Stay exclusive or go inclusive
Exploring consumers’ perception of luxury fashion brands’ use of digital
channels and disruptive technologies.
BACHELOR THESIS PROJECT
Bachelor thesis within: Business Administration Number of credits: 15 ECTS
Programme of study: International Management
Authors: Jessica Alverönn Oresvärd, Charlotta Herkommer & Sandra Siljevik Laine Tutor: Jenny Balkow
Acknowledgements
We want to express our deepest gratitude towards those who have helped, supported, and challenged us during the creation of this thesis. Without them this study would not have been possible.
Firstly, we want to thank our tutor Jenny Balkow for providing us with support, valuable guidelines and feedback during this research process. We also want to acknowledge our peers in the seminar group for valuable feedback and suggestions on how to develop our work.
Secondly, we want to express our greatest gratitude towards the participants for their time and participation in this study. Their experiences, beliefs and insights have provided us with valuable knowledge of the phenomenon of study.
Thirdly, we want to thank Anders Melander who has provided us with valuable information and guidelines for the research process.
Lastly, we want to thank you who are reading this, for taking your time, and showing commitment and interest in this topic.
______________________ _______________________ ______________________ Jessica Alverönn
Oresvärd
Bachelor Thesis Project in Business Administration
Title: Stay exclusive or go inclusive - Exploring consumers’ perception of luxury fashion brands’ use of digital channels and disruptive technologies.
Authors: Jessica Alverönn Oresvärd, Charlotta Herkommer & Sandra Siljevik Laine
Tutor: Jenny Balkow
Date: 2021-05-24
Key terms: Luxury fashion; Digitalisation; Digital channels; Disruptive technologies;
Consumer perception; Exclusivity
___________________________________________________________________________ Background and problem: The perception of luxury fashion has been shaped throughout
history with well-known brands’ innovative strategies and designs. Along with its crafts and arts, exclusivity has been one of the main pillars of luxury fashion, creating the perception of luxury fashion products only being available to the ‘elite’; which has been feasible to
maintain in an analog society. However, as luxury fashion brands have moved into the digital landscape; using digital channels such as e-commerce, social media, and disruptive
technologies such as augmented reality, virtual clothing; distribution channels have opened up, contradicting traditional practises.
It has been found that it is the consumers’ perception that determines luxury brands separation from the ordinary. Raising the question of how consumers may perceive luxury fashion brands when operating in the digital landscape; since the use of digital channels and disruptive technologies contradicts with the characteristics defining luxury fashion, in particular exclusivity.
Purpose: In order to contribute to literature and create new understandings of the
digitalisation of the luxury fashion industry; the purpose of this study is to explore how consumers perceive luxury fashion brands’ use of digital channels and disruptive technologies, specifically regarding the perception of exclusivity.
Method: The study broadly followed an interpretivist research philosophy where qualitative
data was collected by conducting eight semi-structured focus groups with Swedish luxury fashion consumers, born between the years of 1992-2000. The empirical findings were analysed through the general analytical approach, and thereafter discussed in relation to the frame of reference.
Conclusion: The findings suggest that consumers perceive that luxury fashion brands’ use of
digital channels and disruptive technologies are diluting the perception of exclusivity, as luxury fashion becomes more accessible and visible with an increased attainability.
Table of content
1. Introduction ____________________________________________________________________________________ 6
1.1 Background _________________________________________________________________________________________ 6 1.2 Problem discussion _________________________________________________________________________________ 8 1.3 Purpose and research question____________________________________________________________________ 9 1.4 Definitions ___________________________________________________________________________________________ 9
2. Methodology and method ___________________________________________________________________ 10
2.1 Methodology ______________________________________________________________________________________ 10 2.1.1 Research philosophy _________________________________________________________________________________ 10 2.1.2 Research approach __________________________________________________________________________________ 10 2.2 Method ____________________________________________________________________________________________ 11 2.2.1 Data collection________________________________________________________________________________________ 11 2.2.2 Sampling ______________________________________________________________________________________________ 14 2.2.3 Test interviews & test focus group __________________________________________________________________ 15 2.2.4 Question design ______________________________________________________________________________________ 16 2.2.5 Description of data analysis _________________________________________________________________________ 17 2.2.6 Data quality __________________________________________________________________________________________ 19
3. Frame of reference __________________________________________________________________________ 22
3.1 Method of frame of reference ___________________________________________________________________ 22 3.2 Background to frame of reference ______________________________________________________________ 23
3.2.1 Luxury fashion and Exclusivity _____________________________________________________________________ 23
3.3 Digitalisation within the luxury fashion industry _____________________________________________ 24
3.3.1 The use of digital channels and disruptive technologies __________________________________________ 24 3.3.2 E-commerce and luxury fashion ____________________________________________________________________ 25 3.3.3 Augmented reality and luxury fashion _____________________________________________________________ 26 3.3.4 Social media and luxury fashion ____________________________________________________________________ 28 3.3.5 Virtual clothing and luxury fashion ________________________________________________________________ 29
3.4 Key takeaways from the frame of reference ___________________________________________________ 30
4. Results __________________________________________________________________________________________ 32
4.1 Consumer perception of luxury fashion________________________________________________________ 32 4.2 E-commerce and luxury fashion ________________________________________________________________ 35 4.3 Virtual fitting (AR) and luxury fashion ________________________________________________________ 38 4.4 Social media and luxury fashion ________________________________________________________________ 39 4.5 Virtual clothing and luxury fashion ____________________________________________________________ 42
5. Analysis _________________________________________________________________________________________ 44
5.1 Consumer perception of luxury fashion________________________________________________________ 44 5.2 E-commerce and luxury fashion ________________________________________________________________ 45
5.3 Virtual fitting (AR) and luxury fashion ________________________________________________________ 46 5.4 Social media and luxury fashion ________________________________________________________________ 48 5.5 Virtual clothing and luxury fashion ____________________________________________________________ 49
6. Conclusion _____________________________________________________________________________________ 52 7. Discussion ______________________________________________________________________________________ 53 7.1 Contributions _____________________________________________________________________________________ 53 7.2 Practical implications ____________________________________________________________________________ 53 7.3 Limitations ________________________________________________________________________________________ 54 7.4 Future research ___________________________________________________________________________________ 55 8. References ______________________________________________________________________________________ 57 9. Appendices _____________________________________________________________________________________ 62 9.1 Appendix A________________________________________________________________________________________ 62 9.2 Appendix B ________________________________________________________________________________________ 64
1. Introduction
___________________________________________________________________________
This chapter will begin with an introduction to the concept of luxury fashion and the
digitalisation of the luxury fashion industry. Thereafter, the problem formulation and purpose & research question will be presented, followed by definitions.
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1.1 Background
The luxury fashion industry as we know it today has been shaped throughout history, with brands originating back to the 19th century (Oknokwo, 2007; Sterlacci & Arbuckle, 2017). The designers of these brands innovated the luxury fashion industry by changing how luxury fashion was defined. Creators such as Coco Chanel, Christian Dior, and Yves Saint Laurent, were pioneers of their time by focusing on creating crafts and art, while embodying important changes in society (Okonkwo, 2007). Throughout this history, luxury fashion brands have created an extensive brand heritage, composed of stories, culture, and tradition, which arguably has laid the foundation of luxury fashion brands’ identity and success (Donzé & Fujioka, 2017). Hence, the strong brand image associated with luxury fashion brands goes beyond the product, as it is characterised by this extensive brand heritage, creating a perception of prestige that people seek and desire to identify themselves with (Fionda & Moore, 2009; Okonkwo, 2007; Jin & Cedrola, 2017). This desire has been intensified through the perception of unattainability and rarity of luxury products, i.e., the perception of
exclusivity. Which have been created through the perception of solely being available for and associated with the ‘elite’; the most fashionable, influential, and prestigious people (Achim, 2020; Kim, 2019).
To maintain the perception of exclusivity, luxury fashion brands have consistently throughout time been careful and very selective with their distribution. The selectivity has been
established by distributing limited and uniquely designed products at a high price while locating stores on the most luxurious and coveted streets in the world, hence maintaining selectivity through limited accessibility (Cabigiosu, 2020; Kapferer, 1997; Park et al., 2020). Additionally, luxury fashion brands have created a shopping experience with exceptional customer service in the most extravagant environments, making the ‘average’ consumer feel as a part of the ‘elite’ (Cabigiosu, 2020; Fionda & Moore, 2009). The procedure of creating
private fashion shows with only the ‘elite’ invited has throughout time been common practice along with promoting products in fashionable magazines (Adegeest, 2018), such as Vogue and Harper’s Bazaar, with the use of celebrities and supermodels; limiting the visibility of luxury fashion.
The idea of selective distribution was possible to maintain in an analog society. However, it might not be as simple to maintain in a digital world with constant connection and
accessibility possibilities.
As society has become increasingly digital, the luxury fashion industry has moved into the digital landscape. Brands have begun to use what is today referred to as common practices, such as social media marketing strategies with the use of influencer marketing and
e-commerce to interact with consumers. Brands have substantially broadened their distribution channels through the use of e-commerce, as many have extended their e-commerce sites by collaborating with e-retail companies such as Net-a-Porter and Farfetch (Schmidt, 2017). Simultaneously, luxury fashion brands have been innovating through disruptive technologies such as Augmented Reality (AR) and virtual clothing.
Through digitalisation, luxury fashion brands are opening up distribution and communication channels towards the masses, which contradicts traditional practices of selective distribution since consumers receive the opportunity to access luxury fashion more conveniently. Hence, luxury fashion brands are welcoming more people to the previously closed world of luxury fashion houses and democratising the once very selective distribution of its products; threatening the attributes of exclusivity and rarity (Berridge, 2018; Jain et al., 2021; Radón, 2012).
Thus, opportunities for luxury fashion brands have opened up through digitalisation; yet brands face challenges on how to balance digitalisation while maintaining the consumer perception of exclusivity.
1.2 Problem discussion
Luxury fashion starts where the ordinary ends and this separation is determined in the minds of the consumers (Tynan et al., 2010). Luxury fashion brands are primarily defined through the characteristic exclusivity, followed by brand heritage, high quality, and high price (Fionda & Moore, 2009; Okonkwo, 2007; Jackson, 2004; Jain et al., 2021). These elements are provided through the use of luxurious physical stores with exclusive locations, limited product volume and unique designs, and a selective clientele, which has been feasible in an analog society.
As described, it is the consumers’ perception of a luxury fashion brand that determines its separation from the ‘ordinary’ (Tynan et al., 2010). This perception refers to the image perceived in the consumers’ minds, based on all communications and experiences received from the brand (Okonkwo, 2007). Luxury fashion brands are welcoming more people into their once very secluded world, by democratising the industry through the use of digital channels and disruptive technologies (Radón, 2012; Jain et al., 2021). This raises the question how consumers may perceive luxury fashion brands when operating in the digital landscape, since the use of digital channels and disruptive technologies contradicts with luxury fashion brands’ traditional brand identity, in particular exclusivity.
Hence, the nature of digital channels and disruptive technologies contradicts the nature of luxury fashion brands since digitalisation opens up the previously closed circle. Despite this fact, there exists limited research on how consumers perceive the digitalisation. Thus, it is of interest to explore how consumers perceive luxury fashion brands’ use of digital channels and disruptive technologies, with a focus on the perception of exclusivity.
By exploring how a brand builds its identity and how well it manages to communicate it to consumers may have extensive effects on the brand’s success, and the understanding of these perceptions may lead to opportunities on how to sustainably innovate without diluting brand image. Indicating the importance for luxury fashion brands to realise how consumers
1.3 Purpose and research question
In order to contribute to literature and create new understandings of the digitalisation of the luxury fashion industry; the purpose of this study is to explore how consumers perceive luxury fashion brands’ use of digital channels and disruptive technologies, specifically regarding the perception of exclusivity.
The following research question will be answered:
RQ: How do consumers perceive luxury fashion brands’ use of digital channels and
disruptive technologies; with a focus on the perception of exclusivity?
1.4 Definitions
Disruptive technologies: “Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate.” (Scott, 2020). This thesis refers to augmented reality (AR) and virtual clothing when mentioning disruptive technologies since both are innovative technologies luxury fashion brands have chosen to engage in.
Virtual fitting: Virtual fitting is, among others, an augmented reality procedure of virtually trying on garments with the use of a mobile device. When mentioning virtual fitting in this thesis, it refers to the method of a consumer using a device to try on virtual garments.
2. Methodology and method
___________________________________________________________________________ This chapter will begin with the methodology of this study, where the research philosophy and research approach will be presented. Thereafter the method will be discussed, beginning with the data collection, followed by sampling, test interviews & test focus group, question design, description of data analysis, and lastly data quality.
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2.1 Methodology
2.1.1 Research philosophy
The aim of this study is to create new understandings and interpretations of how consumers perceive luxury fashion brands’ use of digital channels and disruptive technologies. Thus, this research has broadly been following an interpretivist research philosophy, and the belief that there is no single reality.
This philosophy aims to research how human actors try to make sense of the world around them and contribute by creating new understandings and worldviews (Saunders et al., 2016). As interpretivists, researchers try to understand the different realities from participants point of view, adopting a subjectivist view; making the researchers’ own interpretation of research materials and data an important part of the research process (Saunders et al., 2016).
Interpretivism allows the authors of this study to take on complexity and gain new insights, which is therefore the research philosophy this study aims to follow.
2.1.2 Research approach
This research has predominantly followed an inductive research approach to theory development. According to Saunders et al. (2016), an inductive research approach moves from the specific to the general where the task of the researchers is to collect data in order to explore a phenomenon and build theory. This study has derived theory from the empirical findings, based on observations from the collected data.
The decision to predominantly follow this approach was due to the topic of research being relatively new with limited existing literature, and thereby relevant to ‘work inductively’; analyse, reflect and compare existing data to find themes and make observations. The main advantage of following the inductive approach is the fact that one develops a deeper
understanding of the way individuals perceive the social world around them (Saunders et al., 2016).
Further, in order to be able to create new understandings and interpretations, the authors decided to gather qualitative data, specifically in the form of focus groups. When adopting an interpretivist research philosophy under an inductive research approach it is important to fully understand the world from the participants point of view, and to be familiar with the social context; to be able to make valid interpretations (Collis & Hussey, 2014; Saunders et al., 2016). Hence, to be able to gain a deep understanding of consumers’ perception of luxury fashion brands’ use of digital channels and disruptive technologies, a smaller sample was considered and a careful evaluation of the context.
2.2 Method
Point of view - ongoing pandemic
It has to be acknowledged that this study has been conducted during an ongoing pandemic. Because of this there are aspects that might have affected the outcome of the findings. In the presence of COVID-19, the way of living has changed since people cannot physically interact in the same ways as before the pandemic. Hence, this may have influenced consumers’ perceptions of the use of digital channels and disruptive technologies, and thus the findings of this study.
2.2.1 Data collection
Data was collected in the form of focus groups, where a group of participants discussed the given topic under the guidance of the authors. The motivation for choosing to collect data through focus groups was that according to Collis & Hussey (2014), this method can generate a more open discussion where new insights and understandings can be found. Furthermore,
to explore consumers’ perception of luxury fashion brands’ use of digital channels and disruptive technologies.
According to Collis and Hussey (2014) a number of five to ten participants per group is ideal in order to find results which widely reflect a vast array of perceptions. However, due to the ongoing pandemic at the point of this study, a number of three participants per group was chosen to ensure the safety and health of both the participants and the authors. This number was chosen in order to take public health recommendations into consideration, even though a higher number of participants per group would have been more beneficial, as pointed out by Collis and Hussey (2014). Thus, to address the issue of including fewer participants per focus group, more focus groups were scheduled than initially planned, while all results were
analysed together.
Focus groups
The data collection consisted of eight focus groups; where seven of the groups included three participants and one group included two participants. FG2 solely consisted of two
participants due to sickness of the third participant; consequently, this resulted in one less participant being able to contribute with their perception of the phenomenon under study. However, since all findings were interpreted and analysed together, there was no noticeable impact on the result.
Nevertheless, each focus group consisted of solely females or males, and the number of groups were divided equally between both genders, in order to avoid an overrepresentation of one gender. All focus groups lasted for around 30 to 50 minutes respectively. Furthermore, due to the ongoing COVID-19 pandemic, the participants were provided with the option to participate in person or online via the video-communication platform Zoom. Although, there were only two of the focus groups which were held over the plattform Zoom. The other focus groups were held in an undisturbed setting at Jönköping International Business School
(JIBS), since it was a well-known environment for all the participants, making them feel comfortable. All participants were from different parts of Sweden with different backgrounds and were therefore considered to provide a representative set of perceptions on the
Due to the COVID-19 pandemic, precautions were taken in order to ensure the safety of the participants and the authors; tables were sanitised before and after each focus group, and distance between the seats were ensured.
For information on each conducted focus group, see Table: Focus groups details, where details such as the duration of the meeting and the gender of participants can be found.
Focus Group FG1 FG2 FG3 FG4 FG5 FG6 FG7 FG8 Duration 40:12 40:38 34:12 36:10 38:47 27:01 48:04 34:44 Gender M F F M F M F M Total number of
participants 3 2 3 3 3 3 3 3 Place JIBS JIBS JIBS Zoom JIBS JIBS Zoom JIBS Date of focus
group 07.04.21 07.04.21 08.04.21 08.04.21 09.04.21 09.04.21 09.04.21 12.04.21
Table: Focus group details
During each focus group all three authors were present. The first authors acted as the
moderator, asking all questions to the respondents with the main task of presenting materials and questions, and asking probes. The second one acted as an observer, observing feelings and body language of respondents when answering different questions, as well as acting as a support to the moderator. The third author acted as a transcriber of important details in the discussions amongst the respondents. Hence, there were as many authors as participants attending the focus groups, whereas during FG2 there was one more author present than participants. This relationship was found to not interfere with any findings or discussions about consumer perception due to the authors different roles during the focus groups. Additionally, the reason for the first author to be the sole moderator was to balance the relationship between the authors and participants and avoid power dynamics. The dynamics between authors and participants was perceived as unchanged in FG2, where only two participants were present.
2.2.2 Sampling
The sampling procedure for this study was initiated by deciding on the different criteria each possible respondent should possess, which are listed below. Thereafter, the authors discussed potential participants, who were contacted and asked if they would be interested in
contributing to this study. This was done based on the authors’ knowledge of the possible respondents’ experiences and interest in the phenomenon under study. Furthermore, the decision on which participants to include was done prior to the first focus groups, and no other potential participants were casted post the initiation of the data collection.
Thus, the non-probability procedure of judgement sampling could arguably be the category of this sampling method. Judgment sampling is used in studies where people who have strong connections and interests regarding specific topics act as interviewees, based on the
knowledge of the researchers (Collis & Hussey, 2014; Saunders et al., 2016). However, concepts such as ‘non-probability sampling’ is most frequently connected to quantitative data but is still included in this study in order to clarify that all luxury consumers did not have an equal opportunity to join the focus groups since participants were chosen based on the knowledge of the authors.
According to a statistical research done by Kunst (2020), the majority of people make their first luxury purchase between the ages of 20-29. It was therefore decided to include
participants born between 1992-2000; who are between the ages 20-29 at the point of this study. Furthermore, the new and future luxury consumers are characterised by being digital (Kohrs, 2021), which derives from the digital world they have been introduced to throughout their childhood (Cabigiosu, 2020). These are characteristics that match with people born between the chosen years since they have been part of the digital transformation and are considered one of the primary groups of users of digital technologies. Supporting this statement, statistics have shown that 50 % of internet users were between the ages of 18-32 (Johnson, 2021), and 90% of people between the ages 18-29 are users of social media (Tankovska, 2021).
To be able to make valid interpretations of the data, it was of high importance that the chosen participants were associated with the context of the research. Hence, the participants had to fulfill two criteria in order to ensure they were of relevance for this study. These criteria were firstly, that the participants had an interest in luxury fashion and could be categorised as a or potential luxury consumer. Secondly, be a user of digital channels in order to possess an understanding of digitalisation and how they as consumers personally perceive the use of digital channels and disruptive technologies.
Furthermore, all participants were students at Jönköping University which was a decision taken due to convenience, since the authors are located in Jönköping. However, as these students come from different parts of Sweden, they can be said to represent the population of young luxury consumers in Sweden accurately.
2.2.3 Test interviews & test focus group
To ensure that the chosen data collection method was most suitable for this research, different methods were evaluated prior to making a final decision, where interviews and focus groups were found to be the optimal options. Therefore, two test interviews were scheduled,
followed by one focus group to test which one would be most suitable for this study. Further, data collection tests were conducted to evaluate prepared questions to see what answers the questions would generate, and thus see if they would be of relevance to this study. Hence, before any test of some sort, a first draft of semi-structured questions was prepared, and this structure was decided upon to avoid biased answers and gain deep insights.
During the test interviews it was realised that it was difficult to gain deep insights without the interviewee having someone to create a discussion with, and therefore concluded that the topic of this study might be more suitable to discuss in groups; to create discussions and for the authors to gain a deeper understanding of the topic in question.
After the two test interviews, the process was revised based on the outcome of test interviews and feedback provided by interviewees. Hence, focus groups were believed to provide more detailed answers when given the opportunity to involve in discussions with other participants,
The test focus group was gathered online through the platform Zoom. During the focus group, the difficulties encountered during the test interviews were considered overcomed; discussions among participants were made without the moderator having to intervene, as well as deeper insights were given by the participants. However, there were some difficulties related to digital and technical issues, but these did not interfere with the purpose of the data collection and valid insights were still given. Focus groups were thereby considered the optimal option, preferably in person. Although, due to the COVID-19 pandemic it would not be realistic to only give respondents the option to participate in person, it was thereby decided to provide participants with the option of participating online or in-person.
2.2.4 Question design
There are several ways to design questions for focus groups, whereas in this research the semi-structured design together with open questions was used. A design of semi-structured interviews has few pre-determined questions and additional non-prepared questions which could act as complements to the prepared ones (Collis & Hussey, 2014; Saunders et al., 2016).
To be able to gain a deep understanding of the participants’ perceptions of the phenomenon under study, the semi-structured design was considered optimal. Hence, participants got the opportunity to discuss freely about their personal experiences and beliefs in regard to the topic presented by the moderator, which was the method used to explore consumer perceptions in this study. Additionally, due to the use of open and non-leading questions, participants would not be influenced by the authors’ personal beliefs, and thus provide non-biased responses. Although, bias is unavoidable since the participants may still have been influenced by other participants’ responses. Therefore, the moderator made sure that all participants took part in the discussion, and continuously asked if they had any additional thoughts to add.
The first part of the focus groups consisted of three prepared questions which concerned the respondents’ current relationship with luxury fashion brands and how they want to interact with them. Following, the prepared questions moved into the digital area under study, where participants were presented with videos of an in-store and an online purchasing experience, a video of virtual fitting, pictures of how a specific luxury fashion brand has used influencer
marketing in social media, and lastly pictures of how virtual clothing can be used. The purpose of all questions asked, and materials shown was to evoke relevant personal beliefs and experiences, and all materials shown are available in appendix A.
Continuously during the focus groups, probing questions were asked in order to help the respondents to develop their answers and to reach a deeper understanding of the respondents’ beliefs and experiences. Additionally, the moderator repetitively summarised the participants answers to make sure the meaning behind the given answers was correctly understood.
2.2.5 Description of data analysis
In order to conduct the data analysis in a systematic way the general analytical approach was used. The procedure contains three overlapping activities: reducing the data, displaying the data, and lastly drawing conclusions (Collins & Hussey, 2014).
Reducing the data
The data reduction started off by transcribing the audio recordings with corresponding notes from each focus group. Each author was in charge of separately transcribing, reviewing, and coding two or three focus groups, in order to avoid biases that might occur when multiple authors collectively interpret data. When transcribing, the authors took observations of body language and tone into account in order to grasp the full meaning of what participants expressed. During the data reduction, the authors tried to observe different themes that were found during the frame of reference and identify new themes. When reviewing each
transcript, irrelevant data was discarded, and relevant data was organised into a matrix where the meaning of what each participant said was interpreted and simplified. Each meaning was thereafter given a specific code, based on the core-meaning of what the participant had said in order to identify patterns among all participants.
Due to the fact that the focus groups were conducted in Swedish, the core-meanings and codes were translated into- and composed in English. Furthermore, to ensure that no relevant data was misinterpreted or excluded, each matrix with corresponding transcription was reviewed by one more author.
Displaying the data
All data with corresponding codes was thereafter given a higher-level code, in order to divide similar codes into broader themes, see appendix B for an extract from the coding table. The data was thereafter displayed into separate documents based on the given broader theme; and then systematically organised into different subheadings. When deciding on how to present the collected data in text, all participants were renamed with a code, representing the focus group (FGx) and which participant they were in that group (Px). For example, the first participant in focus group one was named FG1P1, and all participants in focus group one were named FG1, to preserve anonymity while keeping each participant separate from the other. Additionally, quotes were included in order for the reader to be able to draw their own interpretations of the participants’ statements and to assess the authenticity of the data collection. Therefore, the quotes were selected based on if it enhanced the meaning of the paragraphs main points. All quotes were polished, meaning that ‘filler-words’ were removed, to make the quotes more understandable. Lastly, the activity of displaying the data was done collectively by all authors, to ensure that all relevant data was correctly divided into the corresponding broader theme.
Drawing conclusions
Conclusions were then drawn based on the analysis of the findings in relation to the frame of reference, where common patterns and themes were analysed as well as new and
2.2.6 Data quality
To ensure trustworthiness of collected data, the following criteria will be discussed: credibility, transferability, dependability, conformability, reflexivity, as well as ethical considerations, in order to create a basis for a quality assessment. These criteria have been considered due to the collection of qualitative data and the fact that there is no single reality, hence quantitative terms such as validity and reliability are considered irrelevant for this study.
Credibility
Prolonged engagement, persistent observation and triangulation are three strategies to ensure credibility of data collection, i.e., that findings are a correct interpretation of data collections (Korstjens & Moser, 2017). Authors gained extensive knowledge within the topic under study prior to initiating the research process, to become familiar with the context and setting. This was in order for all authors to be fully invested, observant, and engaged during each step of the research process.
To further increase the correctness of the interpretation of data, a variation of data sources and methods for data, so called triangulation, was taken into consideration. This was done in the following matters: a diversified sample of participants were chosen to gain a result representative of the population in study, and all authors were involved in the processes of coding, analysing, and interpreting the collected data. Further, the authors were continuously reflecting on interpretations made from the collected data during the research process, to ensure they were based predominantly on- and a correct interpretation of data collections.
Transferability
“Transferability is concerned with whether the findings can be applied to another situation that is sufficiently similar to permit generalization” (Collins & Hussey, 2014). For the reader to be able to judge whether the research can be applied to another context, a detailed
description of the research process shall be provided (Saunders et al., 2016). Hence,
throughout the entire method chapter, the full research process has been described in detail. However, for the findings to represent the wider population, it can arguably be considered
more appropriate to use a larger sample. Regardless of the size of the sample, this study provides insights on how consumers perceive luxury fashion brands’ use of digital channels and disruptive technologies, which can be further studied and generate deeper insights of the topic.
Dependability
Various measures were made to ensure dependability of the research process, i.e., that it was systematic, rigorous, and well documented (Collins & Hussey, 2014). Systematic literature search and the general analytical approach were used in order to conduct thorough and efficient research. Each author was assigned with the same role during each focus group for consistency and to reduce biases. To make sure no data was lost, audio recordings were made during each focus group and shared between authors. All interviews were then transcribed individually by the authors, as well as reviewed and confirmed by another author to ensure no data was missed and, again, to reduce biases.
Confirmability
“Confirmability refers to whether the research process has been described fully and it is possible to assess whether the findings flow from the data” (Collins & Hussey, 2014). Audio recordings, transcriptions, and interpretations of transcriptions were carefully analysed by each author individually and afterwards in group; in order to ensure confirmability, i.e., objectivity, congruence, and that no data of relevance were missed. Further, quotes were included to demonstrate that the findings flow from data.
Reflexivity
When collecting qualitative data, and especially with an interpretivist view, it is of high importance for researchers to reflect and be aware of their role in the research process, since it may influence processes and findings (Saunders et al., 2016). Authors have taken this into account by reflecting on interpretations of collected data during research processes, by being aware of personal biases, preferences, and preconceptions before making interpretations.
Ethical considerations
When conducting focus groups, many aspects need to be considered from an ethical point of view. During the introduction of the focus groups, all participants were informed of the purpose and how the data collected from the respondents were to be used in this particular research. Each participant gave their consent to record the session and the authors assured that all responses were going to be presented anonymously, in order for the respondents to feel comfortable expressing thoughts and personal experiences. However, when discussing anonymity and thus confidentiality the issue of not achieving complete anonymity must be considered. Thus, all participants were encouraged to keep confidentiality in what they heard during the focus group, to ensure the anonymity of their peers.
Furthermore, through informed consent the participants acknowledged that they participated in this research completely voluntarily, and all participants were informed on what was expected from their partaking. Additionally, when the respondents were discussing the asked questions during the focus groups, the participants were not obligated to respond, nor were leading questions asked by the moderator to influence participants’ responses.
3. Frame of reference
___________________________________________________________________________ This chapter will be initiated by the method used for the frame of reference. Thereafter, a background to luxury fashion and exclusivity will be given, followed by an introduction to the digitalisation of the luxury fashion industry, with the digital channels and disruptive
technologies e-commerce, augmented reality (virtual fitting), social media, and virtual clothing. The purpose of this chapter is to create an understanding of how luxury fashion brands’ use of digital channels and disruptive technologies may influence the perception of luxury fashion brands and exclusivity.
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3.1 Method of frame of reference
In order to gain a strong academic base for this study, the authors followed the steps of a systematic literature search presented by Collis and Hussey (2014). Hence, possible sources were firstly identified, where academic journals were considered the primary source of information, accompanied by several books on relevant topics along with non-academic sources such as Vogue, Forbes, and McKinsey. Secondly, the scope of consumers’
perceptions on luxury fashion brands’ use of digital channels and disruptive technologies was decided upon. In order to explore this topic, the authors found three areas of relevance to gain knowledge within; how luxury fashion brands are defined, luxury fashion brands’ use of digital channels, and luxury fashion brands’ use of disruptive technologies.
Thirdly, the keywords for the data search of the frame of reference were decided upon: ‘luxury fashion’, ‘digitalisation’, ‘disruptive technologies’, and ‘consumer perception’. These were later developed into search phrases and further keywords found beneficial to this thesis. New additional keywords, and phrases were: ‘use of digital channels in luxury fashion’, ‘digital channels in luxury fashion’, ‘e-commerce in luxury fashion’, ‘social media in luxury fashion’, ‘augmented reality (in luxury fashion)’, and ‘virtual clothing’.
The most frequently used databases for finding information were Google Scholar, Scopus, and Jönköping University’s own database Primo. When reading articles, each abstract was first carefully studied to ensure that the source would be relevant to this specific study before being fully read. Criteria that were highly valued throughout the literature search in order to
enhance the trustworthiness were if the articles were peer-reviewed and the number of
citations. Another valued criterion was the newness of research, since consumers’ perceptions on luxury fashion brands’ use of digital channels and disruptive technologies is a fairly underexplored area, and digital technologies are under constant development and change. Due to this, it was relevant to also include non-peer-reviewed sources and not limit the information search solely to peer-reviewed research.
Continuously during the creation of this thesis, the authors have searched for relevant information from various sources online in the field of study to stay informed on developments and gain new insights on this specific topic.
3.2 Background to frame of reference
3.2.1 Luxury fashion and Exclusivity
Defining luxury fashion is a difficult task due to its many tangible and intangible elements; it is not made for function but for reasons such as the fulfillment of our self-image, status, and dreams (Fionda & Moore, 2009; Okonkwo, 2007; Jackson, 2004; Jin & Cedrola, 2017). What characterises luxury fashion brands and their products varies between authors, but consistent attributes are high quality, heritage, exclusivity and rarity (Fionda & Moore, 2009; Okonkwo, 2007; Jackson, 2004; Jain et al., 2021); and can therefore be referred to as fundamental elements of the perception of luxury fashion brands.
Exclusivity and selective distribution
Exclusivity refers to the perception of rarity, the perception of being one of few in possession of luxury fashion products and access to such brands. This attribute is maintained through limited accessibility and attainability, mainly controlled through selective distribution, with exclusively located stores and a limited product volume (Cabigiosu, 2020; Kapferer, 1997; Park et al., 2020). Hence, for luxury brands to stay exclusive, a balance between increasing sales and avoiding abundance needs to be maintained (Jain et al., 2021; Radón, 2012). Kapferer (1997) mentioned that “…luxury brands must be desired by all but consumed only by the happy few” (Radón, 2012). Thus, because of the high price this will be the case,
clientele of luxury fashion brands has become more democratised and open (Berridge, 2018; Radón, 2012); especially with the development of digitalisation (Berridge, 2018).
Additionally, it was found in a research conducted by Fionda & Moore (2009), that many luxury fashion brands use their physical stores to maintain the perception of exclusivity by creating a luxurious atmosphere with personal customer service.
An example demonstrating the importance of selective distribution
When looking at the distribution history of Burberry one can identify the magnitude of using the wrong distribution channels, as a brand can risk serious damage to its brand name if this is not handled cautiously (Sterlacci & Arbuckle, 2017). In 1997 the luxury fashion brand Burberry experienced a huge decrease in profit, which was believed to be due to an inconsistent wholesale distribution strategy with Burberry products accessible in over 60 different stores around London (Moore & Birtwistle, 2004). In order to rebuild reputation and re-position as an exclusive brand, Burberry’s management recognised the need of taking control over their distribution network (Moore & Birtwistle, 2004). Thus, the distribution history of Burberry explains why many luxury companies choose to maintain a selective distribution since by increasing the control of customer relationships, shopping experience, and the distribution of products, the exclusivity can be protected (Cabigiosu, 2020; Fionda & Moore, 2009).
3.3 Digitalisation within the luxury fashion industry
3.3.1 The use of digital channels and disruptive technologies
With technological developments and the increased use of digital channels by customers, luxury fashion brands have been forced to go digital (Lee et al., 2020; Okonkwo, 2010; Parrott et al., 2015). According to Lee et al. (2020), today’s luxury fashion consumer
frequently interacts with some type of digital channel in connection to a luxury purchase, and during their study, it was found that “About 23 per cent of younger consumers between 18 and 35 years old have used an online channel for their first luxury purchase.” (Lee et al., 2020). Furthermore, a report by McKinsey (2018) found that 80 percent of luxury purchases are influenced by digital channels; implying the value of luxury fashion brands’ digital presence. However, there exist challenges of turning a traditional industry into a digital one, and the largest one is replicating the exclusivity that luxurious brands have to offer in an
online setting (Berridge, 2018; Harba, 2019; Lee et al., 2020). Therefore, it is of great importance to identify what channels customers consume and engage with (Kohrs, 2021), since each channel will provide the user with different levels of benefits (Lee et al., 2020).
In order to understand how these channels and technologies might affect the perception of luxury fashion brands and the core value exclusivity, an in-depth analysis of the most
recognised and used technologies within the luxury fashion industry will be given, including e-commerce, social media, and the disruptive technologies augmented reality (AR) and virtual clothing. E-commerce and social media will give insights on two commonly used digital channels within the luxury fashion industry, while augmented reality and virtual clothing will provide insights into two emerging disruptive technologies within the luxury fashion industry. These different digital channels and disruptive technologies have been included in order to create an overall understanding of how the use of digital channels and disruptive technologies might affect exclusivity.
3.3.2 E-commerce and luxury fashion
With an increasingly digital retail environment and the new luxury consumers being
characterised as digital (Kim & Kim, 2020; Kim, 2019), omni-channel retail strategies have increasingly replaced the traditional brick-and-mortar setting (Berridge, 2018). Shashidhar (2020) stated that brands such as Louis Vuitton and Burberry made over 50 percent of their revenue through digital channels during 2020, indicating the magnitude of the increased use of digital platforms in luxury fashion retail. According to Hoffmann & Coste-Manière (2012), for brands who have successfully implemented e-commerce strategies, e-commerce is one of the fastest-growing distribution channels within the luxury fashion industry. With the use of e-commerce, luxury fashion has become more accessible and given consumers a more convenient way of purchasing and interacting with luxury fashion (Kim, 2019). The digital setting gives consumers an opportunity to discover a luxury fashion brand and its products prior to, or in many cases, without having to enter a physical store, hence attracting a new and larger customer base (Okonkwo, 2010).
Liu et al. (2013) found a difference among the factors that influence online versus in-store luxury consumers; the in-store customers found factors such as shopping experience, customer service, and aesthetic appeal to be crucial; while online luxury consumers valued factors such as price, convenience and product availability.
Furthermore, even though it has been argued that e-commerce lacks physical elements which could be experienced in-store, the increased use of technologies has contributed to moving the e-commerce experience somewhat closer to the physical in-store experience (Hoffmann & Coste-Manière, 2012). Yet, one well-known example of a leading luxury fashion brand that has been resistant to the use of e-commerce is Chanel (Berridge, 2018; Okonkwo, 2009), which still does not sell any of its accessories or clothing items online (Guilbault, 2021).
Both Okonkwo (2009) and Kim (2019) discuss how luxury fashion brands are facing the challenge of transferring the luxurious atmosphere that the brick-and-mortar shopping
experience creates into a digital landscape. Many luxury fashion brands fear that e-commerce might remove the exclusivity that is highly associated with their brand (Berridge, 2018; Kim & Kim, 2020), since brands make their products available to the mass, which contradicts with traditional practices, where luxury fashion brands have only targeted and made their products available to a selective clientele (Okonkwo, 2009). Further, luxury fashion brands have traditionally managed to create a unique relationship with their customers and are now seeking ways to preserve these relationships in a digital setting. Thereby, with the increased use of digital channels, luxury fashion brands are facing the challenge of preserving and delivering an experience with the same value as in their in-store experience in an online setting.
3.3.3 Augmented reality and luxury fashion
Augmented reality can simply be explained as a concept of an enhanced or greater reality (Peddie, 2017; Silverstri, 2020; Teles Roxo & Quelhas Brito, 2020). The technology incorporates virtual images and simulations in real-world settings (Hockly, 2019; Peddie, 2017), which can be done in several different contexts, but the technology needs some type of device to be displayed (Teles Roxo & Quelhas Brito, 2020), and such devices need to be able to observe the same environment and surroundings as the user (Harba, 2019; Peddie, 2017). Examples of interactions that most people have had with AR up until the first quarter of 2021
are the AR game ‘Pokemon Go’ which exploded in popularity in 2016, the IKEA application where you can place furniture in your own home with the help of AR, and the AR version of Google Maps navigation. Many of the industry leading brands in the luxury fashion industry have widely implemented disruptive technologies, such as AR, in fashion shows,
applications, and in both physical and digital dressing rooms (Sterlacci & Arbuckle, 2017). Hence, the technology can be implemented in a vast array of settings, but no matter the setting, it will create additional value for the user (Teles Roxo & Quelhas Brito, 2020). For example, AR is a beneficial tool for luxury fashion brands to use to further involve the consumer in the digital luxury experience. The augmentation will increase engagement, which can be achieved both inside and outside of a physical store (Dacko, 2017; Silverstri, 2020).
Additionally, Farfetch states that the consumer experience is of the essence for luxury fashion brands; hence it needs to continuously develop both in brick-and-mortar settings and digital ones (Harba, 2019). The usage of AR establishes additional value for both retailers and customers and creates an exceptional experience for the consumer since the perception of reality will be enhanced through AR (Dacko, 2017; Silverstri, 2020; Teles Roxo & Quelhas Brito, 2020). Customers can become the central actor in stories while gaining and developing their perspectives through the digital channel (Harba, 2019). This creation of an enhanced perception can be achieved both by augmenting products and the surroundings (Teles Roxo & Quelhas Brito, 2020). For example, a consumer could use an application to display products so they appear to be worn by the user, referred to as virtual fitting throughout this study. When augmenting products, consumers will move closer to the experience they would have in the brick-and-mortar setting, thus enhancing the digital experience (Teles Roxo & Quelhas Brito, 2020). Hence, this is a way for luxury fashion brands to build a bridge over the gap created through digitalisation.
3.3.4 Social media and luxury fashion
Social media channels such as Instagram, Facebook, Twitter, Snapchat, and YouTube have become commonplace for customers, as a source of inspiration, social interactions, and information; and for luxury fashion brands as effective marketing channels (Stephen, 2020; Kim & Ko, 2012).
Digital platforms and technologies create new and creative ways of communicating (Sikarskie, 2020); where social media gives luxury fashion brands the possibility to easily share and create content that inspires their customers while increasing brand awareness and consumer engagement (Vinerean & Opreana, 2019; Park et al., 2020). According to Vinerean & Opreana (2019), the most attractive platform for luxury fashion brands to use is Instagram. Its visual design gives possibilities for storytelling, which is considered the most appealing way for luxury fashion brands to inspire consumers.
Through social media, luxury fashion brands create both personal social content and collaborate with social media profiles that create content on behalf of the brand, so called influencer marketing (Stephen, 2020). Influencer marketing makes it possible for brands to reach out to their customers through people who seem more relatable and personable to consumers, leading to increased credibility (Vinerean & Opreana, 2019). Thereby, luxury fashion brands have opened up their once secluded world and made it possible for customers to interact and even collaborate with them (Kim & Ko, 2012).
According to Vinerean & Opreana (2019) social media plays “an important role in the customer journey or decision-making process, influencing every stage from awareness, consideration, evaluation, to purchase and repurchase”, and have a positive impact on consumers’ purchases and brand perception (Vinerean & Opreana, 2019). However, the use of social media contradicts many of the fundamental concepts of what makes a luxury fashion brand ‘luxury’; “social media is inclusive, interactive, accessible, and designed for the
masses, while luxury is exclusive, controlled, and intended for a selected group of wealthy consumers” (Park et al., 2020). It increases accessibility and attainability, which are important factors to keep restraint to maintain exclusivity.
Therefore, according to Park et al.’s (2020) findings, luxury fashion brands should carefully use social media to not negatively affect their value perceptions and “maintain sacred psychological distance”. “Psychological distance is a cognitive separation between the self and other instances such as persons, events, or times.” (Baltatescu, 2014). Such separations occur through four dimensions; social, spatial, temporal, and hypothetical (Liberman et al., 2007). Park et al. (2020) argue that the social dimension is the most important aspect to cherish as a luxury brand to protect the high value perception that comes with more selective psychological distribution, so that luxury brands can continue to differentiate themselves from fashion more directed towards the mass-market. Hence, it can be argued that luxury fashion brands’ social media presence has a positive impact on purchase intentions and desire for luxury but may negatively impact brand image.
3.3.5 Virtual clothing and luxury fashion
Virtual clothing has existed for many years but has been something consumers buy for an avatar in a game (Allaire, 2020). However, this has evolved and is moving into the field of fashion and luxury fashion at a rapid pace. One can find almost any type of clothing or accessory being sold virtually. When buying a virtual item, the customer simultaneously submits a photo of their liking, which the brand and its ‘digital tailors’ will be responsible for dressing up for the consumer; “Instead of waiting for the item in the mail, it arrives via email.” (McDowell, 2021). The item will then be tailored to the consumer’s proportions, to personalise it to the individual (Yalcinkaya, 2019). Hence, there is extensive work behind creating such personal virtual garments. According to Vanderploeg et al. (2017), it is most common to use some sort of three-dimensional modelling software in order to virtually dress the consumer.
The first virtual luxury garment sold in May 2019 for 9,500 USD (Semic, 2019) and Hackel (2020) described it as: “the simplest way to think of the digital dress is as a personalized fashion filter that only the owner can use on Instagram and other social media sites”. She continues explaining the fact that due to the COVID-19 pandemic, the thought of owning virtual fashion is not as absurd as it would have been in previous years since people spend an immense amount of time online (Hackel, 2020).
On the 19th of March 2021, B&T Weekly reported on Gucci’s planned launch of an AR shoe collection. The customers would only have to pay 12 USD for a pair of virtual shoes instead of spending hundreds or thousands of USD on non-artificial Gucci shoes. This effort is directed to the young customers who embrace digital technologies and do not possess the purchasing power needed for a real pair of luxury shoes (Li, 2021). Industry developers believe that virtual clothing is the new way to consume fashion, and if brands do not keep up, they will fall behind (Nanda, 2021). Resulting in luxury fashion items now becoming
accessible to a new market, widening the once closed circle of luxury fashion.
3.4 Key takeaways from the frame of reference
The frame of reference has explored the use of different digital channels and disruptive technologies by luxury fashion brands for the purpose of creating an overall understanding of how this use may affect the perception of luxury fashion brands and their exclusivity.
The purpose of paragraph 3.2.1 ‘Luxury fashion and Exclusivity’ is to create an
understanding of what luxury fashion is built upon in order to gain an insight into how luxury fashion brands may be perceived in the digital landscape. Authors defined luxury fashion through a set of characteristics, where the core values were described to be high quality, heritage, and exclusivity. Exclusivity refers to the perception of being one of the ‘happy few’ in possession of luxury fashion, which is mainly controlled and maintained through selective distribution; limited accessibility, attainability, and visibility. Further, research state that fashion brands have become more democratised and open through the development of digitalisation
Paragraph 3.3.1 explains how luxury fashion moves away from traditional ways and into the digital landscape as society is becoming increasingly digital. Therefore, paragraphs 3.3.2 to 3.3.5 provide insights into how luxury fashion brands have moved into the digital landscape, specifically the use of specific digital channels and disruptive technologies.
The frame of reference includes insights into the following:
● E-commerce: Previous research suggests that through the use of e-commerce, luxury fashion has become more accessible. Further, research points to the challenge for luxury fashion brands to transfer the exclusive and luxurious experience into a digital landscape.
● Augmented reality: In previous research, AR has been described as a technology that can enhance the digital experience/e-commerce. Virtual fitting is the form of AR this thesis will concern, which provides the consumers with extended possibilities to view and try luxury fashion goods virtually.
● Social media: Research suggests that social media is an effective marketing channel for luxury fashion brands. However, it is described as inclusive while luxury fashion is described as exclusive and as decreasing psychological distance.
● Virtual clothing: Was described as a new phenomenon being adopted by luxury fashion brands, which moves the customer entirely to the digital landscape. Through the possibility of purchasing virtual clothing, luxury fashion items become accessible to a new market, widening the once closed circle of luxury fashion.
The frame of reference will be analysed together with the findings of this study; to explore if consumers’ perception of the phenomenon of study aligns with the frame of reference.
4. Results
___________________________________________________________________________ This chapter will present empirical findings, collected through the eight conducted focus groups. The findings will be presented in the following order: consumer perception of luxury fashion, e-commerce-, virtual fitting (AR)-, Social media-, and lastly Virtual clothing and luxury fashion.
___________________________________________________________________________
Note from 2.2.5: When deciding on how to present the collected data in text, all participants were renamed with a code, representing the focus group (FGx) and which participant they were in that group (Px). For example, the first participant in focus group one was named FG1P1, and all participants in focus group one were named FG1, to preserve anonymity while keeping each participant separate from the other.
4.1 Consumer perception of luxury fashion
Based on participants’ reality, luxury fashion is more than a purchase of a specific product; it is about an experience (FG1P2, FG1P3, FG2P2, FG3, FG7P1, FG7P3), emotions (FG3P1, FG6P2) and identification (FG1P1, FG2, FG3P1, FG6P2). While the high value perception of these brands was described as deriving from their extensive heritage (FG1P2, FG1P3,
FG2P1, FG4P1, FG4P3, FG7P1, FG7P3, FG8P1) together with the perception of exclusivity (FG1, FG2P1, FG3P1, FG3P3, FG4P2, FG5P3, FG8).
“It is this timelessness and history of the brand. That it comes and goes, but the core of it is always there, and it is somehow quite cool to see that someone about 100 years ago had the
same bag.” (FG1P3).
According to FG4P2 customers seek something unique when purchasing luxury goods, something different from what one could receive elsewhere; one seeks and expects more than a product (FG1P2, FG1P3, FG3, FG7P1, FG7P3). FG6P2 described it as you are buying a feeling and not just a product.
The unique design with classical prints and well-known logos of luxury fashion brands, creates a recognition factor that customers seek. ‘Everyone’ knows about most luxury fashion brands and what they represent, which creates a perception of prestige and status when being in possession of them (FG4P1, FG6P1, FG7P2, FG8P1, FG8P3). However, according to FG3P1 the special feeling and wish to belong to this specific group of ‘luxury fashion owners’ is decreased if increasingly more people are seen wearing the same brand or
specifically the same product; then this ‘group’ is becoming too large. The fact that they are produced in small quantities, compared to fast fashion, increases the value and special feeling of luxury fashion products (FG2P1, FG7P3).
Exclusivity and selective distribution
“Luxury brands are based on the fact that they are not accessible to everyone, and that is what makes them luxurious…” (FG2P1).
Exclusivity was described as the perception of being one of the few in possession or even being able to purchase certain products (FG1, FG2P3, FG5P3, FG8P1, FG8P3). If a product becomes too accessible and available to ‘everyone’, it does not feel as exclusive nor
luxurious (FG1, FG3P1, FG3P3, FG4P2, FG5P3, FG8), and this was described as the idea of luxury fashion; that it should not be accessible to ‘everyone’ (FG1P1, FG1P2, FG2P1, FG3P1, FG3P3). The perception of exclusivity was also described to be connected to small surrounding details that simply is not attainable to everyone, as explained by FG1P3:
“A simple example that Chanel has done is that you get a special bag when purchasing at their first store in Paris, and that is exclusivity.” (FG1P3).
Consumer perception of luxury fashion brands with the use of digital channels and disruptive technologies
Participants (FG1P2, FG2P1, FG2P2, FG4P1, FG6P1, FG7P3, FG8P1) understand that luxury fashion brands need to adapt to digitalisation and become more digital in today’s society; it is a natural transition. FG2P2 expressed that the use of digital tools can be positive if the brands use it in a creative way that aligns with their brand identity. Although,
participants (FG1, FG2P1, FG3P1, FG3P3, FG6P2, FG6P3, FG8) found it to dilute the perception of exclusivity and the value perception of such brands and their products, as luxury fashion becomes more attainable and accessible. According to FG3P3, purchase intentions decrease if everyone gets access to these products. Because then the products are not only available in the brands’ physical stores that usually have very exclusive locations (FG1P1, FG1P2, FG4P2, FG6P3). According to FG6P3, luxury fashion risks becoming a normality and too common. Luxury fashion becomes exclusive since you cannot access them everywhere (FG4P2).
“It is this exclusivity of the stores and the accessibility, because you cannot get Louis Vuitton clothing or Prada at every location such as H&M or Zara.” (FG4P2).
According to FG5P3, when using digital channels, luxury fashion brands should be selective to maintain the perception and feeling of exclusivity and luxury. If you see luxury fashion products everywhere, the special feeling of owning these products decreases (FG3P1). The more ‘unattainable’ a product is, the more luxurious it becomes (FG8P1). According to FG1, exclusivity means that not everyone has access no matter how much money, that it is “not for everyone” (FG1P1).
“Everyone should not own a bag from Louis Vuitton” (FG8P2).
Hence, luxury fashion brands should be careful with how they use new technologies and digital channels, and make sure that it is in line with their brand values and brand image to not destroy value (FG4P1, FG4P3).
Nevertheless, after participants in FG8 had taken part of all the material shown during the focus group, FG8P3 expressed:
"So, what I feel the most, when you have gone over this, is that my attitude to these (luxury fashion) brands have dropped a bit. I thought they were very exclusive and so on, but with this they go towards less exclusive, more accessible, I mean the less advertising, the cooler,
so you have an aura that the brand sells itself” (FG8P3).
Thus, participants (FG1P2, FG1P3, FG8P3) concluded that luxury fashion brands should try to choose to either stay with their traditional ways or be technological front runners in the industry.
4.2 E-commerce and luxury fashion
The purchasing experience of luxury fashion was found to be important for participants (FG2P1, FG3P1, FG3P2, FG4) to feel special and exclusive when purchasing from such brands in order to get distance and separation from fast-fashion brands. During FG3
participants discussed that they are seeking more than just a ‘purchase of a product’ when it comes to luxury fashion; they want to be provided with a memory. This was further
supported by FG2P2, who explained that through the in-store experience customers will associate the product with a memory that will increase the value of the luxury item.
“You are buying a type of feeling, and not just a product when purchasing a luxury item.” (FG6P2).
When participants discussed aspects they value in an interaction with a luxury fashion brand, it was found that they often referred to the visual and physical traits achieved in a brick-and-mortar setting; which was found to be aspects that the e-commerce experience is lacking. For instance, it was found that the surroundings are influencing the customer’s experience and increasing the perception of exclusivity and luxury. According to FG4P2, one factor that enhances the experience is the design and decor, as well as how all items are presented. Getting service and advisory from the staff with great knowledge about the products was also
