The Cult of the Celebrity Handbag - Dissertation Example

The Cult of the Celebrity Handbag: An investigation into the innovative strategies used to democratise designer handbags. Introduction The pursuit for identify core elements of the current cult of celebrity handbags market has facing the challenge of changing as the main reason for choosing this topic. Further, the today’s customer is always looking for something new and fashionable. It is interesting because designer handbags are become more accessible to a wide level of consumer than ever before. It also a big change of more technologically advanced and innovative in the modern 21st century. Thus, the presented essay contains a critical review Luxury consumer demand for handbags within the global marketplace. Celebrities use luxury handbags as an identity and status symbol. The essay investigate the reasons for the growing speed of demand that the luxury handbag market is facing by an analyses of the market as well as explores the New Age of consumer shopping of luxury handbags. The strategic research approach is in order to understanding consumer-shopping habits in our modern society. In recent 21st-century, people are exposed in many different ways to all kinds of information from the mass media. The study will examine and analyse how the recent economic downturn impacts on the designer handbag market. It is equally true that the economic behaviour of society at large has shifted from saving to consumption on luxury handbags. According to Dijk (2007), “The luxury market is no longer restricted to targeting consumers from the upper class but can also appeal to other classes that have the resources the gain access to these kind of products’(p.7). In retrospect, the luxury handbag is the key to become fashionable. It is now become accessible to a wide range of customers from working-class to middle-class. The Aims and Objectives The aims of this research are to gain an understanding of the strategies behind consumption of handbags. It will analyse why consumers buy luxury handbags and how their decision-making is influenced by luxury designer brands. It will identify how the current innovative strategies of designer handbags marketplace are changing and explore how celebrity handbags are implementing innovative rules strategies to new luxury consumers. It will also investigate in more depth today’s customers’ shopping behaviour of celebrity handbags and highlight the new second-hand designer bags in the marketplace. The objectives of this research are broken down into five main areas: To analyse the concept of celebrity handbags and illustrate the growth of the ‘It Bag’. To compare the new and used designer handbags marketplace. To investigate in more depth today’s customers’ shopping habits of celebrity handbags - and highlight the new technology factors that influent their decision making. (new media market) To explore the new ways to shop luxury handbags. It will evaluate and explore how second-hand designer bags shop can successful by adopting the innovative strategies such as on mass media and free advertisings by celebrities. To conduct a case study on Chanel’s recent innovative strategies to examine the nature of the marketplace, in order to build upon this subject of knowledge. Main Body The research will analyse the concept of celebrity handbags and illustrate the growth of the It Bag’. People tend to follow trends regarding the It Bag’ of which the mass media constantly sing praise. “Mulberry, the brand, which names many of its creations after celebrities, has waiting lists for several handbags, including the Bayswater, Mitzy and Daria. Its £699 'Alexa' satchel, which is named after TV presenter Alexa Chung, is currently Selfridges' bestselling bag, with waiting lists for versions in pink, leopard print and electric blue,”(Poulter, S, 2010). This is clearly observable in situations in which celebrity considerable as a social status, those handbags become fashionable and “in”. ‘In accessories handbags in particular have provided the engine for growth – one that will speed up as more and more brands invest in this product.’ Having said that, there has a huge demand on celebrity handbag which luxury brands are began produce more in this segment of the market. Further, Prada for example has said that handbags represent the highest margins for the brand (Verdict, 2009). In spite of the growth of the celebrity handbags market, yet the luxury handbags which now is facing the new age of consumer shopping habits by the global recession and also other factors. According to Poulter (2010), “Fashion insiders have long been predicting its death. But it seems there is still life in the old 'It Bag' yet.” Selfridges says that there is a 60 per cent increase in sales of 'must-have' luxury handbags in the past year (Poulter, 2010). The masses passively respond to this association and develop a strong desire to purchase those same handbags, in order to gain a little benefit from the association with the celebrity that made the handbags famous in the first place. The idea of how celebrity culture lead consumer on the way they shop will be invertigated. Bourne (2010), found that while most consumers aren't returning to their pre-recession shopping patterns, there has been a rebound in luxury spending lately. This is the power of association between a product and the social status of the wearer. It has seen that although economic downturn, according to Colten and Jarvis (2010), demand for leather goods and accessories improved in the fourth quarter, led by emerging markets. Hermes and rivals LVMH Moet Hennessy Louis Vuitton SA and PPR SA-owned Bottega Veneta reported in February (Colten and Jarvis, 2010). However, because of the recession, some consumers often seek and pursue the innovative ways to shop that from saving to consumption on luxury handbags. Therefore, people are constantly processing the information they receive from the mass media for the purposes of selecting on which luxury designer handbags to spend money on. Secondly, through research findings it will be evident that compare the new and used designer handbags marketplace and market their unique selling point on products and price which will be able to overcome the recession and re-adjust the new luxury environment. Therefore, it will find out the most successful and innovative methods in which luxury brands are providing their unique selling point in order to respond to the demands of today consumer. The study will focus on evaluating what innovative methods can apply and are already being applied to luxury brands in particular celebrity handbags market, examples will also be analysed. Thirdly, it will investigate today’s customers’ shopping habits on celebrity handbags and highlight the new technology factors that influence their decision-making. According to Okonkwo (2007), “Luxury brands need to adjust their practices to reflect the new –luxury environment, “(p.238). Due to the current new environment on today luxury consumer shopping habits on designer bags, luxury brands will have to adapt innovative rules strategies to enhance their sales and brands reputation. As Dijk pointed out the New Luxury Consumers group is no longer attracted to only a brand name and brand image but they want a complete package that offers solid value through innovation and exceptional experience and service in every aspect of the brand (Dijk, 2009). Furthermore, the ‘New Age’ of shopping habits of luxury designer handbags will be investigated in the research. For example, according to Okonkwo (2007), “The commercial environment is congested with information is screaming for the attention of the same consumer. As a result, consumers have to process multiple advertising information channeled towards them on a daily basis,” (p.69). In addition to new demands and opportunities, the new ways to shop luxury handbags methods are booming, it will evaluate and explore how second-hand designer bags shop can successful by adopting the innovative strategies such as on mass media and free advertisings by celebrities. According to Dijk (2009), “The new luxury fashion consumers are different is from the luxury fasion consumers of the past is because of the fact that is the current luxury market is different” (p.24). Due to the economic downtown since 2006, some consumers keen on saving money on up-to-date luxury ‘It bag’, preferred to spend money on used designer handbag or last season handbag. For that reason above, new ways of shopping for luxury handbags have experienced a massive boom, secondhand bags exchange shops and renting designer handbags shops and online shops. It will examine how ‘eBay’ and ‘Milan Station’ are so successful in the past decade. In addition, the Milan Station, one of the biggest second-hand designer bags chain store in Asia creating a steadfast trend in the area of buying frenzy of purchasing luxury items. Thus, the means for extensive purchases have been on Ebay creating one of the biggest global online actions. Finally, it will conduct a case study on Chanel’s recent innovative strategies to examine the nature of the marketplace, in order to build upon this subject of knowledge. Methodologies This research will use a mixed methods approach that combines both qualitative and quantitative methods, which will develop by both primary and secondary sources of information. When gathering qualitative data, the literature was assessed against two particular components, reliability and validity by delivers a broad range of results in different formats (Saunders, Lewis & Thornhill, 2003). The designed strategy for this research will be more focus on the main part around secondary research sources than primary research. The most notably are newspapers, journals articles, and company’s annual reports. According to Saunders, Lewis and Thornhill (2003) the pointed out research as a “valuable means of finding out what is happening; to seek new insights; ask questions and to assess phenomena in a new light,” (p 69). Therefore, published texts that are relevant to the overall strategy and models will also apply on this research. Since the nature of this topic will be based around the recent and unfolding economic environment of today consumer behaviour, business journals will be used in order to adapt the latest information into the research. Further, the primary research is not truly fulfilled enough on this subject. Having said that, secondary research will be more valuable as reliable as the database already exists and is current, which can be going in a deeper level to develop rational arguments to support the research. The following methodology will support the core of the study in celebrity handbags market, which will ensure to start the investigation of the aims and objectives, is successful. Primary Research Prior to any primary research being conducted it is crucial that all secondary research are often analysed to create an academic grounding before primary research could begin. The literature concentrated on the dynamics behind luxury designer handbags, appraising the role of luxury handbags’ strategies and consumer motivation in driving designer handbags purchase. In the research, qualitative and quantitative will apply for collect sources in order to make a logical argument of different point of views. Questionnaire surveys are time consuming and expensive to administrate and the return rates are notoriously low, (Hackley, C 2003: 8). According to Hackley ( 2003), the focus has to be pointed out those questionnaires method is difficult to organise in marketing studies. In addition to incorporate into the study in form of interviews, Hackley has also suggested that interpretive approaches on qualitative data such as interviews, observation and focus groups, that in order to aim for statistical generalization at some future stage (2003). Although questionnaire survey might be returning low rates as a result, the primary research would still through Survey-monkey to questionnaire on approximately 50 females who based in London. In order further to understand the today consumer behaviour on celebrity handbags, the primary research will be supported by through face-to-face interviews of two case study brands managers at the first stage. Interviews provide researchers a path to investigate motives and feelings with interviewee when conducted face-to-face. Although performing interviews are difficult to arrange and time consuming, the results will obtain reinforce theories and provide new insights (Walliman, 2004). The interviews in this study will focus on investigation of how the cult celebrity handbags have fascinated today customers’ shopping habits, and examine the new technology factors that influent their decision-making. Therefore, the focused effort of the industry strategy it will gain to include an expert’s view on luxury handbag consumer behaviour. The Interviews A first interview will be conducted with a branch manager of Milan Station in Hong Kong Island, a second-handbag exchange store. His knowledge and experience in designer handbag will be such enormous value to this research, providing expert explanations of this market. A second interview will be conducted with the managing director of Chanel, will be interviewed in order to gain further insight into luxury handbags strategies. It will use the same structure nonetheless the questions to Gloria will more intimate connection between innovative rules strategies and today customer, which will have gain the brand awareness and brand reputation in the marketplace. It will combine primary and secondary research a case study will conduct on second-hand designer bags shop. Milan Station, which will complete as an example in the research. The case study will gain an understanding of the study at a depth level. The aim of the case study will discover what innovative rules strategies made Milan Station such successful in Asian market and a unique place in the market. In addition, corporate strategy theories by using those research methods above, it will help to reinforce theories and highlight the changing of shopping environment that adjusting to the new celebrity handbags market demands and opportunities. Secondary Research The secondary research will build on an appropriate review of academic textbooks, published statistical database, journal articles, and fashion business reports such as Mintel, Drapers, Verdict, WWD, and WGSN. It will also be supported through electronic sources such as Business of Fashion and View on Fashion, as well as through the University of the Art London libraries. Different sources will examine in order to obtain a thorough understanding of the cult of the celebrity handbags. It will enrich the quality of an investigation into the innovative of designer handbags to today customer. The usage of books primarily referenced are as follow: Luxury Fashion Management: Brand and Marketing Management in the ever-changing Luxury Fashion Industry’ Luxury fashion branding, trends, tactics and techniques Luxury World: The past, present and future of luxury brands’ and ‘Luxury Online: Style, systems, strategies’.  The approach is to gathering information from academic published books are considerably limited, due to the current nature of the subject. That is why, the current journal articles, new released books and market research will be considerably assist to build the purpose of the research, such as Daily Mail and Business Week. Limitations to study The limitations are the scope of the global marketing consumers purchasing luxury brand handbags with identified influential aspect, i.e. celebrities association to the brand product. The scope is to project the core statistically documentations to reinforce the aim, findings by academic subject experts, and the first-hand respondents in the consumer market. The limitations are not to indulge in older data assessment, rather, more recent and unfolding economic environment of today’s consumer behavior. Opportunities for further study The analysis of the luxury consumer market will end up with several innovative strategic implications for luxury handbags market. It will analyse in depth on how second-hand luxury bags will become fashionable and more purchased in the future in the dissertation. Conclusion On a fundamental level, this research sets out to understand what today consumer’s desire is a sense of belonging to those fashion designer handbags with celebrities. Consumers want to be prestige and fashionable, which are the same as saying that they desire to belong to a specific group of people or clique by designer handbags to display them with status symbols by brand logo. Consequently, it will gain an understanding of what dynamics behind the cult of celebrity handbags have fascinated today consumers shopping behaviour. Furthermore, some areas of future concern will continue evolution focus on the potential luxury business strategies identified of handbags. Therefore, the research will underpin by extensive research with this subject knowledge.  Read More