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The spending capacity of the middle-income class increases with growing economies. With this increase, luxury goods are not only consumed by rich people alone. For this reason, luxury brands are expanding their target population and enriching their products and services accordingly. Thus, the luxury market which addresses the middle- and upper-middle-income groups is changing and its importance is increasing. In this chapter, the definition of luxury, the classification of luxury goods, the requirements of the luxury marketing mix (product, price, distribution and promotion) and applied strategies are examined. This chapter also covers how luxury products have authentic features, premium and masstige brands, fake luxury products that are the exact copies of original luxury brands, and how and why this fake luxury market grows. At the end of the chapter, the luxury market in Turkey, which has been growing rapidly, especially in recent years, is examined in detail and all the features of the market are presented. It is expected that this market will continue to grow in the future, as a large number of tourists from nearby regions, Central Asia and Arab countries come to Turkey to buy luxury branded products and services.

Many destinations are keen to be a part of the increasing and lucrative luxury tourism market. Before targeting luxury tourists in the marketing efforts, is it essential to understand the meaning of ‘luxury’ and what is considered exclusive? As an emerging luxury destination, Norway certainly offers many attributes that can satisfy the needs of luxury tourists. Marketing luxury provides, nevertheless, challenges for Norway as its main attraction is nature, which is fundamentally free and accessible to anyone. Thus, it is necessary to tailor-make unique nature experiences with luxurious products, resulting in exclusivity and once-in-a-lifetime experiences beyond the masses. Luxury tourists have also been advocated as more sustainable than mass tourists as addition to the issue of carrying capacity; many are also concerned with responsible tourism. Specialist travel agents play an important role in the marketing process as they have first-hand knowledge of luxury tourists as well as acting as guardians of information communicated in marketing. In addition to mainland Norway, the Svalbard islands in the Arctic region may be considered as truly unique and exclusive destinations. While sustainable development is a major concern in Norwegian tourism in general, it is even more vital in the Arctic regions. Therefore, marketing needs to provide a balanced picture of the attractions and attributes in order to become a luxury destination that is sustainable in the long run.

Luxury has received attention from tourism researchers as an important element of the gastronomic tourism experience. With recent research suggesting food and wine tourism being connected to luxury, it is important to explore how gastronomic tourism experiences are marketed to create such perceptions and feelings of luxury. This chapter aims to understand marketing strategies that support luxury gastronomic tourism experiences. In contrast to the definition of luxury as a performance or a value, this research conceptualises luxury as an affect which is sensed and felt in gastronomic tourism experiences. How this conceptualisation translates into marketing practice is explored for a particular gastronomic region. An in-depth analysis of the website of a destination marketing organisation in the Hunter Valley gastronomic region of Australia shows that the gastronomic tourism experience is marketed as bucolic luxury using marketing strategies of connection, congregation and repetition, all of which channel and maintain the affect of bucolic luxury. The chapter contributes to the literature on luxury marketing in the tourism context by identifying marketing strategies that can augment the affect of luxury for the gastronomy tourist.

The luxury brands sales in emerging markets will see rapid growth. When entering the emerging markets, luxury fashion brands always find it challenging to balance adaption with local consumer culture and standardization to maintain their global brand image. The present study attempts to examine this intriguing issue of adaptation and standardization and many other challenges for luxury brands in the emerging market by focusing on China’s luxury market. A case study on China is conducted, which consisted of reviewing academic literature and consulting trade reports, examining over 50 luxury brands’ Chinese websites, reading newspaper articles, conducting field trips to luxury retail outlets, and studying luxury brands’ advertisements in major Chinese fashion magazines. We identified five intriguing market characteristics that must be taken into account in order to succeed in this market. Specifically, we found that to perform well in China’s luxury market, luxury brands should have a good understanding of the conflicting Chinese social cultural sentiments toward luxury consumption. Luxury brands should seek a balance between standardization and adaptation and appeal to both consumers’ converging needs and their desire for products that embrace local elements. Further, given the unique consumer characteristics, luxury brands should better serve the young and economically diverse consumer base in China.

This research aims to unravel the intricate relationship between luxury brands' social media marketing strategies (i.e. communication and engagement) and their impact on consumers' willingness to pay a premium and brand loyalty.

A large online consumer panel was used to conduct an online survey of 381 consumers. Partial least squares structural equation modeling was adopted for hypothesis testing.

The study's outcomes indicated that (1) perceived interactivity and perceived openness positively influence social media brand communication, (2) social media brand communication and engagement are positive determinants for consumer empowerment and parasocial interactions, (3) consumer empowerment and parasocial interactions positively influence willingness to pay a premium and (4) parasocial interactions (but not consumer empowerment) positively influence brand loyalty.

The study offers significant theoretical implications by unraveling the mechanism of social media marketing for luxury brands, which is under-researched in the current literature. More specifically, the study reveals the process of how social media brand communication and engagement reinforce luxury brand outcomes through parasocial interactions and consumer empowerment. In addition, the study provides empirical evidence to delineate the role of interactivity and openness in enhancing social media brand communication. Moreover, the study extends past research that emphasized initial adoption outcomes such as attitude and purchase intention by probing luxury brand loyalty and willingness to pay a premium.

By effectively strategizing social media marketing, luxury brand marketers can promote brand loyalty and willingness to pay a premium. Luxury brand marketers should concentrate on establishing parasocial interaction with consumers by designing optimal social media brand communication and engagement. To this end, luxury brand marketers should consider integrating the elements of interactivity and openness in their communication with consumers.

The study offers valuable insights for luxury brand marketers aiming to capitalize on the potential of social media marketing to enhance their revenue generation and customer retention. The study advances past luxury branding research by validating the role of consumer empowerment and parasocial interactions in luxury brands' social media marketing.

Despite the growing debate about differences in consumer attitudes and behavior in emerging and developed markets, there is little research on the differences in consumer value perceptions and their influence on purchase intentions. Focusing on the theory of impression management, the purpose of this paper is to introduce a conceptual framework incorporating the social (conspicuousness and status), personal (hedonism and materialism) and functional (uniqueness and price‐quality perceptions) value perceptions using the context of luxury goods.

Data were collected through a structured questionnaire‐ based study of consumers in four countries, representing two leading Western developed luxury markets (the US and the UK) and two important Eastern emerging markets (India and Malaysia). Multiple‐group SEM analysis was used to analyze the data.

The findings show several differences in the influence of value perceptions on consumer purchase intentions in the Western developed and Eastern emerging markets. The study highlights the importance of understanding the homogeneity and heterogeneity in consumer consumption decisions and provides managers with a basis to adapt their strategic responses.

The results offer needed empirical support and cross‐cultural stability to the much theorized construct of value perceptions by exploring their effects within and between Western developed and Eastern emerging markets. Additionally, it unifies and complements the previous work by integrating the theory of impression management and value perceptions framework, thus providing a comprehensive theoretical framework with empirical support.

The purpose of this paper is to investigate market segmentation of affluent Chinese consumers and develop profiles of identified segments for potential target markets for luxury fashion goods.

The data are from the 2006 edition of an annual survey called the “China's New Rich Study”. The respondents form a representative sample of affluent consumers, 18 to 45 years old, residing in China's 12 largest cities. A psychographic segmentation approach is employed to classify these consumers.

Five distinct market segments of affluent Chinese consumers are identified and profiled. Of these segments, three seem the most promising target markets for luxury fashion goods.

When companies understand the similarities and differences between consumer segments as well as the unique characteristics of segments, they have a meaningful basis for selecting receptive target markets and formulating and implementing effective marketing strategies. The findings of this study can be useful not only to companies that offer luxury fashion goods, but also to those targeting the upscale market with a plethora of products and services like yachts, luxury cars, high‐end electronics, resort vacations, and credit cards and other financial services.

This is the first study on segmentation of Chinese consumers for potential target markets for luxury fashion goods. Results reveal heterogeneity among affluent urban Chinese consumers. Strategies for marketing luxury fashion goods to promising target markets in China are outlined on the basis of segment profiles and culturally based motivations for purchasing such goods.

The purpose of this paper is to analyze the challenges and opportunities of the luxury market in Iran as an Islamic country. The focus is on religion as a factor that can make some challenges for luxury products, and then to find opportunities or similarities in Muslim markets due to the luxury consumption.

As it is a literature review article, the authors used past research works and compared different perspectives that exist about the topic.

It was concluded that although implementing a market-oriented culture is central to the marketers’ success, it is not right to just focus on religion as a separating factor that can isolate the Muslim’s market. It was suggested to change one's viewpoint and analyze the market with a broader vision that can bring innovative ideas and also find similarities and differentiations between Islamic luxury markets with non-Islamic luxury markets.

Muslim consumers have a huge purchasing power in countries such as Egypt, Iran, India, Malaysia, Morocco, Turkey, Saudi Arabia and South Africa. However, there is limited academic literature addressing luxury products in the context of these markets. Luxury purchase motivation is predominantly based on Western thoughts and markets. As Iran as a Muslim country can be an appropriate target market of luxury goods, analyzing the challenges and opportunities can be a useful guide to be successful in this market.

From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.

Using case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.

Both standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.

As the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.

The study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.

This paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.

The purpose of this research is to explore the practical implications of brand management decisions, particularly those involving the combination of luxury and mass‐market brands within the same organization through merger or acquisition. The aim of the paper is to expand brand theory by linking it to administrative heritage in the context of the increasingly integrated global automobile industry.

Integrated case studies of Jaguar, Mercedes‐Benz, and Saab illustrate the effects of brand extension and dilution through the lenses of brand development, luxury brands, and administrative heritage theories. The recent history of acquisitions and mergers involving luxury automobile brands provides background to the in‐depth examination of these three specific instances. Conclusions are reached by comparing and contrasting the experiences of these firms relative to their mass‐market siblings.

The blending of luxury and mass‐market automobile brands in one corporate portfolio engages advantages of scale and scope economies, but induces potentially fatal brand corrosion. Consumer perceptions of luxury brands are influenced by the degree of commonality with the associated mass‐market brands, independent of whether the luxury brand or the mass‐market brand is the dominant corporate vehicle.

The paper provides insights useful to practitioners as well as academic researchers. The novel juxtapositioning of the concepts of luxury brands, administrative heritage, and global strategic management through mergers/acquisitions demonstrates the unintended consequences of complex interactions in a dynamic industry. The paper concludes with suggestions for further research.