Value perception luxury apparel brands

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Value perception luxury apparel brands

  1. 1. VALUE PERCEPTION: LUXURY APPAREL BRANDS
  2. 2. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPOREA Deeper LuxuryThis report provides a logical vision and validation for a deep and sustainable luxury industry.In today’s context, true luxury brands are those which provide supreme positive offerings toconsumers. These brands recognize their customers as having the means and enthusiasm torespect both people and the planet. This phenomenon can be called as ‘a deeper luxury’. Thisnew breed of luxury brands has both the prospect and the liability to encourage sustainableconsumption. The definition of luxury and the way it is perceived by others is changing. A lotof successful citizens now want their brands to represent their concerns and aspirations for animproved planet. This occurrence is true not only in western luxury society, but also graduallybecoming more evident amongst the affluent social classes of developing economies.As part of the research, variables that influence ‘value perception’ were identified andcategorized into four groups, viz. intrinsic factors, extrinsic factors, ethical factors andindividual factors. Four hypotheses are constructed based on these four factors. A sample sizeof 120 was calculated, taking into account the approximated population of luxury apparel usersin Singapore. A questionnaire was then designed keeping in mind the research objective. Apilot survey was conducted to test the reliability and understanding of the questionnaire beforethe final set of survey was undertaken. The data collected was analyzed using frequencyanalysis, multiple linear regression and factor analysis.The research findings show a drift in the value perception of consumers of luxury apparel retail.Though factors like quality and brand perception continued to show a positive trend toperceived value, loyalty towards the brand was seen to be a hindrance in adding value. Also,increased environmental focus of a luxury apparel brand had a strong influence on theconsumers’ perception of value. These findings reaffirm the consumer shift towards ‘selfactualization’ in Maslow’s pyramid in the hierarchy of needs. That is, self actualization throughthe need of ‘a deeper luxury’. 2
  3. 3. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPOREWhat is luxury?“Luxury is something you could do without but that you don’t want to do without” - Coco ChanelThe word luxury originates from the Latin word ‘luxus’ which means ‘abundance’. It alsocarries nuances of a ‘contradiction from the basic’. According to Philippe Perrot, (Fashioningthe Bourgeoisie) luxury represents ‘the surplus produced by a prosperous society’ and it is asymbol of an inherent differentiation. Economist Werner Sombart (Liebe, Luxus und Kapitalismus) claimed that luxury represents ‘the expense of something that is beyond necessity’. Theseconcepts apply to all ages, societies and cultural regions and can have implicit connotations tothe consumers of luxury goods.Luxury has been perceived differently in different periods of time. In the early 17 th century,luxury was used to display class, authority and power. For example, the extraordinary andprolific bodice made for Queen Elizabeth I was considered as the epitome of luxury. The 18thcentury flaunted an era of economic and financial surplus which led to a movement offlamboyant clothing worn by male and female members of the society in explicitly exaggeratedstyle. Sociologist Thorstein Veblen (The Theory of the Leisure Class) claimed that in acapitalist society, ‘what we wear is always clearly representative of one’s monetary status’.These words suggest a close connection between luxury and monetary value. Cost augmentedthe prestige of the brand’s implicit value. For upper class ladies of the 19 th Century, clothingwas the easiest means of conveying advantage, or of displaying one’s position, possessions andsupremacy.Before the 20th century, luxury was considered by what was viewed to be abundant, unique,expensive or indicative of prosperity. Today, luxury is no longer limited to obviousconsumption or lavishness. Functional sophistication, comfort, individuality and even sanctifiedbeauty are different faces of luxury. It has begun to symbolize something delicate andintellectual and the use of expensive material is no longer considered as the only factor that candefine the ingredient of luxury. This new form of differentiation gave birth to original andunique concept creations. 3
  4. 4. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPOREWe are heading towards a more modest and understated luxury. In today’s free society, luxuryis something that satisfies our spirit, despite of the times or circumstances. Luxury representsthe positive aspiration that leads the way for fashion. The desire to convey supremacy bywealth, power and status can be done by emphasizing unique features of our personality.Clothing has been the most convenient tool for communicating this desire in the physical formand will possibly continue in the coming era.The changing trends of consumer behavior pose a challenge to the way that luxury apparelbrands need to look into its products and services. Trends evolve faster than ever before and itis the luxury segment that sets the trend for the rest of the industry.A new breed of consumer is demanding brands that are both luxurious and sustainable in orderto justify their expenditure. Consumer behavior is of utmost importance for any leading brandwhile analyzing the next step to future growth. We will be studying the leading luxury brandsand their offerings in the apparel line and analyze to what extent these changes have impactedconsumer value perception in this industry. Analysis of these emerging trends will act as acatalyst to the future growth of these luxury apparel brands. 4

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