Delocalization of luxury products: perceptions of digital users
What is it about?
A number of luxury companies rely on a global production chain, manufacturing goods whose provenance differs from the country of origin of their brand. This can pose challenges to marketing a 'pure' geographic pedigree. A joint research project explored the consumers' cognitive constructs about the provenance of luxury goods. The aim was to measure the impact of delocalisation on the perceived value and desirability of luxury goods.
Why is it important?
We conducted a digital fieldwork and examined 3000+ users' comments over 10 years about the 'made-in' of luxury goods in different sectors. We were able to determine the consumers' threshold of tolerance towards place-related incongruences in luxury products. We also designed a framework to help luxury companies with global manufacturing operations to maximise their place brand equity against the market’s perceptions and expectations.