1. Introduction Louis Vuitton, Chanel, Gucci, Dior, Prada, Jimmy Choo, Hermes, Rolex…. These are all; luxury brands and they are everywhere. The luxury fashion market represents an important and increasing sector of worldwide retail (Husic and Cicic, 2009). However, since the last two decades, the luxury industry has been losing billions because of counterfeited products. Counterfeit can be defined as: “…Those bearing a trademark that is identical to, or indistinguishable from, a trademark registered to another party and infringe the rights of the holder of the trademark.” (Bian and Moutinho, 2011). This report will firstly look at the luxury part and explain the importance of it nowadays. Secondly, it will focus on the motivation factors …show more content…
Nowadays, consumers are attracted by “the combination of quality emotion and rarity” (Perry and Kyriakaki, 2014). Luxury items make them feel more prestigious even if these products do not have any functional utility. The importance of luxury in today’s world is the expression of the immaterial world; as cited by Solomon (1986) consumers are seen as “meaning creators, who live in a dynamic interaction with social and cultural environment” (Perry and Kyriakaki, …show more content…
Consumers knowingly purchase counterfeits products for different reasons. According to a study conducted by Swami et al. (2009), half of the respondent of a survey would knowingly buy counterfeited products. Men are more likely to buy pirated CD’s whereas women prefer to buy counterfeited clothing and accessories, that is to say luxury counterfeited products such as a fake Louis Vuitton bag or Chanel clothes for instance. The studies also showed that younger participant are the ones who buy counterfeit products while older believe that counterfeiters should be punished. In addition to this, counterfeited luxury buyers can be classified in two groups; “the wise shopper” that is to say consumers who buy counterfeit comparable to the original one but which is also superior in price. The second group are those who buy counterfeit with a lower price but can be noticed that it is not the original one. (BA, Brand management, lecture notes,
Secondly luxury products are easy to counterfeit, some countries such as china, turkey, and other still have to improve their IPR policies
Consumer attitudes are influenced by social pressure which is inclusive of informative and normative susceptibility (Ang, et al., 2001; Bearden, Netemeyer, & Teel, 1989; Wang, Zhang, & Ouyang, 2005). Normative consumers are more concerned with impressing others and ensuring that their behaviors are based on the expectations of others. Since counterfeiting is an unethical and illegal activity and involvement in such an activity does not project a positive image, therefore normative consumers would have negative attitude towards counterfeit products (Ang, et al., 2001; Lord, Lee, & Choong, 2001; Penz
Polo Ralph Lauren the brand has become one of successful brand in America and across the world, as a well-known player in the design and lifestyle industry, under bender Polo Ralph Lauren collection of product range from reasonably inexpensive to expensive brand in men’s, women’s and children wear, accessories, perfumes and home furnishings. Widely seen as the number one brand that symbolize the American Style, Polo Ralph Lauren has implemented to its marketing strategy, which has leaded they to become a strong brand equity since being set up. Also, the brand has been selling its goods internationally, while it has kept up with its 45 years reputation and distinctive image developed across the different products and brands markets. Due to its marketing tools and its high quality brand image, this luxury brand keeps a constant relationship with its customers. Ralph is a truly inspired and continuously aspiring designer. (Garvin, 2008)
...ally from two perspectives which are the social influence and individual factors. In order to indentify the fundamental reason, we have a survey to analyze the phenomenon. As a result, we think the social factors such as materialism and post-cultural revolution are the big background which built a microscopic environment, but the main factors are the individual ones especially the pursuit of the high quality and the psychological satisfaction. As the young generation’s conspicuous behavior are heavily rely on others, even the benchmark of overspending should be set differently depends on different situation, but generally the phenomenon of conspicuous behavior could cause the financial burden and the misguided value. We hold the point that the conduct of conspicuous consumption behavior should not be promoted but should be addressed and reduce the negative impact.
There is a saying: “Monkey see, Monkey do.” In today’s world, it seems that it’s only natural for humans to imitate what they see works in society. Though there are beneficial facets for imitating, there are also damaging consequences. Counterfeit is a strong word that describes companies that forge bills or create fake fashion goods, electronic items, and even pharmaceuticals. For the purpose of this research, the focus will be on the different aspects of counterfeiting goods in the fashion industry. Though fashion has continuously changed, been reinvented and some even being dubbed ‘classics’, one thing will always remain: a designer’s ability to express creativity. Fashion is mainly dictated by trends whether they are past, present, or future, making counterfeiting in the fashion industry is a very lucrative, multibillion industry. The current economic climate allows for luxury to be almost ludicrously unaffordable. With high demands for low cost items, the market thrives on consumers’ obsession with spending while saving at the same time. With the 21st century’s expectations and having the need to be worth something, it yields an unstoppable industry. This is especially prominent among women because they are predominantly image-based and willing to hunt for the perfect equilibrium between trend and price. The desire to appeal a certain way induces counterfeiting. Fashion savvy shoppers long for that moment when they can afford Christian Louboutin, Louis Vuitton, Hermes, and other rare or out of reach goods. The more unobtainable the product, the more desirable it is. It is not a surprise that many are willing to purchase the counterfeit than the authentic due to its resemblance and price. Counterfeiting affects the industry be...
The high pressure luxury brand industry has evolved over the last few decades from a small and selective to a multibillion dollar arena offering significant potential and growth opportunity for the luxury brands that compete within its realm. With many luxury brands competing for over $225 billion (The Economist, 2009) in revenue each year it is easy to see how strategy plays an important role.
To measure the level of materialism, we will provide participants with product descriptions and images (may include Amazon-style customer reviews) of items that are high brand, low brand, look expensive, look cheap and ask how much they are willing to pay for this product, indicated on a sliding scale. Products to be chosen for the measurement: pens, cars, phones and tablet computers, umbrellas, USB stick, luggage. These subjects are commonly possessed and are comparatively gender-neutral. The purpose it to test if those primed for VI would like to pay more for prestigious brand name (reflected the success subscale of materialism), and HC the other way round.
However to make a brand “luxury” your audience must feel the brand, go on a historic journey to their roots and in the end make you want to buy their product, as Chip Compton states (brittonmdg, 2014) “Luxury is, well, a luxury. You like it, but you don’t need it!” a luxury brand has to give you this sense of amazement to enforce the idea that what your spending on is the best of the best, this is not only done verbally through the shop assistants influence but its also don’t visually through the interior design, the logo, color pallet and even the packaging. It’s the extra mile the brand goes to make you as a client of theirs to feel special and unique to them. The branding has to be powerful enough for you to feel something; each brand does not follow trends. They set trends, the set their own fashion and do their own vision of what fashion is today. As Dr. Dan Herman states (the manager, 2015) “ “the dream is not to own a crown. It is to be a king” Gian Luigi Longinotti Buitoni ”, enforcing the fact that a well presented brand will set off emotional connections with you and the product. I think this is all down to the brand image, and how the brand is represented through different media. Take look-books for example, the style of photography will be different from brand to brand, it will have the slight hint of modern techniques and maybe trends but most of all the essence of the brand and its heritage. Even the printing can set it apart from non luxury brands, the smell of the paper and feeling each paper’s attributes sets off different thoughts as to what each look which is presented to you on the page and what it means to you as an
Traditionally luxury goods are described as goods, which bring prestige apart from any functional utility (Grossman & Shapiro, 1988). Individuals that have a higher obtainable income or greater accumulated wealth than the average often buy Products that is more pleasant and more costly for the consumer. Luxury is about desirability, product excellence, exemplary service and mostly a brand promise. (luxury goods.BusinessDictionary.com). Social media and Engagement of customers is getting increasingly more attention in theory and by managers of luxury brands and luxury brands as well (Donaldson, 2011) (Phan, 2011). Because the luxury fashion Business is considered high value-added with guaranteed high-profit margins and secure regular customers, the lower
As a concept, the word ‘luxury’ has been defined in many ways. ‘Luxury’ means the state of great comfort and extravagant living or an inessential but desirable item. (Kamolwan T. and Wiwatchai J, 2010). In the social psychology context, for instance, luxury is treated as a result of its strong connection to a lifestyle, culture, sub-culture, and state of being. When
Under Arnault, the company was the world’s leading luxury product group. Arnault believed that LVMH control of retail chains was critical to luxury brand success. The finer points of retailing were believed to be, influencing of the overall image of luxury products, as much as the product attributes.
“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
The following essay should outline what is conspicuous consumption, why consumers like to engage in conspicuous consumption and finally exploit the implications for marketing. The implications for marketing refer to modified marketing implementations, regarding branding and positioning. Thus, models and techniques should be presented, on how to track contemporary conspicuous consumers and then to target on them. In order to describe the reasons and the motives behind conspicuous consumption, it is necessary to present common psychological arguments. Therefore, evidence and arguments will be based on Maslow’s hierarchy of needs and also on different perspectives. Then, based on “The Theory of the Leisure Class” by the economist and sociologist
Designer handbags are both envied and enjoyed by women across the country. With prices ranging from a few hundred dollars to well over $15,000, handbags can be seen as a representation of wealth and social status. In 2014, handbag sales amounted to approximately 9.2 billion dollars, 30% of all revenue generated by women’s accessories (Statista). As sales increase, industry leaders, such as Louis Vuitton, Coach, and Dior, must ensure their marketing strategies attract consumers to their brand and handbag styles. Louis Vuitton, Coach, and Dior’s advertisements portray the need for prominence, autonomy, and aesthetic sensations to depict a luxurious lifestyle.
It suggests that under the promotion message that reminds consumers of their own self-image, consumers give more positive evaluations of brands congruent with their own self-image”. Some people derive great pleasure and self-satisfaction from using costly branded products. However, other people buy branded items to show that they are in a comfortable position. It gives them a strong sense of personal identity. Furthermore, students, especially teenagers will feel great and pride and shows their superiority among friends by not only wearing expensive clothing, but also make up, shoes, and handbag. For example, Nike, Gucci, Chanel, Hermes, Clacks and many others. When you buy the expensive item you are actually told that you have arrived and it is will give a positive impression to everyone looking at you. For example, girls do not only spend their money on hair, but also shoes, make up, nails, and facials to look beautiful and keep up with friends. Besides, have some students does not care about the brand of the product. If the product comfortable, grand and affordable, they feel confidence to wear it. From this factor, it shows that students could spend most of their money to be updated with fashion trend around them for their satisfaction and happiness. Branded product gives the good quality of the merchandise and it is looking