Luxury Branding Industry - Oman Market - Literature review Example

ARTICLE ANALYSIS: LUXURY BRANDING By Student’s Name Institution Course Name Professor’s Name Date Section 1: Introduction The focus of this paper is on providing a clear and concise critical evaluation on global luxury branding industry article in order to ascertain immediate factors attributed to its growth and developments. The first section of the paper provides a summary of the article under study, while ensuring to bring out fundamental marketing aspects as discussed in the article. Moving forward, the paper provides a distinctive evaluation of other journal articles that relates to luxury branding concept. Using the information from this section, the paper will rely on the most recent journal articles that provide enough analysis on recent luxury branding patterns across the different international markets. Further, the will use the information analysis gathered from both the article under study and the two other journal articles to interpret the Omani market as a whole. The last section of this paper is focused on the overall conclusion and recommendation. It is important to note that at this section the paper provides imminent recommendations in relation to the limitations identified in the article under scrutiny. Section 2: Article Summary The article examines the overall emergence of a global luxury brand industry while making sure to provide an extended discussion on past perceptions of this sector as a whole. The study indicates that while the idea of luxury is not time-bound, luxury branding is rather a new concept that arose from special forms of branding as well as cultural forces in relation to matters fashion and affluent consumption lifestyles (Yuri Seo, 2015). It is indicted that luxury branding cuts across different product categories but ensure to operate under a price insensitive phenomenon. Notably, the article indicates that luxury brands do not only constitute superior quality as well as unique designs but rather; it should also constitute certain symbolic perceptions and meanings. The current luxury market is said to have been transformed into one that emphasises on identity and focus, which has resulted to sector being perceived as a remarkable and valued brands across the different markets (Yuri Seo, 2015). Most notably, the study divide trends that are perceived to be influencing the overall luxury brands into three namely; cultural, social and external macro-environmental factors. Under the cultural patterns, the study notes that globalisation has continued to play a significant role in appreciation of international luxury brands by customers situated across the different section of the globe (Yuri Seo, 2015). In fact, as a result of culturally diversified platform, it has resulted to new opportunities and challenges for producers of luxury brands (Vigneron & Johnson, 2004). The authors note that the ever-growing popularity of the luxury brands across most markets is attributed to common attributes of these products regardless of the market that include; high prestige, aesthetic value as well as their respective capacities to be associated with the overall fashion sector and whether it is able to portray an affluent lifestyle. However, for such markets as Asian countries, consumer motivations for the purchase of luxury brands is highly associated with their respective cultural traditions especially in regards to meanings presented by these brands altogether (Yuri Seo, 2015). The article further notes of different consumption styles and consumer attitude amongst the different markets positioned across the different economic regions (Yuri Seo, 2015). These differences are related to socio, economic and cultural factors. Under the social trends, luxury brands are portrayed to be enjoyed only by the wealthiest people and as a way of depicting their wealth and social standings. Recent trends have however; taken to generate luxury brands to meet the needs of middle-class especially because of the inclusion of price sensitivity mechanism (Yuri Seo, 2015). For this aspect, the wealthiest people perceive the luxury brands as a social badge while middle class people depict it as a prize and a self-reward component portraying differences in attitudes and rationale behind societal aspects. Additionally, the article indicates that external patters affect the way the global luxury industry operates. This is especially because of the ever-rising popularity of internet-based shopping and attention received from mass media platforms (Yuri Seo, 2015). The trends contribute to making these brands accessible since there is almost a common communication platform that allows instant information sharing on luxury brands. In general, the author indicates that the modern transformation of the luxury branding should emphasise on inclusion of consumer experiences to enhance its value derivation from these products. It also calls for portraying luxury brands as conspicuous products that is solely focused on improving the consumer’s overall social status (Yuri Seo, 2015). Section 3: Critique of Article Using Different Articles According to Schultz, & Jain (2013, p.16) argues that luxury brands across the globe do not share similar concepts or even creative prowess in product generation. Yuri-Seo (2015, p.82) similarly notes that different global luxury conglomerates practice different ways of improving their respective markets shares and generation of more revenues. He further argues that the immediate effect of globalisation and multicultural influences lies in the improved appreciation of global luxury brands by all consumers regardless of their locations and as a result of this, the entire customer base for all luxury items has grown to adopting a fairly cultural diversity that is focused on availing newer opportunities and challenges for all producers of these brands. In essence, he notes that the ever-growing demand and popularity of luxurious brands in all of the emerging markets has resulted to ensuring that customer tastes for these products to be increasingly similar across the globe (Yuri Seo, 2015). Correspondingly, Schultz, & Jain (2013, p.16) share the same sentiments as Yuri Seo as they argue that the global luxury industry cannot depend on a single marketing strategy since consumer behaviours, perceptions, usage and aspirations differ across board. It thus means that different markets have different perception of luxury brands given that social dimensions for any two countries or even market segments vary in a greater manner (Yuri Seo, 2015). For instance, in most of the Asian markets, consumer motivations for purchasing luxury items differ from other markets as they put much emphasis on their respective cultural traditions. It thus goes without saying that while consumers might purchase a similar luxury product in different global markets, still their meanings to them remained different and unique (Yuri-Seo, 2015). In the Chinese market, the notion of interdependent self is considered to be more stringent due to the cultural traditions of hedonism such that luxurious items are only related to familial and social parameters. The emphasis here is on the interdependence elements of face consumption so that purchase of luxury brands is made for purposes of showing off and conspicuous consumption (Schultz, & Jain, 2013). It is argued that while studies indicate that the wealthiest of the consumers are deemed to perceive luxury products more as a social representation, this however differs from one market to another. For instance, in India, the purchase of luxury brands is associated with independent self as well as hedonism where much emphasis is put on self-pampering and self-gifting (Yuri Seo, 2015). Schultz, & Jain (2013) and Yuri Seo (2015) both argue that the underlying economic parameters have played a significant role in changing the overall luxury markets. They all have identified similar social groups within a society that engage in luxury brand purchases and their purchasing patterns. These groups are identified as follows; high net worth individuals, and the affluent middle-income class that earn an upward of $100,000 annually (Yuri Seo, 2015). Despite this, there is a definite call for the segmentation of the luxury brand markets since consumer perceptions, experiences and motivations vary in a great way. These two article notes that the notion of luxury markets is vehemently attributed to such facets as social upbringing, close family relationships as well as other controllable and incontrollable motives of all consumers. Such external and uncontrollable influences like the growing popularity of internet shopping and information sharing has resulted to almost similar purchase patterns (Yuri Seo, 2015). While comparing India and China markets in relation to economic parameters, Schultz, & Jain (2013, p17) notes that the Chinese consumers, while purchasing luxury brands, will put much emphasis on aspects related to extravagance and social acknowledgement in comparison to the Indian market where purchase was mostly focused on them meeting their high aspirations and in order to gain a wider social acceptance into a desired social group. Another notable concept identified in luxury purchase lies in the role of media platforms in influencing consumer decisions. Different media platforms play a significant role in encouraging aspects of positive communication and information-sharing concept amongst the consumers of luxury brands. However, for Schultz, & Jain (2013, p17), the influx of digital media communication platform has enhanced a substantial level of separation between different potential luxury markets. Conversely, most markets constitutes of consumers that are well-educated, technologically savvy and are aware of most luxury brands in such platforms as social media and mobile phone applications, give importance to unique and different aspects. For instance, the Chinese consumers give more credit to aspects related to materialism as well social display that is conducted by way of evaluating the luxury brands on most online platforms as Indians emphasize on personal likings and values (Yuri Seo, 2015). Aiello et al (2009, p.325) agrees that luxury brands play a significant role in developing the country-of-origin perceptions of a given product. The authors further notes that the qualitative perception of a luxurious product is deemed to be more positively-oriented whenever there exists a sole integration between the brand itself and the perceptions of the country of origin. In fact, the study indicates that the overall vision of luxury brands is indeed conventional so that it is purchased as a social sign of identification as well as orientation amongst different social groups (Aiello et al, 2009). Remarkably, the research study indicates that for luxurious products, the notion of branding is deemed to be more relevant as opposed to the country of origin framework in the course of coming up with decisions related to product evaluation and purchase. Most market segments identify the overall global luxury brands while still making sure to remain clear of their respective loyalties. For example, Yuri Seo (2015,p.333) notes that at least 94% of all Tokyo women in their 20’s have owned a Louis Vutton brand meaning that despite their nationalities they still are aware of the different luxury trends. Of particular interest, the young potential consumers seem to have been fairly influenced by the aspect of globalisation of markets such that they understand the imminent luxury brands value supply chain from the activities of conception to design and manufacture. The information is freely accessible through the numerous online platforms that are mainly made up of all popular social media. The article further notes that brand personality and relational dimension play a significant role in establishing the consumer behaviours and reflections while at the same ensure to ascribe symbolic meanings to certain brands altogether (Aiello et al, 2009). Section 4: Application to Oman Market The current retail market in Oman is deemed to be very much different from that of its immediate Gulf neighbours. The economy is characterised by a less concentration of urban population that are subjected to a rather low per-capita gross domestic product (Oxford Business Group, 2014). Another important factor to note rests with the fact that the Omani workforce is mainly from private sector that are paid slightly lower wages as opposed to the fewer employed directly by the government (Oxford Business Group, 2014). Most notably, the Sultanate’s expatriate market segment is made up of a lower percentage of high income earners. It is for this reason that the potential shoppers in the country will be more likely to make purchase decisions mostly because of the prices and value attributed to most products including luxury brands (Oxford Business Group, 2014). Following this line of facts, it can be noted that Omani luxury brand consumers’ behaviours and attitude focuses on self-gifting and self-dependent. The young generation, who might not be enjoying enough savings and income, will only engage in purchasing luxury brands in order to fit in with certain social groups and orientations (Tsai, 2005). This observation conforms to the conclusion made that although luxury consumers across the different regions depict almost similar expectations for luxury brands; that is, high quality, prestige and uniqueness, consumer attitudes as well as their consumption systoles vary greatly from one market segment to another depicting the economic, social and cultural forces that override these particular regions. The overall consumer tastes and preferences in regards to luxury brands purchase is deemed to be more concentrated on traditional beliefs in comparison to its Gulf counterparts (Muscat Daily, 2012). This is mainly attributed to the imminent lack of exposure to current international luxury brands. A perfect example for this can be seen through the consumer’s preference for Dishdasha as opposed to new clothing styles and designer suits (Oxford Business Group, 2014). However, with the current improvements being experienced in relation to globalisation and internet shopping platforms, the luxury retail segment is set to improve tremendously as tastes for global luxury brands will be similar. In fact, the demand for luxury products like clothes and watches as opposed to services is set to increase with most potential emanating from the already launched international luxury stores in the country. However, currently the Omani market segment operates under the elitist consumer attitude, which operates under a conventional belief of luxury as being only appropriate for only a few wealthy people especially those enjoying high-income and working for the government agencies (Wiedmann, Hennigs, Wuestefeld, & Schmidt, 2011). Conclusion & Recommendations From the above analysis, it can be seen that the aspect of globalisation has resulted to almost a similar expectation for luxury brands like prestige and exclusivity in the course of purchasing decisions. However, there exist consumer styles differences for different market segments. It has also been noted that luxury brands portray a rather distinctive socio-cultural and individual symbolic meanings to the respective consumers. There have been continuous calls for consideration of consumer-centric paradigm of luxury branding as a way of conforming to the overall phenomenological experiences as well as cross-cultural influences. It is thus recommended that future research should focus on the manner for which luxury brand consumers develop meanings attributed to these products. The focus should be directed towards integrating consumer-based brand equity with corporate value-adding assets that depict socio-cultural, ideological as well as political influences that determine level of consumption styles. References List Aiello, G, Donvito, R, Godey, B, Pederzoli, D, Wiedmann, K, Hennigs, N, Siebels, A, Chan, P, Tsuchiya, J, Rabino, S, Ivanovna, S, Weitz, B, Hyunjoo, O, & Singh, R 2009, 'An international perspective on luxury brand and country-of-origin effect', Journal Of Brand Management, 16, 5/6, pp. 323-337, Muscat Daily2012. Oman residents spend less than R096 on luxury goods. Retrieved from http://www.muscatdaily.com/Archive/Oman/Oman-residents-spend-less-than-RO96-on-luxury-goods-1tya Oxford Business Group 2014. Value-driven market: Healthy growth provides diverse opportunities for foreign investors. Retrieved from http://www.oxfordbusinessgroup.com/overview/value-driven-market-healthy-growth-provides-diverse-opportunities-foreign-investors Schultz, D, & Jain, V 2013, 'The Same, But Different', Marketing Insights, 25, 3, p. 16-17 Tsai, S. 2005, “Impact of personal orientation on luxury-brand purchase value: an international investigation”, International Journal of Market Research, 47, 4: 429-455 Vigneron, F. & Johnson, L.W 2004, “Measuring perceptions of brand luxury”, Journal of Brand Management, 11, 6: 484-506 Wiedmann, K, Hennigs, N, Wuestefeld, T, & Schmidt, S 2011, 'Branding In A Tumultuous Economy: Luxury Brands In A Tumultuous Global Economy: The Crucial Role of Customer Perceived Value', Ama Summer Educators' Conference Proceedings, 22, pp. 373-374 Yuri Seo M 2015,"Luxury branding: the industry, trends, and future conceptualizations", Asia Pacific Journal of Marketing and Logistics, 27, 1: pp. 82 – 98 Read More