The impact of culture on millennials' attitudes towards luxury brands: evidence from Tokyo and Shanghai

PurposeBased on the theory of social identity mechanism, this study aimed to investigate the associations with millennial consumers' need for uniqueness (NFU), susceptibility to peer influence (SPI) and attitudes towards luxury brands (ALB) under the cross-cultural context. The mediating effect of fashion innovativeness (FI) and the moderating effect of culture were examined.Design/methodology/approachThe data for this study were collected through a survey from 217 millennials in Shanghai and 268 millennials in Tokyo. Moderation analysis and mediation analysis using Hayes PROCESS macro were applied to test proposed hypotheses.FindingsResults show that NFU and SPI have a significantly positive effect on millennials' ALB, and fashion innovativeness plays a mediating role in this process. Furthermore, the positive impact of NFU on millennials' ALB for relatively individualistic cities (Shanghai) is stronger than for relatively collectivist cities (Tokyo). The positive impact of susceptibility to informative influence (SII) on millennials' ALB for Tokyo is stronger than for Shanghai.Practical implicationsThe research results suggest how different cultures can support marketers in effectively carrying out their business strategy.Originality/valueUnder the cross-cultural background, the social identity mechanism behind the attitudes of millennials towards luxury brands has been widely recognised. However, little is known about how culture could moderate the social identity mechanism behind millennials' ALB. By analysing these mechanisms, this study compares the cultures of Shanghai and Tokyo and expands the previous research achievements.

The myth of the universal millennial: comparing millennials’ perceptions of luxury across six countries

PurposeThe purpose of this research is to challenge the popular belief among luxury practitioners and researchers that millennials are a homogeneous and disruptive generation of consumers which is redefining luxury according to its terms.Design/methodology/approachThis study first presents comparisons of luxury perception among 1,450 actual luxury consumers between the ages of 18 and 34 years in six main luxury markets, eastern and western, mature and emerging (United States, China, Japan, Germany, France and Brazil). Within each country, millennials' perception of luxury is then compared to the perception held by previous generations (Gen X, baby boomers and seniors).FindingsThe results clearly demonstrate that millennials' definition of luxury is not internationally homogeneous; millennials do not hold a global vision that transcends frontiers. Furthermore, comparisons of luxury perceptions among nonmillennials from the same countries reveal that millennials match their national culture more than a cohesive age culture.Research limitations/implicationsThis research has two main limitations linked to the limited number of surveyed countries, along with a limited sample size of millennials per country. Nonetheless, the results give additional support to the glocalization hypothesis. Yet, as millennials represent 44% of personal luxury goods purchases, they catch attention from both luxury sellers and researchers. Evidence indicates the notion of a “millennial luxury consumer” could be still an empty label.Practical implicationsThe extensive use of the “millennial” label across countries implies generational homogeneity across borders, whereas reality is more diverse. Also despite the fact that luxury brands are highly globalized, the perception of what defines luxury – the hierarchy of its most salient attributes – does vary per country, thus needs specific attention.Originality/valueThe current findings reveal that millennials from the six surveyed countries do not share the same perceptions of luxury traits. Moreover, millennials' definition of luxury mirrors the definition held by nonmillennials from their own country, suggesting a strong cultural influence in each country.

The Paradox of Luxury in Digitalization

Seeing the success of digital platforms and advancement, social media marketing has strengthened the relationship between buyer and seller from a mere commercial transaction to a personal connection. The outcomes of this interaction are meticulous, and like other industries, it has also revolutionised the luxury products industry. It has become pertinent for the luxury brands to participate in the online visibility for customer awareness, customer engagement, customer acquisition, and customer retention. Though certain challenges are there, there is a need to develop strategies to mitigate them for better positioning, building online trust and online value.

LUXURY-ТЕХНОЛОГІЇ ЯК ЗАСІБ ПІДВИЩЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ПІДПРИЄМНИЦЬКОГО БІЗНЕСУ

The article seeks to explore the specifics of premium brands and current trends in business entrepreneurship. Managing modern Luxury business, in other words, fashion industry, and in particular designer brands as its key asset is an independent scientific and applied research issue which has gained increasing importance over the last decades. The economic crisis spurred by the COVID-2019 pandemic has become a profound turmoil for the global economy. However, according to the results of modern research studies, this situation has contributed to creating favourable environment for bringing business to a qualitatively new level which resulted in the first place in shifting much of creative business processes to a virtual domain, thus transforming fashion business into online business models. The research hypothesis is represented by the statement that a thoroughly developed and implemented marketing strategy based on Luxury technologies, as well as doing entrepreneurship-driven business including strategic marketing positioning, will facilitate a significant increase in the company market share and profits along with finding pathways to outperform the competitors, including big international market players. The purpose of this study is to substantiate the variability of making use of Luxury technology as a promising tool to boost the competitiveness of entrepreneurial ventures. The methodological framework of the research covers a branding theory – to identify the most appropriate methods to build Luxury brands, strategic marketing tools – to develop a business strategy to promote Luxury brands, portfolio and matrix approaches – to justify the positioning of Luxury brands. In addition, the study offers a matrix approach to managing designer brands, together with suggesting a better understanding of the role of a designer brand portfolio concept as the most effective business model in the area of Luxury sector management. It is argued that application of Luxury technology will help to enhance the designer brand management paradigm in both local and the global Luxury markets.

Measurement invariance of the modified brand luxury index scale across gender, age and countries

PurposeMany instruments have been developed to measure the perceived luxuriousness of brands, but one of the most frequently used scales is the “brand luxury index” (BLI) from Vigneron and Johnson (2004) that distinguishes between high- and low-luxury brands. Despite its popularity and widespread use in academic research, the scale's psychometric properties and equivalence across cultures have been questioned. Recently, modified versions of the scale have been developed to strengthen the quality of the measurement. However, the performance and the measurement invariance of the modified version have not yet been investigated. The current paper aims to test the model fit of the modified BLI scale and the measurement invariance across gender, age and country groups using nine datasets from a total of three different countries.Design/methodology/approachThis paper conducts a multi-group CFA to examine the measurement invariance of the BLI scale. Nine datasets were used in this study. The data were collected across three countries, the United States (5 datasets), China (2 datasets) and India (2 datasets) from 2016 to 2018.FindingsThe results of this analysis suggest that the modified BLI scale has an acceptable model fit and can be interpreted equivalently across gender and age groups. Metric invariance was found among the US, China and India. However, scalar measurement invariance was established only across two countries: the US and India. A follow-up analysis shows that partial scalar invariance can be established across the US, China and India when removing constraints on the parameters of three items: exclusive, precious and sophisticated.Originality/valueThis study is the first study to test the model fit of the modified BLI scale. The findings of this paper contribute to both the academia and industry. The authors recommend scholars and marketers to use a modified 19-item BLI scale to measure the perceived luxuriousness of brands in future research. First, the modified BLI scale tested in the current study offers very good performance with model fit values of a quality that has rarely been seen in prior research. The original scale of Vigneron and Johnson (2004) has been criticized for its poor model fit (Christodoulides et al., 2009). The modified scale of Doss and Robinson (2013) also has problems with the fit value. Second, the modified 19-item scale also shows adequate measurement invariance across different gender, age and countries. For scholars and marketers, the establishment of the metric invariance of the modified 19-item BLI scale implies that the scale can be used across gender, age and countries (the US, China and India) if the purpose of the study is to understand the relationship between some variables and perceived luxuriousness of a brand.

Impact of COVID-19 pandemic upon fashion consumer behavior: focus on mass and luxury products

PurposeThe COVID-19 pandemic has caused a decline in overall consumption, but luxury sales within offline department stores rose significantly. This study identifies changes in the market environment variable (i.e. pandemics) and their impact on clothing consumption behavior. Moreover, it examines consumer behavior characteristics and provides implications for future fashion marketing and merchandising strategies.Design/methodology/approachThis study analyzed post-pandemic consumption trends by obtaining luxury brand sales data from the Korea National Statistical Office and department stores. Moreover, it investigated luxury consumption fluctuation after the pandemic and statistically analyzed the characteristics of luxury consumers by customer level (CL) that affected sales.FindingsThe results of the study showed that offline (online) clothing consumption at mass markets has decreased (increased) since the pandemic, whereas sales of luxury fashion brands at offline department stores have grown. Moreover, the in-depth analysis showed a significant sales decline (increase) for clothing-centered (leather-centered) luxury brands.Practical implicationsIf such a trend in luxury brand consumption continues, current polarization is expected to be maintained. Therefore, the study’s findings can be used as basic data in strengthening luxury brands and planning products.Originality/valueThis is the first work to undertake a comparative study of fashion consumer behavior, before and after the pandemic, involving the mass and luxury markets in South Korea.