A Proposed Model for the Effect of Consumer Prestige Values on Luxurious Consumption Application on Young Egyptian Consumers in the Fashion Market

Abstract

Luxury is usually associated with the finer things in our life. Everyone wants a bit of luxury. It is a concept that is used often but no one really understands what it actually means. Considering the amount of profit the luxury market reaps in annually, the motives behind this should be looked at. The consumers of luxury brands include both young and old consumers but in order to understand the increasing demand of young consumers in the luxury market; an understanding has to be made to analyze the luxury market in terms of the perceived prestige values which are reflected by motives and to determine the prestige store factors that influence luxury consumption among young Egyptian consumers. Since Egypt has widened its market doors to global trade, demand has been continuously on the rise for luxury brands, especially from young Egyptian consumers. This study aims to identify the young Egyptian consumers’ prestige values toward luxury fashion brands consumption. Young consumers have become consumer trendsetters as their spending power increases, and their western cultural reference points broaden dramatically (Louis, 2002). Consumers in their twenties are rapidly replacing middle-aged consumers as the main consumers of global luxury brands (Park, 2000).Realizing this trend, global luxury brand marketers are developing strategies to attract young Egyptian consumers with moderate income who have never been considered as a target market in the traditional sense. This research addresses the impact of consumer prestige values on luxury brands consumption and how this relationship is mediated by the prestige sensitivity factors. A review of the developments in the luxury market has shown significant changes in demand and supply sides. The luxury market has been growing rapidly over the last 20 years, and luxury brands, formerly reserved for a small group of privileged individuals, are now available to more consumers. Meanwhile, luxury goods manufacturers have been applying new marketing strategies, and extending their brands without any insights as to the consequences for their brands. Despite these changes, little research has investigated the luxury market. Therefore, a systematic review has been undertaken regarding the nature of luxury brands and research measuring luxury brand consumption such as prestige values.