This document discusses value perception of luxury apparel brands in Singapore. It finds that consumers' perception of value is shifting, with environmental focus and need for "deeper luxury" through self-actualization becoming more important. Though quality and brand perception still positively impact value, brand loyalty can hinder adding value. The definition and perception of luxury is changing, with consumers now wanting brands that represent concerns for an improved planet beyond lavishness or status displays. A new type of luxury consumer demands brands that are both luxurious and sustainable to justify their expenditures.

1. VALUE PERCEPTION: LUXURY APPAREL BRANDS

2. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE
A Deeper Luxury
This 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 to
consumers. These brands recognize their customers as having the means and enthusiasm to
respect both people and the planet. This phenomenon can be called as ‘a deeper luxury’. This
new breed of luxury brands has both the prospect and the liability to encourage sustainable
consumption. The definition of luxury and the way it is perceived by others is changing. A lot
of successful citizens now want their brands to represent their concerns and aspirations for an
improved planet. This occurrence is true not only in western luxury society, but also gradually
becoming more evident amongst the affluent social classes of developing economies.
As part of the research, variables that influence ‘value perception’ were identified and
categorized into four groups, viz. intrinsic factors, extrinsic factors, ethical factors and
individual factors. Four hypotheses are constructed based on these four factors. A sample size
of 120 was calculated, taking into account the approximated population of luxury apparel users
in Singapore. A questionnaire was then designed keeping in mind the research objective. A
pilot survey was conducted to test the reliability and understanding of the questionnaire before
the final set of survey was undertaken. The data collected was analyzed using frequency
analysis, 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 to
perceived 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 the
consumers’ perception of value. These findings reaffirm the consumer shift towards ‘self
actualization’ in Maslow’s pyramid in the hierarchy of needs. That is, self actualization through
the need of ‘a deeper luxury’.
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3. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE
What is luxury?
“Luxury is something you could do without but that you don’t want to do without” - Coco Chanel
The word luxury originates from the Latin word ‘luxus’ which means ‘abundance’. It also
carries nuances of a ‘contradiction from the basic’. According to Philippe Perrot, (Fashioning
the Bourgeoisie) luxury represents ‘the surplus produced by a prosperous society’ and it is a
symbol of an inherent differentiation. Economist Werner Sombart (Liebe, Luxus und Kapitalis
mus) claimed that luxury represents ‘the expense of something that is beyond necessity’. These
concepts apply to all ages, societies and cultural regions and can have implicit connotations to
the 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 and
prolific bodice made for Queen Elizabeth I was considered as the epitome of luxury. The 18th
century flaunted an era of economic and financial surplus which led to a movement of
flamboyant clothing worn by male and female members of the society in explicitly exaggerated
style. Sociologist Thorstein Veblen (The Theory of the Leisure Class) claimed that in a
capitalist 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 augmented
the prestige of the brand’s implicit value. For upper class ladies of the 19 th Century, clothing
was the easiest means of conveying advantage, or of displaying one’s position, possessions and
supremacy.
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 obvious
consumption or lavishness. Functional sophistication, comfort, individuality and even sanctified
beauty are different faces of luxury. It has begun to symbolize something delicate and
intellectual and the use of expensive material is no longer considered as the only factor that can
define the ingredient of luxury. This new form of differentiation gave birth to original and
unique concept creations.
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4. VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE
We are heading towards a more modest and understated luxury. In today’s free society, luxury
is something that satisfies our spirit, despite of the times or circumstances. Luxury represents
the positive aspiration that leads the way for fashion. The desire to convey supremacy by
wealth, 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 form
and will possibly continue in the coming era.
The changing trends of consumer behavior pose a challenge to the way that luxury apparel
brands need to look into its products and services. Trends evolve faster than ever before and it
is 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 order
to justify their expenditure. Consumer behavior is of utmost importance for any leading brand
while analyzing the next step to future growth. We will be studying the leading luxury brands
and their offerings in the apparel line and analyze to what extent these changes have impacted
consumer value perception in this industry. Analysis of these emerging trends will act as a
catalyst to the future growth of these luxury apparel brands.
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