The purpose of this paper is to explore underlying antecedents for inconspicuous luxury motivations by developing and testing a conceptual model under the self-concept mechanism with the influence of cultural capital. A questionnaire-based survey is used to collect data, and structural equation modeling is applied to analyze the data. Although growing interests in academia focus on the relationship between cultural capital and inconspicuous luxury, quantitative studies are scant. This research contributes to the literature by empirically investigating the impact of cultural capital in the relationship within the construct of consumers’ self-concept and inconspicuous luxury motivations.

Not only luxury brands, but also fast fashion brands such as ZARA and H&M have successfully opened flagship stores in prime locations such as Ginza, Tokyo. The market-entry strategy via flagship stores appears to be successful, as numerous companies have adopted it. However, for this strategy to work, it is important to consider and verify not only the place, but also the product, price, and promotion aspects. This study systematically investigates the flagship store strategy by comparing the strategies of luxury brands, represented by Chanel and Louis Vuitton, and those of SPA (Specialty store retailer of Private label Apparel) brands, represented by ZARA, developed by the Spanish Inditex Corporation.

When apparel brand managers attempt to raise their brand value, store location is a big concern since they consider it to influence their brand value. Brand managers expect that their store operations in high status location will raise brand status and attractiveness even when the expected rate of return directly generated by the store is very low. In this case, they regard the new store as an effective brand contact point of their marketing communication and expect its comprehensive impact on their business to be positive. In actual business, however, this influence is difficult to compute quantitatively but common to estimate based on brand managers’ experiences: this creates uncertainty for apparel companies whether their investment in the new store is appropriate or not. Besides, it is not certain whether non-luxury brand status is raised by store location status as with luxury brands where store location status is identified as a key marketing driver (Kapferer and Bastien, 2012). This paper focuses on the status of shopping malls and adjacent stores as store location factors and assesses their effects on perceived brand status. In this study, consumer research on three brands with different characteristics (a luxury, a non-luxury, and an unknown brand) was conducted in Japan and the variation of perceived brand status and attractiveness in four location frames (two levels of shopping mall status × two levels of adjacent store status) was analyzed. The result of Analysis of Variance (ANOVA) suggests store location prestige influences perceived brand status and attractiveness of luxury brands more than in the case of non-luxury ones. Moreover, store location status is confirmed to influence unknown brands only very slightly. This result implies that raising the status of non-luxury is difficult just by constructing a new store in high status location following luxury strategy. Also, it may be impossible for a brand whose status is not high to pretend to be a high status brand by launching a new store in high status location of the new market.