Luxury Fashion Brands in Thailand: a Study of On-Line Purchase Behavior

LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR

MISS KARNCHANOK ITTHIROJANAKUL

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER’S DEGREE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2014 COPYRIGHT OF THAMMASAT UNIVERSITY

LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR

MISS KARNCHANOK ITTHIROJANAKUL

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Independent Study Title LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR Author Miss Karnchanok Itthirojanakul Degree Master’s Degree Program in Marketing (International Program) Department/Faculty/University Faculty of Commerce and Accountancy Thammasat University Advisor Prof. Dr. Paul G. Patterson Academic Year 2014

ABSTRACT

In the recent years, luxury fashion industry has vastly expanded in Thailand, more than 30 luxury fashion brands have opened to serve an increasing demand of luxury products. This expanded number of luxury brands indicates there are rising of income levels as well as purchasing power. Luxury fashion brands, for example, like Chanel, Dior, Mulberry and Balenciaga are gaining more recognition and acceptant among Thai consumers that pursue sophisticated hi-style of living. The competition of luxury fashion industry has become stronger. Not only traditional marketing activities, for example, like advertisings and events are being used. Social media are now taking an important role to stimulate trends and demand. The growing of popularity of social media, for instant, Facebook and Instagram is creating a remarkable impact on sales and brand popularity. As a rapid growth in the number of internet users, it is a great opportunity for luxury fashion business to get closer to consumer. Club 21, a company from Singapore established by an entrepreneur- hotelier Christina Ong in 1972, as a leading importer and distributor in luxury fashion goods in Thailand has developed the marketing strategy in order to stimulate sales performance in 2013. Both vertical and horizontal expansion was developed under strategic marketing movement. Apart from traditional marketing activities, Club 21 was known as a fashion company with a best practice in leveraging online channel in order to enhancing customer shopping experience.

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For this reason, this study is proposed has a goal to understand online purchasing behavior of Club 21 (Thailand) consumer by investigating their online decision making process and find out influential factors that related to each decision process as well as perception towards Club 21 (Thailand). The objective of this study is to understand consumer insights and their behaviors which are significant for Club 21 (Thailand) to set up effective strategies for digital communication plan and to develop their E-Commerce to be the efficient channel for consumer to access the product and customer service. In this study, qualitative research will be collected data from 18 – 24 Club 21 (Thailand) customers who living in Bangkok area by one-on-one interviews. In- depth interview will be entirely conducted by the researcher with Naturalistic Inquiries. The criteria of respondents profile will focus on people have buying luxury fashion brand experience as well as purchasing through online channel experience to make a certain that researcher will have related insights into the research topic. Snowballing method will be used as a recruitment to obtain respondents. Main findings from this study include the keys barriers of online purchasing intention among Thai female consumers, for example, concerns about safety of personal information and inability to touch and feel the product. All findings in this study highlight important marketing intelligence which useful for fashion luxury players to consider and understand consumer in technology era.

Keywords: Luxury Fashion, Online Decision Making Process, Club 21 (Thailand), E-Commerce

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ACKNOWLEDGEMENTS

First of all, I would like to express my sincerely grateful to my advisor, Prof Dr. Paul G Patterson, for his contribution, inspirations, valuable advice and encouragement throughout learning process of this independence study. This study would not have been possible without his guidance and persistent help. I would like to sincerely thank you to every interview participants for support, kind cooperation and useful information to complete this study. In addition, I would like to use this opportunity to express thank my division manager, marketing manager and all of my colleagues at Club21 (Thailand) for kind understanding, unceasing encouragement throughout my master program. A special thanks to my MIM friends for aspiration, friendly advice and sincerer encouragement. I truly appreciate for your helps, truthful views and happy times that we have spent together. I am thankful to my family that words cannot express how grateful I am for being your daughter. Thank you for my mother and father for greatest encouragement and sacrifices. Finally, I also place on record, my sense of gratitude to one and all, who directly or indirectly, have lent their hand in this venture.

Karnchanok Itthirojanakul

TABLE OF CONTENTS

Page

ABSTRACT (1)

ACKNOWLEDGEMENTS (3)

LIST OF TABLES (5)

LIST OF FIGURES (6)

CHAPTER 1 INTRODUCTION 1

1.1 Problem and Significant of the study 4 1.2 Objectives of research 5

CHAPTER 2 LITERATURE REVIEW 6

2.1 Priceless Engagement Concept 6 2.2 e-Distribution Characteristics 6 2.3 Psychographic Segmentation 7 2.4 Factors which determine user acceptance of online shopping 7

CHAPTER 3 RESEARCH METHODOLOGY 9

3.1 Research Framework 9 3.2 Exploratory Research Methodology 11 3.3 Limitations of the study 12

CHAPTER 4 DATA ANALYSIS AND RESULTS 13

4.1 Key findings from secondary research - consumer 13 4.2 Key findings from secondary research - Club21 e-Shop 14 4.3 Key findings from in-depth interview with consumer 15

CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 25

REFERENCES 27

APPENDICS 28

Appendix A: Example of Club 21 Facebook Page And Instragram Account 29 Appendix B: Discussion Guideline 30 Appendix C: Respondents’ Profile 32 Appendix D: Example of Content Session In Club 21 E-Shop 33 Appendix E: Example of Brand List Available In Club 21 E-Shop 34 Appendix F: Example of Product Pricing Strategy 35 Appendix G: Example of Club 21 E-Shop Packaging 37 Appendix H: Example of Outdoor Media Advertising Of Club E-Shop 38

BIOGRAPHY 39

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LIST OF TABLES

Tables Page 2.1 Factors which determine user acceptance of online shopping 8 3.1 Criteria groups of respondent 12

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LIST OF FIGURES

Figures Page 1.1 Asia-Pacific HNWI Population, 2008 – 2013 (by market) 2 1.2 Asia-Pacific HNWI Wealth, 2008 – 2013 (by market) 2 3.1 Framework of online consumer behavior 10

CHAPTER 1 INTRODUCTION

For the luxury industry, Asia is considered as a huge market opportunity. China market is the quickest growth in emerging markets for luxury brands while South Korean is a trend-setter and great influencer of Asian marketing trends. For Southeast Asia, Singapore, Malaysia and Thailand also has a room the growth. In the recent year, most of luxury retails has become more globalization and found that they decided to expand to emerging market. The new market entries, for instance, are China, Indonesia, Kazakhstan, Malaysia, Pakistan and Thailand. (Shea, 2013) With a reference to article “2014 annual global luxury study”, global luxury market is estimated to reach 278 billion dollars in 2014. Personal luxury goods, such as apparels, accessories and bags, are continued to buoy the market leading by luxury accessories which gained 29 percent of market share with 4 percent of growth rate following by apparel and hard luxury which are next two largest categories. For overall personal luxury category, retail channel is still growing with 30% of market share by estimated. For physical store channel, consumers prefer a monobrand (one brand) environment. In contrast, for online channel, consumers prefer variety and assortment of product which mean they prefer buying in a multi-brand e-environment. (BAIN & COMPANY, 2014) oAccording t Asia-Pacific Wealth report by Royal Bank of Canada and Capgemini Consulting, the number of the population of HNWIs (High-Net-Worth- Individuals) grew strongly by 9.2% in 2013 to 80k (See Figure 1.1), while wealth grew by 11.6% to US$ 396 billion (See Figure 1.2) The expansion of wealthy people in Thailand has brought sophisticated style of living and drive strong demand of luxury goods. This recent year, many luxury fashion brands opened their physical retails store in Bangkok such as Proenza Schouler, Jil Sander, Miu Miu and more. For this reason, Thailand has indicated as another opportunity for growing the luxury retail sector via the volume of tourist shoppers and growing local middle class. In a global survey by MasterCard, it was found that Bangkok visitor spending contributed to annual USD 14.4 billion dollars, ranking 4th globally in visitor spending. (Ho, 2013)

Figure 1.1: Asia-Pacific HNWI Population, 2008 – 2013 (by market)

Source: Asian Wealth Report 2014 by Capgemini and Royal Bank of Canada Wealth Management

Figure 1.2: Asia-Pacific HNWI Wealth, 2008 – 2013 (by market)

Source: Asian Wealth Report 2014 by Capgemini and Royal Bank of Canada Wealth Management

For market context in Thailand, some of luxury brands like Prada, Chanel and Dolce and Gabbana are wholly-owned subsidiaries of their parent company and being fully operated by their headquarter with in-line global marketing strategies. Another type of retails is operated by distributor like Club 21 and PP Group which are the two leading of importer and distributor in luxury brands. The strategy of this type company is to extend variety of brands with vertical and horizontal expansion and supported by corporate strategy and strong customer loyalty program. Due to intensity of competition, luxury fashion brands in Thailand are trying their best to increase brand exposure by adapting digital and social media. While traditional media like Magazine advertising and direct mailer remain important in their role to create brand awareness and direct engagement, Facebook and Instagram are the new efficient and effective marketing tools, using for talking about their product, influencing trends with celebrities’ endorsement and enhancing customer relationship. For every brands, their official social media account and website are fully operated by headquarter to represent global strategies. On the other hand, the brands under distribution by distributors will have additional benefits of local marketing strategies operated by those distributors. An example of successful in leveraging the power of social media is Club 21 (Thailand)’s Instagram and Facebook account which is reached more than 138K of Instagram followers and 157K of Facebook subscribers which is about 5 times higher compared to PP Group (See Appendix A) Apart from social media expansion, e-commerce trend in Thailand is now growing and projected to expand by 20-30 percent annually. In 2013, online trading was valued at 22.6 billion dollars, of which about 20 per cent or Bt140 billion was business-to-customers and the rest business-to- business and business-to-government (Pratruangkrai, 2014) The interesting point of this case is how Club 21 (Thailand) could step forward in the right way on leveraging digital media and e-commerce channel and make it as a strong tool for driving sales and enhancing shopping experience.

1.1 Problem and Significant of the study

Obviously, internet is a perfect way in increasing brand awareness at low cost and it’s now a key tool for luxury fashion brand to provide necessary brand content, brand stories and brand actuality. On the other hand, selling luxury product through e-commerce channel would be extremely risk as it might reduce dream value of the brand, for instance, the case of Burberry and Louise Vuitton in 2011. Each of them had millions of followers on Facebook. Of the Burberry followers, 30 percent of them went to Burberry website to make a purchase while only 3 percent of Louise Vuitton did. For the interesting point in this case, Burberry customers do not go to Burberry shop while Louise Vuitton’s customers still prefer to visit and make a purchase at physical store (KAPFERER & BASTIEN, 2012) One of the discussion issues in this day is about the relationship between digital and luxury brand which is love-and-hate. Brands also wonder how to use digital channel without damaging their brand identity and their core value of luxury and sophistication (Anne-Flore Maman Larraufie & KOURDOUGHLI, 2014) while digital channel is an essential part of modern world in order to capture young consumer who is digital expert. aThell ch enge of Club 21 (Thailand) is how to embrace digital channel in the professional way and lead to positive impact in increasing sales turnover, brand exposure , brand image and customer relationships. Another point to be concerned is about how Club 21 (Thailand) should set up the e-commerce strategy to avoid the confliction of exclusive shopping experience as well as to avoid sales cannibalization with physical retails. The result of this study will be useful for Club 21 (Thailand) to understand their customers’ online behavior and important factors that have significant affect to each decision stage. The result of this study is benefit to marketers for using this study to applying to Club 21 (Thailand) online marketing strategies in order to increase sales and enhance customer shopping experience.

1.2 Objectives of research

To improve Club 21 (Thailand) digital marketing strategy, this research is aimed to get a better understanding of consumer by to explore what is the key benefit that consumer are seeking from online shopping as well as understand their online shopping behavior towards luxury fashion items. Specifically, the research objectives are: 1. To study consumer’s online purchasing behavior on luxury fashion products. 2. To study consumer’s key decision criteria and perceived benefit in online shopping for luxury fashion products.

CHAPTER 2 LITERATURE REVIEW

In this study, literature review is an analysis of past theoretical research and journal articles which researcher used to be guideline and general idea in understanding consumer behavior framework of this study.

2.1 Priceless Engagement Concept

The real power of digital is its ability to fully engage the consumer in brand experience. The internet does not only play a big part in luxury decision making but also gives opportunity to explore the potential of selling more luxury goods. Above 70 percent of luxury buyer looks information from website or application along their path to purchase and source of inspiration. The drivers and barriers for online purchasing luxury fashion, for instance, the desire to physically see and touch the product and the risk of buying imitations instead of genuine products. However, there are also strong reasons to buy luxury online. Convenient of purchasing whenever and wherever is perceived by approximately 53% of consumer. Additionally, consumer also perceive that online purchasing leads to better deals (Chehab & Merks-Benjaminsen, 2013)

2.2 e-Distribution Characteristics

Customer have expectation towards e-commerce different from physical store as customer view e-commerce as the combination of branded content, storytelling, gaming and customization. Customer also uses the e-commerce as a channel for comparing possibilities, low prices and discount and 24-hours-a-day shopping possibilities. Finally, consumer still perceives e-commerce as risky of online transactions and after sales services. (Anne-Flore Maman Larraufie & KOURDOUGHLI, 2014)

2.3 Psychographic Segmentation

The marketing psychographic segmentation divides the customers into groups according to personality characteristics, lifestyle, attitudes and values of the potential consumers. People from the same demographic or ethnic group can exhibit very different profiles. The previous analysis of the Impact of collectivism and Confucian values on luxury goods has shown several cultural criteria which can be used to define the consumption behavior of customer with similar demographic, for example, ‘Luxury intellectuals’ are not influenced by the trends.’ Luxury laggards’ are not sensitive to the luxury goods as such (low sense of luxury and fashion) because their priority is the functionality side of the products. (Ferdinandi, 2014)

2.4 Factors which determine user acceptance of online shopping

Various major factors, that affect on user acceptance of online shopping, have been studied in many previous studies. Personal perceived value, design of website and consumer characteristics are factors that relate to consumer acceptant in shopping which are presented in Table 2.1 Consumer characteristics involve personality traits like the knowledge of the internet and the social environment (Li and Zhang, 2002), self-efficacy which refers to one’s belief of his /her ability and means to successfully complete a certain action (Perea y Monsuwé, Dellaert and de Ruyter, 2004), demographic profile which contains variables like age, gender, education and income (Dholakia and Uusitalo, 2002), and last acceptance of new IT applications which refers to the user’s attitude towards the adoption of IT (Al-Gahtani and King, 1999).

Table 2.1: Factors which determine user acceptance of online shopping

Factor Variables References

O’Cass and Fenech, 2003; McCrae and Costa, 1997; Li and

Personality Traits Zhang, 2002

istics Eastin, 2002; Li and Zhang, 2002; Perea y Monsuwé, Dellaert

er Self-Efficacy and de Ruyter, 2004; Bandura, 1997 Koufaris, 2002; Park and Jun, 2003; Mutum and Ghazali, charact

er Demographic Profiles 2006; Dholakia and Uusitalo, 2002; Perea y Monsuwé, Dellaert and de Ruyter, 2004 sum

on Acceptance Of New IT Childers et al., 2001; Citrin et al., 2000; O’Cass and Fenech, C Applications 2003; Al-Gahtani and King, 1999 Eroglu, 1992; Pedersen and Nysveen, 2005; Mathews and Healy, 2007; Cheng and Huang, 2007; Gupta, Su and Walter,

Perceived Danger 2004; Youn, 2005; Shergill and Chen, 2003; Ratchford,

ues Talukdar and Lee, 2001; Senecal 2000; Sukpanich and Chen l 1999; Han, Ocker and Fjermestad, 2001; Li and Zhang, 2002 ved va ved

i Eastin, 2002; Eastlick and Feinberg, 1994; Lim and Dubinsky, Perceived Convenience 2004; Wang et al, 2005; Li, Kuo and Russell, 1999; Wolfinbarger and Gilly, 2001

onalperce Perceived O’Cass and Fenech, 2003; Shergill and Chen, 2003; s

Per Web Site Quality Wolfinbarger and Gilly, 2001; Gefen and Straub, 2000 Eastin, 2002; Childers et al, 2001; Bakos, 1991; England et al, Perceived Benefits 1999 Belanger, Hiller and Smith, 2002; Liao and Cheung, 2001; Ranganathan and Grandon, 2002; Swaminathan, Lepkowska- Security White and Rao, 1999; Mummalaneni, 2005; Youn, 2005; Chou,

n n 2007; Li and Zhang, 2002; Park and Kim, 2003; Kelly and ig Erickson, 2004; Flavián and Guinalíu, 2006 Belanger, Hiller and Smith 2002; Ranganathan and Grandon, 2002; Swaminathan, Lepkowska-White and Rao, 1999; Website des Privacy Dolnicar and Jordaan, 2006; Birring, 2007; Galanxhi-Janaqi and Fui-Hoon Nah, 2004; Flavián and Guinalíu, 2006; Wang, Lee and Wang, 1998 Peterson, Balasubramanian and Bronnenberg, 1997; Perea y Product Monsuwé, Dellaert and de Ruyter, 2004; Lian and Lin, 2008; Bhatnager, Misra and Rao, 2000; Liao and Cheung, 2001;

CHAPTER 3 RESEARCH METHODOLOGY

3.1 Research Framework

Framework of online consumer behavior that will be used for this study is “Framework of online consumer behavior” (M., Cheung, Zhu, & Timothy Kwong, 2003) which is a thorough literature review that examined a total 351 articles in the area of online consumer behavior from 1944 to 2002. The model “Framework of online consumer behavior” was developed from the base model of Intention, Adoption and Continuance (MIAC) for online consumer behavior. According to the article, this framework does not only provide a cohesive view of online consumer behavior, but also set a good guidance for researchers in order to study online consumer behavior. Additionally, this framework also indicates five major spheres that affect consumer decision in each stage, for instance, individual/consumer characteristics, environmental influences, product/service characteristic, medium characteristics and online merchant and intermediaries characteristics.

3.1.1 Individual/Consumer Characteristics In this study, Individual/Consumer Characteristics refers the factors specific to the consumer such as demographic, personality, value, lifestyle, attitude, behavioral characteristics, motivation and experience.

3.1.2 Environmental Influences Environmental factors like culture, social influences, peer influence and mass media play an important role in affecting consumer purchasing decision.

3.1.3 Product/Service Characteristics Product/Service characteristics mainly refers to knowledge about product, product type, frequency of purchase, tangibility, differentiation and price. 3.1.4 Medium Characteristics Medium characteristics is relevant to an ease of use and navigation, interface, network speed, commerce system security and reliability.

3.1.5 Online Merchants and Intermediaries Characteristics Factors like services quality privacy, security control, brand reputation, delivery/logistic and after sales service are attributes of Online Merchants and Intermediaries Characteristics.

Figure 3.1: framework of online consumer behavior (M., Cheung, Zhu, & Timothy Kwong, 2003)

3.2 Exploratory Research Methodology

3.2.1 Secondary Research about consumer Secondary data will be collected related information regarding online purchasing behavior on luxury fashion from published literatures and researches and online articles. 3.2.2 Secondary Research about Club 21 e-shop The researcher gathered data about Club 21 e-Shop with propose to understand purchasing process from e-Shop and price compared to other e-Shop. In addition, researcher collected Club 21’ promotion in terms of communication activities in offline and online channels.

3.2.3 In-depth interview with consumer The mixed approaches will used to obtain the data from respondents, for example, face-to-face interview and telephone interview which rely on respondent’s convenience to gather insightful information with discussion guideline (See appendix B). The in-depth interview was conducted with 18 respondents. To serve a very specific need of this study topic, researcher will use purposive sampling method in order to select the right target of informants combining with Snowballing sampling method for utilize respondent’s connection who are likely to have the similar profile and match with researcher criteria. 18 - 24 of female respondents who living in Bangkok will be asked for in-depth interview. The filter criteria are; • Respondent age range is between 23 - 40 years old. • Respondent need to have at least one time experience purchasing product from Club 21 (Thailand) in the past 1 year. • Respondent need to have experience in (any) online purchasing at least once a year (during March 2014 – March 2015) • Respondent is recruited equally in each group range to reduce bias of age factor related to decision making criteria and attitude towards online purchasing as presented in Table 3.2

Table 3.1: Criteria groups of respondent (See Appendix C for respondents’ profile)

23 – 28 29 – 33 34 – 40 Age years old years old years old Experience 3 persons 3 persons 3 persons Club 21 e-Shop None experience 3 persons 3 persons 3 persons Club 21 e-Shop

3.3 Limitations of the study

Amount of time is a constraint in this research which limited researcher to study consumer in only Bangkok area. From a practical point of view, this study could not accurately represent Thai consumer. Thus, this research may not be able to use as indicator of the perception and motivations for other geographical areas. Researcher suggest that the future research should study consumer in other cities of Thailand to explore to find more factors that affect to consumer online purchasing process on luxury fashion items. This research was study under context of luxury fashion that included any products from apparels, footwear, handbags, jewelry and accessories. The findings from consumer are based on generic idea of luxury fashion. The results of this study could not use to generalize the whole industry of luxury products or other category of luxury product. Additionally, this research was conducted with only female consumer. As a result, this study could not be able to accurately present consumer behavior in overall of luxury consumer. Therefore, it would be worthy to take study to compare how different of consumer decision making process in different gender in order to get a better understanding in larger group of luxury consumer.

CHAPTER 4 DATA ANALYSIS AND RESULTS

4.1 Key findings from secondary research - consumer

Secondary data was collected from various sources to find related information regarding online purchasing behavior on luxury fashion such as published literatures, researches and online articles. As followings, key findings are found as the same direction as a previous study “The Role of Digital Media in Strategic Luxury Brand Communications in Thailand” (Srisiriwongchai, 2014) • Traditional advertisement, such as print advertising in fashion magazine, , advertorial in magazine, outdoor billboard and in-mall posters, is still being major marketing tools to enhancing brand awareness and recognition. • In recent years, digital media like facebook and instagram become more powerful tool to create brand exposure among Thai consumer. • According to the study, digital media still lacks of ability to lead consumer to visit store as consumer still need sense of touch and feel. • According to the study, the lack of touch and feel experience are key barriers that discourage customers from online purchasing. However, online channel still could be used as a tool to drive sales through different approach, for example, better pricing and unique product offering (McKinsey & Conpany, February 2015) Additionally, from another study, “An Exploratory Study on Young Thai Women Consumer Behavior toward Purchasing Luxury Fashion Brands” (Kamolwan Tovikkai, 2010) shows that the actual need of buying luxury product is about emotional value as Thai female consumers express their self-value by purchasing luxury fashion brand to fulfill needs of uniqueness, conformity and vanity. Additionally, Thai female consumers think that it is better to purchase luxury fashion brand from foreign countries in terms of monetary value (cheaper) and emotional value (fulfillment) which could be indicated as ethnocentrism is related factor to luxury fashion purchase intention.

4.2 Key findings from secondary research - Club21 e-Shop

Club 21 e-shop was first time launched in 2012 across seven countries - Singapore, Malaysia, Thailand, Indonesia, Brunei, Vietnam, the Philippines, Club 21 Online carries close to 70 brands for both men and women. A propose of the company is to be multi-channel in order to make a commitment on delivering customer experience not only complementing existing brick-and-mortar boutiques with extensive fashion brands but also carries sought-after labels that are exclusive. The site also currently hosts a series of engaging fashion editorial content that is refreshed frequently to enhance customers’ experience. (See Appendix D) Product Assortment: e-Shop offers variety of product category for both women and men such as Apparel, Shoes, Handbags, Jewellery and Accessories as well as variety of Brands which including 80 designer brand from around the world (See Appendix E). Price positioning: Nationality of brand is a factor that affects pricing due to the imported taxes. Price of U.S. brand like Alexander Wang selling in Club 21 e- Shop is about 3 - 5 % higher than same item selling in Net-A-Porter and Alexander Wang e-store On the other hand, price of brand imported from Italy, such as Marni, selling in Club 21 e-shop is about 3 – 5% cheaper than same item selling in Net-A- porter and Farfetch but it is 10% higher than the same product selling in Marni’s e- shop. Finally, Club 21 is using strategy in offering ‘free-shipping’ service and ‘taxes and duty estimation’ for consumer consideration (See Appendix F). Packaging sophisticated packaging with box tied with white ribbon (See Appendix G) Communication: Facebook, Instagram, Magazine Advertising, Online advertising banner, Outdoor Advertising such as Skytrain Wrapping (See Appendix H), Sale promotion activities. Loyalty Program: Integration between offline and online channel, Club 21 members could collect membership points from either brick-and-mortar or e-shop.

4.3 Key findings from in-depth interview with consumer

The information that collected from consumer interview session provides contains variety of responses due to the open-ended question set in the discussion guideline. Obviously, key findings from the consumers who had experience with Club 21 e-shop are different from customers who are non-experience on Club 21 e-shop. For ease of understanding on result interpretation, the data that collected from respondents are reported under the framework of research study as specified in chapter 3 of this study. Regarding to the “Framework of online consumer behavior” as indicated to be study framework in the previous part, key findings will be summarized in terms of factor that affect consumer online decision in each stage.

Consumer Online Purchase Intention From consumer interview, online security is the most key concern of consumer and main barrier of online purchase intention. Thai consumers are still afraid on personal privacy and hackers. Weakness of internet law in Thailand is a main drawback that prevent consumer to purchase online. Consumers still have seriously concern and question towards their personal information safety. Hacking and lack of personal contact are major causes that increase consumer’s anxiety and reduce online purchase intention. Inability to feel product is one of another limitation that perceived by consumers. Most of consumers give a reason to shop in offline channel because they want to touch and feel product before buying. Many of the consumers also want to have check product by themselves which is not possible in online purchasing.

“I have never bought brand name bag from online channel or website because I want to check the bag first so if there’s any problem on the bag I can change to the new one immediately” Manita A., 30, Business Owner

“I want to try on first especially bags and shoes as I want to make sure that they fit on me in both sizing and styling” Napak C, 29, Employee

Many of consumers also give a reason that they would like to use the product right after purchasing while purchasing product online requires timing on delivery. Delay in delivery is also a factor that reduce online buying intention Although these limitations have caused consumer to be wary about ordering products online, other factors that help enhancing online purchase intention are also found from this study. All factors are summarized in five domain areas which suggested in research framework in previous chapter of this study.

Consumer characteristic that affect online purchase intention In the study of consumer online purchase intention, researcher found that consumer’s knowledge on fashion is important factors that could be considered as a determinant of consumer online purchase intention. The prior stage of decision making process, consumers tend to collect product information based on personal experience and stop to collect when amount of information is reached to a certain level. From the in-depth interview, consumers with high fashion knowledge tend to have higher intention to buy luxury fashion product from online channel than consumers with lower fashion knowledge. Consumers with high fashion knowledge, e.g. knowing well on many new designer brands or knowing the elements of genuine items, are likely to have purchase intention as they aware of the value of the product in terms of emotional value. Additionally, consumer who has high fashion knowledge would be likely to visit e-shop that has curated offer, for example, the site that selling brands or items that hard to find or nobody else sell online. According to the interview sessions, some respondent stated that ‘Net-A-Porter’ is one of their favorite online site since it offers many new designer brands that do not sell in Thailand so they always enter the site to update information. Interestingly, consumers with better knowledge are less persuaded by pricing and tend to rely on product quality. However, detail on pricing factor is thoroughly described in product/service characteristic that affect online purchasing intention. “I love shopping luxury fashion items online because I could find many unique items. Most of the product I want does not available in Thailand” Ms. Paradee T., 40, Senior Manager

On the other hand, consumers with lower fashion knowledge would rather to buy luxury fashion items from physical store than e-shop as they need more information about product, and especially, product trial or physical examination before making purchase decision. Consumers with lower fashion knowledge treat online site as a source of information more than another store. As a result, they tend to visit brand’s social media channel like facebook page and Instagram more than brand’s e-shop. Another point of view regarding online behavior, most of respondents or 17 from 18 of respondents use search engines to find specific product or online site. Even they know the web address, they still put the web name in the search engines instead of directly type URL of the page.

“I google everything I want to know even I know the web address … I still type them on google” Pattinee C., 38, Manager

“Actually I do not remember exactly what the web addresses are… Google knows everything even I misspelled some character so it’s easier to search things in google. Nasanan L., 26, Business Owner

Environmental influences that affect online purchase intention Social influence, especially in social media, is a strong factor in stimulating consumer purchase intention. From in-depth interview, all of respondents are already followers of at least one fashion bloggers in facebook page or Instagram Top reasons suggested by respondents of blogger following are to get style or mix and match advices and to get inspiration, trends and brand updates. Social media is not only being a useful source of information but also being a powerful channel to stimulate purchase intention on luxury fashion product from either offline or online channel. All of respondents also admitted they need to buy some new products if that product has a large number of exposures in social media. Some statements on this topic were, “I want to buy a new bag of Proenza Schouler because I usually see them in various street style pictures and used by various fashion bloggers.

On the other side, customer reviews and recommendation from other user in e-commerce site do not stimulate purchase intention and have a potential lead to negative effect on prestige brand image of luxury brand.

Product / Service characteristics that affect online purchase intention Consumers have intention to various ranges of luxury fashion product online, particularly, with product categories that do not needed to be tried such as handbags, scarves and small leather goods. For the product that needed to fit in size like apparels and footwear, consumers have less intention to buy these product categories from online channel. Special price offer is a key factor in stimulating online purchase intention among price oriented consumer group. According to interview session, 10 of 18 respondents said that special price offer on luxury products encourage intention to buy. Personalized product, exclusive designer brands and limited edition of product are a great factor to create intention to buy luxury fashion items online. To give some example, about 44% of respondent responded that they used to consider ordering personalized luxury product like bags and scarves from websites. About 61% of respondents said that they considered purchasing limited edition of products from e-shop since those products do not available in Thailand.

Medium characteristic affect online purchase intention Consumers mentioned about lack of trust in online transactions which is main reason for the abhorrence of online shopping. Interestingly, beautiful web design could help reducing perceived risk and positively influence purchase intention. With a reference to interview session, 13 of 18 respondents have a same agreement that beautiful and sophisticated web design stimulate their need on product showing in the website. Additionally, 8 from 18 respondents used to purchase products from websites were perceived as beautiful design.

Image is more important than text content as a tool to create brand awareness and interest. According to the interview, 14 of 18 respondents admitted that they want to purchase new luxury fashion item by seeing images and pay less attention to product description or text content.

Online merchants and intermediaries characteristic affect online purchase intention Multichannel merchants are perceived to have lower risk than pure play e-merchant due to the fact that online business is intangible. Consumers are seeking for tangible elements to create trust which online vendor reputation could be represented by brick-and-mortar stores of the same company. Trustworthy that perceived in offline channel could help lowering transaction risk and reduce customer anxiety. The interesting factors that influencing purchasing intention are free shipping, fast delivery and return policy. As 38% of respondents shared that these service offers help stimulating intention to buy as it help reduce perceived risks towards buying luxury fashion items online. In addition, the most common and major barrier affecting purchase intention is a tariff, i.e., a tax on imports. Special price, as mentioned in the previous page, is a key factor in stimulating purchase intention among price-oriented consumers, however, incentives and special offer are more interesting among fashion-forward consumer. Incentives from credit card, point redemption and special gift with purchase are more likely to be interested by fashion-forward consumer due to product price is not a main criteria on purchasing fashion items among this group.

Consumer Online Purchase (Adoption) Key findings in this stage also could be defined in five main areas that affect consumer acceptance of online shopping which are:

Consumer characteristic that affect online purchase (Adoption) According to the research, various demographic profiles of respondents were recruited. The consumer characteristic in terms of age, lifestyle and occupation are not related to consumer attitude towards online shopping. Respondents who are housewives and working women may have the same attitude towards online shopping and their shopping decision while personal perceived value are more likely to influent consumer purchase decision. Personal perceived value, for instance, variety of products and time savings are main characteristics that lead to online purchase decision. With a reference to 5 of 18 respondents, they tend to shop with multi-brand site than single- brand site or tend to shop with e-shop that offers a wide range of product for them.

“Mostly, I visit website like Club21, Net-A-Porter and Farfetch to explore new product. I think it is more convenience for me as they contain many brands and products. I don’t have to waste my time to search for each single brand in search engine” Paradee Ti,40, Senior Manager

For consumers who value in time saving, 4 of 18 respondents are likely to shop from e-shop with a reason of ability to buy whenever and wherever at their most convenience. Another reason is an ease and shorten time in finding a specific product they want. “I’m very busy with my jobs so I do not have so much time for going shopping, especially, brand name store that closed at 8pm so I often buy things from e-shop, bags and shoes, anytime I want ” Pasrapa K., 31, Employee.

“I feel more private and more easier for go shopping online as I can compare product of each brand by just clicking” Apichaya P., 30, Employee

Environment influences that affect online purchase (Adoption) Findings indicate that environmental factors like comments of reference group and requirement of product in festive / special occasion, e.g. Valentine’s Day and Christmas Day, influence consumer to have impulse buying. Brand’s advertisements during festive season also help to recall needs. Peers and family pressure help to motivate consumers to make a faster purchase decision in both online and offline channels.

Product/Service characteristic that affect online purchase (Adoption) Luxury or exclusive experience becomes less important to consumer. Consumers are changing their point of views towards shopping at physical store. Luxury consumers value on easy shopping and product experience more than luxury shopping experience with special treatment. With a reference to interview session, 14 of 18 respondents said that product trial and product inspection are key benefits that they are looking from purchasing at physical store while 4 from 18 respondents said that they expect exclusive service and luxury shopping experience at physical stores. The cost of shipping is one of barrier of online purchase intention, consumer are more motivated by free shipping or delivery cost. According to the interview, 5 of 18 respondents have a negative perception towards brand that charge for delivery fee as they feel overcharged by merchant.

“Free shipping offer is one of the reasons that I decided to buy a bag from Club21 e-Shop” Chananant .W, 27, Student

“I’d rather walk to store than pay for shipping fee. It’s already very expensive” Napak .C, 29, Employee

Medium characteristic that affect online purchase (Adoption) Consumers tend to purchase product from online site that easily to find in search engine. Consumers also expect that even they type shorten or misspelled name of website, the site should be appear the first in the search engine. It could be concluded that consistent of site findability and accessibility are important factors in adoption process.

Speed of purchase or shorter in payment process is a major medium characteristic affecting purchase decision. Complicated payment process, amount of information that needed to fill in and lengthy process, all of these medium characteristics, cause irritation as well as reduce satisfaction and interrupt online transaction. On the other hand, too short of payment procedure is indicated as less secure of payment process. Product elements, including, product assortment, product features and product presentation, affect directly to the consumer experience. Product images with less text might adequate to create purchase intention among luxury consumer. However, in the purchase decision stage, consumers are seeking for large amount of information including size, color, composition and price to make purchase decision. Varies angle of product image, closed up tool and styling guide are also perceived by consumer as important web elements to motivate purchase decision. Interestingly, having local language on site is less important factor to consumer. The site which using English language leads to positive perception towards brands in terms of represents luxury image and credibility as international merchant. From the study, 12 of 18 respondents prefer to buy luxury fashion item from website that using English more than using Thai. Finally, aesthetics design of the website is considerable factor for encouraging consumer buying decision. Creative and beautiful elements of online site attract consumer and increase pleasant of online shopping experience. From the interview session, 10 of 18 respondents said that they used to exit the site that they feel less attractive on web design without consideration.

Online Merchants and Intermediaries characteristic that affect online purchase (Adoption) Multi-channel merchant are perceived higher reputation that web pure- play merchant. The good reputation of physical store helps eliminate risk in online purchasing, however, does not significantly help in increasing rate of switching channel. The results from none experience customer group show that consumer perceive credibility in Club 21 e-shop but perceive less relative value in buying from online channel. For none experience with Club 21 e-Shop consumers, physical store is

the best source of product information as they want to see actual product and try on product before buying. Physical store is critically important to them in term of reduce risk towards product quality and utility. Concrete policy is one of factor of buying consideration, i.e., clear ordering, clear payment term and clear refunding procedures help consumer reduce risk of online transaction and enhance positive perception in term of brand credibility.

Consumer Online Repurchase (Continuance) In continuance stage, positive shopping experience on first time purchasing lead to consumer satisfaction and lead to continuance in next purchase respectively. Consumer satisfaction and repurchase decision on luxury online shopping depends on few issues which are described as follows:

Consumer characteristic that affect online repurchase The e-shop that could delivery good shopping experience will likely become top-of-mind page for the next time search. Customers who have good experience tend to have more intention on repurchasing and become fans of the page by subscribing to receive newsletter, follow the social media site of the brand or merchant. Consumers who have a good experience with website are likely to be more open-mined to receive news and updates from merchant. Moreover, those consumers tend to tell their friend or family member about the website and brand.

Product/Service characteristic that affect online repurchase Sophisticated packaging enhances satisfaction and good perception towards brand which lead to repurchase intention. Key finding was found that sophisticated package indicated good service quality and brand reputation. Short time of delivery process increase impression and intention on repurchase. Delivery timing within five day is perceived as usual while delivery timing over 7 days is unacceptable and delivery timing within 3 days creates satisfaction.

“I’m so impressed with Net-A-Porter. I think the packaging is so beautiful, my order was packed in black box and black ribbon which is look so premium and it took only 3 days for delivery” Thanomkhwan C., 37,Business Owner

Medium characteristic that affect online repurchase Key findings from interview with respondents were found that medium characteristic like ease of navigation, friendly user interaction and straightforward payment process make website more enjoyable to browse and lead to repeat visits. Some customers gave an example of their favorite website like VIP ‘things you may like’ or ‘promotion notification of wish list item’ enhance good perception towards e- merchant and encourage them to buy. Website / Online site update also related to brand image in consumer point of view. According to interview, every respondent spend time on surfing internet to check fashion news, fashion update at least 1 hour per day. Websites / Online sites that keep updated on content are likely to be more visited by consumer.

CHAPTER 5 CONCLUSION AND RECOMMENDATIONS

This study is aimed to get a better understanding of consumer about their online purchase on luxury fashion products in the stage of Intention, Adoption and Continuance. Therefore, from the findings, it was found that consumer buying decision dependent on various factors. Many barriers are found from the study and there are key factors that have caused consumer to prefer buying product from brick-and-mortar channel more than e-commerce. Firstly, the drawbacks of online purchasing intention among Thai female consumer are perceived risk on security, privacy and product imitation. Security of online payment system and personal privacy are still major concerns among Thai luxury female consumers. Consumers still have seriously concern about the safety of their personal information. Secondly, Inability to feel product and inability to have to product immediately are also the key barriers that prevent Thai consumer to purchase fashion items online. According to the key findings, multichannel merchants are perceived to have lower risk than pure play e-merchant due to the fact that online business is intangible. Therefore, Club 21 is taking advantage as the first multichannel luxury retailer that offer offline and online stores. Club 21 should leverage brand reputation across channel and advertise through existing over 50 brick-and-mortar stores, for example, point-of-sale advertising at brick-and-mortar store, sales script or physical e- store card that could deliver to potential consumers who visit the store. Varies of factors also found that could help reducing risk such as aesthetic of the web design, product delivery time shortening, security of the transaction also enhance online purchase intention. Club 21 also could consider taking strong partnership with trustworthy financial institution, Internet Security Software and shipping company in order to leverage their reputation and increase rate of security in each point. This study indicated distinct opportunity to drive sales in distinct group of consumer. Club 21 could use pricing approach to appeal price-oriented consumer and

offer personalized items or unique designer brands that aren’t available elsewhere online to appeal fashion-forward people. Amazon.com has been grown up substantially in the recent years and it is good example of using innovative system to collect customer preference. This innovative system could identify pattern and trend of consumer preferences. When such information is identified, system suggests item that customer has not purchased but might want. Not only sales has been increased but also customer satisfaction by offering additional product they may like. (Ulric Gelinas, 2010). This innovation system could be applied with Club 21e-shop for collection and analysis customer purchase and searching data pattern in different group such as price-oriented consumer and fashion-forward consumer. Study also indicates that search engine is powerful most pathway connecting consumer and merchant together. Search engine are perceived as the most convenient tool and source of information that should not be neglected. Most of online consumers value convenience so that Club 21 should offer function to serve this point. In this study, all findings emphasize important marketing considerations for all luxury players. Multichannel merchants have to become accept that all channels are not working as mutually exclusive but integrated. Apart from advertising communication to enhance brand awareness and exposure, innovation to reduce perceived risk among consumer, exceptionally well-web design and superior online experience lead to customer satisfaction are key elements for digital marketer to concern.

REFERENCES

Anne-Flore Maman Larraufie, P., & Kourdoughli, A. (2014). The E-semiotics of Luxury. Retrieved December 18, 2014, from marketing-trendscongress.com: http://www.marketing- trendscongress.com/archives/2014/pages/PDF/268.pdf Bain & Company. (2014, October 14). 2014 annual global luxury study proclaims the rise of the consumer as luxury markets settle in for lower, but more sustainable long-term growth. Retrieved December 2014, 14, from Bain.com: http://www.bain.com/about/press/press- releases/bain-and- companys-2014-annual-global-luxury-study.aspx Chehab, M., & Merks-Benjaminsen, J. (2013, September). A Look at Luxury Shoppers Around the World. Retrieved December 14, 2014, from thinkwithgoogle.com: https://www.thinkwithgoogle.com/articles/luxury- shoppers-around-world.html Ferdinandi, M. (2014). Profiling The Luxury Good. Casia Center. Ho, T. (2013). Thailand poised as the next luxury shopping destination. Asian Pulse Feature Report , 1. Kamolwan Tovikkai, W. J. (2010). An Exploratory Study on Young Thai Women Consumer Behavior toward Purchasing Luxury Fashion Brands. Kapferer, J. N., & Bastien, V. (2012). The Luxury Strategy Break the Rule of Marketing to Build Luxury Brand. United State: Kogan Page Limited. M., C., Cheung, K., Zhu, L., & Timothy Kwong. (2003, June 9-11). Online Consumer Behavior: A Review and Agenda for. 16th Bled eCommerce Conference , p. 201. McKinsey & Conpany. (February 2015). The opportunity in luxury online fashion. McKinsey & Conpany. Ratruangkrai, P. (2014, August 26 26). Thai firms urged to adapt to e-commerce trend. Retrieved December 9, 2014, from nationmultimedia.com: http://www.nationmultimedia.com/business/Thai-firms-urged-to-adapt-to- e-commerce-trend-30241739.html Shea, E. (2013, July 15). Global retailers entered 25 new markets in Q1: Accenture. Retrieved December 12, 2014, from luxurydaily.com: http://www.luxurydaily.com/global-retailers-entered-25-new- markets-in- q1-accenture/ Srisiriwongchai, A. (2014). The Role Of Digital Media In Strategic Luxury Brand Communications In Thailand. Chulalongkorn University. Taylor-Powell, E., & Renner, M. (2003). Analyzing Qualitatve Data. Wisconsin: Cooperative Extension Publishing Operations, University of Wisconsin System. Ulric Gelinas, R. D. (2010). Accounting Information Systems. South-Western Cengage Learning.

APPENDICS

APPENDIX A EXAMPLE OF CLUB 21 (THAILAND) FACEBOOK PAGE AND INSTRAGRAM ACCOUNT

Club 21 (Thailand) Facebook and Instagram Account as of December 18, 2014

Source: https://www.facebook.com/club21thailand http://instagram.com/club21thailand

EXAMPLE PP GROUP FACEBOOK PAGE AND INSTRAGRAM ACCOUNT PP Group Facebook and Instagram Account as of December 18, 2014

Source: https://www.facebook.com/ppgroupthailand?fref=nf P Group Instagram Account as of December 18, 2014

APPENDIX B DISCUSSION GUIDELINE

Interview questions for respondents related to the individual study topic - Luxury Fashion Brands in Thailand: A Study of On-Line Purchase Behavior 1. Demographic profile 1.1. Age 1.2. Level of education 1.3. Level of Income 1.4. Occupation 2. How many hours per day that you spend time on internet 3. How do you describe yourself in term of fashion? (Trend Follower / Fashionista (Fashion Influencer) / Unique and Independent / etc.) 4. What is your favorite brand of luxury fashion? Why? 5. Please name luxury fashion brand(s) that you buy most often? Why? 6. What kind of product category that you buy the most (Apparel / Footwear / Accessories / Bag / etc.) (Ranked) 7. How often do you buy luxury fashion brand? 8. How often do you buy luxury fashion brand from Club 21? 9. What is/are the most important factor(s) that affect your purchasing decision? (Brand / Price / Special Promotion / Trends / Member Privilege / etc.) 10. Do you always update the fashion trend? How often? 11. Which source of information that you use for updating fashion trends? 12. Do you have any favorite fashion website / blogs / facebook page / Instagram / etc.? 13. What is/are the reason of buying luxury fashion item? 14. What is/are your concern of buying luxury fashion items? 15. Do you search for product information when you want to buy a luxury fashion item? How? And which one is your most favorite? Why? 16. How long do you need to consider buying a luxury fashion item? 17. What is the first thing come up in your mind when you think about buying luxury fashion items from e-channel? 18. Can you name any e-commerce or e-shop you know that is/are selling luxury fashion item? 19. How do you know them? 20. Have you ever purchased or considered purchasing luxury fashion item from e-shop? How? Why? 21. What is/are you concern about buying luxury fashion items trough e-shop? 22. Where do you get information to help you make a decision on purchases from e-shop? 23. What do you expect from purchasing luxury fashion item from e-shop? 24. What is the main reason or factor that causes you to decide to buy from e-shop? 25. What is/are benefit that you are seeking for? 26. As usually, how long do you need to consider buying a luxury fashion item from e-shop / e-commerce channel?

27. Where do you usually go for shopping luxury fashion item? 28. How much do you spend per one time purchase? 29. What is/are satisfaction that you receive from provider 30. What do you expect from retailers in the online checkout and delivery experience? 31. Have you ever heard of Club 21 e-shop? 32. Have you ever visit Club 21 e-shop site? 33. What do you think about Club21 e-shop? 34. Do you follow Club 21 facebook Page and Instagram? Why? 35. How important are returns in the overall online shopping experience? 36. How is multichannel retailing changing consumer purchasing and returns expectations? 37. How are mobile and social media channels changing your shopping habits and expectations?

APPENDIX C RESPONDENTS’ PROFILE

Age 23 – 28 years old 29 – 33 years old 34 – 40 years old

Ms. Vipaporn Suppanitwong, Ms. Pasrapa Kalyangkura, Mrs. Patchara Pongpipat,

27, Employee 31, Employee 35, Housewife

Shop - Ms. Chananant Wongkunanant, Mrs. Tareerat Sapsrithong, Ms. Paradee Tiyavacharapong, 27, Student 32, Housewife 40, Senior Manager

Experience

Club 21 e Club Ms. Nasanan Lohapipatanakul, Ms. Apichaya Prapapan, Ms. Pattinee Cholvanich, 26, Business Owner 30, Employee 38, Manager

- Ms.Thanomkhwan Ms. Manita Amornsirisomboon, Ms. Virin Kumlertluck, Chutithanawong, 37, 30, Business Owner 27, Flight Attendant Business Owner

Ms. Napak Chumprom, Ms. Katevisut Sukpisan Mrs. Tidarat Vaitayaporn, 29, Employee

Shop 28, Student 40, Senior Manager

Ms. Nantanee Prasitjutrakul, Ms. Natthinee Jitkrongtam, Mrs. Penrawee Permkitpaisarn, 29, Employee 28, Doctor 35, Director

None experience Club 21 e 21 Club experience None

APPENDIX D EXAMPLE OF CLUB 21 (THAILAND) CONTENT SESSION IN CLUB 21 E-SHOP

Source: http://eshop.club21global.com/th-en/

APPENDIX E EXAMPLE OF BRAND LIST AVAILABLE IN CLUB 21 E-SHOP

1. 1 BY O'2ND 42. MM6 MAISON MARGIELA 2. 10 CROSBY DEREK LAM 43. MOTHER OF PEARL 3. 3.1 PHILLIP LIM 44. MR. HARE 4. ALEXANDER WANG 45. MSGM 5. AMI 46. MULBERRY 6. BALENCIAGA 47. MYSUELLY BAGS 7. BAO BAO ISSEY MIYAKE 48. NEIL BARRETT 8. BLACKBARRETT 49. O'2ND 9. BUILDING BLOCK 50. ORLEBAR BROWN 10. CALVIN KLEIN platinum 51. OSTWALD HELGASON 11. CARVEN 52. PAUL SMITH ACCESSORIES 12. CHRISTOPHER KANE 53. PAUL SMITH BLACK 13. CITIZENS OF HUMANITY 54. PLEATS PLEASE ISSEY 14. CO MIYAKE 15. COMME des GARCONS GIRL 55. PROENZA SCHOULER 16. COMME des GARCONS SHIRT 56. PS PAUL SMITH 17. COMME des GARCONS 57. PUBLIC SCHOOL WALLET 58. RAG & BONE 18. COMMON PROJECTS 59. RHIE 19. COUNTY OF MILAN 60. RICK OWENS 20. DANIELE MICHETTI 61. RICK OWENS DRKSHDW 21. DOLCE & GABBANA 62. RICK OWENS X ADIDAS 22. DRIES VAN NOTEN 63. RISTO 23. EMANUELE BICOCCHI 64. RODARTE X SUPERGA 24. FALLON 65. SACAI 25. FLAMINGOS 66. SACAI LUCK 26. FRAME DENIM 67. SIMONE ROCHA X J BRAND 27. J.W. ANDERSON 68. SOPHIE HULME 28. JIL SANDER NAVY 69. STELLA McCARTNEY 29. JONATHAN SAUNDERS 70. SUECOMMA BONNIE 30. JOOMI LIM 71. SUNO 31. JUUN.J 72. T BY ALEXANDER WANG 32. LANVIN 73. TABITHA SIMMONS 33. LES CERISES DE MARS 74. THAKOON ADDITION 34. MAISON MARGIELA 75. THOM BROWNE 35. MAISON TAKUYA 76. TWISTY PARALLEL 36. MAIYET UNIVERSE 37. MARIA BLACK JEWELLERY 77. UNDERCOVER 38. MARKUS LUPFER 78. VICTORIA BECKHAM DENIM 39. MARNI 79. WANT LES ESSENTIELS DE 40. McQ ALEXANDER McQUEEN LA VIE 41. MIHARAYASUHIRO 80. WOOYOUNGMI

APPENDIX F EXAMPLE OF PRODUCT PRICING STRATEGY BETWEEN Club21, Net-A-Porter and Farfetch

APPENDIX F (CONTINUED) EXAMPLE OF PRODUCT PRICING STRATEGY BETWEEN Club21, Net-A-Porter and Farfetch

APPENDIX G EXAMPLE OF CLUB 21 E-SHOP PACKAGING

Source: http://www.dhanis.net/2012/09/club21-eshop.html

APPENDIX H EXAMPLE OF OUTDOOR MEDIA ADVERTISING OF CLUB E-SHOP

BIOGRAPHY

Name MISS.KARNCHANOK ITTHIROJANAKUL Date of birth January 9, 1988 Education attainment Bachelor Degree in Communication Arts, Chulalongkorn University Work Position Assistant Marketing Communication Manager Club 21 (Thailand)