Consumption of luxury goods in Brazil: purchasing motives and values of Brazilian consumers and implications for marketing

Aiming at success in the currently challenging Brazilian market, luxury firms must consider a number of factors. Not only the adaptation to certain economic and political conditions but also the understanding of Brazilian luxury consumers’ characteristics as well as their value perceptions towards luxury are crucial in order to create an effective marketing strategy. This study investigated the value perceptions and purchasing motives of 428 Brazilian consumers. Brazilians purchase luxury goods in order to conspicuously put them on show to certain social reference group or to the general public. Thus, they display their wealth, income and social status. Social groups therefore play a distinct role in the purchasing decision process. Moreover, Brazilians are found to be hedonic consumers, seeking pleasurable moments and the reduction of stress when consuming luxury products. In addition to that, they use luxurious products to express their own personality. Brazilians hence place a much higher importance on self-expressive, emotional product benefits rather than on rational, functional product benefits. Marketers of luxury goods are advised to make use of this knowledge in order to adequately address consumers’ needs, wants and beliefs. The study focuses on consumers living in Rio de Janeiro and does not take into account different value perceptions on different luxury product categories. Therefore, suggestions for further research include replicating the study in different Brazilian regions and probing for differences among product categories.

The influence of face and group orientation on the perception of luxury goods:a four market study of East Asian consumers

Purpose: The paper aims to further extend our understanding by assessing the extent to which two prominent cultural values in East Asia i.e. face saving and group orientation drive consumers' perceptions of luxury goods across four East Asian markets. Design/methodology/approach: A multi-methods research approach was adopted consisting of: an expert panel of close to 70 participants, group discussions with five extended East Asian families, personal interviews with eight East Asian scholars, a pilot test with over 50 East Asian graduate students and a multi-market survey of 443 consumer respondents in Beijing, Tokyo, Singapore and Hanoi. Findings: The authors extend previous conceptual studies by empirically investigating the impact of these two cultural values on the perception of luxury among East Asian societies. Specifically the study reveals that across all four markets face saving has the strongest influence on the conspicuous and hedonistic dimensions of luxury, group orientation meanwhile is the strongest predictor of the quality, extended self and exclusivity dimensions of luxury. Collectively these two cultural values significantly influence East Asian perceptions of luxury. Overall, the findings reiterate the importance of understanding different cultural values and their influence across different East Asian societies. Practical implications: The findings have important implications for managers of western luxury branded goods that are seeking to penetrate East Asian markets or seek to serve East Asian consumers. Specifically, to assist with developing suitable brand positioning, products, services, communications and pricing strategies. Originality/value: This study contributes to our understanding of the subject by exploring the impact of face saving and group orientation on the perception of luxury goods across four East Asian countries. Several directions for future research are suggested. © Emerald Group Publishing Limited.

La vente de contrefaçon d’objets de luxe à New York

Présente depuis le temps des Romains, et bien au-delà des simples «articles de Paris», la contrefaçon s’est introduite dans tous les domaines de fabrication. L’objectif de cette recherche est de déterminer quelles peuvent être les raisons et les motivations qui poussent un groupe d’immigrants à se spécialiser dans la vente de contrefaçon d’objet de luxe. Pour y répondre, nous proposons de suivre deux hypothèses. D'une part, le contexte politicoéconomique international est constitué de telle sorte qu'il favorise un groupe restreint de pays et limite en contrepartie les débouchés à bon nombre de pays en développement. Les pays développés modulent, ou font pression sur les organisations internationales à leur image afin d'en tirer davantage de bénéfices, et souvent au détriment des pays en développement. Et d'autre part, à l'intérieur de ces populations en mouvement, certains individus font le choix (inévitable ou stratégique) de se cantonner dans un commerce de la rue, parfois illégal, comme c'est le cas de la vente d'objet de luxe contrefait. D’un autre côté, l’adhésion d’un individu à un commerce illégal ne peut lui être totalement imposée par des forces extérieures. Ainsi, il est démontré dans ce travail, que la vente de contrefaçon répond aux particularités et aux exigences de certains individus: statut d’immigrants illégaux, peu ou pas d’expérience de travail compatible avec le pays d’accueil, travail sans contraintes d’horaire, travail à l’extérieur et, surtout, favorisant la vie sociale.

Luxury fashion: The role of innovation as a key contributing factor in the development of luxury fashion goods and sustainable fashion design

Luxury is a quality that is difficult to define as the historical concept of luxury appears to be both dynamic and culturally specific. The everyday definition explains a ‘luxury’ in relation to a necessity: a luxury (product or service) is defined as something that consumers want rather than need. However, the growth of global markets has seen a boom in what are now referred to as ‘luxury brands’. This branding of products as luxury has resulted in a change in the way consumers understand luxury goods and services. In their attempts to characterize a luxury brand, Fionda & Moore in their article “The anatomy of a Luxury Brand” summarize a range of critical conditions that are in addition to product branding “... including product and design attributes of quality, craftsmanship and innovative, creative and unique products” (Fionda & Moore, 2009). For the purposes of discussing fashion design however, quality and craftsmanship are inseparable while creativity and innovation exist under different conditions. The terms ‘creative’ and ‘innovative’ are often used inter-changeably and are connected with most descriptions of the design process, defining ‘design’ and ‘fashion’ in many cases. Christian Marxt and Fredrik Hacklin identify this condition in their paper “Design, product development, innovation: all the same in the end?”(Marxt & Hacklin, 2005) and suggest that design communities should be aware that the distinction between these terms, whilst once quite definitive, is becoming narrow to a point where they will mean the same thing. In relation to theory building in the discipline this could pose significant problems. Brett Richards (2003) identifies innovation as different from creativity in that innovation aims to transform and implement rather than simply explore and invent. Considering this distinction, in particular relation to luxury branding, may affect the way in which design can contribute to a change in the way luxury fashion goods might be perceived in a polarised fashion market, namely suggesting that ‘luxury’ is what consumers need rather than the ‘pile it high, sell it cheap’ fashion that the current market dynamic would indicate they want. This paper attempts to explore the role of innovation as a key contributing factor in luxury concepts, in particular the relationship between innovation and creativity, the conditions which enable innovation, the role of craftsmanship in innovation and design innovation in relation to luxury fashion products. An argument is presented that technological innovation can be demonstrated as a common factor in the development of luxury fashion product and that the connection between designer and maker will play an important role in the development of luxury fashion goods for a sustainable fashion industry.

In the lap of luxury

The allure of expensive luxury goods is the topic of episode one of our new consumer series Talking Shop.

The online distribution strategy of luxury products and their vertical extensions

Uma importante tendência do mercado de luxo é a extensão de marca em um novo segmento de mercado por meio da chamada extensão vertical, que pode ser para cima ou para baixo. Em outras palavras, significa que a organização passa a atuar em um novo segmento dentro de uma mesma categoria de produtos, mas com diferente público-alvo que sua marca original. Nesse processo, a empresa inicia atividade em um novo segmento com diferente nível de luxo. A distribuição é um aspecto fundamental do composto de Marketing e a importância da internet como canal de distribuição dessa indústria tem aumentado expressivamente nos últimos anos. Dessa forma, faz-se necessário compreender como as marcas de luxo gerenciam suas estratégias de distribuição online quando desenvolvem processos de extensão de marca e penetração em novos segmentos. Com o objetivo de analisar a estratégia de distribuição da indústria de luxo, um estudo exploratório foi desenvolvido focando bens de luxo pessoal (em categorias como costura, relógios & jóias, couro e sapatos). Uma amostra significativa constituída de marcas originais e suas extensões foi analisada para constituir um modelo comparativo entre duas variáveis: o nível de diferenciação entre os canais de distribuição da marca original e suas extensões; e a distância entre as próprias marcas no que concerne ao seus posicionamentos. Esse estudo contribui para o entendimento da dinâmica de distribuição do mercado e colabora com a compreensão do comportamento das empresas que atuam nele, dependendo do tipo de extensões que elas desenvolvem e da forma como elas são conduzidas.

Iguatemi: creating opportunities for international luxury brands in Brazil

The Brazilian luxury goods market has been registering substantial growth with many international brands establishing presence in the country. When entering the market, the perfect location seems for most of them to be found in Iguatemi Group’s Shopping Malls. This research focuses the topic of Luxury Market and Retail, in the form of a case study on Iguatemi Group, which tries to understand How is Iguatemi Group creating opportunities for International Luxury Brands in Brazil? To understand the context of the case, the text explores the Brazilian market evolution, its attraction factors and challenges, the location choice methodology used by international luxury brands, and finally, how is the Iguatemi Group creating opportunities for these brands in Brazil. For doing so, a multiple-methods approach was followed so to achieve a non-biased result. In-depth interviews were conducted with Iguatemi’s managers, international luxury brands’ managers and experts in luxury market and retail; non-participant observation was held, and documentation was examined. The research found that the entry of International Luxury Brands in Brazil started about 20 years ago, mainly explained by the positive structural economic reforms Brazil experienced in this period. 60% of the studied brands chose São Paulo’s Iguatemi malls as first location, in particular Iguatemi São Paulo and JK Iguatemi. The preference over these locations relies mainly on the reputation of the Iguatemi brand and on its positioning in the market which seems to be aligned to that of these brands. From its side, Iguatemi has started actively gathering international luxury brands into the market since 15 years ago, and has intensified its action by creating iRetail, an internal company to the group representing some international luxury brands in Brazil, which have, thus, exclusive locations in its malls. The role of Iguatemi, hence, goes beyond that of a real estate company, by approaching the market with a 360° strategy. These findings contribute for academic purposes, in the extent to which they propose a so far rather unexplored topic, and for managerial purposes by describing a best practice in the shopping center sector. However, the study does not mean to be generalized. Consumers’ perspectives on Iguatemi Group were not addressed; rather, the research took a business to business approach.

Children of Matter: Luxury Value Perceptions of Millennials in Higher Education in Europe

In recent years, the luxury market has entered a period of very modest growth, which has been dubbed the ‘new normal’, where varying tourist flows, currency fluctuations, and shifted consumer tastes dictate the terms. The modern luxury consumer is a fickle mistress. Especially millennials – people born in the 1980s and 1990s – are the embodiment of this new form of demanding luxury consumer with particular tastes and values. Modern consumers, and specifically millennials, want experiences and free time, and are interested in a brand’s societal position and environmental impact. The purpose of this thesis is to investigate what the luxury value perceptions of millennials in higher education are in Europe, seeing as many of the most prominent luxury goods companies in the world originate from Europe. Perceived luxury value is herein examined from the individual’s perspective. As values and value perceptions are complex constructs, using qualitative research methods is justifiable. The data for thesis has been gathered by means of a group interview. The interview participants all study hospitality management in a private college, and each represent a different nationality. Cultural theories and research on luxury and luxury values provide the scientific foundation for this thesis, and a multidimensional luxury value model is used as a theoretical tool in sorting and analyzing the data. The results show that millennials in Europe value much more than simply modern and hard luxury. Functional, financial, individual, and social aspects are all present in perceived luxury value, but some more in a negative sense than others. Conspicuous, status-seeking consumption is mostly frowned upon, as is the consumption of luxury goods for the sake of satisfying social requisites and peer pressure. Most of the positive value perceptions are attributed to the functional dimension, as luxury products are seen to come with a promise of high quality and reliability, which justifies any price premiums. Ecological and ethical aspects of luxury are already a contemporary trend, but perceived even more as an important characteristic of luxury in the future. Most importantly, having time is fundamental. Depending on who is asked, luxury can mean anything, just as much as it can mean nothing.

Creación de marca mediante la utilización de mecanismos estratégicos comunitarios y marketing

El presente documento pretende mostrar la manera como se debe ejecutar la creación de marca mediante la utilización de mecanismos estratégicos comunitarios y marketing. El objetivo del estudio se basa en encontrar los mecanismos adecuados para el desarrollo y creación de una marca enfocándose en el análisis de las principales prácticas y modelos desarrollados en el área del marketing, examinando el impacto que la marca pueda generar en la comunidad en la cual la organización está incluida, estableciendo además un conexión directa con el modo de vida de los consumidores. Durante el desarrollo del documento se demuestra que las estrategias de marketing aplicadas por cada compañía, sirven para construir una relación estrecha y fuerte con todos los agentes involucrados en la construcción de una marca, principalmente con los clientes, ya que la forma más efectiva de establecer relaciones a largo plazo, es enfocándose exclusivamente en las necesidades desarrolladas por los consumidores, y a partir de ellas ajustar los valores (misión, visión, cultura organizacional, objetivos) de la organización. Estas estrategias comunitarias son también influenciadas por varios factores internos y externos a la organización, los cuales deben ser tenidos en cuenta al momento de elegir la estrategia adecuada. Los mecanismos estratégicos que desarrollan las empresas pueden cambiar significativamente de un sector comercial a otro, la importancia de las necesidades que se deben suplir y el consumidor final se deben evaluar desde un aspecto comunitario, entendiendo como comunidad como el conjunto de grupos sociales y comerciales que tienen relación directa o indirecta con la empresa. Con la investigación llevada a cabo acerca de las estrategias que deben aplicar las compañías se concluye que las marcas reflejan la imagen que la empresa transmite a sus compradores estableciendo una relación emocional entre los consumidores y la marca desarrollada, además de estimular la oferta y demanda del negocio. Se espera que por medio de la obtención de información teórica y conceptual, se pueda aclarar la manera como se puede desarrollar la creación de una marca por medio de la correcta utilización de mecanismos estratégicos comunitarios y de marketing.

The North in the Old English Orosius : A Geographical Narrative in Context

This doctoral dissertation examines the description of the North as it appears in the Old English Orosius (OE Or.) in the form of the travel accounts by Ohthere and Wulfstan and a catalogue of peoples of Germania. The description is discussed in the context of ancient and early medieval textual and cartographic descriptions of the North, with a special emphasis on Anglo-Saxon sources and the intellectual context of the reign of King Alfred (871-899). This is the first time that these sources, a multidisciplinary approach and secondary literature, also from Scandinavia and Finland, have been brought together. The discussion is source-based, and archaeological theories and geographical ideas are used to support the primary evidence. This study belongs to the disciplines of early medieval literature and (cultural) history, Anglo-Saxon studies, English philology, and historical geography. The OE Or. was probably part of Alfred s educational campaign, which conveyed royal ideology to the contemporary elite. The accounts and catalogue are original interpolations which represent a unique historical source for the Viking Age. They contain unparalleled information about peoples and places in Fennoscandia and the southern Baltic and sailing voyages to the White Sea, the Danish lands, and the Lower Vistula. The historical-philological analysis reveals an emphasis on wealth and property, rank, luxury goods, settlement patterns, and territorial divisions. Trade is strongly implied by the mentions of central places and northern products, such as walrus ivory. The references to such peoples as the Finnas, the Cwenas, and the Beormas appear in connection with information about geography and subsistence in the far North. Many of the topics in the accounts relate to Anglo-Saxon aristocratic culture and interests. The accounts focus on the areas associated with the Northmen, the Danes and the Este. These areas resonated in the Anglo-Saxon geographical imagination: they were curious about the northern margin of the world, their own continental ancestry and the geography of their homeland of Angeln, and they had an interest in the Goths and their connection with the southern Baltic in mythogeography. The non-judgemental representation of the North as generally peaceful and relatively normal place is related to Alfredian and Orosian ideas about the unity and spreading of Christendom, and to desires for unity among the Germani and for peace with the Vikings, who were settling in England. These intellectual contexts reflect the innovative and organizational forces of Alfred s reign. The description of the North in the OE Or. can be located in the context of the Anglo-Saxon worldview and geographical mindset. It mirrors the geographical curiosity expressed in other Anglo-Saxon sources, such as the poem Widsith and the Anglo-Saxon mappa mundi. The northern section of this early eleventh-century world map is analyzed in detail here for the first time. It is suggested that the section depicts the North Atlantic and the Scandinavian Peninsula. The survey of ancient and early medieval sources provides a comparative context for the OE Or. In this material, produced by such authors as Strabo, Pliny, Tacitus, Jordanes, and Rimbert, the significance of the North was related to the search for and definition of the northern edge of the world, universal accounts of the world, the northern homeland in the origin stories of the gentes, and Carolingian expansion and missionary activity. These frameworks were transmitted to Anglo-Saxon literary culture, where the North occurs in the context of the definition of Britain s place in the world.

New Perspectives on the Roman Coinage on the Eastern Limes in the Late Republican and Roman Imperial Period

The Ph.D. thesis discusses the monetary development in Roman Syria and Judaea in the Late Republican and the Early Imperial Period, from a numismatic, archaeological and historical point of view. In effect, the work focuses on the 1st century B.C. to the 1st century A.D., that is, the assumed time of introduction of Roman denarii to the region. The work benefits from the silver coin hoards of Khirbet Qumran recently published by the author. Though discovered as early as 1955 at Qumran, where the famous Dead Sea Scrolls had been found prior to that in 1947, most hoards remained unpublished until 2007. A second important source utilized is the so-called Tax Law from Palmyra in Syria. Its significance lies in the fact that Palmyra used to be one of the most important cities on the Silk Road, along which luxury goods were transported into the Roman Empire and Rome itself. During the research conducted, studies of the provincial coinage of Judaea (A.D. 6-66) shed new light on the authority of the Roman governors in economic and monetary matters in eastern Mediterranean regions. Furthermore, a new suggestion as to the length of the mandate period of Pontius Pilate is made. The extent of Emperor Augustus monetary reforms as well as the military history of Judaea are discussed in the light of new analytical studies, which show that the production of Roman base metal coins appears to have been a highly controlled process, contrary to popular opinion. Statistical calculations related to the coin alloy revealed striking similarities with Roman and other local metalwork found in Israel; a fact previously unknown. Results indicate that both Roman and local metalwork consisted of outstandingly systematized practises and may have exploited the same metal sources. Information: Kenneth Lönnqvist (*25.7.1962) has studied at the University of Helsinki since 1981. Furthermore, Lönnqvist has lived in the Mediterranean countries and the Near East, and made research there at various scientific institutions and universities for ca. 7 years. Contact and sales of thesis: kenneth.lonnqvist@helsinki.fi

Kuluttaminen ja ylhäisaatelin elämäntapa 1700-luvun Ruotsissa

Consumption and the lifestyle of the high nobility in eighteenth-century Sweden This monograph is an analysis of the lifestyle, consumption and private finances of the Swedish high nobility during the eighteenth century (ca 1730 1795). It describes the lifestyle of one noble house, the House of Fersen. The Fersen family represents the leading political, economic and cultural elite in eighteenth-century Sweden. The analysis concentrates on Count Carl von Fersen (1716 1786) and his brother Count Axel von Fersen (1719 1794), their spouses and children. Carl von Fersen was a courtier whilst Axel von Fersen was an officer and one of the leaders of the Francophile Hat party. His son, Axel von Fersen the younger, was in his time an officer and a favourite of Gustavus III, King of Sweden, as well as a favourite and trusted confidant of Marie-Antoinette, Queen of France. The research is based upon the Fersen family s private archives, the Counts personal account books, probate inventories, letters and diaries. The study discusses the Fersens landed property and investments in ironworks and manufacturing, the indebtedness of the high nobility, high offices in civil administration, the militia and at court, as well as marriages as the foundations of noble wealth and power. It analyses the Count von Fersens revenue and expenditure, their career options and personal expenses, their involvement in the building and decorating of palaces, and the servants in service of the Fersen family as well as the ideal nobleman and his consumption. Central themes are inheritance, children s education, marriages and ladies preparing their trousseaux, the nobility ordering luxury goods from France, the consumption of Counts and Countesses before and after marrying and having children, the pleasures of a noble life as well as the criticism of luxury and sumptuousness. The study contributes to the large body of research on consumption and nobility in the eighteenth century by connecting the lifestyle, consumption and private finances of the Swedish high nobility to their European context. Key words: nobility, Fersen, lifestyle, consumption, private finances, Sweden, eighteenth century

Reference groups and product line decisions: An experimental investigation of limited editions and product proliferation

Some luxury goods manufacturers offer limited editions of their products, whereas some others market multiple product lines. Researchers have found that reference groups shape consumer evaluations of these product categories. Yet little empirical research has examined how reference groups affect the product line decisions of firms. Indeed, in a field setting it is quite a challenge to isolate reference group effects from contextual effects and correlated effects. In this paper, we propose a parsimonious model that allows us to study how reference groups influence firm behavior and that lends itself to experimental analysis. With the aid of the model we investigate the behavior of consumers in a laboratory setting where we can focus on the reference group effects after controlling for the contextual and correlated effects. The experimental results show that in the presence of strong reference group effects, limited editions and multiple products can help improve firms' profits. Furthermore, the trends in the purchase decisions of our participants point to the possibility that they are capable of introspecting close to two steps of thinking at the outset of the game and then learning through reinforcement mechanisms. © 2010 INFORMS.

Moralising Gold Supply Chains

During the late twentieth century the supply chains for gold were considered by the majority of consumers (when they were considered at all) to be driven by simple commercial imperatives. That notion was shattered during the first decade of the twenty-first century by the appearance of ethical campaigns, led by advocates determined to present major players in the gold industry as morally reprehensible. The ‘No Dirty Gold’ campaign sought to shift the purchasing of gold onto a moral register, in order to challenge the activities of large mining corporations. It was followed by the Fairtrade Foundation’s ‘Fairtrade Gold’ initiative, which had aspirations to support subsistence mining communities at the expense of big business. By directly targeting a luxury material and playing on its inherent social ambiguities, campaigners hoped to thoroughly moralise the purchasing of gold objects. Dr Oakley’s presentation will examine the forces behind this developing social phenomenon, describe the trajectories of a selection of major campaigns, and consider the extent to which these have impacted on public attitudes, gold miners and the actions of consumers, producers and retailers of luxury goods.