The Feedback Effect of Co-Branding Collaborations on Perceived Brand Luxury and Attitude toward Luxury Fashion Brands. Repercussions of the “Fast-Fashion Co-Branding” Trend.

Details

Supervisors

Bartier, Anne-Laure

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

The luxury market has grown extensively, and middle-market consumers are buying up. Thus, luxury managers are widening their brand reach and making their labels more affordable. The popular trend of co-branding collaborations between luxury houses and fast-fashion brands can be viewed as a strategic means of providing luxury for the masses. Correspondingly, this master’s thesis studies the repercussions of adopting a fast-fashion co-branding collaboration for the luxury designer brand. Since luxury managers can boost turnover by targeting the masses, but worry about diluting their luxury brand name, the study at hand aims to facilitate decision-making by analyzing the feedback effect of the adoption of fast-fashion co-branding collaborations on luxury consumers’ attitude and perceived luxury with regard to the luxury fashion brands. The results demonstrate that a feedback effect on luxury fashion brands does exist. This effect is dependent on the fit between the co-brand and the parent luxury brand, and is moderated by consumers’ involvement in luxury fashion and their experience with the core luxury brand. The introduction of a fast-fashion co-branding collaboration is risky for luxury fashion brands, as it dilutes the luxury image of the brand, and managers risk harming their existing consumers’ attitude for short-term sales and mid-class consumers who purchase their label at a low price. A more viable strategy for luxury fashion brands is to associate with other luxury brands in order to create a well-fitting co-brand, as this strategy maintains – and even strengthens – consumers’ attitude toward the brand as well as the luxurious image of the brand.