Final Dissertation
This dissertation, part of the BA Fashion buying and Marketing course at De Montfort University, investigates how to implement rebranding in the luxury market to insure loyalty of Chinese Gen Z market. In the face of increasing economic instability and inflation, expenditure has decreased, as evidenced by repeated falls in luxury apparel consumption in the United States. Given this background, there is a growing interest in rebranding as a strategy to overcome the difficulties posed by the fast-changing fashion industry. Rebranding strengthens consumer relationships, helping to establish a strong market position. In addition, young Chinese consumer groups have a significant impact on the global luxury market. Therefore, the purpose of this research is to investigate the perceptions of the Z generation in China regarding the rebranding efforts of luxury fashion brands and to identify effective communication strategies for rebranding that resonate with consumers. The analysis will identify crucial aspects that contribute to successful rebranding procedures and provide suggestions for achieving rebranding in the most effective way.
Research topic / background
The luxury market experienced rapid growth of around 30% between 2019 and 2023 but has recently slowed down, with U.S. luxury apparel spending declining for six consecutive quarters, largely due to global economic uncertainties.
Luxury brands, traditionally focused on affluent consumers, now face challenges in maintaining profitability and competitiveness.
To adapt, many are pursuing strategic rebranding to refresh their image, connect better with consumers, and secure market position. China plays a crucial role in the luxury market, representing nearly 25% of global sales, especially driven by younger Chinese consumers who have grown up with luxury brands.
Therefore, understanding and targeting evolving Chinese consumer behaviors through effective rebranding is vital for luxury companies aiming to reposition themselves and thrive.
Objective
1) To define rebranding including a review of rebranding strategies.
2) To review both successful and unsuccessful case studies of rebranding luxury fashion.
3) To establish the size of Chinese luxury market and most popular luxury brands.
4) To establish the opinion and barriers of rebranding luxury brands in Chinese Gen Z market.
5) To determine the key factors of successful rebranding strategies.
6) To make recommendations for a successful rebranding strategy for luxury brands to adopt
Research Methodology
A methodical approach has been devised to accomplish the aims of the dissertation. The researcher carried out this activity for this assignment. Secondary research was first conducted to accomplish objectives 1–3. The primary research was conducted to achieve objectives 4 and 5. Both types of research were indispensable for the successful implementation of a rebranding strategy.
Findings
In conclusion, participants ranked each rebranding strategy. For every strategy, the key factors were identified that contributed to the successful rebranding process. To achieve successful brand extension, it is critical to closely observe the specific target customers who primarily consume products or services and incorporate this understanding into the brand's expansion plans. Collaboration strategies have shown strong synergistic effects when involving consumers in an unexpected way. Visual identity is the most quickly identifiable aspect of rebranding, so it is equally important to develop it without compromising the core values of luxury brands. Finally, adopting experiential marketing that links consumers with the brand through digital marketing is necessary, as it represents the most effective rebranding message to consumers. Out of the responses, 40.4% of the participants expressed positive opinions about the rebranding approach to expanding the brand. The percentages for selecting the collaboration strategy and logo change strategy are 13.3% and 15.9%, respectively. There was a slight 2% disparity. As a result, the recommended guidelines will create an efficient rebranding approach based on the key factors.
Recommendation
The suggested approach was based on primary approaches from the chapter 4. Each strategy has factors that have the potential to lead to positive outcomes and practical suggestions for implementation. Considering these key factors, luxury fashion brands can successfully identify the need for rebranding to target the Chinese Gen Z market. Tables have been generated, as seen in figure 30, to visually represent each strategy.
1) Customer Engagement Digital Marketing
2) Update Visual Identity
3) Brand extension with collaboration
The above three strategies involved rebranding and attempted to establish a positive view of the brand among consumers. Therefore, the examples have been optimised to generate long-term benefits for the luxury brands. Each approach can be collaborative or individual. The strategy examples highlighted the significance of brands preserving their core values when undertaking rebranding. Moreover, the strategies can change to coincide with the preferences or recent trends of the intended target audience. It is imperative to establish a connection between a prior brand and a newly rebranded brand by constructing a bridge. All three of these strategies demonstrate excellent rebranding solutions for competitive luxury fashion brands, enabling brands to differentiate themselves and reach new markets.