Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

Abstract

PurposeThis empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.Design/methodology/approachThe researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.FindingsIt is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.Research limitations/implicationsVery few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.Practical implicationsThis paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.Originality/valueThis empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

Impact of COVID-19 and innovative ideas for a sustainable fashion supply chain in the future

“…A world-class luxury fashion group, Kering Group and its brands (Gucci, Balenciaga, Bottega Veneta, Alexander McQueen and Kering Eyewear) are used to explain the findings of this study and to illustrate how the 12 innovative ideas for a sustainable fashion supply chain are put into practice. Kering Group is one of the leading international players committed to sustainability, innovation and environmental protection (Bai et al , 2022; Bertrand, 2021; Bull et al , 2022; Kelleci, 2022; Ogilvy e t al ., 2022). Kering Group owns luxury fashion brands including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Kering Eyewear.…”

Methodological fitness-for-purpose in the phygital age: the case of luxury

“…Some positive examples from our perusal of recent luxury research might include, for example, the constructivist qualitative research on luxury lodges by Manfreda et al (2023), which is strong on reflexivity, insider positionality and contextualisation; Bellezza (2022), which is a good example of the use of the grounded theory in luxury research; the study by Zha et al (2022) of the importance of sensory experiences in brand engagement (including, but not exclusive to luxury); Wu’s (2022) marketing-oriented ethnographic study using field observation; Philippe et al (2022), which is a fine example of qualitative content analysis using imagery; and Hlady-Rispal and Blancheton’s (2022) study of two French luxury clusters, which exemplifies contextualised research. One pleasing observation we have made is that some of this qualitative research has involved luxury industry-connected individuals mobilising their personal networks to access key actors and provide deep insight through interviews and case studies (Loranger and Roeraas, 2023; Javornik et al , 2021; Bai et al , 2022). One consequence of this is that we gain more insight into brands’ and managers’ perspectives on luxury, when the vast majority of research studies tend to focus on consumers, not least because of easier data access.…”

A Conceptual Framework for Studying Technology Adoption of Malaysian SME Retailers.

“…de Oliveira Santini et al, 2021;Goyal et al, 2016;Hutchinson et al, 2015;Stoyanov, 2020). The adoption of these tools by retail firms have given them competitive advantage and helps them meet business objectives in an efficient manner, by delivering value to all the stages of the supply chain from production to retail, and hence ultimately adding value to the bottom-line (Bai et al, 2021;Behera et al, 2021;Claro et al, 2021;de Oliveira Santini et al, 2021;Fei et al, 2010;Ghobakhloo et al, 2022a;Jung et al, 2021;Kim & Hu, 2021;Kumagai & Nagasawa, 2021;Mahadevan & Joshi, 2021;Monoarfa et al, 2021;Testa & Karpova, 2020;Wilkinson et al, 2021).…”