FASHION MARKETING OF LUXURY BRANDS IN AN INTERNATIONAL MARKET:

CHALLENGES AND MARKETING STRATEGIES

Dr.S. Jaya Bharathi, Professor, MBA Department, Coimbatore Institute of Engineering and Technology

&

Mr.Y.Babu Vinothkumar, Senior Lecturer, MBA Department, Coimbatore Institute of Engineering and
Technology

ABSTRACT

Global scenario in fashion markets is undergoing sweeping changes than ever before. The
marketing of luxury brands is always a challenge as compared to the low priced brands.
Fashion marketing of luxury brands needs careful selection of the marketing mix and strategies
to cater to the rapidly changing market demands in the international arena. The market offering
should encompass many of the consumer behavior aspects with due reference to the
multicultural marketing environment. The product line selection, segmentation, targeting and
positioning should be based upon extensive market research. Suitable strategies have to be
designed before launching the brands and comprehensive promotional campaigns to be floated
to ensure brand visibility and long term success. This article presents an overview of fashion
marketing in international context; lists the luxury brands in different segments; highlights the
challenges faced by international fashion marketers of luxury brands; and spells out the suitable
strategies to be followed for enhancing fashion marketing of luxury brands in international
markets.

Keywords: fashion marketing, luxury brands, Niche marketing, Glocal approach

INTRODUCTION

In highly competitive global markets where fashion changes with seasons, quick decision
making conveniences are key factors that influence a consumer's buying decisions. The other
influencing factors are changing tastes and preferences of customers, ecological considerations,
shorter product life cycles, price sensitivity in different markets and heavy competition.
Marketers have to be cautious in target market selection and the market offering, keeping in
mind the dynamics of international competition. They have to choose between adopting a global
strategy or a glocal strategy that combines global and local approaches. As the luxury brands
comprise a niche market with premium pricing, the strategy should focus towards differentiation
and a high degree of uniqueness in the product range and service. Globalization in marketing has
led to the nurturance of outsourcing phenomenon which makes the products and services more
accessible to customers in the nook and corners of the globe. A rapid change in fashion also
poses the challenge of constant updation and need to incorporate the features as per customer
demands. This article addresses various issues of fashion marketing of luxury brands in
international arena, concentrating upon the challenges and marketing strategies. It emphasizes an
integrated approach for attaining long term survival and success of such brands.

FASHION MARKETING IN INTERNATIONAL CONTEXT

Fashion marketing is grooming in the recent past with the increasing trend of global acceptance
and shrinking of market boundaries across the globe. All the aspects of marketing like product,
price, place and promotion has to be addressed with due care to formulate a strategic plan.
International Marketing efforts allow the company to choice key markets, gain better market
knowledge, and comprehensive marketing strategy. Desk research is important to plan for
market entry. Homogeneous segments inside the market can be identified at the test stage. The
other aspects are proper trade partner selection, trade agreements, costing and pricing strategy,
scientific risk assessment, better packaging, payment terms, transport modes, promotional
measures, better relationship with retailers etc.

Fashion marketers need to promote brand visibility to consumers through various methods. This
needs a better image in global markets. Fashion trends have to be kept track and essential
changes have to be made in the products. This can become a core competence to create own
designs and eco-friendly products. To comply with the demands, needs and habits of potential
buyers we must be able to bridge the cultural and morphological gap between us and target
markets. Consumer behavior is difficult to predict in markets with enormous array of products,
ample choice, low brand loyalty etc. In such markets, Trend watch techniques can help along
with proper segmentation. An International marketer should know the target country’s
population, age groups, life styles, quality of life, tastes, preferences, environmental and health
concerns, eco needs, social accountability, shopping modes, net usage, tolerance level etc. An
export marketing audit on each target market can help in this regard to make a professional
export business plan.

Trade partner selection plays a key role in successful market performance. the retail location can
be selected based on past records, product and market knowledge, market support, distribution
networks, product line dealings etc. Market research has to be inherent in all stages of marketing
process from identification of new markets to expanding the current markets. Export Marketing
Audits on each target markets can be done to gain more insights on uncontrollable market
elements, macroeconomic data, Product requirements, consumer needs, trade channels, cultural
factors, trade practices, shopping patterns and the like. Physical distribution and logistics should
be analyzed before signing export agreements. Pricing should take into account the currency
conversion in the respective countries. A proper risk assessment can help in better positioning
and insurance planning. Eco friendly packaging can be helpful to gain more business as many
countries impose the need for such packing. Multimodal transports can be utilized for better
management of transport costs. Promotion can be done through global campaigns, hoardings,
trade fairs, internet etc.
Country attractiveness should be considered before selecting a target market. Countries where a
product or service is first introduced and adopted are called lead countries and where they are
adopted at a later stage are lag countries. The fashion marketing firms should identify lead and
lag markets to plan a comprehensive global strategy. Global campaigns and modular campaigns
can be judiciously mixed for promotion. Internet can be used more in international market
surveys like online surveys, buyer panels, online focus groups, web-visitor tracking, network
links, customer identification, email marketing lists etc. Eco labeling signifies evaluation of all
environmental effects throughout its life cycle to manufacturing to disposal. A global brand that
gives a uniform image worldwide can be developed.

LUXURY BRANDS IN VARIOUS SEGMENTS

There are lots of luxury brands in various product categories that operate in international
markets. The sectors range from fashion accessories, garments, personal care products and the
like. The prominent brands in select sectors are depicted below.

Shoes, Sunglass, Belts, Garments and Perfume Sectors:

The leading luxury brands are Gucci, Diesel, Dolce & Gabbana, Christian Dior, Jean Paul
Gaultier, Yves St. Laurent, Armani, Iceberg, Nina Ricci, Vivienne Westwood, Romeo Gigli,
Cerruti, Byblos, Alberta Ferretti, Moschino, Gianni Versace etc.

Hand Bags Sector:

The leading luxury brands are Prada, Fendi, Pucci, Valentino, Christian Dior, Versace, Krizia,
Viviana Soppeno, Luciano Soprani, etc.
Perfume Sector:

The leading luxury brands are Channel, Hugo Boss, Missoni, Issey Miyake, Sonia Rykiel, Rocco
Burocco, L’homme YSL, Chevigone, Catherine Hamnett, etc.

CHALLENGES OF FASHION MARKETING OF LUXURY BRANDS

Fashion marketing of luxury brands is a premium segment with high profile customers who are
bothered about supreme quality, aesthetic designs, status values after sales support and value for
money. The major challenges which marketers face in the international scenario of luxury brands
are as follows.

• Global consumer differences

• Tastes and preferences of multicultural consumers

• Need for variety of Promotional appeals

• Breakthrough the price barriers

• Creating brand awareness in new segments

• Combating stringent competition

• Niche market challenges

• Maintaining superior quality

• Global supply chain management

• Positioning the superiority of the brands

• Keeping up with rapidly changing fashion trends

 • Proper selection of brand ambassadors

• Choice of retail outlets to place the products

• Proper choice of product lines

• Adherence to ecological norms

• International quality certifications etc.,

This is not an exhaustive list of challenges the marketers face in practical marketing delivery.
The need for extensive market research is ever increasing with the aforesaid challenges.
Nevertheless, the choice of suitable marketing strategies will help the fashion marketers to
combat competition and gain a considerable market share.

MARKETING STRATEGIES

The success of brands in global markets encompasses many factors like brand equity, product
acceptance by target markets, fulfilling legal norms of different countries, fashion appeal, proper
promotional mix and suitable marketing strategies. The fashion marketers should select the
proper mix of strategies which will enable them to create a loyal customer base. The following
are some of the strategic options.

• Endorsing brands with International brand ambassadors

• Global branding strategy

• Glocal approach

• International event sponsorships

• Hosting fashion shows and beauty pageants

• Conducting media shows with global acclaim

• Niche marketing with premium pricing

• Ensuring availability in high profile retail malls

• Promotion through combo offers

• On the air marketing

• On the cruise marketing

 • Integrated marketing communication

This is an indicative list of strategies and the choice of combinations can be made only after
proper market research and test marketing of the products. The choice also depends on the type
of products, the involvement of customers and the level of persuasion needed to convince the
customers. The fashion marketers of the luxury brands can increase their level of success by
taking into account the various challenges as well as opportunities to gain long term success.

CONCLUSION

Customers in all global markets are more fashion sensitive today and they expect more value for
money. This change has necessitated the need for variety of fashion products and exclusive
brands in many of the product categories, especially in garments and fashion accessories. The
challenges for marketers in this fashion segments is more than before to address the changing
demands and customer pressures. The selection of luxury brands further add to the complexity of
market offering as it involves premium pricing and high profile customers. There are successful
brands in these segments like Gucci, Diesel, Dolce & Gabbana, Christian Dior, Jean Paul
Gaultier, Yves St. Laurent, Armani etc., which have stood the test of time and succeeded in
creating a global appeal. The lesions to be learned from these brands are manifold and it will
help the other marketers. An integrated global or glocal approach as per the choice of marketer
will take their brands in the path of long term sustainability and success.

REFERENCES:

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Bombay, 1995.
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March 2005, pp.3-23.
4. Schiffman Leon G and Kanuk Leslielazar., “ Consumer Behavior”. Prentice Hall of India
Pvt Ltd, New delhi, 2007.
5. Websites :
www.dior.com
www.diesel.com
www.gucci.com
www.ysl.com
www.dolcegabbana.com
www.girgioarmani.com
www.chanel.com