UNIVERSITY OF NEW YORK IN PRAGUE
European Business Administration
Analysis and Comparison of the Marketing Strategy of Vogue Fashion Magazine in the Russian Federation and China
by
Karina Akhmedbekova
2018 Mentor: William Pattison Statement declaration
I, Karina Akhmedbekova, declare that the paper entitled:
Analysis and Comparison of the Marketing Strategy of Vogue Fashion Magazine in the Russian Federation and China
was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No. 111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses.
Prohlašuji, že jsem tuto práci vypracoval/a samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědom/a, že moje práce bude zveřejněna v souladu s § 47b zákona č. 111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou Směrnicí o zveřejňování vysokoškolských závěrečných prací.
In Prague, 27.042018 Karina Akhmedbekova
Acknowledgment
I would like to express my sincere gratitude to my mentor William Pattison for guidance, valuable suggestions, and persistent help.
Also, I am thankful to my family and friends, for their unconditional support and faith in me. Without them, I would not be able to get education and diploma at UNYP and gain all the knowledge and experience.
Table of Contents
Introduction ...... 8
1 Research Section ...... 11
1.1 Marketing: Definition and Key Aspects ...... 11
1.2 Functions and Types of Marketing ...... 13
1.3 Marketing Mix ...... 18
1.4 Overview of the Fashion Market...... 23
1.5 Specificities of Fashion Marketing ...... 25
1.6 Hofstede’s Theory of Cultural Dimensions ...... 37
2 Analysis Section ...... 41
2.1 Description of Vogue Magazine ...... 41
2.2 Key Audience of Vogue Magazine ...... 42
2.3 Marketing Strategy of Vogue Magazine ...... 43
2.3.1 Russian Federation ...... 43
2.3.2 China ...... 50
2.4 Comparison ...... 57
2.5 Discussion and recommendations ...... 70
Conclusion ...... 74
Annexes ...... 77
Works Cited ...... 78
List of figures
Figure 1. Vogue Russia’s advertisement in Instagram ...... 48
Figure 2. Vogue Russia’s advertisement on its official website share in all social networks ...... 49
Figure 3. Vogue China’s advertisement in Instagram ...... 56
Figure 4. Answers to survey question 1. What is your gender? ...... 58
Figure 5. Answers to survey question 2. What is your age? ...... 58
Figure 6. Answers to survey question 3. How often do you buy the print version of Vogue magazine? ...... 59
Figure 7. Answers to survey question 4. Do you believe the price for the print version to be justified? Please rate 1 to 5...... 60
Figure 8. Answers to survey question 5. Is it easy for you to find where to buy a print copy of the magazine? Please rate 1 to 5...... 61
Figure 9. Answers to survey question 6. What don’t you like about the print version? ...... 62
Figure 10. Answers to survey question 7. Do you have a paid subscription to Vogue magazine’s electronic version? ...... 63
Figure 11. Answers to survey question 8. Do you believe the price for the electronic version to be justified? Please rate 1 to 5...... 64
Figure 12. Answers to survey question 9. Through what social networks do you follow Vogue (in case of several at once, choose the network where you follow Vogue most)? Facebook / Instagram / Twitter / VK / Weibo / other ...... 65
Figure 13. Answers to survey question 10. Do you believe that the company is effective in communication through online social networks? Please rate 1 to 5...... 66
Figure 14. Answers to survey question 11. Do you believe that the company takes into account the feedback left by its customers? ...... 67 Figure 15. Answers to survey question 12. In what terms do you like competitors’ advertisements more compared to Vogue? brighter display / more comprehensible / non-standard message / more interactive / other ...... 68
Figure 16. Answers to survey question 13. What would you change in the magazine’s contents? ...... 69
Abstract
The thesis testifies the importance of effective application of marketing policies for commercial entities. International companies operating in different states need to implement effective cross-cultural management policies in order to maximize the results of their marketing in different geographic segments. The thesis illustrates a case study of Vogue on the example of the company’s activities in Russia and China. The research question is the following: The findings of the research prove that the fashion magazine’s marketing strategies are quite similar in the two states, and this is due namely to the close similarities between their cultures. The methods used in this thesis will include secondary research (for analyzing the existing literature dedicated to the research topic and forming a comprehensive theoretical background) and primary research (surveys among the customers of Vogue in the chosen countries). Comparative analysis applied in order to identify the differences in Vogue’s approach to marketing strategies in Russia and China.
Based on the evaluation of the company’s policies, recommendations are provided for
Vogue to improve its market in Russia and China, and namely to focus on the development of effective communication and marketing in the online segment and raising the presentation of stars, opinion leaders and other influential persons on the magazine’s pages due to their positive perception by the Russian and Chinese people.
Keywords
China, cultural dimensions, fashion industry, marketing, Russia, Vogue.
Introduction
As of today, tendencies toward an ever-growing cross-cultural convergence in the world tend to keep steadily intensifying. This means that there is greater cultural exchange around the globe, and the influence of major cultures is spreading steadily across all continents.
However, despite those tendencies influenced by globalization, nations still preserve their cultural identity, and companies wishing to achieve success in a particular geographic market need to take those cultural specificities into consideration effectively when planning the development of their business.
In this context, it should be understood that companies might benefit from using different marketing tools in different countries with the aim of achieving their best performance.
Without taking into account duly such specificities, companies risk of delivering incomplete or unpopular messages to their customers, and in the long run losing their audience and potential profits. Therefore, cross-cultural marketing is an indispensable part of business activities of any entity dealing with foreign markets.
This thesis will be dedicated to the investigation of how companies might use their different marketing strategies in different countries in order to maximize their business effectiveness.
The company chosen as the object of the research is Vogue, one of the world’s most famous fashion magazines. The choice is due to the author’s interest in the topic of fashion, and the opportunity to run a detailed marketing research dedicated to Vogue.
8 The aim of the thesis is to investigate the differences in Vogue’s marketing strategy in the
Russian Federation and China, and to provide recommendations to the magazine for improving the current situation.
The goals of the thesis are to investigate in detail the specificities of marketing activities run in the industry of fashion, and namely by fashion magazines, to analyse how the theory of cultural dimensions developed by Geert Hofstede might be applicable to fashion companies, to run a detailed research of the marketing activities run by Vogue in Russia and China, and to elaborate recommendations for the company.
The research question is the following: How does the marketing strategy of Vogue differ in the Russian Federation and China?
The hypothesis to be tested in the research is the following: Vogue’s marketing potential in China is limited to the greater conservativeness of Chinese people compared to Russians.
The methods used in this thesis will include secondary research (for analysing the existing literature dedicated to the research topic and forming a comprehensive theoretical background) and primary research (surveys among the customers of Vogue in the chosen countries). Comparative analysis will be applied in order to identify the differences in Vogue’s approach to marketing strategies in Russia and China. Also, deductive thinking will be applied in order to develop the author’s own recommendations and suggestions for
Vogue based on the findings of the thesis.
The literature used in the thesis will include academic bibliographic sources in print and electronic forms, official web resources of Vogue, and additionally online news published
9 by reputable media agencies. This selection of bibliographic sources should allow covering the topic in the most effective manner.
The findings of the thesis will be of not only theoretical, but also practical value, as they should allow pointing out the advantages and downsides of Vogue’s cross-cultural marketing policies. Also, the results should be applicable to any subsequent research dedicated to the fashion industry.
10 1 Research Section
1.1 Marketing: Definition and Key Aspects
In order to proceed to a more detailed analysis of marketing and the basic concepts of marketing, it is worth identifying first the most widely used definitions of the terms, and thus to understand its underlying meaning.
According to Reynolds and Lancaster (2005, p. 4), there are two main definitions of marketing. Namely, according to the definition given by the Chartered Institute of Marketing, marketing is “the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” The American Marketing
Association defines marketing as “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”
Analysing the two definitions outlined above, it can be stated that the first one focuses on the criterion of profitability, which thus fails to take into account the possibility of use of marketing by non-profitable organizations, civic associations and other entities which do not aim for profits. At the same time, the second definition has some flaws in terms of addressing the interaction between the company and the customer. Here, it is worth citing the definition of marketing given by Kotler and Levy, as outlined in Fitzpatrick
(2017, p. 6): marketing is “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and
11 desires. It defines, measures and quantifies the size of the identified market and the profit potential.” Therefore, from this definition, it can be stated that marketing is aimed to ensure the best satisfaction of a company or organization’s target customers, and thus provide this company or organization with the best opportunities of achieving its targets or goals, namely sufficient profits, audience coverage, customer awareness or loyalty, or any other kind of goals the company pursues.
As marketing implies a complex set of activities designed to ensure the best conveying of information on the company’s products to the target customers, an important task for companies is thus to organize effectively their process of marketing management. As stated by Tesar and Bodin (2012, p. 55), marketing management can be defined as “a series of professional and scientific activities that guide the creation, delivery, and consumption of products or services in rapidly changing consumer- and technology-driven markets.” For the purpose of carrying out marketing management, large companies have their own marketing departments, while in smaller companies, it can be the task conferred upon particular officers or managers. In the current conditions, the market tends to keep evolving at a very rapid pace, and therefore in order to keep up with this pace, companies focus more and more on the implementation of their marketing strategies and policies throughout all departments, units and processes, thus involving all employees in the process of development and implementation of marketing policies. This is set to ensure companies’ most effective results in terms of their marketing activities in the long run.
Another important definition which should be taken into account is marketing planning.
As defined by Volkmann et al. (2010, p. 192), marketing planning can be defined
12 as “the systematic, rational perception and analysis of the future development of the market and the enterprise with the objective of deriving aims, strategies and managerial guidelines for the development of marketing strategies.” Marketing planning is required for companies in order to design their marketing strategies and policies in the most efficient way, estimating potential budgets and forecasting the anticipated results. Effective marketing planning is also a key prerequisite for obtaining clear and transparent criteria to be used thereafter for the purposes of monitoring and control, and thus for making effectively and timely changes to the company’s appropriate policies.
Thus, based on the information outlined above, it can be stated that marketing plays an important role for any company wishing to achieve success in its core market activities.
Taking into account the information outlined above, the investigation can now focus on the main types and functions of marketing.
1.2 Functions and Types of Marketing
The functions of marketing reflect and describe those tasks which marketing is aimed to perform and fulfil as a set of dedicated business activities. Speaking broadly, it can be stated that the aim of marketing is to provide the company with the opportunity of achieving the desired results in its target activities through the best delivery of information on products and services to target customers. However, the functions of marketing are not limited solely to that, and are aim to ensure the achievement of a greater number of different objectives.
13 According to Smith and Albaum (2005, pp. 7-8), the main functions of marketing are the following:
1. Analytical function
First of all, marketing is designed to run an appropriate collection of information on the company’s target market. When analysing the target market, the company needs to get all appropriate data which can be used for elaborating the company’s marketing policies and the wider business policies in general. Within market analysis, the company is interested in getting the information on the target customers, suppliers, competitors, and the product structure of the market. The information on customers includes any their characteristics and parameters which might be of relevance to the company, namely their demographic structure (sex, age, education, and so on), level of income, patterns of expenditures, and so on. Of particular importance is to understand the mechanisms of customer decision-making and the main product characteristics which drive customers’ ultimate choice.
The analysis of the product structure allows understanding the niches available in the market, as well as the overall supply of products in the market. Through this, the company can evaluate which products can enjoy the greatest demand in the market. At the same time, the analysis of competitors and suppliers might allow understanding the actual level of competition, thus allowing the company to build its effective development policies.
Also, it should be noted that companies are interested in getting information on the overall conditions of the environment of the target market. This can be done using different means and methods, with one of the most widely used method being PEST analysis – an analysis
14 aimed to investigate the political, economic, social, and technological factors of the environment.
2. Production function
The production of products or the provision of services and the organization of the underlying processes are of major importance to any company’s business. Within the framework of its marketing strategy and policies, the company identifies the range and number of products to be manufactured, as well as the specific characteristics or parameters of such products to enjoy demand among customers. At the same time, marketing is not limited solely to the characteristics of products. It also includes the organization of logistics, and namely the delivery of materials from suppliers and the channels of supplies to customers. It also includes quality management and a range of other important activities aimed to guarantee the most effective production process.
3. Sales function
The organization of sales includes the definition of the main channels through which sales will be promoted, selection of appropriate approaches to prices through market segmentation and adaptation or standardization, and also the generation of additional demand on the part of target customers through advertising, promotion and effective bilateral communication. All in all, the sales function of marketing consists in the fact that it is set to generate the greatest revenues for the company, thus making its business effective.
4. Control function
15 Marketing helps corporate managers organize the internal processes and procedures in the most efficient way. Marketing ensures the development of the most effective approach to the planning of corporate finance and budgets, and also is designed to set clear and unequivocal criteria to be used thereafter for measuring corporate achievements and evaluating the dynamics of change in the company’s overall performance against the previous periods and/or against the performance of competitors.
Therefore, based on the information outlined above, it can be affirmed that marketing plays a wide range of important functions which ensure the best results for any company in terms of its market activities. Now, it is worth analysing the different types of marketing and their key parameters.
As stated by Weitz and Wensley (2002, p. 167), supporting marketing is applied by companies when there is full-fledged demand for their products or services, and the goal is to maintain this demand, and to evaluate the factors which can be used for the purpose of raising the level of demand, and thus in the long run to increase corporate sales.
The main task of this type of marketing is to preserve the existing customers. This is done through effective adaptation of pricing policies, stimulation of sales activities and operational control over expenses and costs.
Mendiza (2003, p. 12) states that stimulating marketing is applied when the company has a range of products or services which do not enjoy sufficient demand. This situation is due to the lack of interest on the part of customers, for instance, when customers do not believe that appropriate products have any particular value, or when the market is not ready for the introduction of such products. In this case, the task of marketing is to generate
16 demand and to make products popular. This can be done through effective advertising and promotion, as well as through the spreading of information through different other channels.
Burrow (2012, p. 281) notes that development marketing is associated with the demand for products which is currently being formed. For instance, this includes a situation in which customers demand a particular product or service, but it doesn’t exist in the market.
Development marketing is set to ensure the transition from potential demand into real demand. It mainly focuses on the development of an appropriate new product or service and its promotion in the target market.
According to Mendoza (2003, p. 12), remarketing is destined to renew the falling demand for particular products and to re-initiate their product lifecycle stage. This is mainly applied to obsolete products or products which are no longer in vogue, and thus require some actions to restore previous demand.
Hall (2014, p. 138) states that counter marketing is a type of marketing activities which are destined to decrease customers’ demand for a particular product through active communication policies. This type of marketing is most often used by public health organizations which promote healthy lifestyles and launch information campaigns against products such as tobacco or alcohol, etc.
As noted by Hall (2014, p. 138), demarketing is a type of marketing used in situations where the demand for a product is significantly greater than the company can supply.
If the company cannot raise its volumes of production, customers might be left dissatisfied with the lack of offer, and therefore the company can use demarketing in order to balance
17 demand and supply. This can be done by raising prices, abolishing loyalty products or the current sales promotion activities, and so on.
Mendoza (2003, p. 12) states that synchromarketing is used by companies when there is unequal demand on different time intervals. In order to optimize the structure of production and reduce the overall cost, the company might use synchromarketing.
Its techniques might include the use of promotion methods in order to make demand more plainly distributed across different time intervals.
Conversion marketing is associated with the existence of negative demand, when customers reject products or services due to different reasons. The main goal of marketing in this case is to convert negative demand into positive demand for ensuring the company’s effective sales.
So, it can be stated that marketing activities are quite complex, and different types of marketing can be used by companies effectively in different situations, depending on their particular needs and the means available.
Now, it is worth considering the concept of marketing mix.
1.3 Marketing Mix
The marketing mix is one of the core concepts within the marketing theory. As stated by Palmer (2010, p. 107), the marketing mix can be defined as “the set of controllable marketing variables that consists of the blend of these four strategy elements meeting the wants and needs of the target market.” Based on this definition, it can be stated that the marketing mix includes the basic components which a company tends to use
18 in the course of its marketing activities for the purpose of achieving the stated goals and ensuring effective business activities.
A similar definition of the marketing mix can also be found in Khanka (2006, p. 539), who defines it as “the tailoring of the product, its price, its promotion, and physical distribution to reach the target customers.” Thus, it can be stated that the marketing mix is a basic set of components which a company can use for the purpose of building its marketing strategy and subsequently implementing it across the key directions of its business activities.
Traditionally, the marketing mix is believed to comprise 4 key components, which are commonly referred as the 4 Ps, namely product, price, place, and promotion. However, as of today, this is more and more often added by three more Ps, namely process, people, and physical evidence. Let’s consider all those components more in detail.
1. Product
According to Khanka (2006, p. 539), a product is what a company offers to its customers.
It can be offered either as a tangible product (in physical form, actually manufactured by the company), or as an intangible asset (a service). The main function of products is to satisfy customers’ needs or wants, and to ensure their satisfaction. For companies within their marketing strategies, it is essential to design the product range in a way to maximize the possible return either in financial terms or in terms of growing customer interest, awareness, loyalty, etc. First of all, the company needs to design its product, which means the design of all product features and parameters, as well as its look (exterior), and all other characteristics which might be of relevance to target customers. A particularly important aspect here is packaging. The company needs to make its package appealing and
19 attractive, so as to ensure the greatest possible inflow of customers who would like to buy the product. Finally, the company needs to find a balance in the product range to be offered.
This should allow satisfying customer demand best at the best use of corporate resources.
2. Price
The price element of the marketing mix stands for the cost of product the company charges from its customers in the market. The price consists of two main components, namely the prime cost of production and the company’s profit margin. Choosing the best pricing level is important for companies to generate the greatest demand on the part of customers.
An excessively high level of prices might demote the customers, while a too low level might be inappropriate for the company, as it would affect significantly the effectiveness of its business activities. The price depends significantly on how the customers perceive the value of the product. The better and more unique the product, the higher price can be set for it. For loyal customers, the company might set lower prices. Also, adaptation can be used for varying the price applicable to different customer segments.
3. Place
This element of the marketing mix refers to how customers can access the product. This includes the outlets from which customers can buy the desired product, and also the logistics system through which the product is to be delivered to the customer. Khanka
(2006, p. 539) states that it also includes the partnership ties with distributors and resellers who distribute the company’s products. For any company, the main task here is to guarantee maximum customer convenience for easing sales. More and more often, companies are using the online environment for running their sales, as this guarantees the
20 smallest time expenditures for the customer, at the same time allowing to optimize the processes of corporate logistics.
4. Promotion
Promotion refers to all activities which the company uses for the purpose of making its product more popular, and for making customers better aware of its different consumption parameters, thus ensuring its better sales and greater profits in the long run.
Promotion includes advertising, direct marketing, public relations, and sales promotion.
The combination of these methods is commonly referred to as the promotional mix.
Through advertising, the company promotes messages to be seen or sensed otherwise by the target customers, so as to ensure their greatest and most vivid interest in purchasing the product. Promotion is used to raise the level of customer loyalty, and at the same time to increase the overall turnover of sales.
5. Process
Gardner and Krouskup (2016, p. 25) note that this component includes the procedures and processes through which services are delivered to target customers. Namely, this marketing mix component comprises process design, establishment and assessment of key performance indicators, analysis of system failures, and so on.
6. People
Gardner and Krouskup (2016, p. 25) state that the people component of the 7 Ps includes all staff members and other actors involved in the provision of services to target customers.
In today’s marketing, people are seen as a key asset of any company, and the quality
21 of service they provide to target customers predefines largely the latter’s ultimate level of satisfaction. The staff needs to handle effectively customer claims, manage the bilateral communication with the customers, and ensure the quickest reaction to any issues which customers might face when purchasing or using the company’s products or services whatsoever.
7. Physical evidence
According to Gardner and Krouskup (2016, p. 25), this component refers to the physical environment in which the company provides its services to the customer. It is the physical confirmation of the service provided to the customer, and it can include various kinds of documentation, as well as brochures, and so on, which in aggregate adds to the level of the customer’s satisfaction.
By combining effectively its policies associated with particular marketing mix components, the company can build its effective marketing strategy to be used for boosting its ultimate performance. The failure to succeed in the management of operations with particular marketing mix components might cost much to the company in terms of potential losses.
Now, having analysed the key aspects related to marketing, it is worth proceeding to the overview of the fashion market, which will be the focus of the practical part of the thesis.
22 1.4 Overview of the Fashion Market
In order to understand the key characteristics of the fashion market, it is worth first understanding the main product which this market is destined to deliver to the customer.
According to Black et al. (2014, p. 162), the fashion market is a market of consumer goods and services which are set to satisfy target customers’ needs in clothing, footwear, accessories, hairstyle, makeup, and a range of other aspects, so as to ensure people’s satisfaction with their comfort and look. An important characteristic of the fashion market is the fact that the products in it are valued not only for their particular consumption characteristics, but also with the pleasure which people get from using them. Therefore, the fashion market is specific in terms of the mechanisms through which it satisfies people’s wants and needs.
As noted by Easey (2009, p. 37), the fashion market is also very specific due to the historical course of its development. The market is unusual, as it has existed from the early ages. However, prior to the early 20th century, its customers had been limited to kings and nobility, aristocrats, and other important people. It was impossible to follow the vogue for poorer population layers, and therefore the fashion market was an elite segment covering the needs of the wealthiest persons. However, with the development of globalization and liberalization of the global economy, the fashion market started turning into a more open domain, where all population layers have their own interests, needs and wants, and companies tend to approach all customer segments in order to ensure the best satisfaction of such needs.
23 Black et al. (2014, p. 162) note that a particularly important role in the development of the fashion market on the present stage is played by the Internet and online technologies.
A large share of trade in the fashion market is carried out online, and major companies use the Internet segment for the purpose of spreading the information on them and for maintaining the most effective communication with customers. Also, the fashion industry is interconnected closely with the IT sector, as the market is using new technologies for developing new products, and also for integrating customers in the process of interaction, for instance through mobile applications.
The fashion market is based largely on the use of creative spirit. In order to succeed in their market activities, companies need to be able to deliver something unique and special.
As Easey (2009, p. 37) explains, major fashion companies need to be able not only to satisfy the needs of customers, but also to anticipate the trends, and to create such trends on their own. Therefore, fashion companies seek employing designers who can provide the company’s products with a unique look and feel, make them stand out among the competitors, and fit the trends in the industry.
Petermans and Kent (2016, p. 155) point out that the fashion market is not homogeneous in its structure and has different sectors. For instance, it has the segment covering the wide audience, and one covering only the wealthiest persons. The latter is commonly referred to as the luxury fashion market. The luxury fashion market is an environment in which expensive fashion products are sold to customers, and their main value consists not in their consumption parameters or user characteristics, but in intangible benefits which they provide to the customers, namely prestige. As Petermans and Kent (2016, p. 155) put it, the
24 “rebellious, privileged child of fashion, luxury retail and high-end brands redefining the vows of the marriage between globalisation and localisation.”
Therefore, as can be seen from the information presented above, the fashion market is quite specific, and the companies operating in it need to be able to deliver unique value to their customers in order to succeed. Now the specificities of fashion marketing are going to be investigated.
1.5 Specificities of Fashion Marketing
As noted by Jackson and Shaw (2008, pp. 4-5), the specificities of fashion marketing are preconditioned by the specific wants and needs of customers which fashion products are destined to cover. According to Maslow’s hierarchy of needs, people seek satisfying their needs by order of priority, starting from physiological and safety needs and up to the needs in self-esteem and self-actualization. Jackson and Shaw (2008, p. 5) explain that
“In most cases fashion clothing and accessories are going to be addressing the top three levels of social needs, esteem needs and self-actualisation needs.” Those needs are not basic for human beings, and as a result they are satisfied only upon satisfaction of the basic needs and in case of the availability of extra money. In these conditions, a particularly important role is played by the name of the brand and the customer’s affiliation with it. People follow modern lifestyles, and unique products delivered by fashion brands are mediums which can allow them remaining in vogue and following those lifestyles, being unique. This is taken as the basis of the marketing activities run by fashion companies and
25 the marketing techniques they develop in order to target their customers and persuade them to remain loyal to the brand.
According to Hornig et al. (2013, p. 121), “the achievement in intrinsic and extrinsic needs is grounded in luxury fashion brands' expensiveness. Consequently, consumers striving for these needs voluntarily pay a price premium in order to secure exclusivity, prestige, or status… While high prices of luxury fashion brands provide utility to the consumer by conferring feelings of exclusivity, prestige, and status, the monetary value consumers attribute to these feelings is allocable with the help of a hedonic price function.” Based on this, the author believes that marketing in the fashion market should take into account the abovementioned specificities of customers who purchase fashion products. Hence, the positioning of companies operating in the fashion market might benefit from the aspect of exclusivity, uniqueness and expensiveness. The main reason for this is the fact that customers in the fashion market value the additional benefits brought by product, rather than the direct costs incurred by fashion companies when designing and manufacturing such products. The ability of fashion companies to accumulate their significant brand value is one of the key steps on the way to the maximization of effectiveness of such positioning.
This is a way to achieve the status of a unique company in the eyes of target customers, and to maximize the value which customers associate with the brand.
This idea is further developed and emphasized by Saren (2013, p. 228) who states that
“The brand is really what fashion marketing is all about.” The main goal of fashion marketing is to create a unique fashion brand experience to passionate the customer and to make the customer remain loyal to this particular brand, and not to any other substitute
26 products delivered by competitors. Therefore, a fashion company’s main goal is to create a unique selling proposition to make its products or services stand out in the market, and to make the customer feel unique after he purchases them. This includes the style of products, materials used for them, and also the bright marketing campaign which follows the entry of products into the market. Also, fashion marketing is all about appeal, the bright signal it can deliver to customers through different channels.
Moody (2015, p. 67) notes that fashion marketing is “a mixture of design, advertising, business administration and a good understanding of the fashion world, as well as a sense of pop culture and what would be stylish in the days, months, or years to come.” Fashion marketers are those marketing professionals who actually connect the designers of fashion products with their end customers. The main aim of their activities is not only to attract customers for one-time purchases, but also to make them remain loyal to the company.
In fashion marketing, brand loyalty based on the brand’s reputation is one of the key preconditions for the company’s effective development and growth.
Advertising plays a specifically important role in the fashion industry, as it is an important source of profits, and at the same time a channel of major importance for communicating with end customers and maintaining their high loyalty. However, a common tendency in the fashion market as of today in terms of advertising is the greater attention paid to these activities by the public bodies. According to O’Neil (2014, p. 620), “The beauty and fashion industries sell consumers, mostly women, products to make them thinner, younger, and more attractive. Claims in beauty and fashion advertisements about product effectiveness have become more extravagant, while, at the same time, the models used
27 in these advertisements have become slimmer. This suggests that beauty and fashion advertisements have been selling an idea of beauty that has become less in tune with reality over time.” This finds significant opposition on the part of feminist activists and other people who oppose this kind of promotion. As a result of the existing social protest, the governments of states tend to focus on stricter regulations applicable to fashion advertising in order to avoid possible negative effects associated with this kind of commercials.
Namely, a task of major importance for regulatory bodies in this context is to minimize the possible negative effects on human health associated with the propagation of fashion advertisements.
Analysing this situation, O’Neil (2014, p. 634) notes further that “Because of the heavier regulation of advertising in the United Kingdom and France, beauty and fashion advertisements are subject to more scrutiny. This scrutiny has resulted in the banning of several advertisements from high profile cosmetic companies for misleading or unrealistic content. Consistent with recent attempts in these countries to require warning labels for digitally altered images, the banning of cosmetic and beauty advertisements seems to have increased in recent years.” In addition to digitally altered advertisements, the public authorities of states regulating the field of advertising are also focusing largely on limiting the use of sexually provocative images, banning of cosmetic surgery advertising, etc. The main reason for this is to prevent the reckless of use of such products or practices by young customers who are misled by their bright visual presentation in the media, and thus cannot assess and compare effectively what they see in the picture and what the actual results might be in the long run. For fashion industry actors, such
28 tightening of the legislation regulating the field of advertising is a negative factor, as it limits the opportunities of promoting their products and raising sales among customers. This is particularly true speaking of developed states, where customers have a greater purchasing power and thus greater demand can be generated for fashion and luxury products. Therefore, this emphasizes further the role of positive brand image in the achievement of effective business results in the fashion market as of today.
Another important trend in the fashion industry which deserves particular attention is the fact that the market is moving gradually toward the so-called ‘green’ standards and the promotion of sustainability. As noted by Henninger et al. (2017, p. 69), fashion companies are aware of the existing global trend in favour of environment protection among target customers. Thus, fashion companies are steadily increasing the use of ecologically friendly materials in their products, are running extensive corporate social responsibility activities for promoting the care of environment among target customers, and adopt ethical policies in their activities. Of particular importance in this context is the issue of the use of furs and other natural materials in the products of fashion companies. This is an integral part of the fashion industry, but the use of such materials is opposed radically by groups of activists such as Green Peace. While large fashion manufacturers do not reject the use of such materials, this provides a considerable business niche for smaller fashion industry companies, who get an opportunity to succeed in their marketing by adopting a unique model of positioning based on due consideration for existing customer demands in the market. As Henninger et al. (2017, p. 71) conclude, “The organic movement has been successful in drawing consumers’ attention to the issue… Over time, however, the
29 argument has moved on from the niche area of organic to wider concepts of sustainability, and eco-labels have adapted to incorporate many more environmental messages. Within the fashion market, consumers may face many dilemmas in product purchase decisions, which involve quality, style, price, private benefits and wider concerns… A further challenge, which also applies to ethical or eco-friendly clothing in general, lies in its negative associations of higher prices, aesthetic advantages, lack of choice and an unfashionable image.”
Keller et al. (2014) emphasize further the fact that sustainability plays an essential role in effective marketing activities of fashion companies as of today. Thus, the researchers note: “Around the globe, fashion consumers are becoming more environmentally conscious. They expect ecologically unobjectionable fabrics, a conservation-minded use of resources, reduced emission of pollutants, greater social commitment, and fair treatment of employees in production facilities. In many countries, legislators are requiring companies to create more sustainable products, such as by prohibiting certain harmful dyestuff.” However, this trend is only emerging today, as only small shares of customers are willing to pay more for eco-friendly fashion products. Moreover, this trend exists mostly in developed states, where customers have a higher level of wealth, and thus can afford additional expenses for supporting the trend of sustainability. In developing states, the trend is less obvious, and thus marketing activities in developing countries are less focusing on the promotion of eco-friendliness. Nevertheless, the trend can be expected to keep growing in the future and to remain one of the predominant tendencies in the fashion market on the global scale.
30 According to Christiansen (2013, p. 228), as of today, fashion marketing is moving more and more toward the Internet. The communication with customers is evolving steadily toward the communication through online social networks, where customers can be targeted very effectively. Therefore, social media marketing is playing an ever-growing role within the general marketing activities run by companies. Social media are used for promoting new products and for making customers aware of the new trends. Also, this channel is of essential importance for maintaining bilateral communication with customers, collecting feedback from them and improving the company’s products. Online social networks are also used by fashion companies as a powerful advertising channel which allows covering the widest target audience.
One of the specific segments of fashion marketing is international fashion marketing.
According to Ryding et al. (2018, p. 64), “International fashion marketing is concerned with the management of marketing activities across national boundaries. If fashion marketing is concerned with understanding the complex needs and wants of consumers of fashion and orienting strategic and operational activities to satisfy those demands, which are particularly complex due to the diversity of influences which shape consumer needs, as well as the fast moving pace of fashion product life cycles, international fashion marketing is complicated further by the need to manage marketing activities across a diverse range of consumer markets in differing parts of the world.” Thus, marketing activities on the international scale are particularly complex. Marketing managers operating in international fashion companies need to be proficient in cross-cultural management and need to understand how particular marketing activities undertaken in particular countries
31 might affect the company’s overall business image and thus its opportunities of financial performance in such particular states.
So, fashion marketing is a specific direction of marketing activities for promoting fashion products and ensure sufficient demand for fashion products on the part of target customers.
Speaking specifically of marketing in the world of fashion publishing, it should be noted that the actual trends in this field tend to get changed under the impact of technological progress and growingly sophisticated customer demand. King and Clement (2012, pp. 95-96) state that “The last few years have seen a surge in new types of fashion-related publishing, while advances in publishing technology have changed the types of fashion materials that are available. Newer publications are physically larger with glossy pages and full-color images, and in particular, fashion houses are publishing ever larger and more lavishly-illustrated books chronicling their histories.” Thus, in order to succeed in the current conditions of doing business in the market of fashion publishing, magazines need to provide a bright and colourful print edition of their materials. The product needs to be appealing, catchy for the attention of customers, and at the same time has to be made of high-quality materials and have high-quality contents in the form of articles, photos, and so on. Similarly to the general trends in the fashion market, the use of high-quality printing materials is a way to create an effective brand positioning for fashion magazines, promoting their image as a unique product to satisfy customer needs in information related to different segments of the fashion industry.
The findings presented above are confirmed further by Cotton (2014, p. 47) who states that
“Fashion photography is rightly characterized by constant change, for being porous,
32 reactive, even predictive in its visualizations and reflections of consumer society.”
The researcher affirms that all changes currently existing in the field of fashion publishing are preconditioned by the specificities of demand on the part of target customers.
The consumer society is driving fashion magazines to keep modifying their business policies so as to meet the more sophisticated customer demand. In these conditions, the importance of effective market positioning and the creation of a unique combination of brand image and quality contents of the magazine become an essential task for achieving the desired high positions in the struggle with competitors.
Cotton (2014, pp. 49-50) notes further that one of the examples of changes in fashion publishing under the impact of changes in the overall trends in the market can be the merging of advertising and editorial: “The aftershocks of 9/11 and the general nervousness of fashion and luxury brands about what the consumer landscape had become was a wake-up call for fashion media. The industry gradually eroded the once sacrosanct division between advertising and editorial. Such "win-win" situations include editorial fashion photography functioning as marketing for new movies, albums, and fashion collections.” Promotion plays an important role in the activities of fashion magazines.
Namely, advertising is an important source of fashion magazines’ income for financing their subsequent activities. A common tendency as of today, according to Cotton is the growing interconnection between the product and promotion components of fashion magazines’ marketing mix: advertising is integrated directly into the contents of fashion magazines, and becomes an internal part of the materials presented to customers for reading. Thanks to this, fashion magazines get closer partnerships with their advertisers
33 on the one hand, and at the same time are able to provide some brighter visual contents to customers, thus raising their level of interest, which contributes to greater customer loyalty in the long run. This is favoured primarily by the fact that print magazine cooperate with other luxury brands for advertising, and therefore this only consolidates further their brand image associated with luxury, expensiveness and uniqueness.
However, King and Clement (2012, pp. 96-98) note further that the changes currently occurring in terms of the product element of the marketing mix are not the only changes in the present-day marketing activities of companies in the fashion industry. A major change is occurring across the place component of the marketing mix. Thus, the world’s most reputable magazines tend to keep developing two main directions of their publishing activities: on the one hand, they continue classical publishing, providing customers with opportunities to buy print versions of their editions, and on the other hand, they are developing rapidly the online segment. As of today, it is already a common practice for worldwide-renowned magazines to provide access to their contents in the online environment. The schemes of subscription are similar as in the case of print magazines: the customer pays a fee for his subscriptions and gets the opportunity to read the magazine on his computer or on any mobile devices. Such fee is generally smaller compared to the priced for print editions of magazines, as companies do not have to spend additional funds on production. For customers, the provision of magazine contents in this form is very convenient, as one can read the magazine from any place around the globe, without the need to search where to buy a print copy. Moreover, there is no need to carry the print version of the magazine, as all contents can be accessed from portable devices, and thus the
34 magazine is always at hand. One of the key tasks of companies providing their fashion magazines in digital format is to ensure the versatile and flexible adaptation of the magazine’s format to each particular customer’s device, regardless of its size and any other parameters, so as to ensure the best quality of materials and maximum satisfaction with reading.
This aspect is also emphasized by Bruzzi and Gibson (2013, p. 80) who state that a popular trend in fashion publishing as of today is “digital fashion publishing in the form of online fashion magazines that are faster, cheaper and more immediate than their print versions, such as AnOther Magazine, which launched online in 2009, eleven years after its print counterpart. Not only are the digital editions of such magazines free, as opposed to the expensive printed versions, but also they offer more content and immediacy.” Thus, digital
(or online) fashion publishing continues the traditions of classical fashion publishing, but it offers some exclusive advantages to both companies and their customers. First of all, it ease the ease of access, which has already been emphasised earlier in this chapter.
Second, such access is cheaper for customers, and the process of publishing is cheaper for companies. Third, but not less important, is the fact that online publishing allows for more effective communication between the fashion magazines and their readers. Through online channels, customers can leave their feedback quickly and easily, and companies can not only collect such feedback, but also react to it promptly, communicate the need for particular improvements with other companies, and so on. This raises the overall flexibility of fashion publishing businesses, as it helps them make all changes to their businesses in a timely fashion, thus avoiding additional costs and possible negative effects for the
35 business brand. Therefore, the trend for the growing use of the online environment for fashion publishing can be deemed as logical. In the years to come, the online segment of the fashion market, and namely of fashion publishing, can be expected to keep growing further at a rapid pace. This should be favoured by the growing access to the Internet all over the world and the steady improvement of online and digital technologies.
Another key trend in fashion publishing as of today is the high dependence of fashion magazines on worldwide-famous stars. The covers of magazines have to contain a photo of a star in the world of fashion, cinema, politics or sports, and the contents of the magazine should have interviews with stars. Cotton (2014, p. 50) notes that “This is an era when most major fashion and beauty advertising campaigns favor leading actors and performers.
Almost every cover of American Vogue since the early 2000s has featured an actor or pop star. Brand alignments – of fashion labels, celebrities, and powerful figures in the fashion industry – have become the underpinning of fashion photography in the twenty-first century.” The use of such tactics is another key element of the marketing strategies used by companies operating in the fashion market. This helps them consolidate the brand image, pinpointing the characteristics of uniqueness, richness and expensiveness. In their turn, such characteristics are appealing to the target customers, as becoming a reader of such a fashion magazine, the customer feels himself belonging to the layer of wealthy and successful people, feels his uniqueness and gets moral satisfaction with his status in addition to the satisfaction with what he reads directly from the magazine’s materials.
36 Now an analysis of Hofstede’s theory of cultural dimensions should be carried out in order to evaluate the differences in the approaches to fashion marketing in different countries in the practical part of the thesis.
1.6 Hofstede’s Theory of Cultural Dimensions
The theory of cultural dimensions developed by Geert Hofstede is a theoretical tool which is used to describe the particularities of different cultures in terms of their key specific aspects and to analyse how cross-cultural communication can be built effectively. This framework is used widely by corporations performing their business activities in the international market, so as to maximize the effectiveness of the adaptation of their marketing and communication policies to the particular directions of business. The theory consists in the classification of the dimensions of national cultures, which are scale on which cultures are evaluated for their particular specificities. It is worth analysing those dimensions in detail in order to understand better Hofstede’s model.
1. Power distance index
Walton et al. (2002, p. 162) state that the power distance index is used by Hofstede as an indicator to measure people’s willingness to accept inequality. This means people’s readiness to accept that some of them have greater power leverages and others don’t.
In corporate practice, power distance is the actual level of hierarchical difference between the manager and the employees in terms of their work interaction. In low power distance cultures, people do not like the imposition of will from above. They rather accept power only when it is imposed legitimately. They do not like constant control. Such countries
37 include the US and Western European states. In high power distance index cultures, centralized management and control is favoured. People like strict hierarchy, and tend to responsibly obey the will imposed from above. Such cultures include monarchic Asian states, China, etc.
2. Individualism vs. collectivism
This dimension measures the willingness of individuals from a particular culture to cooperation within a team. According to Walton et al. (2002, p. 162), in individualistic cultures, people focus on the achievement of their own goals and their personal success.
They prefer working on their own and achieving the existing goals. On the contrary, in collectivistic cultures, people focus on community interests and on the achievement of community goals. Group work is believed to be a precondition for the well-being of all.
Individualistic cultures include Australia and the US, while examples of collectivistic cultures might include India and China.
3. Uncertainty avoidance index
As stated by Noble (2015, p. 399), this dimension describes the extent to which people from a culture are willing to accept uncertainty. In low uncertainty avoidance cultures, people are ready to accept risks. This is seen as an opportunity to achieve success. Such countries include France, the United States, Brazil. etc. High uncertainty avoidance cultures do not like risking and prefer maintaining the current state of things. People from such cultures like following precise instructions and getting explicitly written orders. Examples of such cultures are many Southeast Asian nations.
38 4. Masculinity vs. femininity
Walton et al. (2002, p. 162) state that this dimension in Hofstede’s theory serves to describe the degree of gender differentiation in society. Feminine societies (for instance,
Scandinavian countries) are characterized by great attention paid to a wide range of social issues. Masculine cultures focus more on male parameters, namely the achievement of financial success, power, competition, and so on.
5. Long-term orientation vs. short-term orientation
According to Noble (2015, p. 399), this dimension describes the extent to which people from a culture focus on the achievement of either long-term or short-term goals. People with orientation on short-term results (Eastern European states) rather promote the achievement of instantaneous benefits instead of long-term results. On the contrary, people belong to cultures with long-term orientation (China) are willing to sacrifice present benefits for the sake of future ones.
6. Indulgence vs. restraint
As noted by Walton et al. (2002, p. 162), indulgence is people’s desire to achieve immediate gratification of their need. Cultures closer to indulgence include Eastern
European states. Cultures closer to restraint, on the contrary, are prone to closer control.
Noble (2015, p. 399) states that the theory of Hofstede is very popular in corporate practice, but it has some flaws. For instance, its drawback is the lack of precise criteria for measurements on different dimensions. Also, the tool is rather theoretical, and it doesn’t
39 provide unequivocal recommendations for corporate managers to perform their activities in practice.
Taking into account the findings of the theoretical part of the research, it is now possible to proceed to the practical part of the thesis.
40 2 Analysis Section
2.1 Description of Vogue Magazine
Prior to proceeding to a more detailed analysis of Vogue Magazine and its marketing strategies applied in the Russian Federation and in China, it is worth providing a brief overview of the company and its market activities.
Vogue is a fashion magazine which covers the topics of fashion, beauty, lifestyles, culture and other related topics. According to Vogue, the company was founded in the United
States back in 1892 as a weekly newspaper, with the upper class being its target audience.
In the early XX century, the magazine started its expansion in Europe, with the United
Kingdom being the first country beyond the US borders where the magazine was published.
The magazine’s activities were suppressed by the Great Depression in the 1930’s and
World War II in the 1940’s, but the company regained its growth rapidly after these events.
According to Vogue (2018), as of today the magazine is published in the US, the UK,
France, Australia, Italy, Brazil, Germany, Spain, South Korea, Taiwan, Russia, Japan,
Mexico, Greece, Portugal, China, India, Turkey, the Netherlands, Thailand, Ukraine, Saudi
Arabia, and Poland. The magazine is a monthly edition. All issues of the magazine contain a photoset with a cover model (often a TV star, famous singer, athlete, etc.), interviews with famous persons, information on events in the world of fashion and culture, and other information which can be of interest to customers.
41 The company’s steady popularity among customers is achieved thanks to the presentation of high-quality information materials, in a high-quality paperback-version magazine, opportunity to get electronic access to the magazine, wide availability thanks to developed logistics, and also thanks to the company’s effective marketing activities on the global scale,
Given these basic facts on Vogue, let’s now analyse more in detail the company’s main audience.
2.2 Key Audience of Vogue Magazine
The total number of magazine issues impressed in the world as of today is over 1.3 million copies. The company’s key audience is women, with an income level varying between mid-level and high-level income. According to the information provided by Vogue UK, in the overall structure of the magazine’s readers, women account for 87 %, and men account for 13 % of the readers. The average age of a reader of Vogue is 33 years old. Over
60 % of Vogue magazine readers are also active users of the magazine’s official website.
An important detail noted by Vogue UK (2018) is the fact that 90 % of the magazine’s readers by premium fashion brand products. This proves once again that the company’s key audience is people with mid-to-high income levels.
Now, focusing more in detail on the key audience of Vogue magazine in China and Russia, it can be stated that there are no sufficient statistical data on the company’s audience in China. As noted by Condé Nast International (2018), the total number of readers in china amounts to 1.47 million, and unique visits from China on the website amount
42 to 33.46 million users. The key target audience in terms of income level is the same that for the parent brand: people with mid-to-high income levels, and most readers are women.
The statistical data available on Vogue Russia’s audience testify that the total number of monthly visitors on the website amounts to 5.44 million persons. According to Condé
Nast Russia (2018), among the readers of the print version of the magazine,
77 % are women. In the age structure, the main groups of readers are people aged
25 to 34 years old (34 %), followed by people aged 16 to 24 years old (28 %) and
35 to 44 years old (21 %). 72 % of the magazine’s Russian readers are employed persons.
74 % have a high or above-average income.
Thus, based on these data, an overall image of the magazine’s readers can be formed.
Taking into account this information, it is now worth focusing on the analysis of Vogue’s marketing strategy.
2.3 Marketing Strategy of Vogue Magazine
2.3.1 Russian Federation
The first issue of Vogue magazine in Russia was published in 1998. According to Condé
Nast Russia (2017), “First issue of Russian Vogue was released in September 1998.
In August 1998, when economic crisis broke out in Russia, the advertisements of a new magazine with Keith Moss and Amber Valetta on its cover, and the headline logo “Finally in Russia” was perceived by many as a bad joke. Overcoming all perils, Vogue had emerged not just as Russia’s leading fashion magazine, but as a flagship of national glossy media, a benchmark of a glossy monthly magazine of absolutely different, international
43 class.” The company’s positioning in the Russian market is done in line with its positioning in the market of the parent corporation. Thus, Vogue Russia’s key target audience is women aged up to 35 years old, with an above-average to high level of income, high level of education, and with a reputable job position. The company emphasizes the magazine’s exclusivity, the top quality of materials presented it, and the unique focus on the events in the world of fashion, without the provision of articles on relationships and other topic which are not connected directly with fashion, which is inherent of cheaper-level brands. The contents of the magazine are modified by the company to the
Russian market, however this is done partially. Thus, the front covers of Vogue magazine in Russia most often feature worldwide-renowned models, the same which feature on the front cover of the American magazine. Sometimes, Russian models feature on magazine covers as well. The contents of the magazine are focusing on the general events in the world of fashion, but are to a certain degree adapted to the Russian realities, putting an emphasis on the events occurring in the Russian world of fashion. The company’s pricing policy in the Russian market follows the general patterns of the parent company’s policy, targeting the segment of customers with above-average to high income. However, the prices for the magazine’s issues are lower in the Russian Federation compared to Western states. Therefore, it can be stated that in these terms, the company is applying an adaptation strategy on the product and price elements of its marketing mix, and adaptation in terms of the product element can be deemed rather limited.
Vogue is acting as a sponsor of cultural events in Russia, which is a distinctive feature of its marketing policies in the country. Thus, according to Condé Nast Russia (2017), since
44 2001, Vogue Russia has been an official sponsor of the Moscow International Film
Festival, providing its award for Best Styling in a movie. This is an important part of the company’s marketing strategy focusing on the promotion of ties with readers through the media, supporting the magazine’s position as an exclusive brand. In this context, Hofstede
Insight (2018) states that Russia ranks low on the individualism dimension, with a score of only 39. This proves that the collective is valued more in Russian society. By taking part in the sponsorship of cultural events which are popular among Russians, Vogue takes part in the common cultural processes, which makes Russian customers associate the company’s activities with the common wealth of society, and this raises the positive brand image of Vogue.
Another important aspect of Vogue Russia’s approach to marketing is the fact that the company resorts to the services of worldwide renowned photographers such as Helmut
Newton, Peter Lindberg, Steven Mizel and Paolo Roversi and models such as Cindy
Crawford and Naomi Campbell, Claudia Shiffer and Natalya Vodyanova. For the Russian market, the concentration of such worldwide-famous stars in the work of a single magazine is unique, and thus the company seeks consolidating its image as a unique and effective brand. The high accent put by the magazine on the use of worldwide-famous stars’ services can be justified by Hofstede’s theory. According to Hofstede Insights (2018), Russia has a score of 93 on the power distance index. This means that Russians accept the fact that power holders are very distant in society. This results in the perception of stars and other influent people as exemplary or ideal. Therefore, by using this specificity of the Russian culture, Vogue seeks promoting readers’ interest in the contents of its magazines.
45 Vogues Russia uses an active strategy of expansion on the Russian segment of online social networks. The company sees the online segment of marketing as one of the key preconditions for driving its subsequent market growth through effective marketing activities. According to Condé Nast Russia (2017), in 2017, the company delivered two specific applications for Russian customers users of iPhone and iPad, namely Vogue
Collections and Vogue Children. Vogue Collections is an application which allows monitoring in real time all new clothes and accessories demonstrated on fashion weeks in the world’s largest fashion centres, providing readers with the opportunity of “feeling the effect of full immersion into worldwide-renowned fashion demonstrations thanks to the access to thousands of images from the podium, from behind the curtains…” The mobile app allows saving all existing collections for subsequently browsing them, and also allows creating an own individual lookbook. At the same time, Vogue Children focuses on the presentation of contents specifically on the novelties of fashion for the younger audience.
The monthly audience of Vogue Russia on the web amounts to 5.44 million persons according to Condé Nast Russia (2018). The company sees the online source as one of the most important channel to attract and maintain the magazine’s customers, raising their level of loyalty. Vogue Russia pursues an active marketing policy in online social networks, maintaining its accounts in Facebook, Instagram, VK and Odnoklassniki. The company uses the networks not only to present information on its products and to engage in conversations with customers, but also to collect feedback from such customers and to make subsequent improvements to its marketing and wider business policies. The style of communication carried out by Vogue Russia in its online social networks is rather
46 formal, and messages are written in a formal manner, containing valuable and important information which might be important for customers. Based on Hofstede’s theory, this can be associated with the fact that Russians score low on the indulgence scale. According to Hofstede Insights (2018), this score is only 20. This means that Russians are very restrained and they try to control their desires and impulses. Therefore, the use of formal communication by Vogue can be justified by the desire to adapt to this cultural specificity of the Russian people.
According to Vogue Russia (2012), the company offers opportunities of professional probation for marketing and other professionals in the fashion industry. Thus, Vogue posts its probation vacancies on the portal Grintern, which was created specifically for the promotion of vacancies in the industries of fashion and lifestyles. Thanks to this, the company allows those candidates which have no particular experience in the fashion industry (for instance, students which have only graduated from the university) starting their work career in the fashion industry. For the magazine, this is also an important part of its marketing activities in the Russian Federation, as it is able to promote its image of a socially responsible brand. Considering this from the perspective of Hofstede’s theory, it can be stated that Russia is a country with a very pragmatic mindset. According to Hofstede Insights (2018), the country’s rank on the long-term orientation scale is as high as 81. Russians show thriftiness and perseverance in achieving results. Also, a high score of 95, is inherent of Russians in terms of uncertainty avoidance, which means that they focus on gradual relationship building, and avoid ambiguous situations. Thus, by offering
47 long-term prospects for the employment of young specialists, Vogue uses effectively these cultural specificities of the Russian people.
Now, it is possible to consider several examples of how the company uses its marketing approach through advertisements.
Figure 1. Vogue Russia’s advertisement in Instagram
Source: Vogue Russia Instagram 2018
The post in Instagram shown above is a birthday salutation to Natalya Vodyanova, who has been a model for vogue. It is a Russian supermodel famous around the globe. By linking itself with Vodyanova, Vogue highlights that it is dedicated to cooperation with the most famous endorsers, thus only emphasizing the company’s image as an elite brand. Such posts are typical for the company’s social networks. Most of them feature
48 worldwide-famous models or celebrities and some information of them, or captures for worldwide-famous fashion shows, and so on.
Figure 2. Vogue Russia’s advertisement on its official website share in all social networks
Source: Vogue Russia 2018
The figure above presents another type of ads with which Vogue seeks consolidating its brand value. The title of the ad states: “Yasmina Muratovich tells how to cook lasagna.
A model and the founder of the coffee shop Coffee Bureau shared with vogue her recipe of easy-to-make and delicious lasagna.” The company shared the link to this ad in its Facebook and Instagram accounts. The video shows Yasmina Muratovich and her recipe. The main point is that this is not just a recipe of dish. It is a recipe told by a successful businesswoman, who represents the Russian elite. The fact that she shares
49 her experience with Vogue adds to the magazine’s positioning as an expensive brand oriented on the higher class of readers, and this should be appealing to the readers, raising the magazine’s value in their eyes.
Thus, overall it can be stated that the marketing strategy of Vogue in the Russian
Federation is based on moderate product adaptation, price adaptation to the local market, and an active use of online marketing for the purpose of promoting the brand of the magazine in Russia. In subsequent years, the company can be expected to focus further on the development of its opportunities in the online segment of the Russian market, given the improvement of Internet access throughout the Russian territory and the growing popularity of mobile devices among the Russian population.
2.3.2 China
According to Chen (2013), the publishing of Vogue magazine in China started in 2005.
This was preceded by two years of market analysis and preparation. The main problem for the company was the fact that the Chinese government didn’t allow for the independent publication of foreign magazines in the country. Therefore, the company chose the strategy of copyright cooperation on the conditions of joint venture with the state-owned China
Pictorial Publishing House. This cooperation not only allowed Vogue entering the Chinese market in a lawful manner, but also provided the company with valuable information on the
Chinese market, intensity of competition in it, legal matters which might affect the company’s activities, cultural specificities and traditions of China, etc.
50 Chen (2013) states that the positioning strategy of Vogue in the Chinese market is the same as the general positioning strategy of the parent brand. Thus, the company positions itself as a hi-end fashion magazine for customers with income ranging from above-average to high. Chen (2013) adds that “Vogue China position itself as the “fashion bible” and the
“Ultimate fashion” to represent the most professional high-end fashion magazines in the
Chinese market.” The contents presented in the Chinese issues of the magazine focus on the presentation of a higher level of fashion, omitting topics used widely by entry-level fashion magazines which deliver information on relationships and career. The main audience targeted by Vogue in China is women aged 25 to 35 years old, with a relatively high income, high level of education, either married or single. The company propagates fashion as a lifestyle, and declares itself to be an advocate of fashion, not its enlightener. The company uses the adaptation strategy in terms of the product it delivers to the Chinese market. Thus, Chen (2013) states that Vogues most often uses famous Chinese supermodels on its front covers: “Vogue China always uses world-famous supermodels or stars to shine their covers. With this tradition as well as outer influence, Vogue China has developed a group of world-class models, such as Du Juan and Pei Pei.” In terms of the pricing strategy used in the Czech market, it can be stated that the company uses adaptation as well: the prices for the magazine are lower compared to the prices in Western states.
However, within the Chinese market, the prices are on the same level, and they are set to maximize the magazine’s sales on the segment of customers with income ranging from above-average to high.
51 The company’s products are sold both as print magazines and as an online subscription for the electronic version of the magazine. According Condé Nast International (2018), the total number of customers accessing the online version of the magazine amounts to 33.46 million persons. The company focuses largely on the development of its marketing activities in the online segment, which it seems to be one of the key factors of long-term success in the Chinese market.
As noted by MarketingtoChina (2016), in 2016, Vogue China created its own digital application “Vogue Mini app”, which was able to collect 700,000 followers from the very beginning. This app appeals to the younger audience of the magazine is China, and is set to provide Vogue with opportunities of leadership in the segment of the so-called millennials (people born after 1990). However, despite the initial success of the application,
Vogue China was targeted by the Chinese government for this product.
As MarketingtoChina (2016) states, “China Vogue’s editor in chief did not really follow the
Chinese government’s restrictions about online publication and its content. Indeed, while
“Vogue Me” was born in China, the government applied the same rules regarding online media than for information came from Western countries. Even more, online media operation is more and more difficult in China.”
Of particular importance is Vogue’s marketing strategy implemented by the magazine in online social media. According to MarketingtoChina (2017), in 2017, Vogue issued a statement declaring that it was aiming to bridge Chines customers with the magazine’s
“ultra-glamorous quality” through online social networks, so as to achieve their higher level of loyalty and connection with the brand. The company started implementing more
52 and more active policies in its social media marketing, focusing on effective customer communications procedures and the assessment of feedback collected from the magazine’s readers through social networks. In addition, it should be noted that the company adapted its social media marketing strategy to the Chinese market, as the management of Vogue revealed the popularity of the company’s French brand in the Chinese market. Chinese customers showed a particularly high level of interest in the French division of the magazine’s brand due to a stereotypic association with luxury. As MarketingtoChina
(2017) notes, “It was also important for Vogue Paris to differentiate themselves as the
‘French Fashion’ arm of the brand. Content needed to be tailored for French fashion and culture in a way that would engage the Chinese end user.” The magazine chose the topic of iconic French culture to be the key theme to be linking the French division of the magazine with its Chinese customers.
MarketingtoChina (2017) notes further that Vogue China is attempting to use effectively
Weibo, one of China’s most popular web-based resources: “Weibo is an important platform for the sharing of content and for engagement with followers. In China netziens expect brands to be ‘social’ and engage with them so it was important to start relevant topic threads about French fashion and culture, the allure of Paris and Lyon (the two most popular destinations for travelers) and the impact in terms of status this kind of fashion selection can provide were the key topics fueling conversation.” Within this active social media marketing policy, Vogue also cooperates closely with Chinese opinion leaders and influencers. This is believed by the company to be the best opportunity to reach a wide range of target audience, at the same time re-affirming the magazine’s positioning
53 as a luxury market brand targeting the higher-income audience range. In terms of the company’s content marketing, Vogue Paris adapts its contents to the Chinese market.
This fact can be explained through the prism of Hofstede’s theory. According to Hofstede
Insights (2018), China ranks high on the power distance index, with a score of 80. Such a high score testifies that Chinese society accepts that power holders are distant from other people in society. Thus, the Chinese praise influent and powerful people, and like seeing powerful opinion leaders featured in the magazine, which Vogue China uses for maximizing customer demand.
In addition to translating all content articles into Mandarin, the company also expands the topic to the ones which might be of particular interest to local customers. According to MarketingtoChina (2017), “Overall this campaign was a success for Vogue. In the highly competitive Chinese market place it is vital to engage on social media to drive traffic, generate leads and build your reputation and visibility.” The company was able to raise the audience of its French brand division in online social networks among Chinese customers by over 30 %.
The style of Vogue China’s communication in online social networks can be descried as rather formal and restrained. This can be explained by the fact that, according to Hofstede Insights (2018), China has a score of only 24 on the indulgence dimension.
This means that people in China are themselves restrained and they prefer formal and restrained communication. Therefore, Vogue China adapts its communication strategies to the realities of the local market and the local culture.
54 The company’s revenues in the Chinese market are generated not only from the sales of its print issues and online subscriptions. A large portion of profits come from advertising.
According to the Business of Fashion (2015), the main issues for Vogue China as of today are to drive the company’s profits from advertising not only in the print segment of sales, but also in the digital market. As an example of Vogue’s unique approach to such activities, the Business of Fashion (2015) notes the following: “To confront the challenge, Cheung has found other ways to service advertisers, increasing Vogue China’s focus on creating branded content. She points to a campaign the publication developed for Chinese telecom-equipment behemoth Huawei, when the company released a new smartwatch earlier this year. As part of the campaign, Karlie Kloss and Sean O’Pry were cast in a series shot by Mario Testino, which featured a unique watch face, designed by Barnaba Fornasetti, that became a VIP gift item.” Here, it is worth recalling again the fact that Chinese society has a high score on the power distance index, and therefore the use of powerful and influential persons in advertisements is a deliberate step on the part of Vogue China’s marketers to achieve the best effect among target customers and to generate maximum demand.
55 Figure 3. Vogue China’s advertisement in Instagram
Source: Vogue China Instagram 2018
As can be seen from the picture above, in its social networks, Vogue China mostly posts messages with Chinese models, which are known to the Chinese public. And the company duplicates all its posts in Chinese and English. This proves that while focusing on the
Chinese audience, Vogue China is also open to the promotion of its brand beyond the
Chinese market.
Therefore, based on the information presented above, it can be stated that in its marketing activities in the Chinese market, Vogue magazine uses a strategy of adaptation, making the product, price and promotion elements of the marketing mix adapted specifically to the local realities. The company also pursues proactive policies in the online marketing
56 segment, which it believes to remain predominant in the Chinese market in the years to come.
2.4 Comparison
The survey was held among readers of Vogue magazine in the Russian Federation and
China. In total, 240 persons who are readers of Vogue magazine (120 for each country) were polled for the purpose of revealing their opinion on the magazine, the materials it provides, its market positioning, their brand loyalty, and so on. The answers thus collected were processed for subsequently evaluating the effectiveness of Vogue magazine’s marketing policies and for revealing how the company might improve the quality of its marketing.
The choice of the respondents was done on Facebook, among the subscribers of Vogue magazine’s official pages. The choice was random, with the only criterion being residence in Russia or China respectively. Respondents were contacted in person and offered to participate in the survey. If they agreed to participate, the survey was delivered to their e-mail address or via messenger. Thereafter, the answers thus provided were collected and processed by the thesis author.
The structure of the survey is provided in Annex 1 to the thesis. Below, the findings of the survey are presented and analyzed.
57 Figure 4. Answers to survey question 1. What is your gender?
Source: Own research
As can be seen from the chart above, the gender structure of the readers of Vogue magazine in the Russian Federation and China is quite similar. In Russia, 85 % of the respondents are women, while this figure in China amounts to 88 %. This can be explained by the fact that
Vogue is generally aimed at women as the target audience, and the magazine’s contents are adapted respectively. The cross-cultural differences are insignificant in these terms.
Figure 5. Answers to survey question 2. What is your age?
Source: Own research
58 As the chart above illustrates, the age structure of readers of Vogue is similar in Russia and
China too. The largest shares of readers are on the interval between 25 and 34 years old.
This confirms the previous findings of the research, namely regarding the general structure of Vogue readers around the globe.
Figure 6. Answers to survey question 3. How often do you buy the print version of Vogue magazine?
Source: Own research
Most respondents who took part in the survey buy Vogue magazine regularly in its print edition. This is true speaking of both Russia and China. In Russia, 85 % of the respondent buy Vogue’s print magazine either once a month or once a quarter, and the same aggregate figure for China makes 84 %. This proves that the level of loyalty is quite high among the magazine’s readers in both countries. From the perspective of Hofstede’s theory, this can be explained by the fact that both countries’ cultures value long-term relationships and
59 partnership. As a result of their long-term orientation, representatives of both nations favor loyal relations with the brand they love.
Figure 7. Answers to survey question 4. Do you believe the price for the print version to be justified? Please rate 1 to 5.
Source: Own research
Based on the chart presented above, it can be stated that the evaluation of the fairness of the price for the magazine’s print edition differs only slightly among Russians and the Chinese.
Thus, among Russian respondents, 45 % rated the justification of the price 4 to 5 points out of 5. Among the Chinese respondents, this figure amounted to 55 %. However, the difference is rather small, and it cannot be justified by any significant cross-cultural differences.
60 Figure 8. Answers to survey question 5. Is it easy for you to find where to buy a print copy of the magazine? Please rate 1 to 5.
Source: Own research
As can be seen from the chart above, people in Russia find it significantly easier to buy the print version of Vogue magazine. Thus, 74 % of respondents from Russia evaluate the accessibility of the magazine 4 to 5 points out of 5. At the same time, this figure amounts to only 45 %. Based on these figures, it can be stated that the situation with logistics is better for Vogue in Russia. In China, the level of access is worse, and this is a negative factor for the fashion magazine’s business, as this limits the company’s revenues in the region, thus affecting its overall business prospects.
61 Figure 9. Answers to survey question 6. What don’t you like about the print version?
Source: Own research
Analyzing the main factors causing customers’ dissatisfaction with the print version of Vogue magazine, it can be stated that in the Russian Federation most people would like to see improvements concerning the stars featured on the magazine’s pages, and overall in terms of contents. In China, most people would like to see improvements in terms of the stars featured too. However, at the same time, it should be noted that as much as 20 % Chinese respondents would like to see improvements regarding the quality of print. Based on Hofstede’s theory, an assumption can be made that both Russian and
Chinese customers would like to see more materials in the magazine featuring stars due to the fact that the level of power distance in both states is high. As stated earlier in this research, this factor preconditions high confidence to opinion leaders and other influential persons, and this might be helpful for justifying the assumptions outlined above. At the
62 same time, the quality of print might be associated with flaws in the production processes of Vogue China, and shouldn’t be associated with cultural differences in customers’ perceptions in the two states.
Figure 10. Answers to survey question 7. Do you have a paid subscription to Vogue magazine’s electronic version?
Source: Own research
As can be seen from the figure above, more than a half of the respondents in both Russia and China have a paid subscription to Vogue magazine’s electronic version: this figure amounts to 53 % for Russian and 58 % for China respectively. On the one hand, the figures are quite high. But on the other hand, given the focus of both companies on the online segment, there is significant room for further raising the engagement of customers in the online environment, namely through the use of effective promotion campaigns.
63 Figure 11. Answers to survey question 8. Do you believe the price for the electronic version to be justified? Please rate 1 to 5.
Source: Own research
As can be seen from the chart above, the share of respondents in Russia and China who believe the price for the electronic version of Vogue magazine to be justified is largely similar to the share of respondents from the two states who believe the price for the print edition to be justified as well. Therefore, based on this, it can be stated that the pricing policy used by Vogue in both the Russian Federation and China seems to be rather justified, and this contributes to the company’s effective business performance.
64 Figure 12. Answers to survey question 9. Through what social networks do you follow Vogue (in case of several at once, choose the network where you follow Vogue most)? Facebook / Instagram / Twitter / VK / Weibo / other
Source: Own research
As can be seen from the answers provided above, the customers of Vogue in Russia follow the magazine mainly through VK, the most popular social network in Russia. In China, most followers of Vogue use Weibo for following the company. Otherwise, in both states, fairly equal shares of customers follow the company through Instagram, Facebook or Twitter. Overall, it can be stated that the most popular networks for following Vogue in Russia and China include locally popular social media and Instagram, where the company’s contents are presented most brightly.
65 Figure 13. Answers to survey question 10. Do you believe that the company is effective in communication through online social networks? Please rate 1 to 5.
Source: Own research
As illustrated by the chart above, the total number of respondents believing that Vogue is running effective communication with its customers through online social media is 45 % among Russians (respondents who rated the quality of such communication
4 to 5 points out of 5) and 50 % among the Chinese respectively. Based on these figures, it can be stated that in both countries, there is significant room for improvement of Vogue’s online marketing, namely in terms of customer communication. At the same time, there is no noticeable difference between the Russian and the Chinese respondents which could be associated with the existing cultural differences.
66 Figure 14. Answers to survey question 11. Do you believe that the company takes into account the feedback left by its customers?
Source: Own research
However, as the chart above illustrates, there are quite different perceptions of how the company reacts to the feedback left by its customers. As can be seen from the chart, the total percentage of customers who believe that Vogue takes into account their feedback in Russia amounts to only 40 %, while the same figure in China is 65 %. This difference can be associated with the fact that according to Hofstede’s dimensions Russia ranks higher on the individualism scale compared to China. Therefore, Russian customers might be requiring more from the magazine in terms of how it takes into account their feedback.
At the same time, in China, individual goals are not so distinct, and therefore customers might be rather more loyal to the quality of how the company takes into account their feedback.
67 Figure 15. Answers to survey question 12. In what terms do you like competitors’ advertisements more compared to Vogue? Brighter display / more comprehensible / non-standard message / more interactive / other
Source: Own research
As can be seen from the chart above, there are different perceptions of competitors’ advantages over Vogue in terms of advertisements. Thus, Russian respondents believe that the major advantage of competitors is their non-standard message, and at the same time greater interactivity in the presentation of the ads. In contrast to this, Chinese customers believe that competitors’ main advantage regarding advertising is the greater comprehensibility of their messages. Based on Hofstede’s theory, such differences can be associated with the fact that Russians are more prone to individualism, and therefore would like to see the greater appeal in the advertising messages, while Chinese focus more on long-term orientation, and thus would like to be more confident in terms of what information advertisements bring to them.
68 Figure 16. Answers to survey question 13. What would you change in the magazine’s contents?
Source: Own research
Based on the figure presented above, it can be stated that the distribution in terms of those directions of Vogue’s activities would like to see improved in the magazine is fairly the same for Russian and Chinese respondents. Moreover, it is impossible to state that one of the factors has a significantly greater weight compared to the other. Therefore, it is impossible to tie these distributions with the cultural specificities of the customers in the two states.
So, based on the analysis presented above, it can be stated that the survey confirms: the marketing policies undertaken by Vogue in the Russian Federation and China are rather successful. The the survey doesn’t show any specific signs of customer dissatisfaction, even though differences exist in terms of how Russian and Chinese customers perceive the specificities of the company’s marketing on particular directions. Taking into consideration
69 the findings of this chapter, it is now possible to proceed to discussion and recommendations.
2.5 Discussion and recommendations
The findings of this thesis illustrate that Vogue is a reputable fashion magazine which positions itself as a unique expensive and high-quality brand, and thus is able to achieve great popularity among its target customers, people with income above average and higher.
The company has a strong brand value, and is able to consolidate the benefits it derives therefrom in different geographic markets of its presence. Both in China and in Russia, the company has been able to achieve significant results in the fashion market. However, it can still bring improvements to its marketing activities for raising its overall business performance.
In terms of the product policies, it can be stated that some problems might exist for Vogue in China, as a large part of respondents blame the company for a low quality of its print materials. This situation deserves particular attention on the part of the company’s managers, as the magazine’s quality is vital for supporting the company’s market positioning. At the same time, in both Russia and China, the magazine should watch over selecting the best endorsers and stars to be featured on its cover pages and in its contents.
As the findings of this research testify, people in both Russia and China are prone to significant power distances and accept them willingly, which means that this preconditions the need to tie and connect the magazine with influential local and global opinion leaders. This might even require the company to make a slight shift from the world
70 of fashion to a wider range of topics for being able to feature materials with local stars in a greater amount. The survey proves that this is one of the demands and requirements of the magazine’s readers in both states, and therefore this cannot be neglected.
The pricing policies used by Vogue in Russia and China seem to be rather justified and equitable, as the survey didn’t reveal any particular dissatisfaction on the part of customers in either of the states. Moreover, the current difference in the prices for the print and electronic editions of the magazine can be deemed commercially justified and favourable for the company’s business. Therefore, Vogue Russia and China can be recommended to maintain the current vectors of their pricing policies, obviously adapting their prices to particular market conditions in case of any significant changes in the external environment.
In terms of the place component of the marketing mix, it can be stated that some issues exist in Vogue China, as a large part of customers who took part in the survey affirmed that buying a print version of the magazine in China is difficult. Thus, Vogue China can be recommended to pay attention to its logistics for the purpose of raising the accessibility of the magazine’s print version in China. Practical recommendations might include cooperation with local distributors in distant regions, improvement of the logistics networks in cities adjacent to large Chinese metropolitan centres, and greater focus put on the development of the online segment, which should allow people accessing the magazine more easily even in remote areas. Vogue might also benefit from considering the option of outsourcing its logistics processes in distant areas of China, so as to minimize the company’s costs by involving professional expeditors. Nevertheless, the company should
71 assess well potential benefits and associated costs in order to evaluate the ultimate commercial effectiveness of such improvements.
Next, it should be noted that both companies need to improve significantly their business performance in the online environment. Given Vogue’s declared focus on emphasizing the online segment of its activities, the shares of respondents in the survey who have a paid subscription to the magazine’s electronic version are rather small, and they can be improved. For instance, the company can focus more on promoting the electronic version of the magazine. The distinctions between the print and the online versions of the magazine should be clear, so that the customers would be motivated to buy both the print edition of the magazine and a paid subscription to its online version. The company might also benefit from providing additional bonuses to those readers who have subscribed to both the print and the electronic versions of the magazine. This might contribute to its improved financial performance in the long run.
At the same time, Vogue should focus on improving the quality of its communication with customers in online social media. As the survey testifies, large shares of respondents believe that the company fails to take into account the feedback they leave in online social networks, and this doesn’t contribute positively to Vogue’s brand value. The situation is particularly negative in this context in the Russian Federation. As the online segment is one of the company’s key focuses in marketing as of today, it should focus on reacting more clearly and responsibly to the feedback of customers, and should inform them thereafter of how their particular recommendations were taken into account, and how the
72 company proceeded. This should help establish effective bilateral communication, thus raising further the level of loyalty among Vogue’s customers.
By implementing these recommendations, Vogue will be likely to improve its marketing activities and financial performance in both Russia and China.
73 Conclusion
As of today, effective marketing is essential for any commercial entity striving to achieve business success in its activities. Marketing tends to become more and more complex and sophisticated under the impact of new technologies and steady progress. Its complexity is even greater for those companies which run their business activities on the international scale. Such entities have to demonstrate a high level of proficiency in cross-cultural management in order to apply their marketing strategies effectively in each particular geographic market of their presence.
The research question of the thesis was the following: How does the marketing strategy of Vogue differ in the Russian Federation and China?
The findings of this research testify that there are no significant differences regarding the marketing policies used by Vogue in Russia and China. Thus, the company uses adaptation in terms of the product, price and promotion components of its marketing mix for the purpose of improving its financial performance in the two geographic markets. Product adaption is less distinctive in the Russian Federation. However, in the two states, the company adapts the magazine’s contents to the needs of the local population. The prices for
Vogue magazines are lower in both Russia and China compared to Western states, and this allows raising sales in these countries, where the population’s purchasing power is lower compared to developed states. At the same time, the company’s prices are still targeted at people with income above average or higher. In both Russia and China, the company focuses on developing the online segment of its business, offering paid subscriptions to the
74 electronic version of the magazine and boosting the effectiveness of communication in online social networks. The fact that Vogue’s marketing strategies are similar in the
Russian Federation and China can be explained by the large similarities between the cultures of the two countries. Namely, both Russia and China are characterized by a high power distance index, low scores on the individualism scale, low indulgence and long-term orientation. Therefore, Vogue’s marketing strategy in the two countries is only slightly modified, and this allows achieving effective business results.
The hypothesis of the thesis was the following: Vogue’s marketing potential in China is limited to the greater conservativeness of Chinese people compared to Russians.
Based on the findings of the thesis, the hypothesis can be disapproved. On the one hand, the level of conservativeness among Chinese people is indeed slightly higher compared to Russians. On the other hand, as this research testifies, Vogue has its loyal customers in China and can target them effectively by adapting its magazine to the Chinese market.
In contrast to the positive perceptions of Chinese customers, the company might face problems with the conservatism of the Chinese government. As this research testifies, the
Chinese authorities adopt strict legal policies in the fashion market, and therefore the company needs to follow all such requirements diligently in order to run effective marketing activities in China.
In order to improve its marketing activities in Russia and China, Vogue should focus on providing more high-quality content associated directly with stars, opinion leaders, and other famous persons, possibly even going beyond the topics of fashion. In China, the company might benefit significantly from improving its logistics and the quality of print
75 materials. In both countries, specific attention should be paid to the effectiveness of online communication with customers and the processing of their feedback. If Vogue is able to fulfil these recommendations, it will be likely to improve its financial performance in both Russia and China.
76 Annexes
Annex 1. Structure of the Survey
1. What is your gender? male / female
2. What is your age? 16 to 24 / 25 to 34 / 35 to 44 / 45+
3. How often do you buy the print version of Vogue magazine? every month / once a quarter / once half a year / less often
4. Do you believe the price for the print version to be justified? Please rate 1 to 5.
5. Is it easy for you to find where to buy a print copy of the magazine? Please rate 1 to 5.
6. What don’t you like about the print version? quality of print / quality of contents / stars featured / other
7. Do you have a paid subscription to Vogue magazine’s electronic version? yes / no
8. Do you believe the price for the electronic version to be justified? Please rate 1 to 5.
9. Through what social networks do you follow Vogue (in case of several at once, choose the network where you follow Vogue most)? Facebook / Instagram / Twitter / VK / Weibo / other
10. Do you believe that the company is effective in communication through online social networks? Please rate 1 to 5.
11. Do you believe that the company takes into account the feedback left by its customers? yes / no
12. In what terms do you like competitors’ advertisements more compared to Vogue? brighter display / more comprehensible / non-standard message / more interactive / other
13. What would you change in the magazine’s contents? greater focus on fashion / greater focus on my country / more different topics / more photo contents / other
77 Works Cited
1. Bendoni, W. (2017). Social media for fashion marketing. London: Bloomsbury Academic. 272 p. ISBN 978-14-742-3332-3.
2. Black, S., de la Haye, A., Entwistle, J., Root, R., Rocamora, A., and Thomas, H. (2014). Fashion Marketing. Edinburgh: A&C Black. 656 p. ISBN 978-14-725-7744-3.
3. Bruzzi, S., and Gibson, P.C. (2013). Fashion Cultures Revisited: Theories, Explorations and Analysis. London: Routledge. 442 p. ISBN 978-11-364-7473-6.
4. Burrow, J.L. (2012). Marketing, Copyright Update. Boston, MS: Cengage Learning. 736 p. ISBN 978-11-337-1588-7.
5. Chen, W 2013, Marketing Strategy of Vogue China, MarketingtoChina, accessed 24 March 2018,
6. Christiansen, B. (2013). Fashion Marketing. Hershey, CA: IGI Global. 588 p. ISBN 978-14-666-4750-3.
7. Christiansen, B., Yildiz, S., and Yildiz, E. (2013). Transcultural marketing for incremental and radical innovation. Hershey, CA: IGI Global. 588 p. ISBN 978-14-666-4750-3.
8. Condé Nast International 2018, Vogue China, Condé Nast International, accessed 24 March 2018,
9. Condé Nast Russia 2017, Novoye prilozheniye Vogue Collections, Condé Nast Russia, accessed 24 March 2018,
10. Condé Nast Russia 2018, Vogue audience, Condé Nast Russia, accessed 24 March 2018,
78 11. Cotton, C 2014, 'State of Fashion', Aperture, no. 216, pp. 44-51.
12. Easey, M. (2009). Fashion Marketing. Boca Raton, FL: John Wiley & Sons. 280 p. ISBN 978-14-443-0956-0.
13. Fitzpatrick, H. (2017). Marketing Management For Non-Marketing Managers: Improving Returns on Marketing Investments. Hoboken, NJ: John Wiley & Sons. 352 p. ISBN 978-19-373-5267-7.
14. Gardner, R.M. (2016). Practical Crime Scene Processing and Investigation, Second Edition. London: Taylor & Francis. 498 p. ISBN 978-14-398-9778-2.
15. Hall, C.M. (2014). Tourism and Social Marketing. London: Routledge. 312 p. ISBN 978-11-369-8928-5.
16. Henninger, C.E., Panayiota, J.A., Goworek, H., and Ryding, D. (2017). Sustainability in Fashion: A Cradle to Upcycle Approach. London: Springer. 270 p. ISBN 978-33-195-1253-2.
17. Hofstede Insights 2018, Comparison of Countries, Hofstede Insights, accessed 24 March 2018,
18. Hornig, T, Fischer, M, and Schollmeyer, T 2013, 'The Role of Culture for Pricing Luxury Fashion Brands', Marketing: Zeitschrift für Forschung und Praxis, vol. 35, no. 2, pp. 118-130.
19. Jackson, T., and Shaw, D. (2008). Mastering Fashion Marketing. Basingstoke: Palgrave Macmillan. 240 p. ISBN 978-11-370-9271-7.
20. Keller, C, Magnus, K-H, Hedrich, S, Nava, P, and Tochtermann, T 2014, Succeeding in tomorrow’s global fashion market, McKinsey&Company, accessed 24 March 2018,
21. Khanka, S.S. (2006). Entrepreneurial Development. Delhi: S. Chand Publishing. 405 p. ISBN 978-81-219-1801-5.
79 22. King, L, and Clement, R 2012, 'Style and Substance: Fashion in Twenty-First-Century Research Libraries', Art Documentation: Journal of the Art Libraries Society of North America, vol. 31, no. 1, pp. 93-107.
23. MarketingtoChina 2016, Vogue China Under the Government’s Pressure?, MarketingtoChina, accessed 24 March 2018,
24. MarketingtoChina 2017, Chinese Social Media Falls ‘Head over Heels’ in Love with Vogue Paris, MarketingtoChina, accessed 24 March 2018,
25. Mendoza, S. (2003). Modules for Marketing' 2003 Ed. Manila: Rex Bookstore, Inc. 184 p. ISBN 978-97-123-3747-5.
26. Moody, L. (2015). Clear and Unbiased Facts About Fashion School. Morrisville, NC: Lulu Press, Inc. 375 p. ISBN 978-13-296-8600-7.
27. Moody, L. (2015). Clear and Unbiased Facts About Fashion School. Lulu Press, Inc. 195 p. ISBN 978-13-296-8600-7.
28. Noble, C.H. (2015). Proceedings of the 1999 Academy of Marketing Science (AMS) Annual Conference. Berlin: Springer. 429 p. ISBN 978-33-191-3078-1.
29. O’Neil, A 2014, 'A Call for Truth in the Fashion Pages: What the Global Trend in Advertising Regulation', Indiana Journal of Global Legal Studies, vol. 21, no. 2, pp. 619-641.
30. Palmer, D.E. (2010). Ethical Issues in E-Business: Models and Frameworks: Models and Frameworks. Boca Raton, FL: Idea Group Inc (IGI). 272 p. ISBN 978-16-152-0616-2.
31. Petermans, A., and Kent, A. (2016). Retail Design: Theoretical Perspectives. London: Routledge. 238 p. ISBN 978-13-170-6456-5.
80 32. Reynolds, P., and Lancaster, G. (2005). Management of Marketing. London: Routledge. 304 p. ISBN 978-11-363-8603-9.
33. Ryding, D., Henninger, C.E., and Cano, M.B. (2018). Vintage Luxury Fashion: Exploring the Rise of the Secondhand Clothing Trade. London: Springer. 222 p. ISBN 978-33-197-1985-6.
34. Saren, M. (2013). Marketing Graffiti. London: Routledge. 304 p. ISBN 978-11-363-8008-2.
35. Shaw, D., and Koumbis, D. (2017). Fashion buying. London: Bloomsbury Publishing. 176 p. ISBN 978-14-742-5293-5.
36. Smith, S.M., and Albaum, G.S. (2005). Fundamentals of Marketing Research. Thousand Oaks, CA: SAGE. 881 p. ISBN 978-07-619-8852-6.
37. Tesar, G., and Bodin, J. (2012). Marketing Management in Geographically Remote Industrial Clusters: Implications for Business-to-Consumer Marketing. Singapore: World Scientific Publishing Company. 528 p. ISBN 978-98-144-8982-9.
38. Vogue 2018, About Us, Vogue, accessed 24 March 2018,
39. Vogue Russia 2016, Trends Brands pomogaiet naiti stazhirovku mechty, Vogue, accessed 24 March 2018,
40. Vogue Russia 2018, About Us, Vogue, accessed 24 March 2018,
41. Vogue Russia Instagram 2018, Vogue Russia, Vogue Russia Instagram, accessed 24 March 2018,
42. Walton, P., Dowling, P., and Decieri, H. (2002). International Business. Boston: Cengage Learning EMEA. 374 p. ISBN 978-18-615-2452-2.
81 43. Weitz, B.A., and Wensley, R. (2002). Handbook of Marketing. Thousand Oaks, CA: SAGE. 582 p. ISBN 978-07-619-5682-2.
82