Luxury brands such as Louis Vuitton and Rolls Royce are symbols of wealth and success. But new mobile digital technologies could prove to be a double-edged sword for some of the world's most exclusive labels.
A Queensland University of Technology (QUT) researcher is examining the impact of iPhone applications on the image and identity of luxury brands.
PhD researcher Parisa Mahyari, from QUT's School of Advertising, Marketing and Public Relations, will analyse how luxury fashion, automobile and hotel brands use mobile phones to take advantage of the growing digital market.
Ms Mahyari said new technologies offered luxury brands the chance to provide a digital service which reached a wider audience and could be shared with friends via social media.
However, she said it also put exclusive labels at risk of "diluting" their brand image.
"The mobile phone is a very personalised and powerful communications tool," she said.
"Providing a high degree of engagement and interactivity with mobile phone applications as well as up to date information can make a significant difference to the success or failure of luxury brands' mobile commerce strategies.
"If they can't convey the notion of luxury in terms of quality, design and experience, it won't work and this could have implications for the image of the brand and its identity as an exclusive label.
"To date, little research has been done to address the issue of how luxury brands can maintain their niche positioning while keeping up to date with recent technological developments for marketing strategies."
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Ms Mahyari said luxury brands developed iPhone applications for various reasons such as enhancing existing customer loyalty, inspiring potential target markets and to increase brand awareness.
She said some fashion brands within Gucci Group, for example, had adapted well to the rapidly changing market, appealing to the middle class and Generation Y, while maintaining its traditional client base.
"Previously only affluent consumers would buy luxury brands - they were the target market," she said.
"But now luxury brands are making themselves available to bigger markets because they want to increase their sales and compete with other brands in today's markets."
Ms Mahyari will interview luxury brand marketing managers, conduct focus groups with advertising agencies and speak to consumers of luxury fashion, automobile and hotel brands as part of her research.
She would like to hear from any luxury brands and consumers who are interested in participating in her research. They can contact Ms Mahyari at p.mahyari@qut.edu.au
Media contact: Stephanie Harrington, media officer, 3138 1150, stephanie.harrington@qut.edu.au
