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The standardization-localization dilemma of brand communications for luxury fashion retailers' internationalization into China

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  • Liu, Sindy
  • Perry, Patsy
  • Moore, Christopher
  • Warnaby, Gary

Abstract

This paper considers the standardization–localization debate within the context of foreign luxury fashion retailers' internationalization into the emerging Chinese marketplace. Luxury retailers must balance a global–local dilemma, given the challenging trading conditions of a complex marketplace with low brand awareness and loyalty, alongside the need to maintain exclusivity and standardization of brand image across all markets. Qualitative data from 22 luxury fashion retailers currently active in the Chinese market provide rich insights that reveal the decision-making process for marketing strategies that support entry into China. Foreign luxury retailers balance the ‘global–local dilemma’ in China firstly by locating operational management control within the strategic hub of Hong Kong, and secondly by implementing far more adaptive and enterprising marketing communications than seen in other mature markets. At the same time, foreign luxury retailers retain tight strategic control of key branding dimensions at head offices in their home markets, as part of a successful long-term luxury brand management strategy. As Chinese luxury consumers increasingly feel part of a global elite, over-localization may cause confusion over brand identity and country of origin (COO). The insights may be strategically useful for luxury retailers entering or expanding in China and also provide indications of future trends of luxury retailing in China and other emerging markets.

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  • Liu, Sindy & Perry, Patsy & Moore, Christopher & Warnaby, Gary, 2016. "The standardization-localization dilemma of brand communications for luxury fashion retailers' internationalization into China," Journal of Business Research, Elsevier, vol. 69(1), pages 357-364.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:1:p:357-364
    DOI: 10.1016/j.jbusres.2015.08.008
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    15. Zhou, Shuang & Blazquez, Marta & McCormick, Helen & Barnes, Liz, 2021. "How social media influencers’ narrative strategies benefit cultivating influencer marketing: Tackling issues of cultural barriers, commercialised content, and sponsorship disclosure," Journal of Business Research, Elsevier, vol. 134(C), pages 122-142.
    16. Cristini, Hélène & Kauppinen-Räisänen, Hannele & Barthod-Prothade, Mireille & Woodside, Arch, 2017. "Toward a general theory of luxury: Advancing from workbench definitions and theoretical transformations," Journal of Business Research, Elsevier, vol. 70(C), pages 101-107.
    17. Grigorescu Adriana & Ion Amalia Elena, 2020. "Innovation and product management – The direction of the 21st century luxury market," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 1035-1045, July.
    18. Li, Rong & Laroche, Michel & Richard, Marie-Odile & Cui, Xinyu, 2022. "More than a mere cup of coffee: When perceived luxuriousness triggers Chinese customers’ perceptions of quality and self-congruity," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
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    21. Rubal Rathi & Ruchi Garg & Aakanksha Kataria & Ritu Chhikara, 2022. "Evolution of luxury marketing landscape: a bibliometric analysis and future directions," Journal of Brand Management, Palgrave Macmillan, vol. 29(3), pages 241-257, May.
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    23. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    24. Rajesh Sharma, 2020. "Building Consumer-based Brand Equity for Fast Fashion Apparel Brands in the Indian Consumer Market," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(3), pages 337-365, August.
    25. Yu, Shubin & Hu, Yangjuan, 2020. "When luxury brands meet China: The effect of localized celebrity endorsements in social media marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).

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