Qualitative 360 Europe
2014
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Real and Perceived Luxury:
Using Qualitative Research
to Understand Consumers
in Emerging Markets
Özlem Sandıkcı Türkdoğan...
“… market heterogeneity, sociopolitical
governance, chronic shortage of resources,

unbranded competition, and inadequate
...
Methodological
Challenges?
Just as practitioners face
unexpected problems while doing
business in EMs, researchers also
en...
Challenges researchers face in EMs
can lead to theoretical

discoveries and
bring new insights to
a marketing phenomenon
s...
Illustrative Case
Counterfeit Luxury Fashion
Consumption

sandikci@gmail.com

5
Counterfeits and EMs
• $400-600 billion (or more) (ICC 2005, WCO 2006)
• In emerging markets both luxury and
counterfeit c...
Academic Research
Supply-side issues:
o Factors that encourage
production of counterfeit goods [Green
and Smith 2002; Sant...
Academic Research
Demand-side issues:
[Eisend & Schuchert-Guler, 2006; Staake, Thiesse & Fleische 2009]

o Demographic cha...
Underlying Assumptions
• Counterfeit consumption is mostly related
to low income consumers (younger
and less educated)
• C...
but:
Changing Fashion
Landscape
• haute couture
• prêt a porte
• fast fashion
• look-alike fashion
• global cultural inter...
but:
New Middle Classes
in EMs
• higher purchasing power
• higher mobility
• internet savvy

sandikci@gmail.com

11
How can we make sense of
growing usage of
counterfeit luxury products
consumption in EMs?

sandikci@gmail.com

12
Emergent Research
Design
Following unexpected
findings/challenges and revising
research approach
sandikci@gmail.com

13
Phase-1
Informant selection process and home
interviews
• Challenges in:
o Accessing informants
o Building trust

• In-dep...
Discovery-1
Brand relationships among Turkish consumers
• Detailed brand/product knowledge and interest
I became intereste...
Strong relationships and
interest and commitment
are typical of

brand communities

sandikci@gmail.com

16
Phase-2
Netnographic approach and crossmarket comparison
 Netnographic study of a virtual
community of Louis Vuitton love...
Discovery-2
Mix users
• Across age groups and gender
• Traveled overseas, enjoy shopping and fashion
• Purchase and use bo...
Phase-3
Shopping trips
 Visits to Sosyete Pazarı (High Society Markets)
and high-end counterfeit stores
 Observations an...
Discovery-3
Mixing
in luxury fashion consumption
• Drivers of mixing behavior
• Practices of mixing

sandikci@gmail.com

2...
My mother thinks like ‘if I have money I buy the best one, if I don’t
have, I don’t but at all’. I don’t think like that. ...
“I always go to the shops that sell originals. I buy the
counterfeits of the models that I see at the original
shop. I try...
Implications
• A new consumer segment who
mixes original and counterfeit
• Mix users fall within the target
market of the ...
Qualitative research and emergent
design can provide a nuanced
understanding of the dynamic,
unpredictable and complex
env...
Qualitative 360 Europe
2014
Gold Sponsor

Silver Sponsor

Supported by

Organised by
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Real and perceived luxury - Using qualitative research to understand consumers in emerging markets - Istanbul Sehir University

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Real and perceived luxury - Using qualitative research to understand consumers in emerging markets - Istanbul Sehir University

  1. 1. Qualitative 360 Europe 2014 Gold Sponsor Silver Sponsor Supported by Organised by
  2. 2. Real and Perceived Luxury: Using Qualitative Research to Understand Consumers in Emerging Markets Özlem Sandıkcı Türkdoğan İstanbul Şehir University sandikci@gmail.com 1
  3. 3. “… market heterogeneity, sociopolitical governance, chronic shortage of resources, unbranded competition, and inadequate infrastructure” render EMs “radically different from the traditional industrialized capitalist society” (Sheth 2011, 166) Theoretical Challenges sandikci@gmail.com 2
  4. 4. Methodological Challenges? Just as practitioners face unexpected problems while doing business in EMs, researchers also encounter difficulties while conducting studies in these markets. sandikci@gmail.com 3
  5. 5. Challenges researchers face in EMs can lead to theoretical discoveries and bring new insights to a marketing phenomenon sandikci@gmail.com 4
  6. 6. Illustrative Case Counterfeit Luxury Fashion Consumption sandikci@gmail.com 5
  7. 7. Counterfeits and EMs • $400-600 billion (or more) (ICC 2005, WCO 2006) • In emerging markets both luxury and counterfeit consumption is on the rise • Turkey is among the leading counterfeit producers in clothing category • Turkey is one of the largest markets for counterfeits (EU commission 2008) and on the Watch List of US Trade representative (USTR 2009) sandikci@gmail.com 6
  8. 8. Academic Research Supply-side issues: o Factors that encourage production of counterfeit goods [Green and Smith 2002; Santos and Riberiro, 2006) o Strategies to combat counterfeiting [Berman 2008; Chaudry et al 2009; Stumpf and Chaudry 2010] sandikci@gmail.com 7
  9. 9. Academic Research Demand-side issues: [Eisend & Schuchert-Guler, 2006; Staake, Thiesse & Fleische 2009] o Demographic characteristics o Attitudinal and behavioral aspects o Reasons • Financial motivation • Social motivation • Ease of access o Justifications and ethics sandikci@gmail.com 8
  10. 10. Underlying Assumptions • Counterfeit consumption is mostly related to low income consumers (younger and less educated) • Counterfeits are cheap • Consumers are expected to move from counterfeit to the original sandikci@gmail.com up - 9
  11. 11. but: Changing Fashion Landscape • haute couture • prêt a porte • fast fashion • look-alike fashion • global cultural intermediaries sandikci@gmail.com 10
  12. 12. but: New Middle Classes in EMs • higher purchasing power • higher mobility • internet savvy sandikci@gmail.com 11
  13. 13. How can we make sense of growing usage of counterfeit luxury products consumption in EMs? sandikci@gmail.com 12
  14. 14. Emergent Research Design Following unexpected findings/challenges and revising research approach sandikci@gmail.com 13
  15. 15. Phase-1 Informant selection process and home interviews • Challenges in: o Accessing informants o Building trust • In-depth interviews with 32 informants (60% females; 22-46 years old) sandikci@gmail.com 14
  16. 16. Discovery-1 Brand relationships among Turkish consumers • Detailed brand/product knowledge and interest I became interested in Louis Vuitton when I was at the university. When we were abroad, I saw Graffiti bags. I really liked them and I got one. My friends like it, my mother likes it. I really feel like it is a part of me. My mother wanted to buy a Louis Vuitton for herself and use it I said 'No, this is my brand; find yourself anther one'. My best friend wanted to get one to, I prevented it. Because the bag you carry gives a message – you associate the person with that brand. So in my close circle, I want people to remember me when they see Louis Vuitton (EM18). sandikci@gmail.com 15
  17. 17. Strong relationships and interest and commitment are typical of brand communities sandikci@gmail.com 16
  18. 18. Phase-2 Netnographic approach and crossmarket comparison  Netnographic study of a virtual community of Louis Vuitton lovers (predominantly American, Australian and British consumers)  Follow-up interviews with Turkish informants sandikci@gmail.com 17
  19. 19. Discovery-2 Mix users • Across age groups and gender • Traveled overseas, enjoy shopping and fashion • Purchase and use both the original and counterfeit versions of the same brand • Typically, begin with the original then add the counterfeit version • Generally, mixing is confined to one or a few select brands; does not happen across the entire spectrum of brands one uses sandikci@gmail.com 18
  20. 20. Phase-3 Shopping trips  Visits to Sosyete Pazarı (High Society Markets) and high-end counterfeit stores  Observations and in-formal interviews Field-note (excerpt): The 4x4 m store is full of bags, all legitimate merchandise. C. took me straight to the owner, she knows him from her previous visits. She asked about LV; he reached under the counter and handed her a glossy catalogue. It was this season’s catalogue. She casually flips through the pages and points a few models to him. He nodes, walks to the storage room. In a few minutes he is back with a handful of bags that looked like the models she picked. She matterof-factly inspects two bags, without saying a word. She stroked the outer fabric and studied each buckle. She touched the in-lining, pulling it out to examine stitching, zips, tags and pockets. He pulls out a bunch of ‘well-read’ magazines, thumbs through the pages to find one with the bag she was examining. He says: “This is the bag of Victoria Beckham.” She smiles knowingly: “It looks good on her.” He then lays out other magazines with photos of both foreign and Turkish celebrities. Points to the bags and says: “These are “in” this season.” He shows one and names the celebrity he claims to have bought one yesterday. sandikci@gmail.com 19
  21. 21. Discovery-3 Mixing in luxury fashion consumption • Drivers of mixing behavior • Practices of mixing sandikci@gmail.com 20
  22. 22. My mother thinks like ‘if I have money I buy the best one, if I don’t have, I don’t but at all’. I don’t think like that. Even though I have money I buy the counterfeit. If I like I can buy something from a street seller. For me what is important is whether it looks good on you. That’s a difference in mentality, I don’t think like my mom. She thinks you have to have the best and do the best. I think you have to do what makes you happy. It gets reflected in every aspect of the life. … If I see something that I like, if its quality is good I buy the counterfeit. I don’t mind. For me, having more is more important than having one original.” (F, 26) “These men (sellers) have catalogs. I mean the catalogs of the original brands. When you like something you point at it and they bring it to you. They also have many magazines, Turkish and foreign. When you choose something they find it in a magazine and they show it to you saying this bag is used by so and so. I bought a Louis Vuitton a couple years ago. He said it’s Victoria Beckham’s bag and found her picture in one of the magazines. They are very professional, they can find you anything you want.” (F, 41) sandikci@gmail.com 21
  23. 23. “I always go to the shops that sell originals. I buy the counterfeits of the models that I see at the original shop. I try to see if there is any difference between the fake and the original. I check its stitching, fabric, feel. I touch the fabric. I look at the colors available. Tags are important for me. If it is at a different place in the counterfeit it gives itself away. I check the prices. …. I try on the clothes and see how they look. Sometimes I go to the original shops with my friends to let them know that I shop there.” (F, 28) “… she might have five original hand bags and five fake ones. But because she uses the original nobody thinks that some of the bags are not genuine. Nobody categorizes her as a faker. She doesn’t show that and everybody treats as if she is always using the original brand. These are brands like Louis Vuitton, Prada or Yves Saint Laurent. She blends it with her overall look so smoothly. Because she always wears brand name products she knows how to craft a look. … She is well-off nobody thinks that she is wearing a fake dress.” (F, 46) sandikci@gmail.com 22
  24. 24. Implications • A new consumer segment who mixes original and counterfeit • Mix users fall within the target market of the brand and tend to be loyal to the brand • Firm- versus consumer-centric understanding of counterfeit and original sandikci@gmail.com 23
  25. 25. Qualitative research and emergent design can provide a nuanced understanding of the dynamic, unpredictable and complex environment of EMs Thank you! sandikci@gmail.com 24
  26. 26. Qualitative 360 Europe 2014 Gold Sponsor Silver Sponsor Supported by Organised by
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