From High Street to Social Street: Has Facebook ...

Journal of Business Management & Social Sciences Research (JBM&SSR) Volume 3, No.12, December 2014

ISSN No: 2319-5614

From High Street to Social Street: Has Facebook Shaped Luxury Brands In India? Priyanka. P.V, Research Scholar, Jain University, Center for Management Studies, Assistant Professor, Jyoti Nivas College (Autonomous), Bangalore, India Dr. Padma Srinivasan, Professor, Christ University, Bangalore, India

Abstract Companies are increasingly using social media and other technologies to broaden the approach to idea generation and innovation, both within and outside the walls of the organization. It is doubly challenging when an organization tries to adopt Facebook as it’s all about transparency and individual empowerment which is not always aligned with the enterprise culture. The customer’s voice exposed by social media forces organizations to change and become more open and transparent in nature. Mastering the Facebook era has become the new competitive advantage for businesses. Facebook provides a complete description of social times and lends practical guidance on the way to leverage social tools for businesses. As the firm decides where to invest, it is important to consider when and where the target audience of a particular brand is spending their time. This research paper will address the following questions: a. Does Facebook enhance or re-enforce self-image or aid customers in their socialization? b. How are customers engaging on Facebook with brands and influencing the word of mouth strategy? The study will focus on the Indian market. The brands considered for the study will be considered are Louis Vuitton, Fendi, Burberry, Prada and Coach. These brands are going to be studied in depth and their success rate will be measured after using Facebook as a tool to spread a positive word of mouth to their target audience. The customers brand perception and their participation in the brand is also considered for the study. Keywords: Facebook, Retail Industry In India, Niche Market, Social Media Marketing, Marketing Strategy online marketplace continue to shift with the exponential Introduction growth of social media platforms. Consumer behaviors According ICRIER (Indian Council for Research and and expectations have changed. International Economic Relations) (2012) estimates, retail accounts for over 10 per cent of India’s GDP. The modern consumer demands more from brands — Fuelled by increasing customer base, rising disposable especially luxury brands—than what they have traditionincome, changing lifestyles and growing absorptive ally delivered for the past fifty years. The days of captive power of the domestic market, organized retail sector is media audiences are coming to an end. As social media likely to grow at a much faster pace of 45-50 per cent per establishes itself as the premiere venue for information annum. The retail sector in India is certainly a benefiexchange, the conventional methods of messaging faciary of the growth of the Indian economy, but it is also vored by many organizations will become decreasingly a key cause and catalyst of that growth, and will remain relevant. Although luxury brands face unique hurdles, so for at least 15 years. they also stand to reap significant rewards by embracing social media. Shalini Gera, GM, Ferns N Petals - e-commerce, says, “Online retail offers global reach for both buyers and Social media is still a relatively uncharted frontier for receivers, which is absent in the case of a fixed physical luxury brands, and the early adopters will have a large store. It also provides round-the-clock reach and hence advantage moving forward. Success will be dependent there are no market timing restrictions." Despite all the on developing strategies that address the new behaviors advantages, when it comes to credibility, it is no secret of the modern consumer online while appreciating that that Indian consumers still prefer a touch-and-feel expeluxury brands in social media must remain just that, luxrience when it comes to shopping. Some analysts, howurious. ever, believe that it is only a matter of time before Indians begin trusting the online shopping space.

1.1 India’s Retail Landscape More than 75 percent of wealthy Internet users actively using social media, the question is no longer if luxury brands should utilize the web as a luxury market, but rather a question of how to do so. The dynamics of the

www.borjournals.com

The Indian Retail Landscape is undergoing a transformation with the emergence of internet and digital technologies. This has created new shopping channels and a more evolved and demanding customer, whose prefer-

© The Author © Blue Ocean Research Journals 2012 Open Access Journals Blue Ocean Research Journals 53


ences for channels is driven by the occasion, his current situation and current needs. In addition, India today presents certain inherent challenges and opportunities due to the large and diverse socioeconomic population mix, expensive real estate rentals and low technology penetration and usage. This has forced retailers across channels to go back to the drawing board and redefine their business models, to increase revenue and to optimize cost, thereby gaining a larger wallet share of the discerning Indian customer. Social media is not just for promoting and evangelizing. Platforms like Facebook and Twitter must be considered a core part of any retailer’s (multichannel and online) sales and marketing strategy. People are spending around 25% of the total time spent online on social networking sites. In India, Facebook alone accounts for 22% of the total time spent online which is the highest of all websites (Source: Avendus). In addition to pages, accounts and events, meticulous retailers read consumer discussions on social media and immediately incorporate it into content on their websites. Websites with detailed product reviews, ratings and customer testimonials foster the credibility of the product as well as of the retailer.

1.2 The Luxury Dilemma While social media has empowered consumers with deeper insight, it has also had an unintended consequence for luxury brands. In the past, communications from luxury providers to consumers were provided through tightly controlled traditional media channels (print, television, direct marketing, etc.) to influence the conversations of the elite. For the most part, only those with the means to purchase luxury goods had influence on the desirability of particular goods and services. Simply put, luxury consumers made purchase decisions based on other luxury consumers. Social media has opened doors to give more consumers access to both information and products previously unavailable to them. With respect to luxury brands, what is desirable or undesirable is no longer the sole purview of the traditional luxury audience. While portraying that image remains crucial in social media, the reality is that even non-luxury consumers can now have an impact on the success or failure of luxury brands. When providing their “two cents” online, a suburban teenager in Orlando is on equal footing with a socialite from Paris. Over time, a crowd of relative unknowns can create a tipping point for a product’s success or, if they so choose, failure.

www.borjournals.com

ISSN No: 2319-5614

Many of the qualities that luxury brands are built on such as tight quality control and immersive shopping experiences, may seem contrary to the nature of social media communications. Certainly, the use of social media inherently trades some control for increased engagement. The reality is that discussions about brands are happening already and will continue to flourish with or without the direction of the brands themselves. 1.3 The Luxury Difference Luxury brands distinguish themselves through superior quality, from the actual product itself to the in store experience to the cachet of the brand. Purchasing a luxury good is asking to making an investment. This is why luxury brands take pride in every step of the process, from design conception to production. Social media can help demonstrate to consumers the level of craftsmanship that goes into production and can serve as a powerful way to showcase the luxury difference. Impactful, turn-key solutions such as providing vintage pictures or linking to old newspaper clippings help consumers appreciate the significance and history of what they are buying. Luxury brands face a choice: influence the conversations themselves or be drawn into the fray through less desirable circumstances. Blogs and platforms like Gilt have, for better or worse, opened up access to luxury to a larger audience. Luxury brands can no longer afford to differentiate purely on higher price points and claims of quality. Brands need to prove their worth online in other ways. A luxury brand requires stringent attention to the qualities that make the brand what it is. To maintain that level of quality online requires a commitment of both human and financial resources. Corners cannot be cut just because it is the internet. Cheapening a brand’s image online has the same negative effects as it would in the real world. A semi-functional website; a dead social media profile; an inadvertently tacky sponsorship—can all factor into a brand’s downfall. Due to the fickle nature of brand equity, any social media marketing done without a well-researched approach and full scale commitment is highly risky. 1.4 Luxury Market in India The connoisseurs of luxury have arrived in this part of the world with a bang and the likes of Gucci, Venini, Louis Vuitton, Prada and Missoni are making a beeline for hawking their luxury products to the highflying, well-heeled, and globally evolved nouveau-rich Indians of the post-reform era.



Though the domestic luxury market still commands only less than a percent of the global luxury pie, experts believe that the country has a huge potential in coming years as it develops and stabilizes its retail market further.

ISSN No: 2319-5614

itors that are important to the continued vitality of the technology industry. Regulators must ensure that the rules promote privacy while still providing the flexibility for companies to innovate.

1.7 The Social Media Reality The fragmented retail industry is valued around $350 billion, with forecasts of it nearly doubling by 2015. Currently, only three percent of the retail market is organized, a tiny portion compared to other large economies There’s a chapter called ‘India: The Next China'. In the coming six-seven years China will become the single biggest luxury market; luxury brands didn't expect that China will become such a big market. A lot of luxury brands think that India can also deliver the same results. So they are keen on entering this market even faster than they did in China. 1.5 Technology Enabled Creativity Technology is making luxury more accessible and helping consumers who might be hesitant to enter a store experience luxury products in the comfort of their homes. Luxury companies are using technology to target Millennials16 who enjoy using gadgets and technology. Technology usage is all about increasing customer touch points and providing a unique experience. The following technology innovations adopted by luxury companies are worth considering: a) Augmented reality is enabling luxury brands to introduce new product lines and promote events with nominal costs. b) In-store iPad app to supplement the sales associate. c) Predictive analytics can be used to identify patterns and profiles of the most profitable customers.

1.6 The Converged Lifestyle Today, consumers are talking about how technology enables their lifestyle. From buying goods online to keeping up with friends on social networks, consumers seem to be more and more reliant on a range of technologies that perform important – although often overlapping – tasks. The speed of consumer adoption also seems to be on the rise. In just 7 years, Facebook signed up more than 800 million active users; and in just 14 months Apple sold more than 25 million iPad® tablets. But with rapid adoption comes rapid change: business models are quickly evolving for a range of businesses including advertisers, retailers, content providers, mobile operators and banks. Many traditional businesses are facing significant challenges adapting to this new world. And while businesses will need to evolve to meet the changing demands of consumers, so too will regulators. New business models often spin off supportive ecosystems and upstart compet-

www.borjournals.com

It’s not just hype: most people are likely to be using social networks to connect with friends, family and brands. According to a survey by KPMG (2013), Eighty-six percent of the consumers surveyed said that they actively engage in social networking on a regular basis - with nearly half (49 percent) of them spending at least one hour on online social networking every day. It should come as no surprise that three-quarters of respondents prefer to access social networks from their PC, which may indicate an increased prevalence towards ‘checking in’ on their friends and family while at work or school. However, tablets have made significant inroads here: already 7 percent of consumers said they preferred to conduct their social networking activities on a tablet, versus 16 percent who gain access through their mobiles. While display ads and flyers are still an important part of the retail promotional mix, mobile innovations are also rapidly capturing the imagination – and attention – of consumers. Retailers are also investing more in locationbased marketing, so that coupons can be sent to a consumer’s mobile device when they are in the proximity of the retailer’s store.

2. Objectives of the Study The objectives of the study are: a. To study the awareness of customers about luxury brands and its performance in the market through social media websites. b. To give an insight on how brand perception is affected by the exposure of luxury brands through social media marketing.

3.

Literature Review

Facebook is a part of the fabric of daily life, but luxury brands are not making the most of it. While most of the major brands now have a social media presence, social media marketing in general seems curiously out of the step with how consumers actually function in this space. The following are a few studies being conducted in luxury retail. These studies are being highlighted as it gives a scenario of luxury retail and how they are adopting to social media as a tool for marketing their product and getting awareness with regard to the same. Cognizant ( April, 2012), In the research paper titled, “Luxury Retail’s Evolving Landscape”, research highlights that with the advent of social media, the rise of emerging markets and a refined and informed generation of millennial consumers, the meaning of luxury is blurring. It is no longer sufficient for a product to exhibit



rarity. Luxury products needs to exhibit uniqueness coupled with product superiority and originality, providing value for money in today’s frugality-minded reset economy. This paper focuses on how the movement of the industry’s target segment from classes to masses is affecting the luxury market and the imperatives for retailers that wish to maintain or gain market share. Karan Sharma, Ashish Bhinde, Sanchit Suneja, Anshul Agarwal, Kanchan Mishra (February 2011), In the research paper titled, “India Goes Digital – A Bird Eye View of the Indian Digital Consumer Industry”, Today, there are over 2 billion Internet users across the world, spending over 23 hours a month online. In the US, the Internet accounts for one-third of all media consumption. 6% of the world’s retail sales and 14% of advertising are now over the Internet. In the UK, the Internet is the single largest advertising channel. There are an estimated 80 million Internet users in India today, which represents a penetration of 7% of the population (17% of urban population). This is significantly lower than global benchmarks (average 31% of total population). This research paper gives an insight into the digital industry in comparison to the performance of this industry across the globe. KPMG (December, 2011), In the research paper titled, “The Converged Lifestyle”, Convergence is not new – but the way consumers interact with technology is constantly changing. It is believed that the world is in a new phase of convergence: the converged lifestyle. Get ready for some fast technology and even faster consumer adoption. The survey also highlights some key considerations that seem to drive consumer purchasing decisions. For one, there is a growing level of consumer concern regarding privacy and security, particularly when using new services or technologies. Indeed, the virtue of ‘trust’ may soon become one of the biggest competitive advantages for products and services across almost all industry groups. But the results also show that consumers are fixated on price, with many saying that it trumps all other considerations when selecting mobile operators, television options and internet service providers. It is believed that these findings and the accompanying analysis demonstrates a continuing – but accelerated – trend towards greater integration of devices within the consumer lifestyle and a rapid evolution of business models for those that enable them. Jean Marc Bellaiche, Antonella Mei-Pochtler and Dorit Hanish (December, 2010), In the research paper titled, “The New World of Luxury – Caught between growing momentum and lasting change”, this research paper emphasizes on the way the luxury market has slowed down in terms of performance. Companies remain cautious about the growth in this market. It was a

www.borjournals.com

ISSN No: 2319-5614

stage where there were several changes happening in the market including changes in the consumer behavior because of the advent of technology. In this new world of luxury, being iconic and exclusive is not enough to make a brand grow. To respond to these changes, luxury market needs to resolve conflicting priorities in every major aspect of their business: target markets, consumer segment, product portfolio and distribution channels.

4. Research Methodology 4.1 Data Collection: The data being collected for this research paper is a combination of both primary and secondary data 4.2 Method for Data Collection Primary Data: Data will be collected through questionnaire method through Facebook. Secondary Data: Data will be collected through secondary sources like books, websites and journals. 4.3 Sample: The sample size for this research paper is 40. It will comprise of respondents who are between the age group of 25- 40 years from urban India. 4.4 Sample Technique: The technique used for collecting the sample is convenience sampling which is a non-probability sampling technique.

5. Data Analysis and Interpretation 5.1. Gender Table:5.1 Male

23

58%

Female

17

43%

Chart 5.1

Analysis: It can be analyzed that 58% who purchase luxury products through Facebook are male and 43% are female.



Interpretation : It can be interpreted that a majority of 58% who purchase luxury products through Facebook are male.

ISSN No: 2319-5614

Chart 5.3

5.2 Age Table: 5.2 Below 20 years

3

8%

21 years to 25 years

4

10%


5

13%


9

23%

40 years and above

19

48%

Analysis - From the above figure, it can be analyzed that a majority of 53% are having an income of above Rs.50,000/- followed by 20% who fall under the income category of Rs.35001-50,000, followed by 15% who fall under the category of < Rs.12000, Interpretation: It can be interpreted that a maximum of 53% are from the income category Rs.50,000/- and above.

Chart: 5.2

5.4: Educational Qualification Table 5.4

Analysis : It can be analyzed that a majority of 48% who purchase luxury brands through social media are above the age of 40 years, followed by 23% who are between the age group of 31 years to 40 years, 13% are between the age of 26 - 30 years, 10% are between the age group of 21-25 years and 8% are below 20 years of age.

Upto 12th Std

4

10%

Graduate

9

23%

Post Graduate

27

68%

Other

0

0%

Chart 5.4

Interpretation : It can be analyzed that a majority of 48% who purchase luxury brands through social media are above the age of 40 years. 5.3 Income Table 5.3 < Rs.12000

6

15%

Rs.12001-20,000

2

5%

Rs.20,001-35000

3

8%

Rs.35001- 50,000

8

20%

Rs.50,000 and above

21

53%

Analysis : From the above figure, it can be analyzed that a maximum of 68% are Post graduates followed by 23% who are graduates, 10% up to 10th Standard and 0% other qualifications. Interpretation: It can be interpreted that a maximum of 68% are post graduates who purchase luxury brands through Facebook.

www.borjournals.com



5.5. Occupation

ISSN No: 2319-5614

5.7 Regular Buyer of Branded Products

Table : 5.5 Student

6

15%

Self-Employed

7

18%

Working Professional

25

63%

Homemaker

2

5%

Other

0

0%

Table: 5.7 Yes

29

73%

No

11

28%

Chart 5.7

Chart 5.5

Analysis : From the above figure, it can be analyzed that a maximum of 25% are working professionals, followed by 7% who are self employed , 6% are students, 2% are homemakers and 0% fall in the others category Interpretation : It can be interpreted that a maximum of 25% are working professionals who buy branded products through social media.

Analysis : It can be analyzed that a maximum of 73% are regular buyers of branded products followed by 11% who are not regular in purchase of branded items. Interpretation : It can be interpreted that a maximum of 73% are regular buyers of branded products.

5.8 Change of Brand in the Past 2 Years Table: 5.8

5.6 Marital Status Table: 5.6 Single

11

28%

Married

29

73%

Yes

26

65%

No

14

35%

Chart 5.8 Chart: 5.6

Analysis: From the above figure, it can be analyzed that a maximum of 29% who buy branded products through Facebook are married while 11% are single.

Analysis: It can be analyzed from the above figure that a maximum of 26% are brand switchers for the past 2 years, followed by 14% who have maintained their brand loyalty to the brand purchased by the consumers.

Interpretation: It can be interpreted that a maximum of 29% who buy branded luxury products through Facebook are married

Interpretation: It can be interpreted that a maximum of 65% are brand switchers. They are not loyal to the brand purchased by them

www.borjournals.com



5.9 Brand Purchased in Recent Times Table: 5.9 Louis Vuitton

9

23%

Fendi

7

18%

Burberry

12

30%

Prada

7

18%

Coach

5

13%

Chart: 5.9

ISSN No: 2319-5614

Interpretation : It can be interpreted that a maximum of 65% visit Facebook several times in a day.

5.11: The Brands Followed on a Regular Basis Table: 5.11 Louis Vuitton

11

28%

Fendi

7

18%

Burberry

11

28%

Prada

7

18%

Coach

4

10%

Analysis: It can be analyzed from the above table, that a majority of 28% follow Louis Vuitton and Burberry, followed by 7% for Fendi and Prada and 10% for Coach nterpretation : It can be interpreted that a maximum of 28% prefer Louis Vuitton and Burberry and they follow these brands regularly on Facebook. Analysis: It can be analyzed from the above figure that a maximum of 12% purchase Burberry, followed by 9% for Louis Vuitton, 7% for Fendi and Prada and 5% for Coach. Interpretation: It can be interpreted that a maximum of 12% purchase merchandise of Burberry 5.10: Frequent Visits to Facebook Table: 5.10 Several times a day

26

65%

Frequently

8

20%

Weekly

3

8%

Monthly

3

8%

Chart: 5.10

Analysis: It can be analyzed from the above graph that a majority of 65% visit Facebook several times a day, followed by 20% who visit frequently, 8% weekly and monthly.

www.borjournals.com



5.12. Purchase through Advertising of a Brand on Facebook Table: 5.12 Yes No

27

68%

13

33%

Luxury

ISSN No: 2319-5614

Table: 5.14 Yes

24

60%

No

16

40%

Chart: 5.14 Chart: 5.12

Analysis: It can be analyzed that a majority of 68% purchase through advertising of a luxury brand on Facebook, followed by 33% who do not do the same. Interpretation: It can be interpreted that a majority of 68% purchase through advertising of a luxury brand on Facebook.

Analysis: It can be analyzed that a majority of 60% spread message about the brand on Facebook to their networks while 40% do not spread message using Facebook as a social media tool to their peers. Interpretation : It can be interpreted that a majority of 60% use Facebook to spread message to their network.

5.13. Purchase of Brands Through Social Media Reviews

5.15 Attribute of a Brand That Makes a Consumer Purchase a Product ( 1- Strongly Disagree, 2 - Disagree, 3- Neutral, 4Agree, 5 - Strongly Agree)

Table: 5.13 Yes

Attribute (In %)

1

2

3

4

5

Design and Superior Quality Love the Brand

8

3

50

20

20

0

13

24

47

15

Make me look stylish Prestige

13

5

29

26

26

5

13

39

21

21

Fashion Statement

5

16

39

29

13

Respect from peers

5

16

39

29

13

Post Purchase Services

5

16

29

21

29

No

21

53%

19

48%

Chart: 5.13

Analysis : It can be analyzed that a majority of 53% purchase brands through social media reviews followed by 48% who do purchase brands through social media reviews. Interpretation: It can be interpreted that a majority of 53% purchase brands through social media reviews. 5.14. Spread Message about the Brand Through Facebook To The Individual’s Network

www.borjournals.com

Interpretation : It can be interpreted that a maximum of 50% of the respondents are neutral on the design of superior quality, 47% strongly agree that they love the brand, 29% are of the opinion that it makes them look



stylish, 39% are neutral that the brand is a prestige for them, 32% are of the opinion that the luxury brand makes a fashion statement, 39% are neutral that they get respect from their peers and 29% are neutral and strongly agree that these brands provide excellent post purchase services. 5.16 Reason for Purchasing a Luxury Brand ( 1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree) Attribute (In %) Reward for Hard work Happiness Makes me look like a successful figure Prestige

1

2

3

4

5

8

8

40

23

23

3 5

10 10

20 25

48 30

30 30

10

13

28

35

15

More Respect from Peers Fashion Statement

13

10

12

43

15

3

5

23

30

40

Interpretation: It can be interpreted that a maximum of 40% are neutral that the brand can be purchased as a reward of their hardwork, 48% strongly agree that it makes them happy to own the brand, 30% strongly agree that it makes them look successful in the society, 35% strongly agree that it is a prestige to own the brand, 43% agree that they get more respect from the peers and 40% strongly agree that they make a fashion statement. 5.17.Preference of Individual Brand ( 1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree) Attribute (In %) Design Love for the brand Stylish Brand manufacturers superior products Provides items and

1

2

3

4

5

5 0

8 10

35 30

25 38

28 23

0 8

20 3

35 23

15 30

30 38

8

5

33

34

23

www.borjournals.com

ISSN No: 2319-5614

services that match my style Interpretation : It can be interpreted that a maximum of 35% are of the opinion that the design of the brand is unique, 38% feel that they love the brand, 38% strongly agree that the brand manufactures superior quality products, 35% are neutral that the brand makes them look stylish and 34% strongly agree that the brand provides them items and services that match their style. 5.18. Facebook and Luxury Branding ( 1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree) Attribute (In %) Content is interesting Exciting to purchase a product through Facebook

1

2

3

4

5

3

3

53

30

13

13

15

21

18

25

Fun to collect information on Luxury brands in Facebook Access to brands and information anytime, anywhere Provide information on new products Customer voices opinion Exchange of opinion on luxury ideas

8

3

35

38

18

0

5

28

45

23

0

8

30

43

20

0

8

30

43

20

0

5

28

25

43

Interpretation : 53% are neutral that the content on Facebook for the brand they are following is interesting, 25% strongly agree that it is exciting to purchase a luxury product through Facebook, 38% feel that it is fun to collect information on luxury brands through Facebook, 45% are of the opinion that they have access to the brands and information anywhere and anytime, 30% feel they provide information on new products and services, 43% agree that customer sees Facebook as a medium to voice out their opinion and 43% strongly agree that there is an exchange of opinion on the luxury brands with other customers on Facebook.



6.Summary of Findings 1. It can be analyzed that 58% who purchase luxury products through Facebook are male and 43% are female. b) It can be analyzed that a majority of 48% who purchase luxury brands through social media are above the age of 40 years, followed by 23% who are between the age group of 31 years to 40 years, 13% are between the age of 26 - 30 years, 10% are between the age group of 21-25 years and 8% are below 20 years of age. c) It can be analyzed that a majority of 53% are having an income of above Rs.50,000/- followed by 20% who fall under the income category of Rs.3500150,000, followed by 15% who fall under the category of < Rs.12000,. d) It can be analyzed that a maximum of 68% are Post graduates followed by 23% who are graduates, 10% up to 10th Standard and 0% other qualifications. e) It can be analyzed that a maximum of 25% are working professionals, followed by 7% who are self employed , 6% are students, 2% are homemakers and 0% fall in the others category. f) 6.It can be analyzed that a maximum of 29% who buy branded products through Facebook are married while 11% are single. g) It can be analyzed that a maximum of 73% are regular buyers of branded products followed by 11% who are not regular in purchase of branded items. h) It can be analyzed from the above figure that a maximum of 26% are brand switchers for the past 2 years, followed by 14% who have maintained their brand loyalty to the brand purchased by the consumers. i) It can be analyzed from the above figure that a maximum of 12% purchase Burberry, followed by 9% for Louis Vuitton, 7% for Fendi and Prada and 5% for Coach j) It can be analyzed from the above graph that a majority of 65% visit Facebook several times a day, followed by 20% who visit frequently, 8% weekly and monthly. k) It can be analyzed from the above table, that a majority of 28% follow Louis Vuitton and Burberry, followed by 7% for Fendi and Prada and 10% for Coach l) It can be analyzed that a majority of 68% purchase through advertising of a luxury brand on Facebook, followed by 33% who do not do the same. m) It can be analyzed that a majority of 78% are curious to click on a particular brand and get more information while 23% are not interested to the same. n) It can be analyzed that a majority of 53% purchase brands through social media reviews followed by 48% who do purchase brands through social media reviews.

www.borjournals.com

ISSN No: 2319-5614

o) It can be analyzed that a majority of 60% spread message about the brand on Facebook to their networks while 40% do not spread message using Facebook as a social media tool to their peers. 7. Suggestions a) A study on a varied spectrum of industries like FMCG and Electronics industry needs to be considered. b) Since urban retail in India is still developing and the niche market is growing in India, a study considering many brands in luxury retail can be considered for the study. 8. Limitations of the Study a. The study is limited to India b. Only 40 respondents are being considered for the study c. Only five luxury brands are considered for the study d. Only one social media tool is being used for the study. The other social media tools are not being used for the study.

9. Road Ahead Interactive content that is personalized to the audience is another key factor in online advertising where luxury brands should focus this year. Luxury marketers that push the boundaries on digital – where the majority of affluent consumers can be found – will find new ways to engage with consumers and evolve their advertising and marketing practices as digital capabilities grow.

10. Conclusion According to the latest L2 Digital IQ Index, luxury brands that improved their online experience grew their traffic by 52 percent while brands that ignored their web properties saw growth of only 8 percent. The improvement of a luxury brand’s digital presence translates to measurable gains in the number of people who interact with that brand. The luxury audience has fully embraced the internet as a resource, communication vehicle and e-commerce platform. Luxury brands would be remiss not to do the same. Although the fundamental goals for luxury businesses have not changed, the most effective and efficient methods for reaching them have. Companies must now use social media to build relationships and directly communicate with their audiences. Luxury brands can adopt a strategy to address the elite niche segment or offer another range of products, priced to attract the aspirational masses. To sustain growth, it is becoming imperative for brands to diversify their portfolio or expand their target segment.



The future of luxury retailers will be shaped by five important factors — brand heritage, exclusivity, customer relationship, diversifying business and expanding into high-growth markets. Creativity, differentiation, social responsibility and customer relationship are pivotal for retailers to succeed.

11. References

ISSN No: 2319-5614

handelsanalyse/downloadcenter.aspx (March 25th, 2014) [17] Georgiadis, C. and Athanasios, M (2005) “Personalisation of user interfaces in ecommerce and m commerce applications”. IADIS International Conference e-commerce, http://www.iadis.net/dl/final_uploads/200510L024.p df (March 25th, 2014)

[1] http://www.luxurydaily.com/wpcontent/uploads/201 3/01/Luxury_Marketing_Outlook_2013.pdf (Access Date: December 5th, 2013) [2] Social Media Guide for Luxury Brands: Content, Strategy, Optimization - Abrams research [3] The adoption of Web 2.0 by luxury fashion brands. (- Niels Bjørn-Andersen Copenhagen Business School, [4] Rina Hansen Copenhagen Business School) [5] http://www.ashoksom.com/15_Luxury_Pitchonline %20Apr_08.pdf (Access Date: February 10th,2014) [6] http://www.tcs.com/SiteCollectionDocuments/Whit e%20Papers/Consulting_Whitepaper_Bricks-ClicksDigital-Commerce-Indian-Context_0412-1.pdf (Access Date: March 15th,2014) [7] Alexander, H. (2010) “Burberrys conquest of cyber space”. Telegraph 8/9/2010 [8] http://fashion.telegraph.co.uk/columns/hilaryalexander/TMG7989381/Burberrys-conquest-ofcyber-space.html [9] Alexander, E. (2010) “Burberry's Theatre” Vogue 8/9/2010 http://www.vogue.co.uk/news/daily/100908burberry-retailtheatre-launch.aspx [10] Bernoff, J., Li, C. (2008) “Harnessing the power of the oh-so-social web”. MIT Sloan Management review, spring 2008, Vol 49, no 3. [11] Begalli, D., Codurri, S., Gaeta, D. (2009) “Win and web marketing strategies. The case study of Italian speciality wineries”. British Food journal, Vol. 111 No6, 2009 [12] EC Ecommerce Report (2009) Report on crossborder e-commerce in the EU. COMMISSION STAFF WORKING DOCUMENT. Brussels, 5.3.2009, SEC(2009) 283 final [13] Economist Intelligence Unit Research (2007) "Serious Business. Web 2.0 goes corporate" February 8, [14] http://www.fastforwardblog.com/2007/02/08/econo mist-intelligence-unit-research-serious-businessweb-20-goescorporate/econsultancy (2011) Social media drives 3% of traffic to e-commerce sites: survey (March 25th, 2014) [15] http://econsultancy.com/uk/blog/7120-social-mediadrives-3-of-traffic-to-e-commerce-sites (March 25th, 2014) [16] FDIH (2010) ”Dansk e-handels analyse. Online”. http://www.fdih.net/dansk-e-

www.borjournals.com
