What is it about?

A number of luxury companies rely on a global production chain, manufacturing goods whose provenance differs from the country of origin of their brand. This can pose challenges to marketing a 'pure' geographic pedigree. A joint research project explored the consumers' cognitive constructs about the provenance of luxury goods. The aim was to measure the impact of delocalisation on the perceived value and desirability of luxury goods.

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Why is it important?

We conducted a digital fieldwork and examined 3000+ users' comments over 10 years about the 'made-in' of luxury goods in different sectors. We were able to determine the consumers' threshold of tolerance towards place-related incongruences in luxury products. We also designed a framework to help luxury companies with global manufacturing operations to maximise their place brand equity against the market’s perceptions and expectations.

Perspectives

I hope this article makes the readers aware of the perceptions of online users regarding delocalization of luxury products. Luxury is in the eye of the beholder, so it is of crucial relevance for managers and entrepreneurs to manage their customers' perceptions about the geography of luxury products

Federica Carlotto
Sotheby's Institute of Art

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This page is a summary of: Designing the geography of luxury: Online perceptions and entrepreneurial options, Journal of Design Business & Society, October 2018, Intellect, DOI: 10.1386/dbs.4.2.189_1.
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