The main purpose of this paper is to investigate how a luxury brand may be affected by the variables associated to a new market entry as the Chinese and how those new market variables are integrated in the process of rebranding in the new geographical context. In doing so, the paper will review the existing literature in the field and following three derived propositions through a qualitative approach, it will analyse the successful brand strategy of three Italian luxury brands. The luxury brands considered in our investigation are three international ones with a specific consolidated brand heritage and with a multisectorial positioning. The methodological approach chosen in the analysis is the case-study method (Yin, 1984) with the specific purpose of focusing on a particular phenomenon instead of generalising (Schramm, 1971). Following the case-study methodology, this paper will explore and analyse the specific luxury brand building and rebranding process adopted by three Italian luxury brands to enter the new market and specifically through the digitalisation of the brand. The abstract will report a summary of one case as a reference sample. The empirical research will evidence the positive impact of digitalisation for successful luxury branding and rebranding in entry market strategy and justify its adoption in the exclusive luxury sector by the socio-cultural context-related factors of the new market. It will provide specific orientations and recommendations as well as best practices for luxury corporations on the specificities of branding and digitalisation of luxury in China. The research will show a successful model path for luxury branding when entering the Chinese market and the key impact of the “luxury digitalisation” strategy - usually associated to high accessibility - with respect to a traditional “luxury retailing” strategy - associated to the exclusivity of the luxury sector. Introduction The increasing interest in luxury brands in the fast growing economies of Asia, with particular attention towards China, has supported the growth of the luxury market in the last years. China, the global second largest economy, with the global largest consumer market, has reached a role of an undisguisable strategic leader in the luxury market. Far from theexponential double digit growth rates characterizing China’s growth in the past decades - as high as 14.2% in 2007 – at the moment it is entering a different phase of growth. A recent trend is tending to see China as the source of a multiplicity of diversified aspects impacting the global luxury market scenario – despite the fact that luxury industry market situation is not simply China related. The ongoing Chinese growth in the last decade has been associated with a decrease in European and US markets. In addition to this, further issues have negatively affected the market grow more related to Chinese market specificity. Chinese exponential luxury market growth has negatively influenced the exclusivity aura associated to luxury goods and consequently disrupting non-Chinese luxury customers and Chinese top spenders luxury brands orientation. In relation to the economic crisis in consolidated markets, international luxury brands have focused their interest towards fast growing economies. As a result, global brands have focused their attention on attracting fast growing economies with a specific growth in affluent consumers interested in foreign brands and in an augmentation in global consumption (Le Monkhouse et al., 2012). As a consequence, China has attracted much attention by significantly contributing to balance the sales decline in consolidated economies that in 2013 accounted for 28% of the €212 billion global luxury consumption (Schiliro, 2013). In the new luxury oriented Chinese context, local shoppers have started to become brand aware of what they were in the past and with a specific focus on luxury fashion brands (Bruce & Kratz, 2007). However, it would be too limited to simply consider that the volumes of the market and focus on luxury brands is resulting only from consumer intentions to purchase luxury brands. A multiplicity of factors and in particular context related factors affecting shoppers luxury brand perception and luxury goods purchasing experience must be considered and as a consequence those context related factors that may affect the branding process itself. China's culture is different from Western cultures (Henriksen, 2009), and thus, Chinese luxury consumption may not follow the trends of the Western world. The Chinese perceive luxury brand value in terms of China's unique cultural background and as a consequence of the Chinese economic development, the Chinese luxury lifestyle is gradually evolving and beginning to show its own distinct characteristics. Although prior research related to luxury examines different cultures and markets such as the US, Indian, European, the Chinese luxury context and its impact on luxury brand when entering this market have not been examined sufficiently. Literature review Luxury Brands, Rebranding and the Chinese Context Literature teaches us that “luxury” is used to denote the main category of highly prestigious brands (Vigneron & Johnson, 2004). In the same way, luxury brands are related to wealth, exclusivity and power and are related to the fulfilment of nonessential desires (Brun et al., 2008 and Dubois and Gilles, 1994). “Luxury brands” comprises highly quality, expensive and nonessential goods and services that are symbols of rarity, exclusivity, prestige, and authenticity in for their consumers and they can provide highlevels of symbolic and emotional value (Tynan, McKechnie, & Chhuon, 2009). Vigneron and Johnson (2004) and later Wiedman et al. (2007) defined the concept of luxury as the physical and psychological values provided by prestige of luxury brands and consequently highlighting the symbolic and conceptual dimension associated to luxury. However, it was evidenced how the dimension is strongly associated to the cultural values and to the social environment by considering luxury goods representatives of individual and social identity (Vickers & Renand, 2003). These elements of exclusivity, prestige, rarity as well as individual and social identity are the key values distinguishing luxury from nonluxury brands (Tynan et al., 2009). In the same perspective, Kapferer (1997, p. 334) highlighted the importance of those luxury brand values in evidencing that brand memory and brand values should not be abandoned when the brand is revised suggesting that rebranding is an incremental process in contrast to a radical change. The Digitalisation of Luxury Brands and the Chinese Market In the western countries, the elder people mainly compose luxury customers, while luxury consumers become younger (about under 40 years old) in China. The increasing number of middle-level class has been the main force of online luxury consuming. The consumption concept of younger customers are huge different from that of traditional customers. Solomon (2009) expressed that customers’ behavior is a dynamic concept because they are influenced by the outer factors and inner elements (Solomon, 2009). A survey from McKinsey & Company indicates that there are almost 90% of Chinese Internet users living in tier1, tier2 and tier 3 cities have enrolled in a social-media site and Chinese people can be regarded as the world’s most active social-media population, around 91% of respondents telling they visited a social-media site in the previous six months, followed by 70% in South Korea, 67% in the United States and 30% in Japan (Chiu, Lin, & Silverman, 2012). The Chinese social and cultural context is increasingly becoming “digitally savvy” and Chinese citizens are more likely to gain information from Internet when they would make shopping decisions. First Proposition Indirect orientation for the first proposition comes from Vickers and Renard (2003) conceptual development that evidences that the conceptual dimension of luxury is strongly influenced by cultural elements and by the social context. Consequently it derives that the digitalisation of luxury as a part of the social and cultural variables of contemporary Chinese consumers’ market will be conceptualised in the rebranding process for luxury brands when entering the Chinese market. Second Proposition Specific support for our second proposition comes from Kapferer (1997) theory highlighting that successful luxury rebranding has to keep least certain core brand elements to have a proper transition from the existing luxury brand to the revised luxury brand in the new Chinese market. The digitalisation process for rebranding will evidence the core elements kept as a part of the brand heritage and identity.In the re-branding process new market segments may be touched or even new markets (Kapferer, 1997). Successful luxury rebranding may require meeting the needs of new market segments. As a consequence, in our third proposition it is assumed that new attributes to the brand may be required to satisfy the new market and in particular the Chinese digitally savvy” segment. These principles of rebranding applied to our Chinese luxury context refers to the existing literature relating to re-create the brand vision to entry the new Chinese market. Research questions and methodology This research aims to analyse the impact of cultural and social variables of a new market, the Chinese one, in the redefinition of a luxury brand and in particular: - the evolution towards a new digital orientation as a response to the needs of the new customer segments - the specific socio-cultural characteristics of the new Chinese market customer segments In order to provide specific responses from the field, the empirical research methodology is based on the case analysis method (Yin, 1984). The luxury brands cases considered in the research have been kept anonymous in order to keep the confidentiality of the data collected and consequently referred as A, B and C. It has been based on interviews carried out in China and in Europe with the management of the luxury brand, with a sample of its customer segments and also on the published data of the corporation. The Case of an Italian Luxury Brand in China The A case: Rebranding through Digitalisation for Successful Entry in the Chinese Market Out of the three cases, A is an Italian global luxury brand with an established brand image and heritage internationally. Its positioning as authentic luxury brand worldwide specifically focus its image on exclusivity, originality and innovative design. China, which was entered lately with respect to the other geographical markets in their global strategy, has now become clearly the main focus. Its entry strategy has been oriented towards a progressive reinforcement of relations between brand and market, in particular in relation to the digitalisation of the market and its consumption mode. The brand started opening the main flagship store in the Mainland China capital Beijing and following with the fashion centre Shanghai at the beginning of 2006. After a few years of gradual expansion and monitoring of the market evolution, the brand can nowadays count on a consolidated flagship store network adding value to the brand awareness. Counting on the younger Chinese luxury market segments, the brand had a remarkable immediate growth in the market as a result of its brand core values and image as well as of its own digitalisation of the brand development strategy. The growth and consolidated positioning allowed the brand to start a brand expansion strategy by introducing the cosmetics line in department stores after clothing and apparel and perfumes. Conclusion A luxury brand focused on a specific rebranding as entry strategy for the Chinese market through the integration between the socio-cultural variables associated to the local context and the core components of the brand. A transferred the brand to the Chinesemarket by maintaining its own young style and image, specifically suitable for the young Chinese luxury market. In the initial phase of the Chinese market entry, A focused on reinforcing the brand image and awareness in the local socio-cultural context by developing their retail and distribution in particular by having key premium locations, fundamental to communicate the brand identity and core values. However, the retailing network was not perceived as sufficient to create “a social buzz” in the Chinese young socio-cultural context that is specifically influenced by digital media in this geographical environment. The analysis of the brand and its entry strategy in China have clearly shown that they entry and kept expanding in China from first to third tier cities and to different targeted segments by developing an intelligent digitalisation of the brand. Starting from developing a Chinese version of the brand name, A brand modified its brand name as a main strategy to giving meaning to the brand in the Chinese socio-cultural context, as well as emphasizing the heritage of the brand and creating a strong position in the mind of the Chinese consumer and creating a strong advantage in the digital search positioning. Furthermore, in analysing the market socio-cultural digital trends and the decreasing reach of conventional media and the increasing one of the digital ones, A decided to focalise on a diversified use of digital media in their entry strategy - through online video advertising and the growing digital out of home as well as local search engine as Baidu or local social networks, BAIDU Sina.com Wechat Youku and in particular online influencers and BBS, Bullet Board Systems – by clearly choosing to rebrand through the digitalisation of their luxury brand in compliance with the socio-cultural variables and trends of the market. The sample case will be reported and the model path for branding and rebranding in the Chinese context will be presented.

Brand equity, “the marketing effects uniquely attributable to the brand” (Keller, 1993, p. 1), is at the heart of competition in the luxury goods market (Keller, 2009). While firms competing in this segment have come up with sophisticated ways to build brand equity, they are currently challenged by the increasing importance of the internet in consumers’ journeys (Kapferer & Bastien, 2012; Okonkwo, 2009). With online sales of luxury goods showing a twelvefold increase over the past 11 years (D’Arpizio et al., 2014), it is evident that luxury brands have to be present somehow in the digital environment today (Heine & Berghaus, 2014). The strategic purposes, business potentials, and consequences for brand equity of this presence, however, are still largely unexplored and remain a paradoxical topic. As a luxury brand’s website is the brand’s most valuable digital asset (Heine & Berghaus, 2014) and as there appears to be a consensus that luxury brands can use their websites to present their products in the digital environment, at least for purposes of communication, the question arises which products are most suitable for reinforcing the brand’s image. The roles a luxury brand’s products can play in relation to brand management can be classified between four poles spanning two dimensions, which this research terms ‘accessibility’ and ‘contemporariness’, in relation to Kapferer and Bastien’s (2012) luxury brand architecture map. Empirical evidence of these dimensions is, nevertheless, scarce, and yet no prior research has investigated these product roles in an e-commerce setting. The current study develops a model to test how an online purchase option and the contemporariness as well as the accessibility of the product assortment offered on the websites of luxury brands affect specific brand equity dimensions of luxury brands. Data of a 2x2x2-online scenario experiment were analyzed, showing that prestige and uniqueness value are non-significantly affected by offering an online purchase option, while functional value increases significantly. Regarding the displayed product assortment, the brand equity dimensions of functionality, prestige, and uniqueness are found to be significantly affected by the inaccessibility of the products, while their contemporariness elicits significant changes in uniqueness value. The study also assesses the mediating role of the brand attributes of availability, price premium, aesthetics, and innovativeness, as well as the moderating role of consumers’ prior brand ownership, for these effects.

The Internet is providing companies with an opportunity to market their goods more widely than has been the case in the past. This is having implications for senior managers as it means that some luxury goods are being made available to a wider market segment than previously and also, there are issues as regards authenticity and counterfeiting for example. Cultural value systems underpin psychological needs which are taken into account when advertising a brand and in addition, marketers are keen to build a relationship with customers, which takes into account the customers’ psychological aspirations. Meeting consumer expectations is crucial in the luxury sector because of the value placed on uniqueness and the price-quality dynamic. Bearing these points in mind, the research question to be addressed in this paper is: How can marketers utilize the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) in order to maintain the quality of the luxury brand and develop a relationship with high net worth individuals while marketing the product online? The aim of the paper is to explain how marketers can develop a better understanding of how the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) can be utilized to develop theoretical insights into promoting luxury goods online. Bearing this in mind, two research objectives were formed: (i) to explain how the Elaboration Likelihood Model can be used to formulate international luxury brand strategies; and (ii) to provide guidance as to how marketers can develop a better understanding of marketing luxury products online. The study will build on the work of Hennessey and Anderson (1990), as it will explain how involvement affects motivation vis-à-vis luxury brands. By studying luxury brands, the Internet, and social psychology, it should be possible for marketers to provide marketing practitioners with relevant theoretical insights into how marketing theory is evolving and is applied in practice. The Elaboration Likelihood Model represents “a fairly general framework for organizing, categorizing, and understanding the basis processes underlying the effectiveness of persuasive communications” (Petty & Cacioppo, 1986, p.125) and proves ideal with respect to researching cultural value systems. The Elaboration Likelihood Model allows academic researchers to look into and comprehend cognitive processing (Cacipppo, Harkins, & Petty, 1981, p.37). The main strength of the Elaboration Likelihood Model is that the variables that can impact certain judgements are made clear and in addition, the processes underlyingchanges in attitude are made known and so too are the resulting judgements (Petty, Rucker, Bizer, & Cacioppo, 2004, pp.66-67). The Elaboration Likelihood Model has been extensively used by marketing academics and has relevance in terms of how people formulate a systematic information processing strategy (De Meulenaer, Dens, & De Pelsmacker, 2015, p.610). Marketers are concerned about the price-quality dynamic and also the trust construct (Shu-Chen, Wanchiao, Sung, & Cheng-Kiang, 2006) and risk (Park, Lennon, & Stoel, 2005) vis-à-vis buying online. Furthermore, how online consumers interpret signals has been given attention (San Martin, Camarero & San Jose, 2011) and according to Areni (2003), argument-driven persuasion is important and will be given attention in the study. Attention will be given to luxury branding, the development of an international brand strategy and how marketers can protect a luxury brand through a marketing intelligence strategy that counteracts counterfeiting. As well as utilizing data collected via a group interview, reference will be made to data collected over a three year period using a survey instrument. The Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) will be used as a basis for providing a framework for understanding how a luxury brand can be perceived and protected, and the research outcome will be used by marketers to advise senior management about the need for implementing an integrated international luxury brand strategy. For example, research has been undertaken into the relevance of the construct trustworthiness and it is important to note that “trustworthiness is an attribute of individual exchange partners” (Barney and Hansen, 1994, p.176). This is an important observation because the producers of luxury goods depend on a number of external specialists (eg., designers, communication and public relations advisors, and manufacturers of specialist components) in order to help the company to add value to the product/service and make sure that it is viewed as unique. Marketers employed by a luxury goods producer need to ensure that data and information relating to the product offering is well guarded because they need to have confidence in the fact that there are no vulnerabilities in existence. A vulnerability could result in leakage of sensitive data and information (e.g., a new design) and result in a loss in intellectual property and ultimately brand piracy and reputational damage. By failing to identify potential vulnerabilities and deal with them through adequate counter threat measures, it is likely that it will take several years and require a repositioning and a rebranding strategy to recover the brand in the market. What we are advocating is a marketing counterintelligence strategy that is aimed at reinforcing the need and usefulness of security to protect the brand and ensure that the brand is not diluted in any way. Another reason as to why marketers need to engage in risk management is because there are a number of country-of-origin issues that arise and need to be addressed. Balabanis and Diamantopoulos (2011) have indicated that consumers are not always able to link a brand correctly with its country-of-origin and this may prove problematic. This is linked with brand image perceptions and again the Elaboration Likelihood Model can help to provide evidence that is used by marketers to overcome consumer misperceptions. Reflecting on the fact that marketers are confronted with legitimate competition (products and services compete in adherence with regulatory processes) as well asillegal forms of competition, it can also be argued that marketers need to be aware of and embrace the standards that govern the production of the product/service to the quality specified. Thus, senior management need to ensure that employees lower down the organizational hierarchy are committed to maintaining the standards that are in being (Ghoshal and Bartlett, 1994, p.96). Ghoshal and Bartlett (1994, p.98 and pp.106-107) add to our understanding by suggesting that marketers need also to have a shared ambition and participate in a collective decision-making, which relies upon collective learning. The logic of this view manifests in the fact that the Elaboration Likelihood Model is used to reinforce and condition the views of the employees as well as the organization’s customers and because it has both an internal and an external dimension. Because marketers work closely with organizational strategists that are outward looking and intelligence driven, and liaise with R&D, technology and production staff that are inward looking and security driven, they are well able to contribute to the risk management process and advise on all the aspects of marketing strategy. The research undertaken will be placed within a strategic marketing context and the learning aspect will be drawn upon to show how marketers can link social psychology theory with marketing theory, and how risk communication can be used to reinforce the advertising message. The paper will explore the advertising-consumer perception dynamic and will examine how the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) can be used to promote the uniqueness of a luxury good to individual consumers who share and exchange information using social networks. The influence of social networks is growing and marketers need to be aware of how and why consumers share and exchange information as they do across geographical boundaries. In particular, it will build on the work of Michaelidou and Christodoulides (2011) by establishing how certain psychological factors influence attitudes towards counterfeited products and what marketers can do to counteract these attitudes. This will contribute to the literature because it will highlight both price related and ethical related issues associated with the purchasing of counterfeited goods. In addition, it will allow marketers to identify trends in customer buying behavior and build on the work of Jack and Powers (2013) relating to shopping behavior and consumer satisfaction. By understanding better the motivations of those that purchase luxury products, marketers will be better able to plan product offerings and formulate and implement promotional strategies.

Research Purpose This study is to clarify the image of luxury brand advertising is not equal to brand image completely, and the main purpose is to understand whether self-image congruence with luxury brand advertisement can affect the consumers’ brand loyalty. Research Background In earlier days, luxury brands were the preserve of the privileged few. But now they have become more affordable to consumers who are belong to middle-market with the problem of mass production largely solved. Now days, luxury brands play an increasingly important role in profit generation for global corporations. Atwal and Williams (2009) indicated that experiences are the central of luxury brand consumption activity, and the emotional, cognitive, and relational factors are important for luxury brand marketing. Thus, brand image is one of the most important factors for luxury brand. And, lots of scholars have proved that luxury brand has a significant positive effect on consumer purchase intention. Meenaghan (1995) identified that imagery advertising is one of the principle components of image creation. However, whether the image of the advertising is completely equal to the brand image? Most of the prior studies are only focusing on the brand image but neglect the image of the luxury brand advertising. Thus, this study is trying to emphasize the role of the image of luxury brand advertising and fill the prior research gaps. Hypotheses Theredistinguish the brand image and the advertisement image. Second is to compare the self-image with both brand image and advertisement image to understand the self-image congruence comprehensively. For the sample, we chose convenience sampling method and handed out 300 questionnaires. The totals of 248 questionnaires were used for analysis except for responses that said they had no experience of luxury brand consumption and have response error. Sample of respondents are consisting of 75% of females and 25% of males. The average of respondent's age was from 20 years old to 30 years old. The structural equation modeling (SEM) approach was used to validate the research model. Research Results As assumed in hypotheses, self-image congruence with luxury brand advertisement will increase consumers’ empathy to the advertisement and luxury brand esteem. Empathy to the advertisement and brand esteem will increase the luxury brand loyalty. Implications This study focus on the image of luxury brand advertisement and proved importance of congruence between self-image and the image of luxury brand advertisement. It is important for marketers not only just use advertisement to form the brand image but also should use the advertisement to match the target consumers’ self-image.

Purpose: Brand and line extension represents an essential vehicle for growth and is currently one of the most applied marketing strategies within the luxury sector. Though it has its advantages, there are several risks associated with pursuing such a strategy. Consequently, this paper attempts to understand the reasons for brand and line extensions as a way of growth in the new era of luxury expansion. Theory: The study extends the literature of brand and line extensions through an empirical study. Methodology: An integrative model of key success factors behind brand and line extensions is proposed by combining current research with empirical findings obtained through an explorative and qualitative research design based on primary data from eight semi-structured interviews with managers from luxury brands. Findings and Contribution: We identify five key success factors: (1) add value through originality, (2) stay at the level of the brand regarding price, quality, style and image, (3) create relevance to core business and be aligned with DNA, (4) stick to the vision of the founder and (5) assure consistency in brand identity and image. Sig-nificantly, the predominant themes are alignment between the parent brand and the extension and the extension in itself, which resonates with the existing research on the field. Further, drawing on the notion of alignment, this thesis also finds evidence of the importance of consistent brand cues such as storytelling, values, heritage, tradition and visual icons. Practical implications: It is suggested that the five success factors identified in the empirical data to the greatest extent possible should apply to any future brand extension and that resources should be allocated to reinforce the alignment between extension and parent brand. Research limitations: It would be insightful to conduct additional interviews with top managers from other brands to further elaborate on the identified success factors.

This paper aims to gain an understanding of luxury brand positioning in relation to brand attributes, distribution channel and the target consumer characteristics. In so doing, we hope to get a fuller explanation of brand perceptions within the market environment in which the transactions occur. Luxury brands need to flourish in an increasingly complicated and competitive environment. In the past socio-demographic characteristics were used to position the offering, but this is becoming more difficult to apply in contemporary global markets. It is possible to broadly position luxury brands using Aaker’s (1997) 3A’s framework to show how brands are crowded and compete in the middle “aspirational” segment. There also appears to be a polarization within the market on the part of highly informed and expert consumers who do not follow traditional norms of purchasing behaviour; purchasing elite luxury and high street purchases at the same time. Such inconsistent behaviour compels us to investigate the luxury brand consumer in depth. Consumer perceptions of luxury value comprise financial, functional, individual and social components (Hennings et al. 2012), as well as changing cultural interpretations (Mo and Roux. 2009) and symbolic and human characteristics (Aaker, 1997). Examing the brand and the consumer is not sufficient and a third aspect needs to be considered relating to distribution channels (D’Astous and Lévesque 2003). This is the environment where the personality of the brand is staged to reinforce tangible and intangible attributes that further influence consumer perceptions. Store personality suggests functional qualities and psychological attributes that help define the store in the consumer’s mind (D’Astous and Lévesque, 2003). In order to differentiate between brands perceived with similar positioning, the symbolic qualities of the luxury brands become highly relevant and a key motivation of luxury brand purchase behaviour (Heine 2009; Liu et al 2010). What is of interest to us in this study is the congruity between consumers’ perceptions of a luxury flagship store personality, the personality of the luxury brand and consumers own personality traits. Drawing upon the foregoing we have established that there is a need to understand how consumers see themselves in relation to luxury brands. Understanding the relationships between the consumer, the brand and store personality is critical for the effective positioning and strategic management of the luxury brand in terms of product mix strategy, pricing, advertising and distribution. Our analysis draws upon Aaker’s (1997) brand personality, luxury consumer personality traits from Weidmann et. al., (2009) and store personality dimensions from D’Astous and Lévesque, (2003) and we delineate luxury using the four values, financial, functional, individual and social from Weidmann et. al.,(2009). The difference in the degrees of alignment represents what we have termed “congruence distance” between each personality dimension. Misalignment may indicate that the corporate view of the luxury brand is out of sync with consumer perceptions and may impact upon strategic marketing efforts. Using a quantitative research approach we report the results of a survey of Tod’s consumers in the UK, France and Italy. Constructs are developed to measure consumers’ perceptions of a luxury flagship store personality, the personality of the luxury brand and consumers own personality traits. Our theoretical contribution hopes to enhance explanations of luxury consumption. We have taken three disparate frameworks that each look at elements of luxury brand positioning to assess levels of convergence using one case study. We add to luxury brand theory by presenting a rubric of congruence distance that draws the three frameworks together and highlights clusters within dimensions of value. Managerially, we find the importance of alignment across a variety of dimensions and clusters. Through this rubric, multiple segmentation and positioning scenarios can be assessed with implications for strategy. We find that consumer interaction with sales personnel is critical to consumers’ experience of the brand based upon an understanding and expectation of the luxury it represents.

Increasing attention has been paid to marketing and consumer behavior of luxury industry but research into value creation network and operational mechanisms is very limited. This study focuses on two aspects of the luxury industry: luxury brand and value chain, to inform a comprehensive understanding of the value creation process for high value added brands. In luxury industry, the key elements that create and deliver value are brand, design and research, production, distribution, and retail. A clear brand identity is found as the first step of this value chain, which influences the choices of all other activities. Luxury goods companies will align all the activities in line with brand identity to deliver consistent tangible and intangible values to end users. Furthermore, a luxury value chain is a holistic network with strong coordination among its elements. A combined approach of case study and secondary data collection is pursued. A sample of 9 luxury companies within 6 selected industries is investigated. Data is qualitatively collected via semi-structured interviews, document analysis, and observations as a triangulation approach for the purpose of ensuring the reliability of the research data. Multiple interviews of the general manager, industrial manager, brand/communication manager, creative director, and store manager are conducted in each company to achieve a broader perspective and also make data triangulation procedures possible. This research contributes to the luxury brands management as well as value chain concept. It discusses the value creation network and operational mechanism from a less explored corporate perspective. It unveils a secretive existence of brand in value generation process and further establishes a model to amplify the relationship between each activity in the value chain. Also, it expands the research of value chain into luxury industry. It argues that a supply leading value chain can also command a premium rather than the customer-centric value chain discussed by most researchers recently. It also provides valuable insights for companies who want to have a high-end market position. It shows that the widely adopted luxury strategy invented mainly by French and Italian companies employs fundamentally different rules from those of fast-moving consumer goods in mass market. In short, a luxury strategy is different in nature, not in level.

This study demonstrates how consumers’ implicit self-theory orientations (Entity vs. Incremental) relate to their perceptions of luxury brand appeals (Functional vs. Non-functional). Specifically, our experiments show that the entity theorists are likely to value the hedonic appeal of luxury brands, whereas incremental theorists value their functional appeal. The study provides useful insights for managers for designing advertising messages and their positioning strategies for luxury brands.

INTRODUCTION The term luxury usually defines not a category of products but a conceptual and symbolic set of dimensions. These dimensions comprise values that are strongly related to cultural elements and the wider socio-economic context (Vickers & Renand, 2003). Vickers and Renand (2003) recognised luxury goods as symbols of personal and social identity. Luxury is often used as a social marker, as a social stratification tool to reinforce a hierarchy (Okonkwo, 2010, Kapferer & Bastien, 2009). Due to the subjective nature of the luxury concepts and the complexity to define it, perceptions of luxury brands are not consistent across market segments and geographic locations (Phau & Prendergast, 2000), since they depend largely on each consumer's perception of indulgence. A common denominator between consumers in both Western and Eastern cultures is that the purchase of luxury brands serves to portray individuality and/or social standing (Nueno & Quelch, 1998; Vigneron & Johnson, 2004). Consumption of luxury brands is largely determined by social function attitudes (i.e. self-expression attitude and self-presentation attitude) as consumers express their individuality (e.g., need for uniqueness) and exhibits their social standing (e.g., self monitoring) through luxury brands (Wilcox et al., 2009). It is of growing importance for researchers and managers to understand how consumers' perceptions of value, influences buying criteria and behaviour (Tynan et al., 2010; Wiedmann, Hennigs, & Siebels, 2007). The perception of value by consumers is given a higher importance (Tynan et al., 2010) however the measurement of luxury value is not agreed amongst scholars and practitioners. Vigneron and Johnson (2004) proposed a structure of the luxury concept and presented the “brand luxury index” framework. Wiedmann et al. (2007) offered a conceptual model of luxury value perceptions highlighting four dimensions, namely: social, personal, functional, and financial values. Tynan et al. (2010) have adapted the earlier work by Smith and Colgate (2007) on generic value framework and suggested a conceptual model based on the following concepts: utilitarian, symbolic/ expressive, experiential/hedonic, relational, and cost/ sacrifice value. With the emergence of new concepts and levels of luxury, the measurement of value becomes even harder. According to Unity Marketing (2006) “…‘old luxury’ was about the attributes, qualities and features of the product and much of its appeal was derived from status and prestige. The new luxury consumer defines the category from their point of view. Today’s new luxury consumers focus on the experience of luxury embodied in the goods and services they buy, not in the ownership itself.” Robins and Ricca (2012) propose an alternative perspective on the established ‘new’ vs. ‘old’ luxury dichotomy. According to the authors, the more brands define themselves as belonging to the world of luxury, the more the concept becomes meaningless as luxury becomes ‘massified’. They introduce the concept of Meta-Luxury as a new form of luxury that escapes the cliché of luxury and establishes the “luxury beyond luxury”. In these complex scenarios, luxury brands are on a constant quest to remain relevant and maintain a sustainable competitive advantage. According to Beverland (2004) marketers now need to use “a complex combination of dedication to product quality, a strong set of values, tacit understanding of marketing, a focus on detail, and strategic emergence” in order to effectively manage luxury brands. With the recent focus on co-creation of value, luxury brand management has evolved to include dialogue and complex interactions between the brand owner, employee, customers and other social groups and communities (Tynan et al. 2010) making success factors harder to track. Purpose This paper aims to conceptualize a measurement tool that could be used in the evaluation and classification of a luxury brand’s performance and to assess how these dimensions evolve as the brand moves from mature towards more emerging luxury markets. This paper seeks to make a contribution, by providing a systematic review of the definitions of a luxury brand provided by various authors. It seeks to establish patterns and inconsistencies and to summarise them in a performance measurement matrix (the LPM framework) which can be used to identify growth strategies and to support future managerial developments. Design/methodology/approach The methodological approach followed in this paper was to systematically review the academic literature on luxury brands and to reduce the numerous factors cited as components and identifiers of luxury brands to a more manageable number of macro-themes. Through the analysis of the dimensions identified (with a further distinction between ‘new’ and ‘old’ luxury brands), the researchers intended to clarify the key elements of success that impact on brands competitiveness, leading to the definition of the items in the scale. In order to validate the elements, a survey was implemented to identify the most crucial indicators by building on the results of the systematic review. The aim of the survey was to clarify detailed criteria for each of the dimensions in order to construct an effective measurement scale. The scale was tested on four luxury brands selected amongst those perceived as ‘old’ / traditional luxury and ‘new’/emergent luxury. Findings Amongst academics and practitioners there is no common agreement or clear parameters that delineate what luxury is or the strategies such brands employ. This leads to confusion in the definition of the elements that constitute a luxury brand as well as in the brand management process. This paper proposes an alternative measurement scale to the Brand Luxury Index Scale developed by Vigneron and Johnson by focusing on a strategic overview of the performance of luxury brands in the UK market. It attempts to evaluate the performances of key luxury players by using a value-curve approach (Kim and Mauborgne, 2005) as a measurement tool. The value curve is a both a diagnostic and an action tool which captures the current state of play in the market space. The different constituents of the proposed Luxury Performance Matrix (LPM) should be considered when measuring the performance of a luxury brand and its capacity for value creation. The visual representation of the LPM model, allows marketers and brand managers to easily evaluate what aspects and strategic directions should be prioritized. It also allows to capture the brand’s performance across the key competitive factors of the industry and to determine which factors need to be raised above competition as way to increase competitiveness in the marketplace. The Luxury Performance Matrix proposed in this paper represents a major contribution to the measurement and evaluation of the competitive performances of established and ‘new’ luxury brands, in mature and emerging markets. Originality/value The proposed matrix will allow luxury brand managers to assess the current presence in the marketplace and develop more in-depth understanding of the brand’s performance. The findings provide valuable strategic insights for luxury brands operating across emerging and established product/market contexts.

The value of luxury brand is always latently charged with elements of sacredness. Fashion expresses symbolic meaning that allows customers’ experience to be sacralized in many ways. Hence, customers’ necessity to express their existence is also possible thanks to luxury brand which is defined as exclusive and image-driven. Building on Georg Simmel’s sociological theory of equalization and differentiation behavior in fashion and René Girard’s mimetic theory of sacred, this paper investigates the sacredness in perception of luxury brands. Different customers stereotypes can be defined resulting in what we conceptualize as the sacred experience framework. Specifically, the authors identify three dimensions of the framework, namely the active and passive attitude, the personal and social motivation, and the idolatrous and realist perspective. The framework can be used for strategic positioning of luxury brand. The focus is on risks and threats related to idolatrous positioning of luxury brand and opportunities related to realist positioning. Luxury brand sustainability is possible by fostering the symbolic myth that reflects customer sacred experience. The aim of this paper is a formulation of a general theory of luxury, which to our best knowledge has not been well defined yet. Such a new theory of luxury requires that customers’ needs and motivations theories show how existential desire should be fueled also by sacredness.

Luxury brand marketers and advertisers are turning recent attention to social brand communities among users of luxury fashion brands (Ko & Megehee, 2012). Corporations or consumers build social brand communities to create authentic customer experiences, inspire interactivity, and enhance attitudes toward brand, brand loyalty, and purchase behavior. We look to structuration theory (Giddens, 1984) for providing new conceptual foundations for studying luxury brand communities (LBC) in the social media context. Our aim is to show that LBC strategies are effective for promoting luxury brands. Using structuration theory, we indicate that structure, integration, and interactivity provide conceptual frameworks for integrating and conceptualizing LBC. Our study is the first to use structuration theory concepts to develop a theoretical framework for LBC in the social media context. Through this study, we clarify (1) LBC structure, integration, and interactivity based on structuration theory in the social media context, (2) actual interaction and perceived interactivity of social media-based LBC, (3) structure, integration, and interactivity as they affect attitude, purchase intention, and brand loyalty as outcomes. Our clarifications suggest possible implications for luxury brand management practitioners. Marketing practitioners know that LBCs amplify customer relationships. Through this study, we offer insights to help luxury brand management practitioners understand customer behaviors in LBCs. Marketing practitioners will benefit from new ideas regarding how to develop and manage luxury brand strategies by understanding structure, integration, actual interaction, and perceived interactivity.

Storytelling has become increasingly of interest for marketing and management in the last years and promises both aesthetic design and effecting consumers’ perception of fashion brands positively. Nevertheless, the complexity of story design, still being rather focussed by the humanities, and its effective adaption for luxury fashion brands regarding value perception and related behavioural consequences are still poorly understood and have not been explored so far. We seek to fill this research gap. In our study, we chose a luxury brand’s existing story and applied story concepts of narratology to rearrange plot, characters, and style first. In a second step, we examined the effect of applying the story concepts by testing the perception of three different groups (no story, original story, and rearranged story). Using PLS path modelling, we proved our hypotheses empirically. Our examination suggests that an application of narrative concepts for creating fashion brand stories has a measurable impact on consumer’s reception and behavioural outcome. On the one hand, this involves dimensions of luxury value, such as financial, functional, individual, and social consumer perceptions as well as an overall likability perception of the brand. On the other hand, this perception obviously impacts consumption habits regarding luxury fashion as much as it is related to recommendation behaviour, willingness to pay a premium price, and purchase intentions. Our findings strongly advice to consult established theories, concepts, and models of the humanities for storytelling in marketing and management. While measuring specific elements already proves their applicability, it will be a major task for theoretical and qualitative research to discuss existing material for the demands of marketing and management as well as (fashion) brands. Even for professionals in brand management, our study advices to have a closer look on traditional storytelling concepts to create effective campaigns. The particular value of our study is to present and empirically verify design elements of storytelling with respect to theoretical narrative approaches, which may have specific impact on certain luxury values and their causal effects on luxury fashion consumption. Our results reflect remarkable implications for luxury brand management as well as future research in luxury fashion, brand management, and marketing storytelling. A luxury company may stimulate purchase behaviour with a storytelling campaign. Nevertheless our study proved that a rather appropriate design, respecting research approaches of narratology, is able to increase the impact on consumers’ perception and behavioural outcome.

An empirical research on the Moncler case shows that brand loyalty moderates the consumer reactions to brand crises. While highly loyal consumers express sympathy toward the company, which predicts positive effects on brand attitude and purchase intention, lowly loyal consumers express anger, which predicts negative effects on the dependent variables.

The emergence of the video blog (vlog) and the success of so-called “YouTube celebrities” have provided luxury brands with a new marketing tool to connect with consumers. In particular, the video-sharing site YouTube, allows anyone from an amateur to a professional the opportunity to create and upload a video, which can possibly be shared by hundreds of millions of viewers instantaneously and inexpensively (Freeman & Chapman, 2007). The present study examines how video blog (vlog) influences luxury brand perceptions based on parasocial interaction (PSI) framework. PSI has been studied extensively in communication research and provides a foundational understanding for the one-way relationship experienced between a media personality and media users. PSI is often referred to as a “friendship” with a media personality (Perse & Rubin, 1989; Rubin et al., 2003; Eyal & Rubin, 2003) and media users often seek advice from media personalities as if they were friends (Rubin et al., 1985). In addition, social comparison theory (Festinger, 1954) is used to explain the effect of PSI on customers’ luxury brand perceptions. According to the social comparison theory, individuals evaluate themselves by comparing what they possess and consume to that of others. Since individuals are likely to compare themselves with significant others and peers who share a similar outlook and common values, they would compare their luxury possessions and consumption to that of vloggers as PSI increases. Therefore, this study proposes influences of physical attractiveness, social attractiveness and attitude homophily of video blogger (vlogger) on PSI; and PSI effects on luxury brand perceptions (i.e., brand luxury, luxury brand value, and brand-user-imagery fit) followed by luxury brand purchase intentions. Study 1 tested the hypothesized model using structural equation modeling, and the results support the proposed model. Additionally, Study 2 investigated vlog effects on luxury brand perceptions and purchase intentions using ANOVA. The result showed luxury brand perceptions and purchase intentions for the experimental groups, who watched vlogs about review of luxury products, were higher than control group, who did not watch vlog. Overall, results of this study found general support for PSI as a brand management tool as well as the use of social media to lead to positive luxury brand perceptions.

This study uses ingratiation theory (Jones, 1964) to investigate the specificity of online luxury brand communities, using an observational netnography. We analyse and discuss the diverging strategies held by low and high power community members, and the role played by flattery in maintaining and gaining status in the community.

New professions, highly specialized in web communication, have therefore emerged lately, such as: blogger, copywriter, social media manager, especially in the fashion industry, where every detail is meaningful and consequently every word inevitably matters. The aim of this paper is to investigate the strategies used by luxury fashion brands on social media to construe their brand identity and build up global awareness. The empirical study presented is based on the analysis of a corpus of posts retrieved from internationally renowned luxury fashion brands’ Facebook fan pages selected according to an official global top list of luxury brands. Social networks are nowadays one of the most efficient tools to make a brand globally successful and luxury fashion brands owe their popularity to them, although at the beginning they were suspicious towards those media of communication (Okonkwo, 2010: 4). This was due to the fact that mass media, by definition, are characterized by features like wide accessibility and volatility that do not match with the peculiar exclusive, unique and timeless nature of luxury goods (Okonkwo, 2010: xviii). The following table (Table 1) compares luxury features with the Internet ones in order to show that they are two opposite worlds that do not share none of their characteristics. The presence of luxury online is then a paradox itself, this is due to the fact that the features attributed to luxury that can be summarized into the word “exclusiveness” do not match with the main characteristics of Internet that is a “mass” medium of communication where the main idea is that one formula fits all. The clear contrast between the features attributed to luxury and Internet is evident in the oppositions reported: for instance we have “niche clientele” versus “mass availability” to emphasize that luxury itself cannot satisfy everyone’s desire if it aims to maintain its status and in any case it is not a short time process (Rambourg, 2014); then “exclusivity” versus “mass accessibility” is to highlight the fact that luxury cannot be accessible to everyone; and the extremely relevant difference between luxury products that must or at least give the idea to be “made-to-measure” versus the “one-formula-fits-all approach” and “mass appeal”, typical of the mass media of communication, that distinguishes the use of Internet, where what you share is designed to be widely accessible from luxury that represents uniqueness and exclusiveness. The study conducted will try to identify if luxury brands have overcome this channel conflict and later investigate their performances on social media particularly focusing on the construction of the content. The analysis of the data will be run by taking into consideration marketing literature review, and the use of theoretical frameworks based on genre analysis, corpus linguistics and discourse analysis. Furthermore the analysis will be done with the support of statistical linguistic softwares Wordsmith and Wmatrix, and it will show how luxury fashion brands shape brand identity online through words. The results will offer an overview on the construction of content particularly used to rely on storytelling, heritage marketing, and “glocalization” strategies. Moreover, interesting insights will draw the attention to the specific strategies used to target different markets (Hollensen, 2007: 220-221) while taking into consideration the cultural differences and at the same time emphasizing the features directly connected to the “Made in” identity of the brand. A further section will focus on the interplay between different semiotic systems employed to construe the brand identity online, and on some examples of strategies specifically designed for emerging markets and created through transmedia communication (Jenkins, 2006). The evidence gathered, which also sheds light on the use of pronouns and verbs to stimulate the users’ engagement in brands’ life and in the production of the content, can provide interesting insights into web communication. Further interdisciplinary researches combining different approaches will develop significant strategies particularly interesting for the training of new professional profiles involved in the design of marketing strategies.

Mass customization refers to a strategy whereby online retailers provide individually tailored products and services to their customers and has been implemented by many retailers with the Internet technology. Many luxury brands such as Bottega Venetta, Louis Vuitton, and Salvatore Ferragamo, provide customization programs to better serve their customers, from engraving their initials on a product to creating a new design of a product. However, the expansion of the customization program to the luxury brands raises potential risk, such as loosening the brand identity and inability to satisfy customers. Despite high interests in mass customization programs and popularity of luxury brands, the effect of mass customization in luxury brands has not been explored. Addressing this gap in the literature, this study attempts to investigate how customized products of luxury brands influence perceived value, satisfaction, and loyalty. In addition, this study explores how consumers’ past loyalty toward a luxury brand influences perceived value of the customization. Hypotheses of the study were (1) Perceived value of a mass-customized product has a positive influence on satisfaction with product customization; (2) Satisfaction with product customization has a positive influence on brand loyalty; (3) The influences of perceived value of a mass-customized product on satisfaction and brand loyalty are different as a function of a customer’s past loyalty; (4) The influences of perceived value of a mass-customized product on satisfaction and brand loyalty are different as a function of a customer’s need for uniqueness. The research strategy of this study was survey methodology and the sample of the study was online shopping consumers. Online questionnaires were collected by an online survey firm. After visiting ‘BURBERRY BESPOKE’, a mass-customization program of a luxury brand, survey participants were asked to answer the questionnaire. The instrument tapped perceived value of a mass-customized product, satisfaction with product customization, past/future brand loyalty, and need for uniqueness. A total of 304 female online shoppers participated in the survey. The result of structural equation modeling found the positive effects of hedonic value and utilitarian value on satisfaction with product customization and the positive effect of the satisfaction on brand loyalty. The result of multiple group comparison analyses revealed the moderating roles of past loyalty and need for uniqueness in influencing the effects of perceived value of a mass-customized product on satisfaction. These findings of the study contribute to the literature in luxury brand retailing fields and suggested managerial implications to luxury brand retailers.

So far much of the academic literature on luxury goods has been written from a Western perspective, with the result that our understanding of luxury consumption in the Chinese context remains rather limited. This paper aims to close this gap by examining how reference groups influence contemporary luxury brand consumption amongst young aspirational middle class consumers belonging to the Post-80s generation. It explores from a socio-cultural perspective the role which luxury brands play in their everyday lives and how this impacts on how they construct their identity at both a social and an individual level. In East Asian societies there has traditionally been a Confucian emphasis on the ‘collective self’ being more important than the individual self, and the need to take into account face saving (mianzi) and its corollary shame when understanding consumer behavior. Indeed, according to Wong and Ahuvia (1998), it is this notion of the interdependent self and the importance of maintaining ‘face’ which explains the significance given to possessions that are public and visible such as luxury goods and designer fashion brands. The present study examines luxury consumption through the lens of Social Identity Theory (SIT), which posits that individuals define their self-concept in relation to their connections with particular social groups or organizations. As people make comparisons between themselves and groups, they judge themselves as being similar to members of those groups which they feel they belong to (i.e. in-groups) and different from those which they feel they do not belong to (i.e. out-groups) (Hogg & Abrams, 2001). Fifteen in-depth interviews lasting around one hour each were conducted with a convenience sample of luxury consumers aged between 20 and 25 years, who were studying at a private university in mainland China. They were asked about the role which luxury brands play in their life. Major findings revealed different reasons for their strong desire to engage in luxury consumption. Some want to stand out as a luxury consumer within the wider community, while others use their luxury purchases to stand out from members of their in-group. Equally, there was evidence of participants using luxury goods to fit in with others in their in-group, as well as using them to of distance themselves from various out-groups.

The purpose of this paper is threefold. First, informed by cultural research on branding and active audience media uses, we develop a general tenet that consumers interpret luxury brand meanings to fulfil specific gratifications. Therefore, the consumer-perceived meanings ascribed to brand luxury can be explored as multiple themes of uses and gratifications (U&G’s). Second, we draw on this tenet to investigate a situated emic account of how consumers use luxury brands to gratify their specific needs. Third, we derive several etic concepts around emic themes that comprise higher-order, more abstract conceptual layers of the consumer-perceived brand luxury. Specifically, our interpretive reading of consumer narratives suggests that luxury brand U&G’s are multiple and divergent; however, they are not completely idiosyncratic – that is, these U&G’s can be understood more holistically in relation to how consumers perceive the dominant value(s) that are being gratified from luxury brands, and whether the U&G’s have a personal or social orientation. In so doing, we illustrate that by dialectically iterating between the emic (informants’ points of view) and etic (theoretical) perspectives, we are able to offer a more complete understanding of luxury brand meanings and their emergence in the broader context of daily life.