis theories.FindingsWhen expanding to culturally different countries, retail companies should adopt glocal strategies, especially when luxury is involved and when customers demand exclusive attention from companies. Additionally, the authors suggest that the effectiveness of rapport building strategies is culturally dependent and should be adapted to the microlevel, especially for continental countries that are culturally diverse.Research limitations/implicationsThis is employee-view research, with no inputs from customers or corporate managers. Luxury fashion brand stores did not grant permission for official research within their employees nor the observation of their customers during in-store interactions. Researchers interviewed employees as individual professionals, and their identities will remain anonymous.Practical implicationsWhen expanding to culturally different countries, luxury retailers should give special attention to the adaption of sales strategies, training and sales guidelines.Originality/valueThis study focuses on customer-employee rapport from the company's perspective.

The moderating role of age and gender on the attitude towards new luxury fashion brands

Purpose There is a significant growth in the consumption of new luxury fashion brands in developing price-sensitive markets like India. Not only does this growth demonstrate how the “new” luxury brands have become a success, but is also illustrative of the perception and practice of style and status among the middle classes. The purpose of this paper is to argue that the consumer’s attitude for buying a branded product entails the need for uniqueness and self-monitoring. It also contends that gender and age moderate the consumer’s attitude. Design/methodology/approach This study employed a self-monitored survey to collect the data from the customers of new luxury fashion retail brand stores in Chennai, India for empirical validation of the model. Data collected from 394 new luxury brands shoppers were analysed using partial least squares structural equation modelling. Findings The need for uniqueness and self-monitoring had significant positive influences on social-adjustive attitude and value-expressive attitude. However, the relationship between self-monitoring and value-expressive attitude was weak when compared to other relationships. Significant differences were seen in the strengths of the relationships between gender and age. Originality/value New luxury is significantly different from traditional luxury. Analyses regarding age group, gender and attitude can provide unique understanding related to new luxury trends, especially in a price sensitive and emerging market like India. This would help managers in segmenting the market based on consumer demographics, and devise strategies based on their characteristics to influence their attitudes and other behavioural patterns.

Luxury brands in the digital age: perceived quality and gender difference

ABSTRACTThis study examined gender difference in relation to actual luxury consumers’ perceptions of luxury fashion retail website quality associated with customer satisfaction. The total number of respondents was 287 (male = 104; female = 183). A multi-group comparison was conducted to examine how men and women differ in their perceptions of website quality. The results of the study show that similarities and differences exist between male and female luxury consumers’ perceptions of e-luxury service quality. For male luxury consumers, order and delivery management was the only dimension that impacted e-satisfaction. In relation to female consumers, order and delivery management, customer service, personalization, trust, and entertainment value were critical dimensions that influenced e-satisfaction. In accordance with the selectivity hypothesis, the findings of this study imply that male luxury consumers seem to be goal-oriented and pay attention solely to the information that directly assists their purchase. However, female luxury consumers are likely to engage in comprehensive information processing by evaluating a wide-range of service attributes when purchasing luxury fashion goods online. This study provides practical implications to luxury retailers by identifying key dimensions of e-service quality in the context of luxury retailing websites and by examining how men and women luxury consumers perceive the service dimensions differently.

Chatbot e-service and customer satisfaction regarding luxury brands

This study was undertaken to analyze whether luxury fashion retail brands can adhere to their core essence of providing personalized care through e-services rather than through traditional face-to-face interactions, particularly through Chatbot, an emerging digital tool offering convenient, personal, and unique customer assistance. The authors use customer data to test a five-dimension model measuring Chatbot for customer perceptions of interaction, entertainment, trendiness, customization, and problem-solving. The study reveals that Chatbot e-service provides interactive and engaging brand/customer service encounters. Marketers and managers in the luxury context can adopt the instrument to measure whether e-service agents provide desired outcomes and to determine whether they should adopt Chatbot virtual assistance.

Hong Kong, a gateway for mainland China? Examining the impact of luxury fashion retailers’ ownership structures on expansion strategies

PurposeThe purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.Design/methodology/approachThis study adopts a pragmatic mixed methods approach, comprising a quantitative mail survey and ten qualitative executive interviews.FindingsThis study found that group-owned luxury fashion retailers usually encounter fewer difficulties when internationalising into mainland China than their individually owned counterparts because of parenting advantage, particularly functional and service support. However, the success of some individually owned brands has demonstrated that branding strategies, management culture, international experience, financial power and local partners’ know-how are as important as parent company support and although the luxury market in mainland China has become developed, many foreign luxury fashion retailers still enter Hong Kong prior to mainland China. However, in relation to post-entry management and expansion strategies, the importance of Hong Kong has weakened because the emergence of capital cities, the growth of the middle class and fewer political restrictions.Research limitations/implicationsThe research findings are generated in the context of Hong Kong and mainland China, they are therefore limited in explaining luxury fashion retailers’ internationalisation strategies in other markets. Despite the challenge of the sample size, 63 out of 130 survey respondents (48.5 per cent response rate) and ten interview participants are felt to be sufficient to represent the market.Practical implicationsThis research can be used by practitioners when assessing appropriate entry strategies to the Chinese luxury fashion market.Originality/valueThis is a pioneering study of the Chinese luxury market from the perspective of international retail strategies. It differentiates between Greater China (including Hong Kong, Macau and Taiwan) and mainland China, and examines the impact of luxury fashion retailers’ ownership structures on their internationalisation strategies.

The implications of digital marketing on WeChat for luxury fashion brands in China

This paper examines the use of e-commerce and social media marketing within brand marketing in international luxury fashion retailers in China, focusing on their use of Chinese social media app WeChat for marketing communications and sales. A multiple case study of 15 international luxury fashion brands active on e-commerce platforms in China was conducted in 2015. Qualitative data were collected through face-to-face semi-structured interviews with senior managers in the retailers’ Chinese head offices and their VIP clients, combined with observation of the brands’ WeChat accounts. Contrary to previously held beliefs that e-commerce erodes the fragile perception of luxury brands’ exclusiveness, our findings suggest that concerns over exclusivity due to social media overexposure are irrelevant for the Chinese market, and product exclusivity remains the prominent element in protecting brand exclusivity. WeChat is significantly different in its functionality and use from Western social media and has particular advantages over other social media for luxury consumers and brand managers within China and beyond. Finally, the paper presents a conceptual framework for managing luxury brand marketing in China in the digital era.

The flagship stores as sustainability communication channels for luxury fashion retailers

Sustainability issues have arisen also in luxury retailing; the paper aims at investigating the role played by flagship stores in expressing the sustainability commitment of luxury fashion brands and at defining the key features of in-store sustainability communications. Through a qualitative research design, a conceptual framework has been proposed on how flagship stores should be designed and managed to display a commitment towards sustainable development. Findings identified for the first time the distinctive aspects of sustainability communications delivered within and through flagship stores, and revealed that such in-store communications can support luxury fashion retailers in making stakeholders aware of their sustainability commitment.