Published Online:March 2025
Product Name:The IUP Journal of Brand Management
Product Type:Article
Product Code:IJBRM010325
DOI:10.71329/IUPJBRM/2025.22.1.5-44
Author Name:Dong Shen and Joseph Richards
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:5-44
This study is built on connecting the construal-level theory (CLT) and brand positioning theory (BPT) through the application of multidimensional scaling (MDS) to examine the relative positioning of major luxury fashion brands in the Chinese market; infer the relevant positioning dimensions and how the positioning differs across major demographic segments; and discuss the managerial implications of the identified positioning maps for luxury fashion brands. Data was collected through WeChat (an online messaging platform in China) survey from 474 subjects on a variety of topics related to luxury brand consumption. Factor analyses revealed three major dimensions for luxury fashion brand consumption: intrinsic quality, premium, and status. Using factor scores of these dimensions, MDS procedure was employed to create the brand positioning maps. The positioning maps across various demographic variables are presented to understand the nature of luxury fashion brand competition in China, and to suggest managerial implications for luxury brand marketers.
The initiation of economic reforms in 1978 led to a rapid rise in Chinese household income and the ensuing emergence of China as the largest market for luxury goods. Luxury fashion brands such as Cartier, Chanel, and Hermès, began opening their first stores in China in the 1990s (Cacciotto, 2020). Thirty years later, Chinese consumers