International Fashion Retailing: Brand Image and Consumer Perception

This report delves into the dynamics of international fashion retailing, specifically examining the Chinese luxury fashion sector. It investigates the impact of brand image, brand value, and consumer perception on customer loyalty. The research explores how a strong brand image can influence customer purchasing behavior and foster customer retention. The report analyzes the challenges faced by luxury brands in China, including intellectual property issues and the rising importance of the middle class consumer segment. The study aims to evaluate the effects of brand image and value on customer loyalty, and how these elements contribute to building trust and influencing buying behaviors. The report also highlights the importance of a positive brand image in attracting new customers and retaining existing ones. The report also provides recommendations to improve brand image and identity to reach more customers and create a sense of trust and loyalty among them too.

Running head: INTERNATIONAL FASHION RETAILING
International Fashion Retailing
Name of student
Name of University
Author note

1
INTERNATIONAL FASHION RETAILING
Abstract
The dissertation is composed to evaluate the various findings related to the impact of
brand image, value and perception of consumers on the loyalty of customers within the Chinese
luxury fashion sector. This dissertation includes the most important components of brand image
and value along with the perception of customers that can create a positive mindset among
customers and cerate loyalty among them as well. The research focused on how a string brand
image and value could make the customers make repeated purchases from the luxury fashion
brands and ensure that the existing customers are also retained efficiently. The main purpose of
conducting the research was to evaluate the effects created by a strong brand image along with
how it could be developed for creating trust and loyalty among customers, thereby influence
their buying behaviors too. From the literature, it could be understood that brand awareness and
customer loyalty had been created due to the strong brand image and value offered in terms of
the good quality products and services delivered by the company. The data analysis though
showed that these major aspects of brand could have very little impact on the loyalty of
customers, still it had been believed that by maintain a string brand presence, it would be quite
easy to attract the new customers as well as retain the existing ones within the luxury fashion
industry of China. The objectives of the research were to evaluate the impact of brand image and
value, ways of creating a string brand image, perception of customers regarding the brand
products and finally the recommendations to improve the brand image and identity to reach more
customers and create a sense of trust and loyalty among them too. Thus, the objectives had been
met and the research outcomes tend to be positive, which had allowed for driving a good
conclusion in the end of the dissertation.

2
INTERNATIONAL FASHION RETAILING
Table of Contents
Abstract............................................................................................................................................1
Chapter 1: Introduction....................................................................................................................3
1.0 Introduction............................................................................................................................3
1.1 Research background.............................................................................................................4
1.2 Purpose of research................................................................................................................5
1.3 Problem of the research..........................................................................................................5
1.4 Research rationale..................................................................................................................6
1.5 Aim of research......................................................................................................................7
1.6 Research objectives................................................................................................................7
1.7 Research questions.................................................................................................................8
1.8 Research hypothesis...............................................................................................................8
1.9 Research structure..................................................................................................................9
Chapter 5: Conclusion and recommendations...............................................................................10
5.0 Conclusion...........................................................................................................................10
5.1 Linking with the objectives..................................................................................................11
5.2 Recommendations................................................................................................................18
Self Reflection...............................................................................................................................20
References......................................................................................................................................23

3
INTERNATIONAL FASHION RETAILING
Chapter 1: Introduction
1.0 Introduction
The Chinese luxury fashion sector is flourishing consistently and it has contributed to the
growth in economy of the country as well. The Chinese luxury fashion companies have
maintained a positive brand image, which is the actual view of the customers about that
particular fashion brand. The organizations within the Chinese luxury fashion industry have
created various unique associations among the consumers’ minds to influence their buying
behaviors. It increases a positive perception of customers about the products and services offered
by the organizations and the brand image can also help to create a positive emotional value.
Maintaining a positive brand image can create good perception about the products and services
among the customers’ minds as well as allow them to understand the vision and mission of the
organization with ease and effectiveness (Fernie & Sparks , 2014). A positive image of the
luxury fashion brand is created by developing an image, slogan that can state the organization’s
vision and support the key values of the organization effectively. The brand equity or value is
the benefits offered by the company in the form of products and services. The companies can
maintain good brand value if the products and services meet the needs and preferences of
customers and ensure keeping them satisfied as a whole (Caniato et al., 2014). By offering
luxury fashion products and services that can fulfill the demands and preferences of the
customers it will be easy for the organization within the Chinese luxury fashion industry to
create a positive mindset among the customers and ensure that they remain loyal customers all
throughout. The Chinese luxury fashion sector has managed to maintain positive brand image
and provided products that created brand equity by making those memorable, differentiable

4
INTERNATIONAL FASHION RETAILING
from other company’s products and superior in terms of quality and reliability. This has
automatically resulted in attracting large numbers of customers and retained the existing
customers too, thereby increasing the sales revenue and profit level in business with ease and
efficiency (Diamond, Diamond & Litt, 2015).
1.1 Research background
In the present century, one of the biggest challenges faced by the organizations within the
Chinese luxury fashion sector is to develop a strong brand image and relationship with the
customers for gaining competitive advantage in business effectively. Maintaining a positive
brand image has always helped in creating a positive effect on the consumer perception
regarding the brand and loyalty of customers too. Loyalty among the customers towards a
particular product or service of a brand can be seen as the major aspect of marketing by the
luxury fashion companies in China (Caniato et al., 2012). The loyalty factors also comprise of
various elements that can act as success indicators for the company. Creating awareness among
the customers about the products and services can create strong customer hold as well as enhance
their loyalty about the brand products through generation of better income, increased market
share and accomplishment of business goals and objectives in an effective and reliable way. It is
quite evident that the loyalty of customers can be generated when they are satisfied with the
quality of products and services delivered to them by the luxury fashion company (Malik et al.,
2012). Fulfilling the needs and requirements of the customers is thus essential for building a
positive brand image, value and enhance the positive perception among the minds of consumers.
The background of the research has focused on how the brand image, value and perception
among customers regarding the brand products and services can create loyalty among the
customers with ease and effectiveness (Zhang, 2015).

5
INTERNATIONAL FASHION RETAILING
1.2 Purpose of research
The purpose of the research is to evaluate the various findings of the research and
understand how brand image, value and perception can create impact on the consumer loyalty
within the Chinese luxury fashion industry. It is true that the satisfaction of consumers can be
generated when their needs and requirements are fulfilled after buying the luxury fashion
products offered by the Chinese companies. The consumer satisfaction enables to find the
comparison between the expected results and perceptions of experiences. If the demands and
expectations of the customers are fulfilled, then they will be satisfied (Kapferer, 2012). The
obtaining of consumer loyalty is one of the major objectives of the customer relationship
management and can help in determining the loyalty between the customers and organizations
along with the products and services offered. To develop customer loyalty, it is important to
target the individual segments of market and provide products and services according to the
demands and preferences of theirs in each of the market segments (Severi & Ling, 2013). This
would not only build customer loyalty but would also make the customers ask for more and visit
the company on a consistent basis as their buying behaviors would be influenced with the
company’s strong brand image, value offered and good quality products that were offered. Thus,
the main purpose of conducting the research is to determine the impact created by brand image,
value and perception of customers on creating positive attitude and behaviors among them and
make them loyal customers who can purchase the products of the company on a consistent basis
(Tu, Wang & Chang, 2012).
1.3 Problem of the research
The research tends to bring positive outcomes, but there are certain areas that lacked
certain aspects and can even create problems. Due to this, the research has been conducted to

6
INTERNATIONAL FASHION RETAILING
analyse these issues and determine how brand image and value can create positive impact on the
luxury fashion sector of China. The brand value and image of many brands within this industry
of China have deteriorated and has even led to the downfall of many businesses. The growth and
development in business have been fluctuating from time to time, which has created further
complexities while conducting business effectively (Malik et al., 2013). It has been seen that
though the wealthy Chinese families are considered as major drivers of growth for the luxury
brands, still the rising Chinese middle class families with lesser incomes have become increasing
consumer segments and have become the subject of attention for many brands. Due to this, the
Chinese luxury fashion sector has experienced lesser growth in business and the profit levels are
less compared to the companies that offer products at affordable costs. The intellectual property
issues include use of trademarks, copyrights and patents by other companies and this has created
major issues for the luxury fashion organizations, whose success depend on the perception of
brand (Mazodier & Merunka, 2012). The bigger the brand is, the more there are counterfeits that
not only deteriorate the brand image but cerates positive mindset among the customers. The costs
of products, i.e., the luxury fashion and apparel products are quite high, which are convenient for
the VIP customers rather than the normal people present in the various market segments.
1.4 Research rationale
The rationale of the research is similar to the problem of the research and it illustrates
about the various issues and problems, because of which a strong and positive brand image,
value and perception shall be created for attracting customers and keep them satisfied with the
kinds of products and services delivered. It is not only an effective marketing approach to
influence the buying behaviors of consumers but also will help in making them loyal customers,
who will come back to make purchases again from the company, rather than from any other

7
INTERNATIONAL FASHION RETAILING
organization within the luxury fashion sector in China. Few of the problems include intellectual
property issues, high prices of products, etc (Horng et al., 2012). The intellectual property
problems arise when the patents, copyrights and trademarks are violated and even used by other
companies within the Chinese luxury fashions sector to enhance its reputation, brand image and
increase its customer base. Thought it cannot be said that the loyalty of consumers depends on
the brand image, value and perception of consumers only, rather there are various other factors
too such as consumer buying behaviors, satisfaction resulted from fulfillment of their needs and
requirements, marketing activities managed by the organization, etc (Shah et al., 2012). The
rationale of the research presents the various issues and problems that are faced along with the
probable outcomes that may be generated by conducting the research in a fruitful manner. It is
also seen that the lack of positive perception of customers and absence of a positive brand image
can also lead to various issues, as the customers may be unable to differentiate the products of
the company from other companies. With the help of a strong brand image, value and perception
of customers, the attitudes and behaviors of consumers towards the brand will change positively
and this will further allow them to become aware of the brand and easily distinguish the brand
products from the products of any other company within the Chinese luxury fashion industry
(Kim & Ko, 2012).
1.5 Aim of research
The actual aim of the research is to analyse the effects of brand image, value and
perception on the loyalty of customers with the consideration of the Chinese luxury fashion
sector.

8
INTERNATIONAL FASHION RETAILING
1.6 Research objectives
 To identify the various factors that can create an impact on the consumer loyalty within
the Chinese luxury fashion sector
 To evaluate the extent to which brand image can impact on the loyalty of customers
within the Chinese luxury fashion sector
 To assess the probable impacts created by maintaining good brand value and brand
perception on the consumer loyalty
 To recommend necessary measures for improving the efficiency of the factor that can
create the most impact on the consumer loyalty in context of the Chinese luxury fashion
sector
1.7 Research questions
What are the most important factors among brand management that can create an impact on the
loyalty of consumers within the Chinese luxury fashion industry?
What is the extent to which a positive image of a brand can create positive effect on the
consumer loyalty?
How could the strong brand value and perception of consumers create good impact on the loyalty
of customers within the Chinese luxury fashion sector?
What measures are recommended to determine the most important factor among brand
management to create the most positive effect on the consumer loyalty in context of the Chinese
luxury fashion industry?

9
INTERNATIONAL FASHION RETAILING
1.8 Research hypothesis
H0: The brand image, value and perception of consumers can create no such probable impact o
the loyalty of the customers within the Chinese luxury fashion industry
H1: The image of a brand, its value offered and perception of consumers can create positive
impact on the company by creating loyal customers who will purchase the products of the brand
consistently (Caniato et al., 2014).
1.9 Research structure
Introduction
The introductory chapter comprises of the actual concept of the research including the
background of research, problems faced during the research, research rationale, goals or aims of
the research along with the research objectives and questions developed according to the set of
objectives provided.
Literature review
The literature review chapter illustrates the various concepts of brand image, value and
perception of customers in the form of dependent and independent variables. The independent
variable here is the loyalty of customers, which is dependent upon the brand image and value and
also on the perception of customers (Caniato et al., 2012). Thus, the independent variable here is
customer loyalty and the dependent variable is the brand image, value and perception of the
customers.
Research methodology

10
INTERNATIONAL FASHION RETAILING
The methodology of research is done for ensuring that the research is done properly and
good outcomes are derived as well. The philosophy of research, approaches followed along with
the research strategy and designs have been also included in the dissertation. The ways of
collecting and analysing data will also be illustrated in the dissertation while proper ethics are
maintained too. The limitations will show how the research outcomes have been hindered due to
certain reasons and furthermore ensure that all the research aspects are covered properly (Zhang,
2015).
Data analysis
The analysis of data will be done for checking the responses of customers and even the
qualitative data that has been gathered from the managers of the business organization within the
Chinese luxury fashion sector.
Conclusion
The conclusion chapter will illustrate about the various findings of the research and
ensure that the objectives are properly linked with the research outcomes. The values and ethics
maintained along with the research limitations have also been illustrated here in this research
dissertation (Kapferer, 2012).
Reflection
The reflective part consists of the things that I have learned while conducting the
research. The various research aspects that will be obtained during this research will help in
progressing in my personal as well as professional career with ease and effectiveness.

11
INTERNATIONAL FASHION RETAILING
Chapter 5: Conclusion and recommendations
5.0 Conclusion
The research was done for determining the positive effects created by a positive brand
image, values and perception of customer regarding the products and services offered by the
brand on the loyalty of customers. This chapter would present the outcomes of the research with
the help of combining the various important components and ensure that all the objectives
presented above could fulfill the criteria and requirements of the research with ease and
effectiveness.
5.1 Linking with the objectives
Objective 1: To identify the various factors that can create an impact on the consumer loyalty
within the Chinese luxury fashion sector
The image of a brand can influence the loyalty of customers positively and even enhance
the level of commitment of consumers. The brand must hold a certain degree of relevance to
create an impact on the products offered in the Chinese luxury fashion sector and the
organization itself. The brand image must be good so as to deliver products that can be
differentiated from the products offered by the companies in the market. The company
possessing a strong brand image and name can also attract more customers and retain the
existing ones too by influencing their behaviors to make purchases from that company rather
than from anywhere else. From the literature, it could be understood that for many years, people
had been quite satisfied with the good quality luxury items delivered by the Chinese luxury
fashion sector. Luxury is something that is much more than just fulfillment of needs and
preferences of customers. The luxurious things denote a sense of aristocracy and leading a rich