Luxury Brands – The Rising Phenomenon in Asia Contrary to the traditional beliefs that Asians are conservative and skeptical towards materialism, according to Radha Chadha, author of The Cult of the Luxury Brand, Asia is currently facing a “luxeplosion” where millions of men and women aged 1830, are flocking to purchase luxury products from labels such as Burberry, Rolex, Louis Vuitton etc. This phenomenon that started off in Japan, is rapidly spreading to the rest of Asia, including South Korea, Taiwan, Singapore, and China. (Ravindran, 2007) Furthermore, sales of such branded goods carry on even in bleak economic conditions. This brings us to question why are millions of Asians, not all of them …show more content…
In fact, a study by ExactTarget found that 65% of online Americans have purchased a product or service as a result of receiving direct mail, rather than through marketing messages on Facebook (20%) and mobile marketing messaging (16%). (Epsilon Targeting, 2010) Thus there is likelihood that this may also be representative of the consumer behaviour in Asia. One significant characteristic of the Millennial is the intricate adaptation of technology and social media into their daily lives. This generation is as comfortable shopping online as well as physically, and can be easily connected and converted into loyal patrons through social networking if done so wisely. A report by Four Seasons Hotels and Resorts revealed that 78% of affluent consumers are active on social networks and 65% of affluent consumers say brands without a presence on social media are out of touch with consumers. (Four Seasons Hotels & Resorts, 2012) Hence, it is crucial that companies ensure that their social networking accounts such as Facebook are actively engaging and interacting with the consumers and target markets. (Chauhan, 2013) Apart from utilizing social media sites, luxury brands should also leverage on social video platform, such as having branded YouTube pages featuring interactive videos that promote and engage in selling the brand. Brands can also link the video to their commercial site where consumers can head
The consumption of luxury goods in China is mounting sharply. Not only those born to elite families, but also many common people are greedy for luxury brands (China, a Booming
Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items.
In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.
According to a study, “millennials spend an average of six to seven hours per week on social media, whereas 44 percent of Gen Z check their social media at least hourly” and “Gen Z is entering the workforce and has immense buying power ($44 billion) (Contreras, 2017).” Moreover, when trying to reach out to specific market, it’s best to reach out to them at a platform these individuals use the most in a given
The rise of social media has been a global phenomenon since internet giant Facebook began, with one in seven people having a Facebook account (Hennig-Thurau, Hofacker & Bloching 2013). This has had an impact on the marketing environment in several ways, with the two most notable being increased active participation and a strong level of networked interconnectedness (Hennig-Thurau, Hofacker & Bloching 2013). These two changes have shifted the power from the marketer to the consumer, as the regular consumer now has access to vast amounts of information and has the ability to amplify their opinion globally (Labrecque et al. 2013). For this reason, it may be argued that in the 21st century, marketing occurs among consumers, and is no longer purely
The use of social media marketing has become a standard way in which organizations advertise their products or services. Social media marketing allows consumers to have immediate access to other consumers reviews or to post a review about a product or service. There is engagement between the company and the consumer (Evans, Dave 2010). Social Media emerged in the late 1980’s when websites such as Prodigy, Compuserve and America Online. Prodigy was first of it’s kind and was known as a ”consumer online service”. Half of the page is devoted to advertising. Facebook, Twitter, Myspace, Hi5, Bebo and Orkut are all social media platforms that are utilized as platforms today.
The marketing industry is an elaborate network that links companies to their consumers, primarily through written communication. The main objective of marketing is to identify trends and patterns in consumer behavior, and utilize the data to influence consumers to purchase more goods. From a macroenviroment standpoint, the general conditions of a market are heavily dependent on global environmental factors. The most significant factor that influences the markets today is technological advancements. Since the release of Facebook, Linked-in, Twitter, and Myspace in the early 2000s, the number of people using social media has increased to over sixty-five percent. The ever-growing dependency on social media platforms, has given marketers the tremendous opportunity to further market potential consumers. Social media marketing is a specific form of marketing that focuses on producing ad content that social media users will post on their own networks. This particular marketing technique is effective because ads and content are created, based on what personal information users post on social media. Firms and organizations that advertise their brands on social media are more likely to increase their customer base and annual revenue. By doing so, companies are able to increase exposure of their brand and widen previous hidden, customer bases. As a marketer, the fine line between right and wrong is often blurred. The amount and
The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes majorly to it, with India and China as the newly emerging markets. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not
In terms of social culture, for one thing, the China consumers are attracted by middle- and high-end products and somehow more attracted by French luxury goods, and they believe that the higher the price, the better the quality (Yuval, Vinay and Cathy, 2011, para7) (Exhibit 1). For another thing, the traditional virtue of thrift is rooted in the mindset of the Chinese, with which some of the rich in China indicate that they would not spend a large sum of money to get a product.
Brand consultant and strategist Harish Bijoor of Harish Bijoor Consults loftily terms it "nichevertise vs massvertise". According to him the luxury brands are not for mass consumption and shouldn 't be mass advertised. The social circuit gives them a fresh channel to reach out to their target audience without any noise. "The socialite model of marketing targets the guest lists minus the hard sell," he says.
Social media has taken off like a rocket throughout the years. The annoying sound of a modem connecting has turned into a soundless transaction. The wait time to connect is instant, opening a global world of interactions for people. You can now connect with anyone, anywhere at anytime at least once a day. Social media defined by Goyal is “Any platform,which provides the facility of sharing ideas, exchanging information and sending messages over an electronic medium, is considered as social media.” (Goyal,222). This is to include online magazines, Facebook, Twitter, Newspapers,Email, Blogs, YouTube and many more. Advertisers have taken notice to these platforms, utilizing social media to promote their brands, develop trust with the consumer,save money and target audiences faster than ever before.
Recently, internet users growing rapidly and a big 89% of internet users that are aged between 18 to 29 years old are actively participating in social media activities. So this is main advantages for social media marketing compare traditional media marketing. A traditional media marketing only caters to a fixed audience, for instance regular magazine readers or TV viewers while social media marketing has potential to approach a very a big audience that unlimited in scope and reach. In a marketing, the big audience is very important because they have potential to be our customers. In addition, using social media marketing also convenient for introduce brands or our business to
In today’s business world, social media is being discussed on a daily basis. This phenomenon has taken over the marketing and advertising industries and has changed the way they handle their efforts to attract customers. There is a big misunderstanding that social media are only popular networking sites such as Facebook and Twitter, but as defined by the Merriam-Webster dictionary, social media are “forms of electronic communication (as Web sites for social networking and micro blogging) through which users create online communities to share information, ideas, personal messages, and other content (as videos).” The rise of these online communities has given companies an opportunity to engage in conversations with their customers. This in
The relation brand-consumer changed aspect. The brands have to watch henceforth what people say of them on these social media and to begin the dialogue with their consumers to make sure to keep a good "e-reputation" and to enter a relational optics with their customers. But they can also benefit from these digital social networks to try to create consumers' community on-line "ambassadors" around them, to federate them and to develop loyalty of them thanks to a communication and specific tools.
All of those company did well they have their own strength and also their own royalty customer. Therefore, new media is a way for the Sushi Zanmai to attract customer to compete with the other kaiten sushi restaurant. According to the Corinne (2013),The Chief Marketing Officers (CMOs) has mention that a business who do not know the potential of the social media will be left behind due to they lack of customer interaction and also customer retention in their business. Consumer and the company’s sales prospects have a various kind of interactive across the multiple touch point in this interactive economy. In this era, customer are always the most important, they expect the organization provide them the thing they want. So that social media have become the platform for customer engagement. Customers are truly engaged when they feel known and this is what the best use of social media can achieve. So, to improve the reputation of Sushi Zanmai, social media is one of the tools that can’t lack of. Sushi Zanmai come out with Facebook and twitter to interact with the public. Due to social media is the platform for them to deal with customer. Moreover, according to Tood (2013), social media is a new ways for food and beverage company to interact with their consumer. Sushi Zanmai use facebook and twitter to keep connect with their customer by provide information of company to the customer and provide a feedback column for their customer to give feedback such as dissatisfied or satisfaction about their products in order to improve their own company and maintain their reputation. According to Thorsten (2010), by using new media, a company can communicate with the consumer, measure their communication by knowing their related purchase behavior. Thus, in this