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Interplay of conventional and unconventional elements in luxury brand collaborations
Source publication
Purpose
This study conceptualizes a form of luxury consumption in which luxury brands collaborate with unconventional non-luxury partners. These unconventional luxury brand collaborations are growing in popularity among Chinese luxury consumers of the post-1990s generation. Luxury brands are exploring new branding strategies due to the growing comm...
Context in source publication
Context 1
... luxury brand collaborations do not replace conventional luxury; instead, they complexify luxury. Figure 1 shows the interplay of conventional and unconventional elements in luxury brand collaborations. Ephemerality, trendiness and playfulness are tools that luxury managers can use to enhance the conventional repertoire of luxury strategies. ...
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Citations
... By investing in sports, luxury brands can access a vast market and a global audience, leveraging the popularity and viewership of major sporting events to enhance their international recognition and exposure (Acheampong et al., 2024). This strategic move not only helps luxury brands maintain relevance but also allows them to appeal to a younger audience by balancing exclusivity with accessibility (Diaz Ruiz & Cruz, 2023). The partnership between luxury and sports is not just about fashion; it extends to sponsorships of sports events, teams, and athletes, creating a unique fusion of two seemingly distinct worlds that resonate with diverse customer groups. ...
This book analyses the multifaceted nexus between luxury and sport from an interdisciplinary and holistic perspective. From its historical roots to its contemporary manifestations, Ekaterina Glebova meticulously traces the evolution of opulence in sport, shedding light on its profound economic, media, sociocultural and ethical dimensions.
... Luxury markets witnessed a shift from conspicuous-elitist logic to individualism-democratic logic, in which new consumers value quality, design, and self-expression instead of status and ostentation (Bilge, 2015). New forms of luxury are emerging, such as new luxury (Atkinson & Kang, 2022) or unconventional luxury (Diaz Ruiz & Cruz, 2023), defined as products and services that aim for higher quality standards than other products in the category without being excessively expensive (Rodrigues & Rodrigues, 2019). ...
This study investigates the antecedents of consumers’ negativity towards luxury fashion brands within online communities and how they express such negativity. The study adopted a symbolic netnographic approach to two online platforms, focusing on two luxury brands, Louis Vuitton and Michael Kors. The results of a non-intrusive content analysis indicate that misconduct in corporate social responsibility (CSR) actions, the non-delivery of promised values of quality and services, and the mismatch of consumer-brand identification proved to be sources of negativity. Thus, consumers express their displeasure through brand hate, avoidance, aversion, anti-consumption behavior, distancing themselves from brands, and boycotting. Furthermore, the study proposes a comprehensive table and visual framework summarising the antecedents of negativity, explained by respective theories, and negative emotional dimensions, leading to negative behavioural reactions. It reflects the gap, extends previous literature on negative consumer-brand relationships and luxury brands, and provides valuable insights for managing luxury fashion brands.
... Prior to the outbreak, consumers pursued products characterized by uniqueness and personalization, placing value on the shopping experience associated with luxury goods. This trend led some luxury brands to introduce limited editions, collaborative collections, and other customized products (Diaz Ruiz & Cruz, 2023); to offer refined shopping environments, such as opulent store designs, personalized customer service, and exclusive membership benefits (Björkqvist, 2024); and to enhance their engagement with target consumers through social media, celebrity endorsements, and private events (Chen & Zong, 2024), thereby reinforcing their high-end image. These marketing strategies not only helped brands maintain their market positions but also contributed to the ongoing growth of the luxury market, steering the industry towards a more refined and personalized direction. ...
Following the global COVID-19 pandemic, luxury consumption has increasingly shifted towards a more rational approach, with consumers paying more attention to the actual value and social contribution of luxury goods. In response, companies are actively engaging in corporate social responsibility (CSR) activities to boost sales and showcase a practical image as contributors to society. This study examines the effect of CSR evaluation on luxury purchase intentions. Data from 211 participants indicate that a greater evaluation of a company's CSR efforts positively influences consumer favorability towards luxury goods, which, in turn, increases their purchase intentions. Notably, consumer favorability acts as a mediator, while gender acts as a moderator. These findings highlight that companies can leverage their CSR initiatives to create a more compelling and engaging experience for luxury consumers, thereby boosting purchase intentions and driving sales growth. This approach underscores the importance of aligning CSR efforts with consumer values to foster stronger brand connections and enhance market performance.
... They are also an important subset of vital forces in global luxury consumption, which makes this generational cohort, the main target customers for many luxury brands (Bain and Company, 2020). Due to the one-child policy and economic reforms, Chinese millennials differ from those in other countries, tending to be economic freedom and self-centred (Su et al., 2019;Diaz Ruiz and Cruz, 2023). It is necessary to highlight a particular juxtaposition of the analogue and digital worlds in the consumption behaviour of Chinese millennials, in that physical retail stores create atmosphere which encourages them to shop offline while, at the same time, engaging in both offline and online processes. ...
Purpose
Few studies have examined technology-enhanced atmospheres for strengthening customer experience and brand engagement in physical store settings. This study builds on the social presence theory to test for the first time the moderating effects of virtual social presence on customer responses, through AR adoption in-store. Our study aims to understand the impact of technology-enhanced in-store atmospherics (TEISAs) with emphasis on AR elements and virtual social presence on customer experience and engagement behaviours (CEBs) in luxury settings.
Design/methodology/approach
Hypotheses are developed and a survey using 566 responses were collected using Qualtrics. T -tests, two-way ANOVA and structural equation modelling were used for analysis of CEBs. Moreover, using PLS-SEM, we test whether virtual social presence moderates this relationship in a cross-country context; Britain and China, two of the largest economies for luxury growth.
Findings
The findings demonstrate that TEISAs have a positive impact on emotion and perceived value, with virtual social presence moderating this relationship. The cross-cultural comparison results show that the impact of TEISAs on emotion and perceived value is stronger for British than for Chinese millennials.
Originality/value
Our model is the first to incorporate technology into various store atmospherics, to employ virtual social presence as a new moderator, and to provide empirical evidence on the effects of AR on customer experience and CEBs in the real-time luxury retail environment. This study is also the first to consider virtual social presence on social media as a moderating variable.
... Recently, new forms of luxury have emerged, such as new luxury (Atkinson & Kang, 2022) or unconventional luxury (Diaz Ruiz and Cruz, 2023), which are accessible to many consumers at affordable prices. ...
Given the rise of digital technologies, brands must retain complete control and accountability for user content creation and diffusion. This paper investigates the influence of user-generated content on multiple luxury consumers’ value perceptions that arise within brand communities. A type of non-participatory netnography is performed on three fashion brand communities to analyze the content published by community members non-intrusively. Findings show that brand-related content allows users to share their perceived experiential benefits with their networks, ultimately reinforcing the brand’s experiential and symbolic dimensions. Moreover, user content influences one’s perception of value and attitude. However, if the sense of social homophily and membership is evident, diminishing a brand’s perceived value through brand dilution is unlikely. While previous studies revising the outcomes of online exposure for luxury firms have primarily focused on firm-controlled messages, this investigation acknowledges the importance of brand communities in creating and spreading brand-related content and their effect on luxury appeals. This study appears timely as the digital era empowers consumers to be proactive in Value Co-Creation dynamics and freely define the meaning of inclusivity in exclusive luxury.
... For instance, Dior can launch apparel blending symbols of traditional culture to cater to the preferences of young consumers. Similarly, to connect with groups of people with different interests, untraditional luxury brands try to cooperate with anime, e-sports, popular culture etc [11]. The group of rich individuals who would show their loyalty and devotion to the culture might desire the limited edition. ...
This essay analyses the strategy of Dior based on the 4P theory. The paper provides suggestions for Dior to maintain or even raise its leading position by discussing the current strategy in four key areas. The recommendations are in line with the current marketing trends and the overall business environment. Dior should focus on the innovation and design of its high-end fashion products to satisfy the needs of luxury consumers. For pricing, it is crucial to maintain a high-value positioning for a luxury brand while taking into account competition and the purchasing power of consumers. Dior also needs to be adaptable in modifying its pricing strategy. The paper suggests that mainstream social media should be used to improve the visibility of the Dior brand. To increase sales, the paper recommends that pop stars should be enlisted as brand ambassadors, who can post pictures of themselves using Dior's products. Additionally, it is advised that Dior strengthen its loyalty program by providing frequent customers with discounts, exclusive offers, and early access to new products. Dior should be careful in selecting the appropriate sales channel and location for its products, whether it is an online or physical store. It is essential to maintain brand consistency and provide customers with a positive shopping experience. The implementation of these strategies will be critical for Dior in the highly competitive luxury market.
... Louis Vuitton's demands on its product range are rigorous. [9] Whereas fashion is associated with changing trends, luxury has been considered timeless, because durable materials, fine artisanship and classic design signal wealth permanence. The symbols of luxury encapsulate lasting wealth and ageless esthetics. ...
This paper delves into a comprehensive analysis aimed at understanding the multifaceted impact of Louis Vuitton's business strategy across its operational domains. The research is concentrated on four pivotal areas: Firstly, it scrutinizes the brand's sales performance and its evolving audience, both within physical stores and the digital realm. This includes an exploration of foot traffic patterns, an assessment of marketing methodologies, and an evaluation of the customer experience, both online and offline. Secondly, the study meticulously examines Louis Vuitton's promotional endeavors, encompassing aspects such as advertising campaigns, celebrity endorsements, and various marketing initiatives, providing insights into their contributions to brand visibility and market appeal. Thirdly, the paper delves into Louis Vuitton's adaptability and innovation in refining its product line and mix, addressing the brand's ability to respond to shifting market demands and consumer preferences. By conducting a thorough analysis of these dimensions, this study aspires to offer an in-depth understanding of the far-reaching implications of Louis Vuitton's business strategy. In doing so, it contributes to the discourse surrounding strategic management, marketing, and the dynamics of the luxury fashion industry.
... Iconic luxury products, such as the Louis Vuitton canvas and the Hermès Kelly bag, symbolise luxury brands' rich history and legacy (Kiygi-Calli, 2018). In contrast, seasonal offerings, like Louis Vuitton's Graffiti line and collaboration with artist Koons in 2017, embody avant-garde designs and aesthetics, setting new benchmarks and trends (Diaz et al., 2023). These two distinct categories illuminate the balance luxury brands strive for between preserving tradition and pioneering new trends . ...
Luxury goods and services saw robust growth globally, even during the COVID-19 pandemic when major luxury companies reported resilient revenues. Luxury consumption is no longer confined to the elite, as growing affluence in developing countries creates better affordability and aspirational purchases of luxury goods and services. Published literature has shown that psychological factors play a part in driving luxury consumption. However, more research needs to be done in Malaysia. This study aims to comprehend the psychological factors that drive the consumption of luxury goods among consumers in the Klang Valley, Malaysia. The relationships between the consumption of luxury goods and three psychological factors, namely motivation, perception, and learning, were examined. Employing the convenience sampling technique, the research questionnaires were distributed using Google Forms. A total of 384 respondents took part in this quantitative study. Correlation and regression analysis were used to assess the responses based on the data gathered. Based on the findings, motivation, and learning were the influencing factors in luxury goods consumption. The study reveals that Malaysian consumers purchase luxury products for satisfaction rather than social acceptance or symbolic meaning. Marketers should focus on individual self-image, hedonism, and brand-building to segment customers and position luxury goods effectively. As Malaysia's affluence increases, marketers must understand and exploit the psychological factors driving luxury purchases.
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This study investigates factors that may drive Chinese millennials' intentions to purchase second‐hand luxury clothing (SHLC). Grounded in the Stimulus‐Organism‐Response (S‐O‐R) theory, it investigates how electronic word‐of‐mouth (eWOM), publicity and environmental advertisements relate to moral obligation, which subsequently predicts SHLC purchase intention. Additionally, it explores the moderating effect of consumers' perception of SHLC. Data were collected from 354 Chinese millennials using an online survey. The results show that eWOM, publicity and environmental advertisements are positively related to moral obligation, which mediates the relationship between these marketing stimuli and SHLC purchase intention, introducing a novel linkage to the existing literature. Furthermore, consumers' perceptions about SHLC were found to moderate these relationships, adding another unique contribution to the literature. This study addresses a gap in the SHLC research by emphasising the importance of marketing strategies that promote sustainability and social responsibility to foster consumers' moral obligation. The findings suggest that practitioners and social marketers should leverage these tools to motivate environmentally conscious millennials to purchase SHLC and reshape their perceptions, as sustainable consumption practices like SHLC can contribute to societal well‐being by reducing waste, conserving resources and fostering ethical consumer behaviour.
Purpose
This study aims to investigate how consumers understood luxury during an economic downturn and the values they gained from consuming luxury in a downturn and to refine the existing dimensions of the luxury value framework.
Design/methodology/approach
This study was qualitative and interpretive in nature. The authors interviewed 16 female luxury consumers during the 2022–2024 economic downturn in the UK and thematically analysed the data.
Findings
The term “lipstick effect” refers to increased consumption of certain affordable luxuries, such as premium lipsticks, in downturns. The authors found this imprecise, as the respondents consumed affordable luxuries that were not cosmetics. Apart from escapism offered by luxury consumption, participants were ensuring luxury’s durability and continued functional value, which they tied to their self-concept as responsible consumers. Luxury was also consumed to improve well-being, but this generated negative emotions of guilt and shame; some consumers were concealing luxury.
Originality/value
The authors contributed to a better understanding of the construct of luxury values. The authors added durability and well-being as new luxury values, mapped to functional and symbolic value dimensions, respectively. The authors also added the principle of making links between different luxury values and added the links between durability (functional) and self-actualization (symbolic) and between social meaning (symbolic) and emotional value (experiential). Further, the authors advise marketers to prioritize “meaning” and “doing” over “owning” luxury and to enhance the visibility of durability signals of luxury over its conspicuousness.
