The terms of the number of companies, but

The luxury industry is
relatively small in terms of the number of companies, but punches far above its
weight both in terms of sales and more importantly, influence. The best design,
the best materials, the best merchandising, customer service and the best
packaging occur in the luxury industry, and hence the luxury brands frequently
lead the way for the rest of the marketing world. The role of fashion marketing
of luxury brands is an area in need of continuous developments, theories,
conceptual models and knowledge in light of the trends towards global luxury
and fashion markets. Recently, a
decrease in sales related to a global economic downturn drives luxury
businesses to change. Now they can no longer depend on solely on their brand
symbol but focus on brand legacy, quality, esthetic value, and trustworthy
customers’ relationships in order to succeed. 
A key element to luxury industry becomes providing values to customers
in every way possible and in order to be more interactive with their customers,
luxury brands are now tilting their eyes towards social media.

On the other hand, social media
continues to lead in the success of every business around the world. As some of
the luxury fashion brands (retail) still wants to stick to the traditional
marketing method, are having a hard time to cope up with this digital world.
Unlike other smaller (high-street or mass market) brands, the luxury brands
refuse to use social media for marketing purpose. They prefer to be somewhere
between the traditional and digital marketing where they use social media only
to interact with their customers and share the latest news/trends. This study
is about how the rise of digital marketing has affected the luxury fashion
industry and how these brands are embracing the internet in terms of engaging
with their customers with the help of social media.

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Although technology may have
revolutionised the retail sector, but the next question facing luxury is how to
effectively harness tech innovations to connect to customers, without isolating
them.

This research will mainly
discuss about the five characteristics of social media marketing efforts.

Kim
and Ko’s (2012) framework has been used for understanding the insight of social
media marketing efforts. According to Kim and Ko (2012), social media
marketing efforts for luxury fashion are comprised of 5 main dimensions which
are trendiness, customisation, interaction, entertainment and word of mouth.
This study will take the research further and add 2 more dimensions to
contribute to the body of knowledge. Furthermore, a structural equation
model has also been developed based on a survey of 100 luxury brand consumers
to support the research hypotheses.

This research aims to clarify
how social media marketing activities work in the luxury fashion industry and
how it can help the brands to increase customer satisfaction and positive word
of mouth.