The luxury industry isrelatively small in terms of the number of companies, but punches far above itsweight both in terms of sales and more importantly, influence. The best design,the best materials, the best merchandising, customer service and the bestpackaging occur in the luxury industry, and hence the luxury brands frequentlylead the way for the rest of the marketing world. The role of fashion marketingof luxury brands is an area in need of continuous developments, theories,conceptual models and knowledge in light of the trends towards global luxuryand fashion markets. Recently, adecrease in sales related to a global economic downturn drives luxurybusinesses to change. Now they can no longer depend on solely on their brandsymbol but focus on brand legacy, quality, esthetic value, and trustworthycustomers’ relationships in order to succeed. A key element to luxury industry becomes providing values to customersin 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 mediacontinues to lead in the success of every business around the world.
As some ofthe luxury fashion brands (retail) still wants to stick to the traditionalmarketing method, are having a hard time to cope up with this digital world.Unlike other smaller (high-street or mass market) brands, the luxury brandsrefuse to use social media for marketing purpose. They prefer to be somewherebetween the traditional and digital marketing where they use social media onlyto interact with their customers and share the latest news/trends. This studyis about how the rise of digital marketing has affected the luxury fashionindustry and how these brands are embracing the internet in terms of engagingwith their customers with the help of social media.Although technology may haverevolutionised the retail sector, but the next question facing luxury is how toeffectively harness tech innovations to connect to customers, without isolatingthem. This research will mainlydiscuss about the five characteristics of social media marketing efforts.
Kimand Ko’s (2012) framework has been used for understanding the insight of socialmedia marketing efforts. According to Kim and Ko (2012), social mediamarketing efforts for luxury fashion are comprised of 5 main dimensions whichare trendiness, customisation, interaction, entertainment and word of mouth.This study will take the research further and add 2 more dimensions tocontribute to the body of knowledge. Furthermore, a structural equationmodel has also been developed based on a survey of 100 luxury brand consumersto support the research hypotheses.This research aims to clarifyhow social media marketing activities work in the luxury fashion industry andhow it can help the brands to increase customer satisfaction and positive wordof mouth.