Drinking from the Fountain of Youth? Brand rejuvenation in the case of heritage luxury fashion brands Insights from Millennial consumers by Katharina Netek & Feline Carbone June 2020 MSc in International Marketing & Brand Management Supervisor: Ekaterini Drosou Examiner: Jayne Jönsson Abstract Title Drinking from the Fountain of Youth? - Brand rejuvenation in the case of heritage luxury fashion brands Seminar date June 4, 2020 Course BUSN39: Degree Project in Global Marketing Authors Feline Carbone and Katharina Netek Supervisor Ekaterini Drosou, Supervisor at Lund University Keywords Heritage brands; Luxury fashion brands; Brand rejuvenation; Millennials; Brand identity Thesis The aim of this study was to examine whether German Millennials are in purpose favor of rejuvenation practices of heritage luxury fashion brands or if such actions instead lead to negative associations, as they tend to ignore the heritage aspect. Methodology Following a relativist ontology, this research is guided by a social constructionist position, which allows a deep understanding of Millennials’ opinions. To explore their viewpoints on rejuvenation practices of heritage luxury fashion brands, we chose a qualitative method with an abductive approach. To analyze the data, a thematic approach has been adopted. Theory We used the concepts of brand identity and brand image, as well as the Consumer-Company Identification framework, to understand Millennials’ opinions on rejuvenation practices and illuminate how such attempts impact the brand image hold by the consumers. Empirical 18 semi-structured in-depth interviews with German Millennial consumers data were conducted. Conclusion We found that Millennials are generally in favor of rejuvenation practices of heritage luxury fashion brands (e.g. collaborations with youth brands). However, we identified that the aspects of tradition and history are what the generation values most about such brands. Therefore, when rejuvenating a heritage luxury fashion brand, these central aspects should never be diluted. Practical In this thesis identity coherence has been identified as a key success driver implications of heritage luxury fashion brands’ rejuvenation efforts. Thus, we claim that all rejuvenation practices need to be in line with the established brand core. Consequently, only because innovation seems to be on every company’s agenda, it does not mean that “one-size fits all”. Number of words: 33021 i Acknowledgements Our thesis has gratified, fascinated but sometimes also challenged us during the past months. For both of us, it is a significant milestone in our academic careers and marks the end of a horizon-widening time at Lund University. In this context, we would like to thank some special people who supported and accompanied us throughout this adventure. First, we would like to take the opportunity to thank our supervisor Erina for her interesting insights and constructive feedback throughout this intriguing research process. Her valuable recommendations have been very much appreciated. Furthermore, we would also like to show gratitude to all our research participants who generously sacrificed their time to openly share their opinions, exciting stories, and experiences with us. This research would not have been possible without their support, their ingenious comments and their willingness and motivation to contribute to our study. At this point, also our friends and families deserve credit. We would like to thank them for always having our backs, cheering us up, and listening to all our stories about luxury fashion brands and discourses on our newest findings. Last but not least, we would like to highlight our teamwork, which was based on mutual unwavering support and motivation. Without this constant uplift and the daily laughs, this goal could not have been reached. Even though this is an end to an intense journey, it is not an end to a friendship that will last for a lifetime – like an Hermès bag! Tack så mycket! May 2020 Katharina Netek Feline Carbone ii Table of Contents 1 Introduction ...................................................................................................................... 1 1.1 Background ................................................................................................................ 1 1.2 Research question ....................................................................................................... 3 1.2.1 Specification and relevance ................................................................................ 3 1.3 Aimed contribution .................................................................................................... 4 1.4 Outline of the thesis.................................................................................................... 5 2 Literature Review ............................................................................................................. 7 2.1 Background on luxury fashion ................................................................................... 7 2.1.1 Defining luxury .................................................................................................. 7 2.1.2 Luxury fashion ................................................................................................... 8 2.1.3 Brand heritage in luxury fashion ........................................................................ 9 2.2 Current developments in the luxury fashion brand market ...................................... 11 2.2.1 Luxury brands and Millennials ........................................................................ 12 2.2.2 Breaking with conventions of luxury brand management ............................... 13 2.2.3 Brand rejuvenation ........................................................................................... 15 2.3 Critique of the existing literature ............................................................................. 16 3 Theoretical framework .................................................................................................. 18 3.1 Brand identity & brand image .................................................................................. 18 3.2 Consumer-Company Identification .......................................................................... 18 3.2.1 Identity knowledge ........................................................................................... 19 3.2.2 Identity coherence ............................................................................................ 19 3.2.3 Identity trustworthiness .................................................................................... 19 3.3 Summary .................................................................................................................. 20 4 Methodology ................................................................................................................... 21 4.1 Research philosophy ................................................................................................ 21 4.2 Research approach.................................................................................................... 22 4.3 Research design ........................................................................................................ 22 4.3.1 Data collection method..................................................................................... 23 4.3.2 Sampling........................................................................................................... 25 4.4 Ethical considerations .............................................................................................. 26 4.5 Data collection process............................................................................................. 27 4.5.1 Remote interviews ............................................................................................ 27 4.5.2 Interview structure............................................................................................ 27 iii 4.6 Data analysis method ............................................................................................... 29 4.7 Limitations of the applied method ........................................................................... 30 4.8 Quality assurance ..................................................................................................... 32 5 Illustrative examples of rejuvenation practices in heritage luxury fashion .............. 34 5.1 Louis Vuitton............................................................................................................ 34 5.2 Burberry ................................................................................................................... 36 5.3 Gucci ........................................................................................................................ 38 5.4 Hermès ..................................................................................................................... 40 5.5 Rejuvenation practices in today’s luxury marketplace ............................................ 42 6 Analysis ........................................................................................................................... 43 6.1 Why do Millennials consume luxury fashion brands? ............................................. 43 6.1.1 Luxury fashion brands tell a story .................................................................... 43 6.1.2 Luxury fashion is timeless and thus an investment