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Luxury Brands

Retail VS Outlet
Sheana Bow, Diana Molodecki,
Morgan Nettleton, Dani
Sinnatamby, and Ashlee Sud

Agenda

Introduction
Objective
Survey
Results
Conclusions
Recommendations

Introduction

Luxury retailers are often faced


with the question...

To open an outlet store or not


open an outlet store?

What is a Luxury Brand?


Luxury goods are products defined as items that are not necessary. They
fulfill a want, not a need, and are typically more costly than necessity goods.
Luxury brands include but are not limited to:
Chanel
Gucci
Givenchy

Objective
We determined the effects of the
presence of outlet stores on the
brand image of luxury fashion
brands

among

consumers

of

luxury fashion over the past six


months.

Key motivators for purchasing


luxury apparel
Key differences between luxury
retail stores and outlet stores
Main factors that influence
brand perception

The Survey
Research Design:
Descriptive research
Online survey: advantages and
disadvantages
Sample Design:
Convenience and snowball
sampling through social media
Sample size of 69 participants
Fieldwork and Data Collection:
Demographics reflected our
method of recruitment
Non response error
Social desirability bias

Have you purchased any luxury goods


over the past six months?

Demographics

What is your gender?

More females than males participated in


the survey.

71% of people surveyed had bought


luxury goods in the last six months.

What is your age range?

55.1% of the people surveyed were between the ages 18-25

increases, does your desire to own the item increase,


not change, or decrease?

Results

What motivates you to shop at an outlet store for luxury apparel?


Select all that apply.

Popularity does not affect desire for luxury goods.

Of your luxury apparel purchases, please identify what % comes


from each of the following options:

60.76% of people make luxury good purchases at the retail or


department store.

Price is the biggest motivation to shop at an outlet store for


luxury goods.

If your favourite designer product was sold for 50%


less than its original price, how would this affect
your perception of the brand?

Results
If one of your favourite celebrities endorsed a luxury apparel item, how would this
affect your decision to purchase this item?

The majority of people are positively affected


by a decrease in price.

Celebrity endorsements do not influence peoples purchase of luxury


goods.

Limitations
Time Constraints
3 month time limit
Only short-term impact found

Similar Demographic
88.4% of participants were between the ages of 18 and 35
69.6% of participants were female

Limited Previous Research Available


No Incentives Given
May have resulted in self-selection bias

Conclusions
Why do people buy luxury apparel?
Preference for style
What are the most important differences between outlets and retail
stores?
1) Price 2) Quality
How do people decide where to buy luxury apparel?
Price
Discounts have a positive effect
Quality has the biggest effect on perception of brand (65.3%)

Recommendations
Outlet stores have a positive impact on the perception of
luxury brands
Luxury brands should open outlets
Outlets should carry clothes that are of superior quality but
from past seasons
Retail stores should include a discount section
Future area of research: online shopping

Open an outlet?

YES!

References
luxury fashion brands apparel
barbie shopping bag
louis vuitton logo
gucci logo
http://www.seventeen.com/fashion/celeb-fashion/news/a28902/kim-kardashian-printed-dress/
clueless outfits
karl lagerfeld
yves saint laurent logo
fendi logo

tom ford log


christian louboutin logo

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