W.H.Bender Quote 61 -Influential restaurant and food service industry network...
EXPANSION IN THE DIGITAL ERA
1. Supervisor:
Dr. Luca Lo Sicco
by Corey Liu, Master of Arts
EXPANSION
IN THE
DIGITAL
ERA
The study of the changes in
consumers’ shopping behavior
in the era of digital
luxury fashion marketing
The study of the changes in
consumers’ shopping behavior
in the era of digital
luxury fashion marketing
4. With the information provided
by Euromonitor,
it shows that 8% of personal luxury
products were sold through
online channel in 2017.
Online market share will expect
a triple growth over the next five years
because of the rapid development in
technology and payment process.
5. 2 Literature Review
The
interpretation
of the
luxury goods
Traditional
methods of luxury
fashion marketing
and consumers’
behavior
The entrance
of social media
in the world
of luxury fashion
marketing
6. The
interpretation
of the
luxury goods
TRADITIONAL
APPROACH
To be seen a symbol of status, luxury, back to that time, was only reserved
for a small elite. Clothing had been granted the power of identifying “one’s
culture, propriety, moral standards, economic status, and social power, and
so it became a powerful tool to negotiate and structure social relations as
well as to enforce class differences”
CONTEMPORARY
APPROACH
Those are their “the high level of price, quality, aesthetics, rarity,
extraordinariness, and symbolism”.
In some way, luxury goods are not relatively necessary for daily life, but
creates desires for people that makes them want to consume luxury
products.
7. Traditional
methods of luxury
fashion marketing and
consumers’
behavior
WHAT
WHY
HOW
Word-of-mouth
Le Mercure galant
Fashion dolls
Premium pricing strategies
to protect the body
to be modesty
a status symbol
enjoyment of social prestige
boutiques
department stores
shopping windows
12. 3 Methodology
Research
Concepts
Research
Design
Research
Approach
Research
philosophy
Research
Method
Ontology
-- subjective
Epistemology
-- interpretivist
Methodology
-- Constructivism
- multiple realities
- trustworthiness
and authenticity
- relationship between the
participant and the researchers
is crucial
Qualitative approach
For the qualitative approach,
the researcher always
involved in an interpersonal
discussion (Goertz and
Mahoney 2012).
In qualitative research,
personal experience, culture
preference, and background
are the factors that contribute
to the various interpretations
of human mind (Creswell
2014).
Inductive approach
The inductive approach
allows the data to be the
guidance in the research
(Carson et al. 2001).
The process requires the
researchers to observe the
“empirical world” and find the
existing theory that apply to
the data (Carson et al. 2001,
Kawamura, 2011).
Interpretivist
It portraits the world as to
how it is experienced by the
human (Taylor et al. 2015).
Interpretivism believes in
multiple realities which are
generated through various
perspectives from “different
individuals” (D O’Gorman
and MacIntosh 2015).
Triangulation
When multiple sources of
data involved in the same
philosophical or societal
research, the triangulation
method should be
used to enhance the
validation of the research
(Kawamura 2011).
Survey
Case study
Literature Review
13. 4 Result
SURVEY
The age range of the participants
The education background of the participants
Gender of the survey participants
Current occupation of the participants
14. COM-
MUNICA
-TION
Platforms that used to learn about luxury information.
The frequency of the daily social media engagement
The frequency of interaction between the participants and their friends
BEHAVIORAL
ANALYSIS
AND
SHOPPING
INTENTION
15. BUYING
The frequency of luxury consumption
Attitude towards online luxury consumption
Factors that discourage consumers from online luxury consumption
BEHAVIORAL
ANALYSIS
AND
SHOPPING
INTENTION
18. PRODUCT
SEGMENTS
A mix of luxury products, premium products, and
affordable products
Under the category of lifestyle and luxury automobiles,
there are also some experience-oriented products
offered on the website. Besides the sale of tangible
products, consumers are provided with the option
to book their desirable experience through those
channels.
Direct selling products VS Auction
19. PRODUCT
SEGMENTS
Interactive
QR code is designated for consumers to scan through
their own WeChat account.
By doing so, consumers will be able to purchase the
item at a discounted rate. Then, you can also finish
the process by using WeChat Pay on the smartphone.
This added-on feature is convenient for those who
practice mobile-based payment frequently.
20. DIGITAL
MEDIA
MATRIXAPPs
To research potential
consumers through mobile
devices, SECOO launched the
SECOO official APP to serve as
an extension of Secoo.com and
also provide luxury products
and lifestyle experiences
COOL/Shop creates an online
community where the users
share and discuss their favorite
products. Based on this model,
the consumers are encouraged
to become entrepreneurs
themselves.
SECOO ART is an application
exclusively dedicated to
the building of an online art
community and artwork
merchandise. It also includes
the customization of artworks.
21. DIGITAL
MEDIA
MATRIXDiscontinued APPs
Despite the success that SECOO has achieved in the mobile applications
mentioned above, there are some unsuccessful examples. Limited Edition, Luxe
Car and SECOO Car have discontinued the updates in the Apple APP Store
since 2016, which indicated the failure of these businesses
23. ONLINE
+
OFFLINE
EXPERIENCE
By 2017, there were five experience centers in the
Greater China area, and they are located in Beijing,
Shanghai, Chengdu, Hong Kong, and Malaysia
The comprehensive customer service includes
“product curation, pick-up, return, authentication and
maintenance”.
Some of the experience centers also function as
warehouses which benefit the cost of holding the
inventories. Moreover, the experience centers are
given the function of providing the customer with
auction service.
In addition, Secoo.com has launched “omnichannel
commerce solution” to connect consumers with other
offline brick and mortars.
This service is currently applied to the Versace
boutiques.
24. THE
CHALLENGES
AND
WEAKNESS
Due to the lack of content creating
the experience, the editorial aspects
of the platform seem to be the
weakest link.
The issue of counterfeiting has
always been the key problem for
most e-commerce sites. Questions
and concerns about the non-
authentic products that have been
sold through Secoo.com rise the
insecurity of the consumers. It also
causes damage to the brand’s
image.
25. 5Discussion and Conclusion
As the consumers have become more open-minded about online luxury
consumption, the luxury brands need to start integrating their online
strategy with their offline strategy.
Breaking the boundary between the online channels and offline
boutiques is crucial for the development of luxury brands in the digital
era.
Moreover, as the luxury industry has moved toward an experience-
oriented direction, the way of marketing luxury fashion should adapt
those changes as well.
More interactive and immersive campaigns should be designated to
lead the consumers to experience luxury digitally. By integrating the
offline experience and luxury aesthetic in the digital format, luxury brands
will strengthen their relationship with consumers and create more brand
impact among the young generation of consumers.
