Married to Mr.

Brand
Mitali Banerjee
Thesis Prospectus
T
o analyze paradigms in Generation Y’s

C ustomer L oyalty
for luxury fashion brands
over digital medium
P roblem S
tatement
M A
arket nalysis
 Economic Turbulence
•Sales/ revenue/market
share decreased across
all industries
• Value re-propositioning
• Consumers lost trust in
the brands they believed
in!

M A
arket nalysis
M A
arket nalysis

Luxury Fashion Industry

•Brands – trading down
•Mass-exclusivity, mass-
prestige brands
• Rebranding their outreach and
value to consumers – heritage,
2 way communication, adjacent
brand line and discounts
Digital Medium’s popularity increased
*Web 2.0 + Mobile + Ipad revolution
*Social media communication +
Alternate/additional sales channel
•Engaging consumers, personalization,
empowering consumers with choices
• Consumers voice transmission

M A arket nalysis
 M A arket nalysis

Generation Y –rise in spending power

•Those born bet 1978- 1992
• increasing disposable income
• no heritage association with brands :
open to be convinced to be loyal
• high-tech savvy
• belong to information age
Digital Medium’s popularity increased
Economic Turbulence
*Web 2.0 + Mobile + Ipad revolution
•Sales/ revenue/market
*Social media communication +
share decreased across
Alternate/additional sales channel
all industries
•Engaging consumers, personalization,
• Value re-propositioning
empowering consumers with choices
• Consumers lost trust in
• Consumers voice transmission
the brands they believed
in!

M A arket nalysis

Generation Y –rise in spending power Luxury Fashion Industry

•Those born bet 1978- 1992 •Brands – trading down
• increasing disposable income •Mass-exclusivity, mass-
• no heritage association with brands : prestige brands
open to be convinced to be loyal • Rebranding their outreach and
• high-tech savvy value to consumers – heritage,
• belong to information age 2 way communication, adjacent
brand line and discounts
Digital Medium’s popularity increased
Economic Turbulence
*Web 2.0 + Mobile + Ipad revolution
•Sales/ revenue/market
*Social media communication +
share decreased across
Alternate/additional sales channel
all industries
•Engaging consumers, personalization,
• Value re-propositioning
empowering consumers with choices
• Consumers lost trust in
• Consumers voice transmission
the brands they believed
in!

M A arket nalysis

Generation Y –rise in spending power Luxury Fashion Industry

•Those born bet 1978- 1992 •Brands – trading down
• increasing disposable income •Mass-exclusivity, mass-
• no heritage association with brands : prestige brands
open to be convinced to be loyal • Rebranding their outreach and
• high-tech savvy value to consumers – heritage,
• belong to information age 2 way communication, adjacent
brand line and discounts
P rimary O bjective
 For Luxury Fashion
brands
Over Digital Platform

C ustomer L
oyalty
Generation
Y
Digital
Platform C
ustomer L
oyalty

Luxury
Fashion
Brands
Generation
Y
Digital
Platform C
ustomer L
oyalty

Luxury
Fashion
Brands
Generation
Y
Digital
Platform C
ustomer L
oyalty

Luxury
Fashion
Brands
C ustomer L oyalty

Understanding the
“Loyalty Economics at work”
that influence
passion points
for Generation Y
over digital medium
C ustomer L oyalty

Generation Digital
Y Platform

Luxury
Fashion
Brands
 Sales channel and
communication
perspective
Aesthetic and

C ustomer L oyalty
Technical
appeal to consumers
How to add value
for consumers over
this intangible
medium of
communication?
Generation Digital
Y Platform Customer Relationship
Management /
Experience
Luxury Communication
Fashion
Brands How to deal with
online perceived risk?
 C ustomer L oyalty

Generation Digital
Y Platform

Luxury
Fashion
Brands

Value chain –
Personalization, Role of Customer Importance of Point of
Customer feedback ? Service? Sale development ?
 Target Market – BRIC,
United States, Others

Women v/s Men

Preferences?
C ustomer L oyalty

Kind of
medium best
suitable for
the target Generation Digital
Y Platform
Values that
resonates
with the
Luxury
consumer
Fashion
Passion / Touch Points? Brands
 Sales channel and
communication
Target Market – BRIC, perspective
United States, Others Aesthetic and

Women v/s Men

Preferences?
C ustomer L oyalty
Technical
appeal to consumers
How to add value
for consumers over
Kind of this intangible
medium best medium of
suitable for communication?
the target Generation Digital
Y Platform Customer Relationship
Values that Management /
resonates Experience
with the Communication
Luxury
consumer
Fashion
Brands How to deal with
Passion / Touch Points?
online perceived risk?

Value chain –
Personalization, Role of Customer Importance of Point of
Customer feedback ? Service? Sale development ?
 Q uestions
1. What is the Generation Y loyal to within the luxury fashion industry –
Price / Product / Brand .
OR
What are the drivers behind Generation Y’s customer loyalty towards a
luxury fashion brand

2. How to add / deliver value to Generation Y over digital medium to invite

and retain customers
OR
What kind of rewards/incentives to offer to Generation Y by luxury
fashion brand to inspire customer loyalty

3. From a Generation Y perspective, w.r.t to luxury fashion industry, how

does customer loyalty benefit the brand – positioning strategy ,
competitive advantage , revenue + market share generation ?
 Price
v/s
Product
v/s
Q uestion - 1

Brand equity
What makes Drivers
Generation Y loyal to
any luxury fashion
Passion / Touch Points? brand?

How can they be What were the offline

replicated with for customer loyalty
online medium ? drivers for a specific
brand. For e.g
Neiman Marcus

Is customer loyalty a profitable area of interest for

a stand alone brand, or is it more effective when
consumers have more choices under a umbrella of
brands?
 Price
v/s
Product
v/s
Q uestion - 1

Brand equity
What makes Drivers
Generation Y loyal to
any luxury fashion
Passion / Touch Points? brand?

How can they be What were the offline

replicated with for customer loyalty
online medium ? drivers for a specific
brand. For e.g
Neiman Marcus

Is customer loyalty a profitable area of interest for

a stand alone brand, or is it more effective when
consumers have more choices under a umbrella of
brands?