BP310 BACHELOR OF FASHION (MERCHANDISE MANAGEMENT)

MANU1459 MAJOR A

RESEARCH PROPOSAL

Assessment By Laura Leanza

S3559786

Assessment 2
Word Count: 6,633

RMIT University
Semester 1
2017
Table of Contents
Abstract .......................................................................................................................................... iii
1. Introduction and Rationale ..................................................................................................... 5
2. Research Aim and Objectives ................................................................................................ 6
3. Literature Review ..................................................................................................................... 7
3.1. Introduction ............................................................................................................................. 7
3.2. Digital Technologies Merging in the Luxury Fashion Industry ................................................ 8
3.3. Luxury Brands Introduced Through E-Commerce and Online Channels .............................. 10
3.3.1. Key Statistics in the Positioning of the Digital Luxury Market ........................................ 13
3.4. Consumers Connection to Luxury Fashion Through Digital Channels ................................. 14
3.5. Conclusion ............................................................................................................................ 15
4. Framework.............................................................................................................................. 17
5. Research Concepts and Proposed Research Design for Major B .................................... 18
5.1. Research Concepts .............................................................................................................. 18
5.1.1. Qualitative Research ...................................................................................................... 18
5.1.2. Quantitative Research ................................................................................................... 19
5.1.3. Secondary Data ............................................................................................................. 19
5.1.4. Primary Data .................................................................................................................. 20
5.1.5. Data Triangulation .......................................................................................................... 21
5.1.6. Validity ........................................................................................................................... 21
5.2. Proposed Research Design for Major B ............................................................................... 22
5.2.1. Information Required ..................................................................................................... 22
5.2.2. Data Collection Techniques ........................................................................................... 23
5.2.3. Limitations and Access .................................................................................................. 23
5.2.4. Ethical Procedures ......................................................................................................... 24
6. Gantt Chart and Budget ........................................................................................................ 25
6.1. Gantt Chart for Research Project .......................................................................................... 25
6.2. Budget for Research Project ................................................................................................. 25
7. References ............................................................................................................................. 26
8. Appendices ............................................................................................................................ 29
Appendix A: Conceptual Model....................................................................................................... 29
Appendix B: Industry Participants Questions .................................................................................. 30
Appendix C: Consumer Participants Questions .............................................................................. 31
Appendix D: Interview Questions for Industry Participants ............................................................. 32
Appendix E: Questions for Survey .................................................................................................. 33
Appendix F: Focus group questions ............................................................................................... 36
Appendix G: Reflective Piece ......................................................................................................... 37

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Abstract

The research paper explores digital concepts emerging in the luxury fashion industry as increasing

online competition disrupts traditional methods. Luxury fashion brands are confronted with new

digital strategies to communicate luxury perceptions of authenticity, exclusivity and premium

quality. As the luxury segment gradually expands into the digital world through platforms and new

innovations, businesses are pressured to adopt digital strategies since the influence of the Internet

became commercially accessible and the rise in online luxury sales. Heritage, culture, lifestyle and

identity are predominant factors that consumers distinguish and digital commerce has largely

influenced consumers preferences in brands in the luxury fashion segment.

Further exploration of digital commerce in the luxury segment has exposed new questions and

research possibilities. The paper has depth information about digital technologies developing in the

luxury segment for brands to survive in the saturated industry and if there is positive growth for

luxury players to engage consumers through digital channels. Findings are acquired through

secondary data of quality research from experts in the industry and obtained from sources based

on valid and highly credible journal articles. This has achieved relevant information based on the

connection of the luxury fashion industry becoming digitally focused.

iii


THINKING DIGITALLY IN

LUXURY FASHION

iv
 Thinking Digitally In Luxury Fashion (2017)

1. Introduction and Rationale

Luxury fashion brands are challenged to curate engaging shopping experiences and consider

ways to evolve through digital commerce to keep up with changing consumer behaviour in

shopping. The paper explores digital concepts surfacing the luxury fashion industry that has an

affect on consumers intentions to purchase luxury fashion and strategies in online competition to

effectively engage consumers with luxury aesthetics. Traditional business concepts through brick-

and-mortar stores are shifting to deliver shopping experiences and market the brands identity

through digital platforms whilst appealing the exclusivity and lifestyle to consumers. Yet, the

disruption of digital technology has exposed challenges for luxury fashion brands to attain strong

potential in the saturated industry and protect important influences such as, craftsmanship,

heritage and authenticity that largely affect consumers preferences. Relevant findings of

consumers and industry perceptions towards digital concepts developing in luxury fashion brands

is analysed for depth understanding and to explore the subject emerging in the industry.

The analysis is to evaluate the findings and further research through first-hand studies to benefit

from a stronger insight of the shift in the luxury fashion industry to digital concepts. Brick-and-

mortar stores are lacking the capability to maintain customer loyalty as physical retailers must

stage experiences, embrace omni-channel and harness data to meet the needs and desires of

todays constantly connected, time-poor luxury consumers (Abnett, 2016, p. 1). To focus solely on

a physical environment is becoming impossible due to the high volume of luxury shoppers wanting

a seamless, digitally enabled, multi-channel experience (Remy et al. 2015, p. 11). Luxury fashion

brands are in a state for new changes as digital is now the engine of the luxury shopping

experience (Remy et al. 2015, para. 2) and now there are opportunities or risks in digital strategies

appearing in the luxury segment.

RESEARCH PROPOSAL 5
 Thinking Digitally In Luxury Fashion (2017)

2. Research Aim and Objectives

AIM

To determine what concepts are emerging in digital commerce and marketing strategies for luxury

fashion brands.

OBJECTIVE 1

To identify digital concepts and marketing communication platforms applied by luxury fashion

brands.

OBJECTIVE 2

To analyse consumer and industry perceptions towards digital commerce and strategies

developed in luxury fashion brands.

OBJECTIVE 3

To evaluate the affects on the consumer and industry perceptions towards digital channels applied

within luxury fashion brands.

RESEARCH PROPOSAL 6
 Thinking Digitally In Luxury Fashion (2017)

3. Literature Review

3.1. Introduction

The evolution of luxury fashion has established a notion of feeling part of a society that engages a

desirability of premium quality, authenticity, recognition, exclusivity, and an emotional connection

with the brand. Culture and lifestyle attitudes signify what a luxury fashion brand has to offer and is

recognised to not be a concept but a reality incarnated by brands and their magnificent stores

concentrated on high streets (Kapfere & Valette-Florence 2016, p. 121). Luxury fashion has its

purpose of embracing physical and psychological values, which defines the importance of being a

prestige brand and takes part in luxury shoppers motivations, whether its to feel the need to

impress others or elevate their social status (Shukla et al. 2015). Providing socio-psychological

benefits encourages customers to greatly commit to luxury brands rather than commercial brands

(Shukla et al. 2015) and highlights the brands reputation to consumers that is communicated by

building a relationship through an emotional value.

Luxury fashion expresses principles of traditional and exceptional uniqueness, not only conveying

a highly reputable position in the market to consumers but also to the brand itself. Through its

heritage, tradition and history reinforcing a strong position, it allows creating an identity that

establishes the brands fundamental principles with qualities that differentiate them in the luxury

market and in consumers perceptions. According to Escobar (2016) luxury brands are identified

with key features that are defined through characteristics of identity, personality and positioning. As

described by Escobar, identity forms and highlights the brands origin and unique qualities inherited

by the founder. Escobar goes on to state that implying brand personality builds an emotional bond

with the customer to prove knowledge about culture and style and whilst enabling a differentiation

through brand personality, it creates value proposition for consumers and encourages them to be

part of the brands social group, culture and lifestyle. Additionally, Escobar asserts that positioning

is defined as how a brand is perceived by consumers, in which luxury brands distinguish

RESEARCH PROPOSAL 7