European Luxury Brands in Asia
However, in 1970's a more sophisticated marketing of branded luxury goods was developed in Europe and later expanded to other nations globally. The main drivers of the sophisticated luxury fashion marketing were Swiss, Italy and France based companies such as Louis Vuitton, Gucci, Chanel and Prada among others. During the 20th century, "Democratization of luxury brands" played an essential role and force that led to the expansion of European luxury industry globally (Aiello, et al. , N. P). Currently, China's luxury market is the Asia’s major consumer of luxury goods and fifth globally (Shukla, 265-278). The definition of luxury goods Basically, all consumer goods are often classified into luxury goods, inferior goods and needs. Basic needs are usually commodities that have the biggest proportion of an individual's expenses.
In some cases, if individual income increases, people tend to consume inferior goods while when the income is too high, they tend to consume luxury goods. That is they prefer expensive goods instead of cheaper products (Songer, N. , N. P) As a result; more Chinese prefer buying their luxury products abroad to avoid purchasing of counterfeit luxury fashion goods. Counterfeit goods in China are very rampant due to weak enforcement of intellectual property laws. Currently, the European luxury fashion brands consumers in Asia are constantly increasing and evolving. Therefore, it is essential for European luxury fashion firms to stop viewing Asian luxury consumers as homogeneous and instead create effective business models that will help in marketing their products. The finding of the proposed research project will, therefore, be significant in the European luxury goods producers.
On the other hand, Asian luxury market is the largest globally thereby better marketing strategies are required for European companies to create a competitive environment. The finding of the proposed research project questions will outline the best marketing strategies that European luxury companies will adapt to be successful in the Asian and more particularly in the Chinese market. Objectives of the study • To identify how European luxury fashion brands are marketed in Asian markets and more particularly China • To identify factors influencing European luxury fashion brands marketing strategies in the Asian markets Research questions • What are the key marketing strategies used by European luxury fashion brands in Asian markets? • What are the factors affecting European luxury fashion brands marketing strategies in Asian markets? Literature review The purpose of the research proposals literature review will be to find out how European luxury brands are marketed in Asia as well as the strategies used in the market.
Globally, Asia is the leading consumer of luxury goods of which European based companies are main producers The current development of European luxury fashion brands has been extensively evaluated by many scholars. Due to this factor, different marketing strategies have been adopted by European luxury fashion brands in the process of marketing their products to create a competitive advantage as to increase their profitability as well as their sustainability in this market. According to Ye Hongmei, China's luxury market is dominated by the European luxury fashion marketers since there are limited domestic luxury companies in the market. This is due to the European luxury brands unique culture in which most of the Chinese domestic luxury brands lack. As a result, a strong customer loyalty on the European luxury brands has led to their dominance in the country.
Successful European countries in China that have adopted the appropriate strategies of deep analysis of the local market, as well as their own SWOT analysis, have been flourishing in the market. Qin and Yin (2013) further emphasized any luxury fashion firm marketing in Chinese market should and must integrate the current fashion style as well as the Chinese traditional culture as their marketing strategies. Limitations of the study Based on various sources of the information and some limitation that will be applicable in this study, the study may not claim to be totally comprehensive but at least the study will offer a substantial understanding of the research questions. The following are the problems associated with the research proposal • The study will be limited to certain European luxury fashion brands in the Asian markets and particularly.
These products are; Luis Vuitton, Prada as well Gucci. • The study will only focus on the Asian market thus not focusing on other large markets for European products in other nations such as the united states and the united kingdom • The study will only focus on the European luxury fashion firms without considering other luxury fashion firms in the world. Conclusion Globally, the luxury market is growing rapidly thereby attracting numerous luxury goods producing firms. The European luxury fashion brand market in Asia is very competitive. Different companies have adopted new marketing strategies to remain profitable and successful in this market. The proposed research proposal will therefore highlight the possible strategies employed in the market as a mechanism of answering the research questions outlined above.
Besides that, the proposed research project will also outline the possible recommendations that luxury firms should employ so as to be competitive the Asian market. com/files/581/60. pdf. Chinese Industry Research. 2013-2018 Chinese Luxury Industry Consumption and Development Potential Research. http://www. Kim, Angella J. , and Eunju Ko. "Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. "Journal of Business Research 65. Li, Guoxin, Guofeng Li, and Zephaniah Kambele. Songer, Chloe "Branding Luxury: Japan, China, and Vogue. " (2014) Wang, Fei. Chinese Luxury Market Analysis and Strategy China Business, (2009) Vol. 10, 190-193 Ye, Hongmei the Problems within Chinese Luxury Consumption and Development Strategy Value Engineering, Vol. 4, 119-121 Zheng, Jin-Hui, Chun-Hung Chiu, and Tsan-Ming Choi "Optimal advertising and pricing strategies for luxury fashion brands with social influences" IEEE Transactions on Systems, Man, and Cybernetics-Part A: Systems and Humans 42.
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