Emerging Markets: High Fashion Fights Recession

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Emerging Markets: High Fashion Fights Recession
People express themselves in many different ways. Simple examples of this consist of a person’s dress and appearance. People make judgments about others using a variety of techniques, many of which are based on a person’s appearance. Clothing and our appearance act as a medium of communication. The way a person dresses can affect perceived social status, project a certain type of self-image or boost a person’s self-esteem. The way a person dresses can affect their acceptance into certain societies or assist in making certain types of impact on a target audience (Holman, 1980).
A person’s sense of style begins during adolescence where young adults begin to differentiate themselves based on appearance. Terms such as the jocks, burnouts, preppies, and gothic are examples of young people being categorized based on appearance. As these young person’s transition into adulthood the branding changes to collegiate, homeless, business man/woman, blue collar, sophisticated, etc. The phrase “looks can be deceiving” illustrates how luxury and fashion can influence perception.
Companies offering luxurious fashions rely on their brand as the primary means of generating customer sales. The strategy of high quality, high price and high margins is considered a differentiation or focused strategy by which the brand carry’s the sale. This branding sends a certain type of message and retailers are relying on this message to generate abnormal profits.
Whether a company’s strategy is a low cost provider, such as Walmart, or a focused high end goods provider such as Gucci, both strategies are attempting to appeal to a target audience. Some branding strategies are predicated on low cost and h...

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...municate a certain message. However as seen in 2008, changes in market conditions affect the psychological needs of the buyers. As their needs change so does their desire to make purchases of luxury goods. This notion of putting off these types of purchases aligns with Maslow’s hierarchy of needs.

Works Cited

Burton, N. (2012, May 24). Our hierarchy of needs why true freedom is a luxury of the mind. Psychology Today, Retrieved from http://www.psychologytoday.com/blog/hide-and-seek/201205/our-hierarchy-needs
Cui, G., & Liu, Q. (2000). Regional market segments of china: opportunities and barriers in a big emerging market. Journal of Consumer Marketing, 17(1), 55-72.
Holman, R. H. (1980). Clothing as communication: An empirical investigation. Advances in Consumer Research, 7(1), 372-377.
Peng, M. (2014). Global strategy. (3rd ed.). Mason, OH: Cengage Learning.

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