From Louis Vuitton to Michael Kors: An exploration of the of affordable "new luxury" brands as signals of status amongst women

The luxury market is experiencing a new phenomenon. Luxury goods are far more accessible to a wide range of consumers than in the past, were goods were only reserved for the elite. As the luxury industry has shifted towards a... [ view full abstract ]

The luxury market is experiencing a new phenomenon. Luxury goods are far more accessible to a wide range of consumers than in the past, were goods were only reserved for the elite. As the luxury industry has shifted towards a mainstream market, targeting consumers who are driven by value, yet still hold an appetite for luxurious goods, a new product category has emerged referred to as “New Luxury”.

“New Luxury” brands embody the characteristics of traditional luxury brands such as Chanel and Louis Vuitton, but at an affordable price tag. It is widely understood that traditional luxury goods poses a high level of quality and exclusivity, thus being perceived as a signal of high status. However, does this assumption also apply to affordable luxury goods?

Drawing on the costly signalling theory, the purpose of this study is to explore whether affordable luxury brands are perceived as a signal of status amongst women and investigate how the perception of affordable luxury brands may impact on future purchasing decisions. As the study is in the early stages, no data has been collected.