VALUE PERCEPTION: LUXURY APPAREL BRANDS

VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE

A Deeper Luxury

This report provides a logical vision and validation for a deep and sustainable luxury industry. In

today’s context, true luxury brands are those which provide supreme positive offerings to

consumers. These brands recognize their customers as having the means and enthusiasm to

respect both people and the planet. This phenomenon can be called as ‘a deeper luxury’. This

new breed of luxury brands has both the prospect and the liability to encourage sustainable

consumption. The definition of luxury and the way it is perceived by others is changing. A lot of

successful citizens now want their brands to represent their concerns and aspirations for an

improved planet. This occurrence is true not only in western luxury society, but also gradually

becoming more evident amongst the affluent social classes of developing economies.

As part of the research, variables that influence ‘value perception’ were identified and

categorized into four groups, viz. intrinsic factors, extrinsic factors, ethical factors and individual

factors. Four hypotheses are constructed based on these four factors. A sample size of 120 was

calculated, taking into account the approximated population of luxury apparel users in Singapore.

A questionnaire was then designed keeping in mind the research objective. A pilot survey was

conducted to test the reliability and understanding of the questionnaire before the final set of

survey was undertaken. The data collected was analyzed using frequency analysis, multiple

linear regression and factor analysis.

The research findings show a drift in the value perception of consumers of luxury apparel retail.

Though factors like quality and brand perception continued to show a positive trend to perceived

value, loyalty towards the brand was seen to be a hindrance in adding value. Also, increased

environmental focus of a luxury apparel brand had a strong influence on the consumers’

perception of value. These findings reaffirm the consumer shift towards ‘self actualization’ in

Maslow’s pyramid in the hierarchy of needs. That is, self actualization through the need of ‘a

deeper luxury’.

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VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE

What is luxury?

“Luxury is something you could do without but that you don’t want to do without” - Coco Chanel

The word luxury originates from the Latin word ‘luxus’ which means ‘abundance’. It also carries

nuances of a ‘contradiction from the basic’. According to Philippe Perrot, (Fashioning the

Bourgeoisie) luxury represents ‘the surplus produced by a prosperous society’ and it is a symbol

of an inherent differentiation. Economist Werner Sombart (Liebe, Luxus und Kapitalis mus)

claimed that luxury represents ‘the expense of something that is beyond necessity’. These

concepts apply to all ages, societies and cultural regions and can have implicit connotations to

the consumers of luxury goods.

Luxury has been perceived differently in different periods of time. In the early 17th century,

luxury was used to display class, authority and power. For example, the extraordinary and

prolific bodice made for Queen Elizabeth I was considered as the epitome of luxury. The 18th

century flaunted an era of economic and financial surplus which led to a movement of

flamboyant clothing worn by male and female members of the society in explicitly exaggerated

style. Sociologist Thorstein Veblen (The Theory of the Leisure Class) claimed that in a capitalist

society, ‘what we wear is always clearly representative of one’s monetary status’. These words

suggest a close connection between luxury and monetary value. Cost augmented the prestige of

the brand’s implicit value. For upper class ladies of the 19 th Century, clothing was the easiest

means of conveying advantage, or of displaying one’s position, possessions and supremacy.

Before the 20th century, luxury was considered by what was viewed to be abundant, unique,

expensive or indicative of prosperity. Today, luxury is no longer limited to obvious consumption

or lavishness. Functional sophistication, comfort, individuality and even sanctified beauty are

different faces of luxury. It has begun to symbolize something delicate and intellectual and the

use of expensive material is no longer considered as the only factor that can define the ingredient

of luxury. This new form of differentiation gave birth to original and unique concept creations.

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VALUE PERCEPTION: LUXURY APPAREL BRANDS IN SINGAPORE

We are heading towards a more modest and understated luxury. In today’s free society, luxury is

something that satisfies our spirit, despite of the times or circumstances. Luxury represents the

positive aspiration that leads the way for fashion. The desire to convey supremacy by wealth,

power and status can be done by emphasizing unique features of our personality. Clothing has

been the most convenient tool for communicating this desire in the physical form and will

possibly continue in the coming era.

The changing trends of consumer behavior pose a challenge to the way that luxury apparel

brands need to look into its products and services. Trends evolve faster than ever before and it is

the luxury segment that sets the trend for the rest of the industry.

A new breed of consumer is demanding brands that are both luxurious and sustainable in order to

justify their expenditure. Consumer behavior is of utmost importance for any leading brand while

analyzing the next step to future growth. We will be studying the leading luxury brands and their

offerings in the apparel line and analyze to what extent these changes have impacted consumer

value perception in this industry. Analysis of these emerging trends will act as a catalyst to the

future growth of these luxury apparel brands.

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