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Impact of Digital Proficiency on Luxury Brands
Running Head: impact of digital proficiency on luxury brands
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Impact of Digital Proficiency on Luxury Brands
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Contents
Executive summary    2
Introduction    3
Problem Statement    3
Research aim and research question    4
Research Questions    4
Research Plan    5
Data Sources    5
Literature Review    8
Recommendations    11
Conclusion    12
References    14
Executive summary
The main aim of the paper is to provide the details on the digital proficiency of the luxurious brands in China which will be elaborated in the three research questions. The first question will be the impact of the digital proficiency of the brand value. The second question is about whether with the introduction of digital media, the luxurious brands will lose their exclusivity when they come easily in the reach of the customers. The last question will focus on the real fact that if not digital media, the company can lose its customer in the long run.
The introduction part will explain the concept of digital proficiency and identify its potential for the changing business strategies and technologies to conduct business regarding luxurious brands.
The literature review will explain the significance of the digital proficiency of the different luxurious and brands to enable them to enlarge their virtual space for the entry of the new shoppers online.
The quantitative methodology will be adopted for collecting the data from various sources. Many research methods will be employed to collect the present data concerning the digital proficiency of the luxurious brands along with the brand value of the luxurious brands.
The conclusion and recommendation will be added in the end to find the findings of the fact.
Introduction
A marketing strategist aiming to find success in the current scenario needs to identify the potential of Digital Proficiency in every aspect of developing marketing strategies. Whether branded or non-branded now digital presence is a must for every business to sell its products and services because the customer is online. Luxury brands those have believed till date in mouth-to-mouth publicity and customer loyalty as the main approach for marketing its product also seeking assistance in digital proficiency. The given research proposal identifies the gap between the knowledge and application of digital proficiency for luxury brands and the impact it has on the brand value. The given proposal will include the background of the research topic, its aim, research questions, literature review. Once the topic is discussed in detail the proposed research methodology for the study, expected findings, discussion and conclusion will be added later.
Problem Statement
It has been identified that the high-end brands have been slow in identifying the power of digital proficiency, but customers have not. The changing business scenario demands the brands to either acknowledge the digitalization or lose the shoppers and investors. The leading brands boast exclusivity which till date reflects in minimal exposure on any digital platform. But with increasing dependence of the shoppers on the internet and reducing sales has demanded a push on the online presence and as the peers have said that "Go there where shoppers are." Still, only 60% of the brands have entered into digital proficiency, and many have the doubts in their mind due to the traditional approach of brands losing their exclusivity and value when they come in reach of the customers.
Research aim and research question
The aim of this researcher paper is to analyse the digital proficiency of different luxurious brands. It has to believe that more than 50 percent of the sales of the luxurious brands have been influenced by digital media that the shoppers are very curious to research about the particular products before purchasing it. The shoppers were yet equivalent to within a particular store purchases the online yet as it becomes more comfortable and convenient for them. Many brands have initiated the evolution of digital media and start witnessing the positive results thereof (Rigas & Hussain, 2017).
In this background, the study shall highlights that the digital proficiency of the rich brands shall have a decisive impact on the brand value of the particular brand in the eyes of the shoppers.
Research Questions
· At what extent the digital proficiency impacts the luxurious brands to recognize their value position?
· Is this right, with the influx of the digital media the luxurious brands will lose their exclusivity?
· Is this true or false, that if not social media the well-established brands will lose the shoppers online.
The hypothesis of the verification for the digital proficiency of the luxury brands is as follows:
Null Hypothesis H0 – the digital proficiency brands does not impact the brand value of the specific brand positively.
Alternative hypotheses H1- the digital proficiency of the rich brands positively impacts the brand's value and the interest of the shoppers.
Research Plan
The research methodology used for collecting the appropriate data for conducting the study concerns secondary source of data about the digital proficiency of the rich and luxury brand along with its value position of the concerned brands. The nature of the data is quantitative.
The data analysis shall consist of initiating the correlation between the two hypotheses, i.e. First, H1: the digital proficiency positively impacts brand position and brand value of the luxury brands. Secondly, H0: the digital proficiency does not positively impact the brand value of the concerned luxurious brand (Arrigo, 2018).
Data Sources
Absolute Variable: Digital Proficiency of the Luxury Brands
In China, people are more tech-savvy and digitally friendly. To serve the customers, many brands have recognised the need of digital proficiency. According to the above figure, it can be seen that the Chinese brands have not much progress in improving their digital proficiency. It is to believe that the pace of digital proficiency in the china is very slow, i.e. only 21 luxurious brands out of the 32 luxurious brands have appropriately recognised he needs of the digital media. There is 9 percent reduction in the Chinese brand's digital proficiency as compared to the previous years. The luxurious Chinese brands have to take a long journey to enjoy the benefits of the digital proficiency. French fashion house Dior has successfully maintained the dignity of social media and provide online chat service to their customer to communicate with their customer care service team 24/7 whenever the customer has any query or facing difficulty in choosing a suitable product. The digital proficiency of the luxurious brands is 46% as compared to the 56% of the previous year which is very slow in the era of digitalization.
Source: Statistica, 2018
In China,...