IDEAS home Printed from https://ideas.repec.org/p/pil/wpaper/52.html
   My bibliography  Save this paper

The success of luxury brands in Japan and their uncertain future

Author

Listed:
  • Ronald J. Degen

    (International School of Management Paris)

Abstract

The Japanese are the world?s largest individual consumers of luxury brands and form the second largest market for luxury goods after the US. The Japanese were the driving force behind the exponential growth of the European luxury industry and the resulting ?democratization of luxury?. This concept of giving everyone access to luxury branded goods is a paradox because it abandons the exclusivity that was the original basis of the European luxury industry in the hands of skilled designers and craftsmen. By making luxury branded goods widely accessible to most consumers they run a major risk of becoming simply too ?common?. The 2007-8 economic crisis adversely affected the luxury market, producing a general backlash against ?conspicuous consumption?. In Japan, as in most countries in the world, the crisis reduced consumers? discretionary spending, but in addition it also accelerated the fundamental shift in the attitude and behavior of Japanese luxury consumers.

Suggested Citation

  • Ronald J. Degen, 2010. "The success of luxury brands in Japan and their uncertain future," Working Papers 52, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:52
    as

    Download full text from publisher

    File URL: https://globadvantage.ipleiria.pt/files/2010/01/working_paper-52_globadvantage.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James C. Abegglen, 2006. "21st-Century Japanese Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-50085-3, December.
    2. Ronald Jean Degen, 2009. "Opportunity for luxury brands in China," Working Papers 31, globADVANTAGE, Polytechnic Institute of Leiria.
    3. Jean-Noël Kapferer & Vincent Bastien, 2009. "The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands," Post-Print hal-00786813, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gian Luca Gregori & Silvia Cardinali & Meri Travaglini, 2013. "Imprese calzaturiere e competitivit? nel mercato mondiale: il caso di una media luxury brand company," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(3), pages 151-168.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joy, Annamma & Wang, Jeff Jianfeng & Chan, Tsang-Sing & Sherry, John F. & Cui, Geng, 2014. "M(Art)Worlds: Consumer Perceptions of How Luxury Brand Stores Become Art Institutions," Journal of Retailing, Elsevier, vol. 90(3), pages 347-364.
    2. Zaif Alexandra & Cerchia Alina Elena, 2019. "The Importance of Integrating Digital Marketing within the Sales Strategy of Luxury Brands," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 119-127.
    3. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Megehee, Carol M. & Spake, Deborah F., 2012. "Consumer enactments of archetypes using luxury brands," Journal of Business Research, Elsevier, vol. 65(10), pages 1434-1442.
    5. Boukis, Achilleas & Christodoulides, George & Semaan, Rania W. & Stathopoulou, Anastasia, 2024. "What drives consumers towards shared luxury services? A comparison of sequential versus simultaneous sharing," Journal of Business Research, Elsevier, vol. 177(C).
    6. Cesare Amatulli & Giovanni Pino & Manuela Iodice & Robert Cascio, 2016. "Linguistic and Symbolic Elements in Luxury Fashion Advertising: A Qualitative Analysis," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(9), pages 265-265, August.
    7. Koivisto, Elina & Mattila, Pekka, 2020. "Extending the luxury experience to social media – User-Generated Content co-creation in a branded event," Journal of Business Research, Elsevier, vol. 117(C), pages 570-578.
    8. Gurzki, Hannes & Woisetschläger, David M., 2017. "Mapping the luxury research landscape: A bibliometric citation analysis," Journal of Business Research, Elsevier, vol. 77(C), pages 147-166.
    9. Sarah Putri Kinanti, 2018. "The Effects of Luxury Firm Level Within the Luxury Industry on the Level of Corporate Social Performance," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(6), pages 280-293.
    10. Guillet de Monthoux, Pierre, 2015. "Art, Philosophy, and Business: turns to speculative realism in European management scholarship," European Management Journal, Elsevier, vol. 33(3), pages 161-167.
    11. Kishita Tetsuhiro, 2013. "Corporate Governance In Established Japanese Firms: Will The Olympus Scandal Happen Again?," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 421-446.
    12. Loureiro, Sandra Maria Correia & Araújo, Cristiano Mineiro Branco de, 2014. "Luxury values and experience as drivers for consumers to recommend and pay more," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 394-400.
    13. Wilfred Amaldoss & Sanjay Jain, 2015. "Branding Conspicuous Goods: An Analysis of the Effects of Social Influence and Competition," Management Science, INFORMS, vol. 61(9), pages 2064-2079, September.
    14. Shukla, Paurav & Banerjee, Madhumita & Singh, Jaywant, 2016. "Customer commitment to luxury brands: Antecedents and consequences," Journal of Business Research, Elsevier, vol. 69(1), pages 323-331.
    15. Degen, Ronald, 2009. "China?s challenges to future sustainable economic growth and the implications for the United States," Working Papers 45, globADVANTAGE, Polytechnic Institute of Leiria.
    16. Vittoria Marino & Raffaella Montera, 2021. "Online Communication and Luxury Heritage Brand towards the E-HBC Matrix," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(3), pages 1-15, July.
    17. Petr Král, 2013. "Could there be a luxury brand originating from the Czech Republic? The case of Czech watchmaker manufacture Prim 1949," Central European Business Review, Prague University of Economics and Business, vol. 2013(3), pages 15-21.
    18. Raluca Ciornea & Marius Dorel Pop & Mihai Florin Bacila, 2012. "Segmenting Luxury Market Based on the Type of the Luxury Consumed. Empirical Study on Young Female Luxury Consumers," International Journal of Economic Practices and Theories, Academy of Economic Studies - Bucharest, Romania, vol. 2(3), pages 143-152, July.
    19. Sevilay Sahin-Soylemez & Basak Isil Alpar, 2022. "Is-Yasam Dengesi Arayisinda Japonya: Is, Aile ve Yasam Alanlarina Dair Bir Degerlendirme," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(82), pages 223-266, June.
    20. Rohm, Andrew J. & Gao, Tao (Tony) & Sultan, Fareena & Pagani, Margherita, 2012. "Brand in the hand: A cross-market investigation of consumer acceptance of mobile marketing," Business Horizons, Elsevier, vol. 55(5), pages 485-493.

    More about this item

    Keywords

    Japanese consumers of luxury brands; Japan the largest luxury market in the world; conspicuous consumption; democratization of luxury; luxury brands as status symbols; luxury brands as badges of economic success; parasite singles;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pil:wpaper:52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nuno Reis (email available below). General contact details of provider: https://edirc.repec.org/data/deiplpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.