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Influencer Influence on Chinese Luxury Fashion Consumers

 

Influencer Influence on Chinese Luxury Fashion Consumers

 

THE IMPACT OF WECHAT

 INFLUENCERS ON LUXURY FASHION

 INDUSTRY

 

 

SYSTEMATICAL INVESTIGATION OF THE IMPACT OF

 SOCIAL MEDIA INFLUENCER MARKETING ON LUXURY

FASHION INDUSTRY IN CHINA, FOCUSING ON BURBERRY.

 

 

 

 

 

Abstract

 

 

With the improvement of Internet technology and people’s living standards, influencer marketing has become a method for luxury brands and organizations to attract consumers. In particular, China, as a significant luxury consumer country, compared with previous data, consumers are now highly penetrated the internet, smartphones and social media use, and the influence of influencers on consumers is gradually increasing. Therefore, the purpose of the research is to study the influence of influencers on Chinese consumers’ spending on luxury fashion, especially on the brand Burberry.

 

This research uses exploratory qualitative research methods combined with deductive methods. Besides, this research also used semi-structured interviews with five consumers, five influencers and fiveBurberry staff. These target audiences are selected and also interested in social media.

 

The results show that influencers have a positive and negative impact on Chinese consumers. Although influencers can help brands spread products to consumers, they can also act as a salesperson to show consumers trustworthy products. However, to a certain extent, influencers have prompted consumers to spend blindly, and they have also reduced consumers’ loyalty to the brand.

 

There are relatively many studies on influencers marketing, however, there are few studies on the influence of influencers on Chinese consumers’ luxury and fashion spending, especially on the status quo of the famous British brand Burberry in the Chinese market. Through research on the connection between influencers and Chinese consumers, as well as research on the Chinese luxury fashion market, this dissertation aims to fill the gaps in the academic literature but also hopes to help consumers to view the opinions of influencers correctly. Keep their original aspirations while following influencers.

 

Keywords: influencer marketing, Chinese consumers, luxury fashion market, Burberry brand, social media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENT TABLE OF CONTENTS

 

  1. INTRODUCTION
    • BACKGROUND
    • RESEARCH OBJECTIVES
    • STRUCTURE OF THE DISSERTATION
  2. LITERATURE REVIEW
    • SOCIAL MEDIA
      • CHARACTERISTICS & DEFINITIONS
      • TYPES OF SOCIAL MEDIA
      • SOCIAL MEDIA & MARKET
      • TECHNOLOGY ACCEPTANCE MODEL
    • INFLUENCER MARKETING
      • WECHAT
      • FASION INDUSTRY
      • SELF-CONCEPT
    • SOCIAL MEDIA USE IN CHINA
      • FASION INDUSTRY
  1. METHODOLOGY
    • EXPLORATORY QUALITATIVE RESEARCH STRATEGY
    • INTERPRETIVIST RESEARCH PHILOSOPHY
    • DEDUCTIVE RESEARCH APPROACH
    • DATA COLLECIION: SEMI-STRUCTURED INTERVIEWSS
    • PURPOSIVE NON-PROBABILITY DATA SAMPLE
    • CONCEPT AND NARATIVE DATA ANALYSIS
    • ETHICAL CONSIDERATION
    • LIMITATIONS
  2. FINDINGS
    • MANAGER PERSPECTIVE
      • SOCIAL MEDIA
      • WECHAT
      • INFLUENCER MARKETING
      • FASHION INDUSRY
    • CUSTOMER PERSPECTIVE
      • SOCIAL MEDIA
      • WECHAT
      • INFLUENCER MARKET
      • FASHION INDUSTRY
  1. DISCUSSION
    • SOCIAL MEDIA
    • WECHAT

5.2.1CONTENT ON INSTAGRAM

5.3.1SELF-CONCEPTANCEMODEL

  1. CONCLUSION
    • OVERALL CONCLUSION
    • BUSINESS RECOMMENDATIONS
    • SUGGESTIONS FOR FUTURE RESEARCH
  2. BIBLIOGRAPHY

 

 

 

 

 

 

 

 

 

LIST OF FIGURES

 

LIST OF ABBREVIATION

 

KOLs              Key opinion leaders

ROI                 Return on investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 1:

 

INTRODUCTION

 

 

 

 

 

Chinese consumers are now the engine of global luxury consumption growth. Between now and 2025, China’s luxury spending will nearly double. Prosperous Chinese descendants from the 1980s are now pushing luxury purchases. They grew up as China became an economic power, and are now at the peak of their careers and incomes, travel frequently, and spend money to show their individualism and success. The millennial generation after the 1990s is an emerging force. They are the vanguard of Chinese urban middle-class consumption, a vibrant and digitally attractive group ( Aimee, Lan, Daniel, 2019 ). According to the ‘China Luxury Report 2019’ released by McKinsey, the younger generation represented by the 80s (born in the 1980s) and the 90s (born in the 1990s) accounted for 43% and 28% of the consumer group, respectively, contributing 56% % and accounted for 23% of total turnover. From the perspective of per capita expenditure, the Generation Y after the 1980s spent an average of RMB 41,000 on designer products, while the figure after the 1990s( Generation Z ) was RMB 25,000. Obviously, these two groups are dominating the market, both social status and income are rising. At the same time, they also have great potential and will support the further development of the industry (McKinsey & Company, 2019). Therefore, this market research is based on China’s luxury fashion market. China has become the most important luxury market in the world. Some analysts attribute 40% of global luxury goods sales to Chinese consumers inside and outside China, while the recent overall growth of the luxury goods industry is 20% (Daniel Langer, 2019). Chinese consumers have provided impetus to the global luxury market and brought high profits to the world’s leading luxury brands. This has brought attractive prospects to the world’s designer brands.

 

Among many international luxury brands, Burberry is very popular in China (China Daily, 2017). Therefore, the brand of this market research will be Burberry as the main brand. Burberry is a British luxury design company and clothing brand headquartered in London, England. The company was founded in 1856 and initially focused on outdoor clothing before entering the high fashion market. The company has grown into one of the world’s most valuable luxury brands. The company is well-known for its trench coat and iconic tartan lining pattern, with global annual revenue of more than £2 billion in 2019 (most of which come from the Asia Pacific region) (Liam, 2020). In addition, among the luxury fashion brands, the British brand Burberry is at the forefront of the industry. Various brands have been actively promoting on social media platforms, and the manager of the brand Burberry is even more like this, so it has more followers on social media platforms than any other brand. Such influence is inseparable from many influencers Gonzalez (2016).

 

Influencers have created greater luxury insights among young buyers, and they are more likely to appreciate the nuances of products. When luxury brands enter the Chinese market, they have to quickly adapt to Chinese market rules. Chinese influencer marketing industry is three to five years ahead of the rest of the world. The advanced functions and integration of China’s social media, e-commerce and digital payment have realized business models that other countries have not yet explored. Influencer marketing is now a form of online marketing. It has been a buzzword for some time and is often mentioned in mainstream media. Unlike celebrities, influencers can be anywhere and anyone. What makes them influential is the number of followers they have online and on social media (Influencer Marketing, 2020). Burberry’s high brand awareness is largely due to the support of its influencers. However, these consumers are more likely to follow influencers than brands. Although this increases the number of followers of influencers, it reduces consumer loyalty and dependence on the brand. Therefore, influencers have a negative and positive influence on Chinese consumers’ luxury purchase decisions. The purpose of this market research is to explore why influencers can influence the consumption of Chinese consumers on Burberry to a certain extent.

 

 

In reference to the previously provided information, it is clear on how significant and effective is social media influencer market in luxury fashion industry around the world. Nevertheless, concerning China there are few significant research done in regard to the subject. Since there has never been a significant research, it is important to instigate and affirm if influencer market has got positive impact in customer’s intensions to purchase and awareness of brands. To instigate and analyze the topic of discussion and offer a deeper understanding of the phenomenon, there is need to do a proper investigation concerning brand Burberry. That is because the company in discussion has benefited from influencer market. Burberry especially in chine, collaborate with fashion influencer to influence the market on their luxury products Lu (2011). In addition, this study shall give a real and relevant information views collected through interviews arranged purposely for the study. It is intended for the manager, operational staffs, and consumers which results to a more complex perspective.

Therefore, a proposed research study will aim to study the influence of influencer markets in purchase of luxury products of brand Burberry in China market. Hence the research objectives are:

  1. To collect data from managers, operational employees, and consumers on influential markets, Social Medea and other technological markets
  2. To measure the influence of social media and fashion bloggers on purchase intentions of customers and the management of the brand within the company.
  3. To develop the understanding of using social influencers as the brand communication tool to acquire customers.
  4. To produce indications of the market management in the luxury product industry and how to take advantage of social influencers as brand communication platform to improve sales and brand awareness.

 

 

The components of this dissertation is arranged in six main chapters comprising of sections and subsections. The chapter that follows comprises of a background information and critical literature review of the existing social media, influencer markets, luxury fashion industry, and self-concept. The aim of the literature review is to give direction for the study, identify gaps in the available views and therefore develop the questions asked in the interviews. There after research methodology takes a Centre stage. Here adopted methods of study are proposed together with detailed information and justification of the research methods, research design, sampling, and limitations. Section four contains a presentation of research findings with respect considering theories and models employed. Conclusion then occupies the main part of sixth section. Moreover, it also contains business recommendations and suggestions to fill the existing gaps and direct further research. The dissertation end with a detailed list of references of all information sources and appendices that relate to the study.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 2:

 

 

LITERATURE REVIEW

 

 

2.1 CHINA’S LUXURY FASHION MARKETS

 

 

Luxury industry in china is rising daily. However, in 2013, luxury lost popularity due the enforcement of anti-corruption policy. Consumption of luxury fashions products strongly decreased especially in the northern part of China. The population of the middle-class with the increased per capital income is rising rapidly. That together with reference to more open-minded and educated Chinese regarding brand preferences, the demand of the luxury products is on the rise again. It is worth noting that Chinese shoppers bought about a third of the world’s luxury products Roberts and Piller (2016). Nevertheless, only seven percent was sold in china but the better part of the experience is that sales in the main land have increased while the oversea purchases have reduced drastically. There was an estimation that by 2020, china expected a total increase of sale of fashion commodities to triple of the 2015 sale. It is approximated to rise to more than 1.3 trillion RMB ($200 billion USD) from 398 billion RMB ($60 billion USD) in 2010. That was according to statistics generated by Daxue Consulting firm.  Brand consciousness has dominated Chinese population where possession of brand products has become symbol of status in the society. That has led to growth in market of the luxury fashion products. A client of Daxue Consulting firm which operate already in china’s fashion industry has come to terms with high demand of high-class luxury fashion commodities. It is therefore an obligation of the client of the consulting firm to analyze the opportune and setbacks in sector for a better understanding of the luxury market. This would lead to an excellent brand creation that would satisfy the needs of its high ended clients.

2.2 SOCIAL MEDIA

China is a home to 713 million of the world’s internet population with almost half of Chinese population using social network websites. Social network websites play a lead role regarding influence of purchasing behavior. A record to note is that almost 70 percent of sales made in china in a single day in the year 2015 were social media influenced. JD.com, a Chinese online retailer reported that 52 percent of initial first time customer sale was from WeChat which is a social platform. They also noted that 74 percent of their total orders were place on mobile gadgets. Online platforms like WeChat boasts of over 900 million active users per month. WeChat is also identified as the most popular messaging app in china with an estimate percentage of 71.9. Significantly, e-commerce is an integral part of WeChat app. The company has provided account that gives users a space to discuss brands and product. That have helped influence, inspire and inform decisions when making purchases.

China is considered the number one luxury spender in the world particularly with an appetite for Western luxury brands. It spends about 77 percent on luxury products outside its borders. Therefore the brands have done research to identify buying and consumption habits in order to take advantage of the existing lucrative market in a good time. Today the market does not significantly respond to traditional advertisement. For them to reach potential customers they needed to employ more strategies. Such markets needs a proactive brane. For instance, Dior, a household fashion brand used social data to grow brand awareness among the Chinese (Kim et al., 2019). It ran targeted campaigns on social media and went further to appoint influencers as brand to be its advocates. It focused with actors who could inspire a new generation of consumers whose interest was in fun.

Burberry as one of the leaders in luxury merchandise has also embrace the same trick. It uses the philosophy of influence of influencer. Chinese market is ever evolving and it is at a brink of becoming the most lucrative luxury market. Social media play an essential role in the Chinese luxury market. It is therefore an obligation for brands to see on how to lead in that completion. It is important to have a 360-degree landscape view of social media in china in order to exploit the market deeply. This would help brands draw meaningful marketing, production, and supply chain. Through which, they would arrive at high sales and better marketing tactics influenced by meaningful patterns and informed decision. A market survey done on social media from 1st August to 4th August 2016 that targeted and analyzed into details the value of social media influence. Dior, luxury Fashion Company in the survey offered it Lady Small Handbags for sale in WeChat for about 28000 RMB ($4210) according to the survey report all the 200 model of bags that were marketed on WeChat were sold by 2nd of August.

In the recent past Chinese markets have developed a need of brands developing social media intelligence traits to be a market leader in the crowded luxury market. That can be achieved through engaging social media monitoring and analytic tool. This tools can improve:

Therefore it is crystal clear that a powerful social media intelligent to can adversely influence digital markets. That is so because it can help brands identify meaningful insights to expand and stabilize their online markets. The effective use of gathered social media intelligence data would help brand make informed predictions on the market trends and identify potential business opportunities that are not exploited yet. Through the use of available social data brands are able to develop content narratives, run targeted social media campaigns, improved after sales and customer care services, reduced cost of future marketing and production of developed products informed by tailored customer needs. Plenty of data and information is provided to consumers through social listening. Brand Burberry will continue having its larger volume of stock turnover in chine since it makes use of social intelligence.

 

2.3 BRAND BURBERRY

Burberry Group Plc is British in origin. It houses luxury fashion brands which include clothing’s, fashion accessories and licensing fragrances. It is mostly famous through the iconic trench coats that was invented by Thomas Burberry. Burberry sales in china is increasing rapidly than in any other region. Therefore it is of interest knowing and evaluating the success strategy of the luxury market leader. In the year 2010, acquired it first franchised partner by paying up to £70 million to seal the deal. Enabling Burberry to have greater influence of the market. Lately, it boasts of 57 stores in 31 cities of china in the main land. Due to prevailing market trends, it is believed that china’s share of luxury market will increase from33 percent in 2018 of approximate value of $122 billion to 41 percent in 2025 with an approximate value at $173 billion. This has led the brand Burberry to reinvent itself on how to remain the market leader in luxury fashion market in china. Through franchising the retailer gets a little bit easy to build a global business is a short period of time. However, its setback is that it has no control over brands that offer it competition. This has led it to have to evaluate market, draw conclusion and implement the possible recommendations. In china control of luxury market is based on brands and not sale turnover. Burberry on realizing that trend opened a flagship store which acted as the brand showroom. It was stocked with high-tech products triggered with multimedia to mirror their contents. The flagship stores in china have assisted Chinese luxury consumers have multisensory feeling the brand with an aim of increasing brand awareness.

At the beginning Burberry intension was to conduct marketing through low interventions like wholesale, franchising, concession and many others in order to establish market reactions. That worked for them but did not exhaust the market. Thereafter Burberry entered in e-commerce. Internet sales would help the retailer measure its international sales if it would decide to open a store in a foreign market. In order to fit in the china’s luxury market, internet was a platform that enable retailers to promote their products beyond the geographical markets. This is because there is an extensive use of online platforms, mobile devices and social media that establish direct and mutual relationship with the customers. In china, Burberry has accumulated about 1.51 million followers on its Weibo which is one of the most popular Chinese social media platform. It also took it marketing campaigns on WeChat in 2018 on valentine day in form of a game with an aim of increasing sales. Burberry and Chinese tech giants, Tencent have partners exclusively to develop a social retailing in China. Their main focus is to pioneer a conceptual idea that connects social media and retail to create online and physical spaces for intended groups to interact and shop. Their first project of the two giant companies’ initiative is to see Burberry open a store backed by Tencent technology. It would provide consumers with a unique experience that brides social life and luxury online consumers to the physical environment. For sure it is a unique test that its success would be implemented in other networks of Burberry within china.

An estimate from McKinsey reveals that spending on luxury products will double between 2020 and 2025 in china. The gratification they made in respect to generations says that the post 80s accounted for more than half of the luxury goods consumption. On the other hand post-90s generations who were mainly children that their parents approved luxury spending. Burberry has consciously been penetrating into different social platforms that contains different population sets, hence it strategic plan is focused on young Chinese generation. This is through programs held on WeChat that deeply favor the young generation. That was mainly influenced by the fact that china is the fastest-growing market of luxury products. There is also underpinned growth of middle class which has given the latest sign of confidence in consumers.

Integration of online channels have helped Burberry outgrow geographical limitations. It has increased brand awareness through creation of comprehensive channels to populist products. In reference to the Chinese market, Burberry is present in popular platforms such as Weibo and WeChat with countless commercial accessibility (Joy et al.,) . The integration has enable the stores outlets extend purchase opportunities beyond where its establishments for instance the flagship opening even like the Dream of London streamed from Shanghai. It has also invited followers on WeChat to watch women’s wear show at London fashion week (AW14) on online platforms. Hence there is increased brands visibility, accessibility and participation analysis in china.

Key influential people (KOLS) have also been integrated in the quest Burberry need to dominate the luxury markets. Because of the huge market and large population, Chinese people believe that KOLs will chose the best products for them. This KOLs enjoy a support a larger followings and support hence consumers would like to emulate them on their choice so as to identify with them. In china to be choosing a popular and key spokesperson who is considered endorsed by celebrity is counted as a success. This influence the store to pick Kris Wu as their spokesperson when they experience a downward trend in sales. Within two months after, the Burberry announced 20 percent improvement of stock turn-over and revenue. This influence appointment of Dongyu Zhou as the female brand ambassador in Asia. That was mainly done to influence young Chinese generation.

 

2.4 INFLUENCER MARKETING

In china, traditional marketing is losing it touch with the society with the society because of the progress of influencer marketing. The nature of social media is very different in china. Due to its unique nature influences the market in high standards. This is through its customer influence platforms, credibility, high return of investment and many other benefits. China has restricted almost all western social media platform in their market. With unavailability of Facebook, Twitter and YouTube within their environment, their own social media platforms have remained dominant. This dominancy has improved societal influence and created a more interconnected networks that influence brand followers. It has been established that Chinese influencers are credible since they have real-life followers who normally inspire the influencer and share their thoughts about the commodity. Platforms like WeChat and Weibo are multifunctional offering payment, chatting and e-commerce interface that improves influencer’s action. Influencer not only get involve in the final selling of the product but also get involved in production and design. There are many players in the influencer markets especially in china.

2.4.1 KEY OPINION LEADERS (KOLs)

These are people whose opinion or view matter in the society. It consist of columnists, socialites, video producers, photographers and bloggers. They are extremely powerful and possess the ability to heavily influence the consumption decision of their followers. The group can be categorized to:

E-commerce influencers are those people who have greatly involved in e-commerce because of the price gap between main land and other areas. Therefore, they are entrepreneurs at the same time KOLs since even own their retailing outlets. According to Ad media report, Becky Li is the most influential KOL in china. She enjoys a crowd of 3 million followers on Weibo and 4.5 million followers on WeChat. It is reported that that she sold 100 mini coopers in five minutes in her blog on WeChat in 2017 baptizing her a new name, Goddess of Shopping. Armani Rebecca Minkoff also partnered collaborated with Burberry after promoting her brands on WeChat to sale 1 million renminbi. The luxury market in china has lost taste in traditional marketing strategies but has embraced influencer marketing because of the total belief and followings.

 

2.4.2 INFLUENCER MARKETING DEVELOPMENT IN CHINA

 

China is the country with the second largest GDP in the world. It has become a business priority globally but the market has remained relatively opaque in regard to international brands. The nature of media and its control have made the market different from other markets in the rest of the world. That difference make the country one of the best market to enter. A lot of concerns have rose if indeed influencer marketing is the way to go. A survey by a local consulting firm, Analysys International prove that influencer market is on the rise Blyton and Jenkins (2012). China influencer economy was found to be $18 billion. Ad Master also estimated an increase in digital marketing to over 70 percent out of the total two thirds will put more emphasis on influencer marketing. China has created its own digital ecosystem in the absence of the known brands like Facebook, twitter and YouTube. KOLs have found it bit easier to penetrate through the established local media and attract a larger following. That has led to trust from their followers based on reliability and trustworthy images that they stand for.

Recently Chinese have become skeptical of the traditional media marketing but have always depended on influencers to determine what they would go for. Findings from the KPMG Survey revealed that 60.8 percent of its respondents depended on online views and recommendation before doing purchases in china. 67 percent of Chinese purchases are influenced by KOLs. 65percent considered KOLs recommendations to be of more importance to discounts. Therefore brand that identified the powerhouse of KOLs have in business have succeeded immensely. That is the strategy the strategy that has influenced Burberry brand to have its spokesperson who is a KOL and the female brand a ambassador as a KOL too. This has enabled it move its brands in larger volumes and grown its store in all the 31 cities in the mainland of china. It has also moved from traditional advertisements to a modern Chinese way of marketing which involves influence of influencers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE

  1. METHODOLOGY

The main aim of this section is to outlay and justify research methodology used in the study. The chapter is comprised of quiet a number of sub-sections each analyzing different aspect of the research process. First, philosophy of research, strategy and approach are key issues for discussion, data collection, analysis representation and lastly ethical consideration of the research are analyzed in regard to influenza on Chinese marketing.

3.1 QUANTITATIVE AND QUALITATIVE RESEARCH METHOD

As data collection is concerned, quantitative research method is perceived to be most appropriate and effective in as much there esteemed to be quite a number of fact finding methods.

For a better and successful research, two distinct strategies are employed i.e. quantitative and qualitative. At last one can use mixed methods of research in order for provision of a better understanding on analyzed study in itself.

Quantitative research methods involve the process of collection and analysis of numerical data. Of course this can be used to find patterns, averages, make predictions, testing of casual relationships and in general to a wider perspective, provides a generalize results to a bigger population. Therefore due to its nature it’s more complex than the qualitative method of research.

Qualitative study was  observed  as the method was objected  in gathering more in details information in regard to influencer marketing in China due to lack of relevant studies and data regarding this subject. This approach however is of impact in cases where topics have not researched and discussed upon previously. Through this approach greater clarification and understanding over the problem was provided. To an extent the method was more effective since according to is nature non-numeric and non-immeasurable data i.e. words, participants’ reactions and emotions were observed and hence more detailed information were presented. On such like data analysis presence of a researcher is very vital and of more importance. Researcher understands perception and data interpretation is the key for the general outcome of the entire process. Thereby, according to its nature, quantitative methods are very typical hence making it very difficult and as well hard to duplicate or forge. This method also focuses on providing to a greater point insight on discussion of the phenomenon and to an extent being the basis for future research. In general, this method of data collection as a strategy is mostly used in the field of marketing as it greatly helps analyze and outline a better understanding of consumer behavior in regard to new event of study.

Additionally, the approach is used for the purpose of obtaining more complex information about the phenomenon under observation.

3.2 SECOND HAND LITERATURE AND SEMI-STRUCTURED INTERVIEW

After thorough considerations of factors such as feasibility studies, sample size and time among other factors semi-structured interview was considerably chosen upon to be the suitable tool. Another method agreed upon is second hand literature in conjunction with semi-structured interview. Examples of second hand literature includes but not limited to, magazines, newspaper, journals, reviews and other forms of publications that can be used to out-source information.

Semi-structured interviews and second-hand literature are fairly good when exploring new concept or deepening understanding on an issue that has not yet been explored or even brought under studies in depth. Even though like other techniques, this also has challenges like low-level of consistency and unlikeliest of repletion of this interviews that can be imposed by the interviewer while undertaking the event, the method tends to be most effective as the most intended information was actually gathered.

Semi-structured interviews are identified by a set of key questions in want of interviewer’s need of coverage. But he/she is not limited to the set questions rather can add other additional questions or can even skip some of the outlined questions for the achievement of better success. Actually they are just guidelines ensuring that all key topics of concern that were reflected from literature review are tackled while keeping some space and time for comments of each particular participant and newly formed questions in regards to the subject at hand. This is a sure way indeed of acquiring information from prospected customers and managers in a detailed manner.

By the end of the day, ten interviews were conducted in different sets where we had customer and manager, four face-to-face conducted interviews, one through voice call and the rest through social media of which interview duration differed from one to another in accordance to the relevant nature of the method or platform the longest interview session took around 45minutes while the shortest took 15minutes. Averagely, the session lasted 30 minutes. Before the real interview, there was keen selection of respondents, contacted and informed about research and its essence so that participants are well equipped for the phenomenon.

3.4 INTERPRETIVIST RESEARCH PHILOSOPHY

While conducting any research or study, it is believed that the researcher makes several assumptions which in turn will have an influence in the overall study, research methodology and even research questions to be chosen and even the mode of data analysis and interpretation by the researcher. This sub-topic therefore stands for a set of beliefs and assumptions in regards to knowledge development of an individual based on a specified area of study.

According to the qualitative nature of the study in the field of marketing being conducted, this technique was therefore followed by the researcher to ensure that the intended goal or purpose is achieved. However, social study cannot be studied in the same manner as the study of natural sciences which employs the use of positivist philosophy. This therefore includes subjectivity and empathy for a better research outcome since the researcher forms part of the study and to an extent, his or her understanding and interpretation is very vital for the research success. In this case there is use of small samples and qualitative methods in analysis. This technique also tends to do the analysis of the social context to a wider perspective while providing a deeper understanding of the problem at hand as its main focus is on the complexity and vast interpretations.

The process proved to be an interpretive research involved in investigation of insight upon the role of social media as well as influencer marketing in the industry upon study.

3.5 LIMITATIONS

It’s of course true to say that the conclusions arrived at from the information gathered rather data collected are limited in consideration to a number of factors such as sample size, lack of prior research, sample selection and among other factors researchers fluency in Chinese language. This factors in essence greatly affects research process thereby a lot of efforts should put to oversee the process otherwise the intended result might not be achieved.

3.6 SAMPLE SIZE AND SAMPLE SELECTION

Due to the fact that the study is qualitative in nature, greatly limited the method and mode of selection hence relatively small sample size was put in place or identified to be relevant however very few manager were identified and they showed up for the entire process.

In regard to consumer interviews, our main focus was based greatly on women as this was the main point of focus (main target group) of the company’s product.

3.7 FLUENCY IN LANGUAGE (CHINESE)

The success of research at a greater extent depends upon the researcher’s fluency in the language of the people where research is to be done hence, due to the fact that language the researcher was not fluent in this language therefore, this paused a problem since it forces the researcher to seek for the intervention of an interpreter to help in interpretation. However, it was quite a challenge since one this process is time consuming and secondly there at times be a challenge of misunderstanding of weighty ideas from the correspondences.

3.8 LACK OF PRIOR RESEARCH

Being that there was lack of up to date academic research related as this topic is concerned it was not easy to conduct the research since the respondents were meeting this for their first time. Thereby there was need for comparison among researchers around the world focusing on influencer marketing in the industry of interest. Another challenge was to an extent focusing on a single channel as being the source of information since this cannot be linked to other social media across the world.

All the findings need to be replicated with an expanded sample size in comparison with different countries across the world and as well different collateral companies including both gender so as to have an effective conclusion rated on the influence digital influencer marketing as the industry is concerned.

 

3.8 ETHICAL CONSIDERATIONS

In every social setup there are acceptable codes of conduct that guide in all operations. If at all there is key player in research process the ethics. In the entire research process this consideration appears. There are some key ethical principles that must be put in place for the success of the process. These principle ethical guidelines includes; availing the participation consent form to intended respondents which was signed by all participants guaranteeing the rights of interviewees as well as the interviewer.

This ensured that all intended participants were well informed and had knowledge on what was to happen that needed their participation. Also bearing in mind that this was a voluntary participation, withdrawal of a participant was at the participant disposal as he or she was free to do as he or she wished. Again participants were at all cost protected and their responses were treated at a greater height confidential as well as their contact details.

 

 

 

 

 

 

 

 

CHAPTER FOUR

4.0 FINDINGS

The purpose of this section of study is actually analyze collected data upon the interviews conducted forming part of the study. The chapter is generally subdivided into two major subsections due to the approach that was taken Chai & Chai (2014). The first phase is the examination of the data obtained from the top most or key executives of the organizations who were interviewed and thereafter, the analysis of information gained from customers.

4.1 PERSPECTIVE OF THE EXECUTIVE MANAGEMENT

The executive identified that marketing on social media was very vital and inevitable due to the fact that communication has shifted to online platform so as to reach such marketing. However, this has shown an increase of brand engagement and awareness midst the customers.

(Manager 1) “Social media in particular is good when it comes to the matter of brand engagement and awareness as well since this was the only means over which we could reach our vast number of clients”

Manager 4 “social media costs are relatively cheap as compared to other forms of communication i.e. TV, Billboards and is also convenient and very timely as process takes posting an image for example on WeChat.”

Further emphasis were made that from the fact there is increase in the use of WeChat and a bigger number of clients employs its use therefore was considered to be the best over all other social media platforms.

Customer 1 “ due to the fact that information reach us faster enough this has widen our knowledge on the available goods in the market creating awareness on the commodity fresh in the market.”

Customer 4 “online shopping has ease customers operation as we can shop online and the company makes the delivery at an appropriate time. Therefore social media has indeed open up room for marketing and consumption of commodities.”

4.2 OPERATIONAL PERSONNEL

Sales and Marketing team: marketing has been eased by the fact that the targeted group of our commodities spends most of their time in social media hence reaching them becomes so easy thereby opening up the market while increasing our turnover rate.

Influencer marketing turns out to be great for brand awareness and ensuring sales growth. Upon seeing commodity on blog customers tend to like and follow which drive them buy even more. This is in regard to selection of relevant influencer where professionals mentions personality and lifestyle of course that becomes the driving factor. It is important also to note that influencers’ personality matches the companies brand personality therefore the more followers upon influencer the bigger the audience in approach

4.3 FASHION INDUSTRY

Fashion trends change tremendously hence there is need for companies to promote their commodities very fast. Above all most people take a lot of time on social media so the companies need to take this advantage from the fact that as fashion is concerned, customer likes what he or she sees and influences him or her to make purchase.

WECHAT

This is one of the social media platforms that are in use in the world today. This media platform is preferred for quite a number of reasons not limited to; sharing pictures, follow up on friends and other WeChat users, great source of inspiration in fashion, acts source of review on fashion and beauty products

  1. Sharing pictures: according to a participant is that the main purpose of this platform is that it enables participants share nice pictures with friends and colleagues.
  2. For follow ups on friends and other users of WeChat like influencers and celebrities among others; the platform helps its users to trace track their friends in terms of what they do in their day-to-day life.
  3. Source of inspiration in fashion; since WeChat is full of pictures on latest trends, users are always inspired and get to understand or rather have knowledge on this from photos shared through this platform.
  4. Act as source of review on fashion, beauty products among others; one of the participant responded by saying that before buying some given product he/she first  checks on it from the Instagram and eventually comments that people are having on the commodity

 

 

 

 

 

 

 

Figure1- Target group of Burberry brands

Gender Male and Female
Age group 15-40 years old
Income High and middle income
Education background All types of education
Lifestyle Active social media user
Hobbies No specific
Interests Fashion

Source: Author 2020

 

It has been found that influencer marketing is the most relevant communication and marketing agent in china. Burberry identified that trend in marketing in between 2012 and 2018 hence spends 30 percent of its marketing budget on to capture luxury market. That kind of marketing influences overall business performance positively. Such include customer relationship, brand engagement and brand loyalty. In addition influencer marketing have got huge impact on brand awareness, sale growth and lower marketing spending.

“Mainly, influencer marketing is remarkable for brand awareness and sales growth. Customers usually see clothing’s on KOLs, like them and follow-up. That makes them buy more frequently.” (Brand manager 5)

When it comes to selection of relevant influencer or KOL. Area of specialization is necessary and the degree of influence in the society is the most significant factor considered. Personality and lifestyle too is also an important factor to rely on.

“When searching for an influencer we dwell a lot on the personality if it really match with the brand. Moreover, followings is the most important part since it has direct effect on stock turnover.”  (Sales manager 1)

“It’s not just money it’s my followers, I can’t collaborate with brands that does not match my personality” (KOL 3)

According to the nature of Chinese market, luxurious fashion brands often succeed when they collaborate with influencers and KOLs due to larger followers whose tastes is dictated by them as well as WeChat and Weibo.

“People spend a lot of time online and follow a particular KOL. Therefore when they are clothed in our brands they influence in a real situation. In that such situation the targeted group appetite for buying increase.” (Brand spokeswoman)

When it came to targeted audience decision factored in. generally influencer marketing and social media are more suitable for people of ages below 39 years.

 

 

 

 

 

All participants stated that they are active on social media, spending significant amount daily on it. Very less respondents spend about an hour in social media. More than half of the respondents spend 5 hours and over on social media. Generally, participants agreed to access via social media in contrary to traditional advertising platforms like TVs.

“I am always on the move, I can’t carry my television along, and so my trusted information source is social media.” (Participant 12)

Figure(pie chat)

WeChat and Xiaohongshu have proved to be the most popular social media platforms as they are frequently used by almost every participant. They are followed closely by Sina Weibo, Tencent QQ, and Zhihu. To sum-up, every interviewee is a member of 4-8 different social media network.

All the respondents with an exception of three concurred that WeChat was the most popular social media platform lately. Favoring reasons included its efficiency and it being one-stop platform offering shopping, taxy, payment platform and so on. Some said that they enjoy seeing pictures and video without necessarily reading.

“Sometimes I spend a lot of time viewing my KOL in different outfits as I admire how they come with blended taste.” (Participant 7)

“It’s boring reading posts on brands, all I need is the real pictures to ascertain.” (Participant 10)

The use of this platform was dominant among the respondents.

  1. Tagging friends to view brands

“I can see good brand and fail to tag my buddy to have a look” (Participant 5)

  1. Follow their friend and influencer (KOLs) on the platform

‘I can’t afford to miss something online, I follow almost every celebrity.” (Participant 8)

“You can’t miss the latest trending products on WeChat that I swear.”  (Participant 4)

Respondents majorly concentrated on originality and creativity of content. Therefore before following they did a lot of scrutiny. For a brand to attract more following it has be consistent on the platform. Timing is of great essence considering targeted group. Frequency is also important since the respondents did not view at the same time. Burberry account on WeChat was one of the favorite among respondent since it was attractive, engaging and had exciting experience. Luxury and flossy content was the view among the despondence. Again motivation was at the core since all of them wanted recognition on their societal status.

Local and international influencers’ importance was significant among the respondents. 75% agreed that their purchases of brands from Burberry was influenced by influencers. Preference and buying behavior largely depended influencers.

The following findings emerged:

“I prefer local influencers since I love them but I don’t have any other choice since we are restricted to local.” (Participant 2)

“This is a collaborated venture, influencers get paid to promote products. Purchasing is mainly determined by liquidity of an individual.” (Participant 6)

“I would not have known of Burberry brands presents in Chinese market if it were not for influencers” (Participant 6)

Concerning Burberry, numerous respondents have declared to have begun following the brand by being influenced by influencers. A few were able to mention the brand spokesperson and brand ambassador by name. They influenced customers even on how to use the commodities they intended to buy.

Brand selection and purchasing mainly depend on self-concept and personality. Participants intended to buy products they felt that related well with them. In fact they preferred buying products that easily expressed their lifestyle or personality.

“If someone want to show self-worth among friends and peers the he must identify with a brand most likely Burberry.” Participant 3

 

 

5.0 DISCUSSION

In the methodology under objectives of the study, the main aim of the study was to understand WeChat and KOLs influencer marketing in luxury fashion industry while focusing on china due to inadequate research in such market. This chapter is purposely meant to discuss the findings with respect to the level two research in terms of theories and models. This chapter is divided in several sub-chapters based on key findings.

5.1 SOCIAL MEDIA

When referring from the literature review, social media was realized to be the most popular platform in China. It became dominant through information evolution, availability of internet and internet-related technologies. People generally accepted it due to perceived usefulness and ease of use.in addition internet has predominantly used in china due to its affordability and efficiency. It can also support a lot of platforms at the same time. WeChat was found to be the most used platform since it is effective. It has also maintain its predominant position due to absence of global big names like china.

Research results showed that popularity of internet and social media has been associated with popularity of WeChat and Weibo QQ. They spend an approximate of 5 hours a day online that confirmed the importance of the presence of social media.

5.2 WECHAT

The users of WeChat users have been increasing significantly in the recent time. As at 2019 Ad Master reported that the users had reached 938 million. Individuals appreciated the significance functions of the platform. What mesmerized this users was it being a one-stop point of transaction. It also allows visualization due to its easy editing features that do not need professionalism. Followings in WeChat was mainly attributed to influence by friends and other users, influencers and celebrities. In general point of view, Weibo QQ was found to be of a great source of inspiration

5.2.1 CONTENT OF WECHAT

There is necessity of creativity and content originality in WeChat influencers and brand companies too. Secondly these features influences the overall persuasive power that the influencer have. The y fell that they are entitled to following in order to get the lately trends I WeChat. Many respondents pointed out the importance of consistently expressing brand information on the network. In addition, timing and frequency stood out as the decisive attribute when a brand is concerned with acquiring and maintaining followers in WeChat and Tencent.

5.3 INFLUENCER MARKETING

Social media influencer is said to be a new and independent variable regarding marketing. This are people who have excelled in the field of specialization and through that they have gained popularity hence all their posts on social media influence a lot. When they pick a brand or display a great impact is felt on the search, purchases and consumption of the brand. Most of the participants agreed that influencers had an impact on their decision to buy from Burberry.

5.3.1 SELF-CONCEPT & MOTIVATION

Most of the participants said that they relied mainly on personality of the influencer. Brands and personality always blend nicely hence if the personality is not favorable then people will shy away from associating with the product. Participant 9 declared, “I suppose if someone is acting royalty, then he/she suits marketing Burberry since this luxury of luxury and it come with price.” The brand manager to emphasize on brand spokesperson, ambassador and representative match with the product.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 6

6.0 CONCLUSION

 

6.1 CONCLUSION

The aim of this study was to synthesize the impact of the influence of influencer marketing affect the purchases of luxury fashion  commodities with reference to Burberry a London based luxurious personal effect brand. The above company was selected due to is ability to command sales in china a market that is considered opaque by global market leader brands. The research was done through a thorough literature review. That included specific areas of social included Medea, influencer markets, WeChat, self-concept and other mode of technology that is acceptable. In addition growing influence of social media plat forms were discussed like the inherent use of WeChat. WeChat has been I identified as the most important sight to find influencers (KOLs). Ad Master reports that 67 percent of Chinese luxury shopping is influenced by KOLS who are the most celebrated individuals and enjoys a large followings. Such markets have developed rapidly due to limit in other social media penetration in the market. In china the purchasing and sales pattern is re-sharping under the influence of digital infrastructure with the vivid example being WeChat. The platform is a one-stop app with a wallet, social media channels, shopping, taxi, food delivery and a lot more. This has made luxury shopping more easily than before. In addition, Chinese digital infrastructure have got a ripple effect on the rest of the world. When all is said and done, there is no doubt that KOL marketing is on the rise in china and has become a necessity of marketing strategy. What remains is to sit back and see how the evolving market and digital culture continue to embrace influence of influencer market.

 

6.2 BUSINESS RECOMMENDATIONS

The research objective was to establish the implications of the influencers in luxury product markets in the fashion industry and how the fashion brands can benefit from KOLs to acquire more customer and increase sales. The research presented several implication. Therefore, the following recommendations for the companies that rely on influencer marketing are outlined based on the research results.

  1. Concerning the increased number of WeChat among other social media users it is necessary that not only luxury fashion brand use influencers in their marketing but also the brand who target low income households
  2. Influencer marketing have proven to be effective therefore companies show have social media accounts both locally and globally so as to expand market beyond their geographical limitations.
  3. When it comes to content, consistency is very important in that a consumer should be in a frequent relationship with the brand in the available platform.
  4. The managers should consider spending a little more of the influencer markets since it has proven to have a lot of potential.
  5. Timing and frequency affect brands views and sales. Therefore brands should do a fact-finding on when their targeted groups are always online.

6.3 SUGGESTION FOR FUTURE RESEACH

This study has availed a new platform in which researchers can deeply investigate the influence of influencer marketing on WeChat in luxury fashion market in China. The few suggestion for future research were decided. They are a little cheaper but classy brands in order to widen the luxury market. Secondly a lot of potential would be gained by including social media like Facebook and YouTube in the Chinese market. Lastly a lot of qualitative study should be done to provide analyzed supporting evidence.

 

 

 

 

 

 

 

 

 

 

 

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