Research Article: 2025 Vol: 29 Issue: 4
Satish Chandra Ojha, Indian Institute of Management Bodh Gaya
Rajeev Kumar Gupta, Allenhouse Business School, Kanpur
Citation Information: Ojha, S.C, & Gupta. R.K. (2025). Luxury branding in emerging markets: adapting to new consumer expectations. Academy of Marketing Studies Journal, 29(4), 1-15.
The luxury market in emerging nations is experiencing a dramatic upheaval, affected by the middle class's growing purchasing power, the growth of digitization, and shifting customer expectations. This study investigates how luxury brands are altering their strategies to meet the changing expectations of customers in emerging markets. The study employs a data-centric methodology to examine consumer perceptions, brand loyalty, digital impact, and the elements influencing purchasing choices. The research involves a survey conducted with 180 participants, utilizing demographic and quantitative data analysis to uncover significant trends. The results indicate that although brand heritage and exclusivity are still significant, younger consumers in emerging markets are increasingly prioritizing personalized experiences, sustainability, and digital accessibility. High-end brands need to find the right equilibrium between being exclusive and accessible by employing tailored marketing approaches, enhancing their digital footprint, and committing to ethical branding practices. The research offers practical recommendations for luxury brands aiming to enhance their market presence in fast-changing economies.
Luxury Branding, Emerging Markets, Consumer Behavior, Digital Influence, Brand Loyalty, Market Adaptation.
The association of luxury branding with exclusivity, great workmanship, and high prestige has long been accepted. Historically, luxury brands targeted rich consumers in developed markets, where handcrafted quality, heritage, and legacy affected purchase choices significantly. The fast economic expansion of emerging markets, especially in Asia, Latin America, and some African areas, has significantly transformed the luxury consumer landscape. The emergence of a new affluent middle class, in conjunction with the digital revolution and the ongoing globalization, has significantly altered consumer expectations. Consequently, luxury brands must modify their strategies to remain relevant in these expanding markets.
Emerging markets present unique obstacles for luxury branding. In emerging economies, consumers often display unique motivations that differ significantly from those in established Western markets, where the influence of brand legacy and heritage is a dominant factor in luxury consumption. A growing number of people are venturing into the luxury market for the first time, seeking not just status symbols but also distinctive experiences, personalization, and digital engagement. Furthermore, elements including cultural diversity, economic disparity, and changing consumer psychology contribute to the dynamic nature of the luxury market in these regions. Luxury brands must balance the preservation of exclusivity with the accessibility of their products to aspirational consumers, ensuring that brand equity remains intact.
The perception of a brand plays a crucial role in the realm of luxury branding, as it significantly influences consumer buying decisions. In developing economies, the way brands are perceived is largely influenced by social standing, the impact of peers, and online visibility, rather than conventional luxury characteristics like craftsmanship and legacy. The interaction of purchasers with luxurious brands in emerging markets has been considerably converted through the have an impact on of social media, superstar endorsements, and the upward push of influencer advertising. Younger purchasers in those markets are more and more locating and buying luxury merchandise thru digital platforms, unlike previous generations who depended on bodily retail studies. Digital transformation has fostered the growth of e-commerce and virtual shopping experiences, allowing luxury brands to engage with consumers outside of traditional brick-and-mortar stores.
It is becoming increasingly important to incorporate sustainability and ethical consumerism into luxury branding strategies. Consumers in emerging markets, particularly younger populations, are increasingly aware of the environmental and social repercussions of their purchasing decisions. The importance of sustainability in luxury branding is underscored by using the reality that customers choose manufacturers that align with their values. Several essential luxury brands have delivered eco-friendly collections, moral procurement practices, and corporate social duty tasks that allows you to attraction to this rising organization of ethical purchasers.
This research underscores the importance of market localization, which involves luxury brands customizing their strategies to the cultural and economic conditions of emerging markets. In contrast to Western markets, which could benefit from a conventional branding strategy, emerging markets necessitate distinctive narratives, regional collaboration, and pricing strategies that balance affordability and exclusivity. To augment their brand allure, luxury brands entering markets like China and India have used culturally relevant designs, exclusive editions, and strategic partnerships with local artisans.
This study examines how luxury brands are adjusting to evolving consumer expectations in emerging markets, including changes in consumer behavior and market dynamics. This study examines consumer perceptions, the effects of digital marketing, the consequences of brand heritage in relation to contemporary branding strategies, and the importance of sustainable and ethical practices. This study analyzes data from 180 respondents to provide empirical insights into the evolving preferences of luxury consumers in emerging markets, along with recommendations for brands aiming to establish a robust presence in these high-potential areas.
Digital Transformation in the Context of Marketing
The digital revolution has significantly influenced luxury branding, especially in emerging markets where consumers exhibit a high level of online engagement. High-end brands are progressively embracing digital marketing approaches to connect with a wider audience. For example, the success of Ralph Lauren in China can be linked to its robust online presence, focusing on key e-commerce and social media platforms that resonate with the younger, sustainability-aware demographic (Shukla, Banerjee & Singh, 2026). This method highlights the significance of online interaction in fostering customer loyalty and broadening market presence.
The Intersection of Sustainability and Luxury Branding
The importance of sustainability in luxury branding has grown significantly as consumers pursue ecologically conscious practices. luxury brands are incorporating sustainability into their practices through eco-friendly strategies, such as ethical procurement and carbon reduction, to align with consumer ideals (Lombardo, 2023). According to research, consumers' intentions to buy luxury brands are significantly influenced by ecologically sustainable practices, underscoring the need for brands to include ecological concerns into their marketing strategies (Kokatnur et. al., 2024).
Adapting to Local Contexts and Cultural Nuances
Localization strategies play a vital role for luxury brands seeking to connect with consumers in emerging markets. By modifying products and marketing strategies to appeal to local cultures and customs, brand appeal is significantly increased. For instance, Ralph Lauren's classic American style is well-received by Chinese consumers, as it aligns with the nation's trend toward subtle sophistication and away from overt displays of affluence (Business Insider, 2024). Brands may interact more deeply with local consumers thanks to this understanding of cultural subtleties, which also fosters brand loyalty.
Transforming Concepts of Luxury
People's need for unique and customized experiences is growing, which is altering our perception of luxury. The revival of gatekeeping as a trend seeks to foster exclusivity and personal connections, as brands and influencers retain their preferred products and secrets to preserve their uniqueness (Vogue Business, 2025a). This transition signifies a preference for thoughtfully curated experiences rather than mere mass consumption, urging luxury brands to adjust their approaches in response.
Advancement and Environmental Responsibility
The convergence of innovation and sustainability is becoming more prominent within the luxury fashion sector. Events such as Fashion Futures Dubai underscore the industry's emphasis on these themes, highlighting the significance of durability, recycling, and upcycling techniques (Vogue Business, 2025b). These initiatives exemplify the industry's commitment to sustainable practices and the adoption of innovative solutions to meet consumer demands for ethical luxury products.
International Perspectives on Luxury Branding
A comprehension of the disparities in consumer behavior across established and emerging markets is essential for the global expansion of luxury branding. Research suggests that in order to prosper on a global scale, high-end brands must adapt to changing landscapes, maintain cultural awareness, and implement sustainable practices (Satrasala & Sukanya, 2023). In order to effectively navigate the complexities of diverse markets and consumer preferences, it is essential for brands to adopt a comprehensive perspective.
The primary objectives of this study are:
a) To analyze how luxury brands in emerging markets adapt their marketing strategies to evolving consumer expectations.
b) To examine the role of digital transformation in shaping consumer perceptions of luxury brands in emerging markets.
c) To investigate the impact of sustainability and ethical branding on consumer preferences for luxury goods.
d) To explore the influence of cultural localization on the success of luxury brands in emerging markets.
e) To assess demographic variations in luxury brand consumption patterns within emerging economies.
Methodological Approach
This study utilized a cross-sectional survey research design to explore the adaptation of luxury branding in emerging markets to evolving consumer expectations. This method was selected because it accurately reflects consumer attitudes, preferences, and purchasing behaviors at a particular moment. Given the rapid changes in luxury markets within emerging nations, gaining an understanding of current consumer expectations was critical for a full research.
A total of 180 respondents were selected to represent the urban and semi-urban consumer base in emerging markets. The research aimed to thoroughly examine the changing dynamics of luxury branding by including a wide range of participants from different age groups, income categories, and purchasing patterns.
To make sure that important demographic factors like age, wealth, and shopping preferences were represented, a stratified random sample method was used. This approach effectively captured a range of perspectives, minimized sampling bias, and ensured that the results accurately represent wider consumer behavior trends in emerging economies. Participants were randomly chosen from each demographic group to ensure the study's objectivity.
The process of gathering data involved the use of structured online surveys, which facilitated a broad and effective engagement with participants. The online survey included 23 closed-ended questions designed to gauge consumer impressions of luxury branding, the impact of digital marketing, the implications of sustainability, and cultural adaptation strategies. The inclusion of five demographic questions allowed for the analysis of purchasing behavior disparities across different consumer categories.
The hypotheses developed for this research are outlined below:
Hypothesis 1:
H₀: “There is no significant relationship between digital engagement and consumer perception of luxury brands in emerging markets.”
H₁: “A notable correlation exists between digital engagement and how consumers perceive luxury brands in emerging markets.”
Hypothesis 2:
H₀: “The sustainability initiatives implemented by luxury brands have no significant effect on the purchasing decisions of consumers in emerging markets.”
H₂: “The initiatives focused on sustainability by luxury brands have a considerable influence on the purchasing choices of consumers in emerging markets.”
Hypothesis 3:
H₀: “There is no significant difference in luxury brand preferences among consumers of varying age groups in emerging markets.”
H₃: “A notable distinction exists in the preferences for luxury brands among consumers across various age demographics in emerging markets.”
Hypothesis 4:
H₀: “Localized marketing strategies have no effect on consumer trust in luxury brands within emerging markets.”
H₄: “Targeted marketing approaches have a considerable impact on consumer confidence in luxury brands within developing markets.”
This study seeks to analyze the collected data to offer insights into the changing dynamics of luxury branding in emerging markets, enabling businesses to enhance their strategies in response to evolving consumer expectations Tables 1-10.
Table 1 Age Group Distribution | ||||
Age Group | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
18-25 years | 37 | 20.56% | 20.56% | 20.56% |
26-35 years | 46 | 25.56% | 25.56% | 46.12% |
36-45 years | 42 | 23.33% | 23.33% | 69.45% |
46-55 years | 33 | 18.33% | 18.33% | 87.78% |
Above 55 years | 22 | 12.22% | 12.22% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 2 Gender Distribution | ||||
Gender | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Male | 87 | 48.33% | 48.33% | 48.33% |
Female | 91 | 50.56% | 50.56% | 98.89% |
Prefer not to say | 2 | 1.11% | 1.11% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 3 Monthly Household Income | ||||
Income Bracket | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Less than ₹50,000 | 37 | 20.56% | 20.56% | 20.56% |
₹50,000 - ₹1,00,000 | 51 | 28.33% | 28.33% | 48.89% |
₹1,00,000 - ₹2,00,000 | 55 | 30.56% | 30.56% | 79.45% |
Above ₹2,00,000 | 37 | 20.56% | 20.56% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 4 Occupation Distribution | ||||
Occupation | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Student | 41 | 22.78% | 22.78% | 22.78% |
Salaried Professional | 56 | 31.11% | 31.11% | 53.89% |
Business Owner/Entrepreneur | 39 | 21.67% | 21.67% | 75.56% |
Freelancer | 27 | 15.00% | 15.00% | 90.56% |
Other | 17 | 9.44% | 9.44% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 5 Luxury Product Purchase Frequency | ||||
Purchase Frequency | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Once a year or less | 52 | 28.89% | 28.89% | 28.89% |
2-3 times a year | 64 | 35.56% | 35.56% | 64.45% |
Every few months | 45 | 25.00% | 25.00% | 89.45% |
Frequently (Monthly or more) | 19 | 10.56% | 10.56% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 6 Factors Influencing Luxury Brand Purchases | ||||
Factor | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Brand heritage and exclusivity | 51 | 28.33% | 28.33% | 28.33% |
Quality and craftsmanship | 68 | 37.78% | 37.78% | 66.11% |
Social status and prestige | 39 | 21.67% | 21.67% | 87.78% |
Digital presence and experience | 22 | 12.22% | 12.22% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 7 Preferred Shopping Channels for Luxury Goods | ||||
Shopping Channel | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
In-store shopping at flagship stores | 66 | 36.67% | 36.67% | 36.67% |
Online through brand websites | 48 | 26.67% | 26.67% | 63.34% |
Online via multi-brand platforms | 43 | 23.89% | 23.89% | 87.23% |
Through personal shoppers/resellers | 23 | 12.78% | 12.78% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 8 Importance of Sustainability in Luxury Purchase Decision | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Extremely important | 52 | 28.89% | 28.89% | 28.89% |
Somewhat important | 64 | 35.56% | 35.56% | 64.45% |
Neutral | 37 | 20.56% | 20.56% | 85.01% |
Not very important | 18 | 10.00% | 10.00% | 95.01% |
Not important at all | 9 | 5.00% | 5.00% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 9 Luxury Brands Adapting Marketing Strategies for Emerging Markets | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Strongly agree | 73 | 40.56% | 40.56% | 40.56% |
Agree | 68 | 37.78% | 37.78% | 78.34% |
Neutral | 21 | 11.67% | 11.67% | 90.01% |
Disagree | 12 | 6.67% | 6.67% | 96.68% |
Strongly disagree | 6 | 3.33% | 3.33% | 100.00% |
Table 10 Most Appealing Factor in Luxury Brands for Emerging Markets | ||||
Factor | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Affordability with prestige | 58 | 32.22% | 32.22% | 32.22% |
Localized branding and collaborations | 46 | 25.56% | 25.56% | 57.78% |
Digital marketing and influencer collaborations | 41 | 22.78% | 22.78% | 80.56% |
Traditional brand heritage | 35 | 19.44% | 19.44% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Empirical Results
The majority of respondents belonged to the 26-35 years age group (25.56%), indicating that young professionals and middle-income earners are the most engaged in luxury shopping. The lowest representation was in the above 55 years category (12.22%), showing that older consumers are less active luxury buyers.
The gender distribution shows nearly equal participation of male (48.33%) and female (50.56%) respondents, reflecting balanced engagement in luxury branding. A small percentage (1.11%) chose not to disclose their gender, indicating privacy concerns or non-binary identities.
Consumers earning between ₹1,00,000 and ₹2,00,000 per month (30.56%) were the most prominent luxury buyers, highlighting the increasing purchasing power of upper-middle-class consumers. The lowest engagement (20.56%) was from those earning less than ₹50,000, likely due to affordability constraints.
Salaried professionals (31.11%) emerged as the primary consumers of luxury goods, followed closely by business owners (21.67%). Students (22.78%) also showed significant interest, indicating aspirational luxury consumption. Freelancers and other occupations had relatively lower representation.
Most consumers (35.56%) purchase luxury products two to three times a year, indicating a moderate but steady demand. Only a small segment (10.56%) buys luxury goods frequently, showing that exclusivity is maintained.
Quality and craftsmanship (37.78%) emerged as the most influential factor in luxury purchases, followed by brand heritage (28.33%). Social status (21.67%) played a considerable role, while digital presence (12.22%) was the least influential, suggesting that traditional values still hold significance.
Flagship stores (36.67%) remained the most preferred luxury shopping channel, reinforcing the importance of physical retail experiences. However, online brand websites (26.67%) and multi-brand platforms (23.89%) gained significant traction, reflecting the rise of digital luxury shopping. Personal shoppers (12.78%) had a niche but dedicated customer base.
Sustainability is a key factor for luxury consumers, with 64.45% considering it at least somewhat important in their purchase decisions. However, 15% of respondents are indifferent or unconcerned about sustainability, showing that while eco-consciousness is growing, traditional luxury values still hold significance.
A large majority (78.34%) believe that luxury brands should adapt their marketing strategies for emerging markets, highlighting the need for localized approaches. Only 10% of respondents disagree with this notion, suggesting that traditional global strategies may no longer be sufficient in these markets.
Consumers in emerging markets prioritize affordability with prestige (32.22%), emphasizing the need for luxury brands to maintain exclusivity while ensuring accessibility. Localized branding (25.56%) and digital marketing (22.78%) also play significant roles, while heritage alone (19.44%) is less influential, indicating a shift towards modern luxury branding Tables 11-20.
Table 11 Perception of Luxury Brands Engaging with Local Cultures in Advertising | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Highly appealing | 66 | 36.67% | 36.67% | 36.67% |
Somewhat appealing | 52 | 28.89% | 28.89% | 65.56% |
Neutral | 33 | 18.33% | 18.33% | 83.89% |
Not appealing | 19 | 10.56% | 10.56% | 94.45% |
Dislike it | 10 | 5.55% | 5.55% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 12 Luxury Brand Following on Social Media | ||||
Frequency of Following | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Daily | 46 | 25.56% | 25.56% | 25.56% |
Weekly | 58 | 32.22% | 32.22% | 57.78% |
Occasionally | 49 | 27.22% | 27.22% | 85.00% |
Never | 27 | 15.00% | 15.00% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 13 Most Engaged Platform for Luxury Brands | ||||
Platform | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
73 | 40.56% | 40.56% | 40.56% | |
YouTube | 52 | 28.89% | 28.89% | 69.45% |
27 | 15.00% | 15.00% | 84.45% | |
Luxury brand websites | 19 | 10.56% | 10.56% | 95.01% |
Other | 9 | 4.99% | 4.99% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 14 Most Influential Digital Content on Luxury Purchases | ||||
Content Type | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Influencer reviews | 58 | 32.22% | 32.22% | 32.22% |
Celebrity endorsements | 42 | 23.33% | 23.33% | 55.55% |
Brand campaigns & ads | 51 | 28.33% | 28.33% | 83.88% |
User-generated content | 29 | 16.12% | 16.12% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 15 Luxury Purchases Based on Influencer Recommendations | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Yes, multiple times | 52 | 28.89% | 28.89% | 28.89% |
Yes, once or twice | 61 | 33.89% | 33.89% | 62.78% |
No, but I consider their opinions | 41 | 22.78% | 22.78% | 85.56% |
No, and I don’t trust influencers | 26 | 14.44% | 14.44% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 16 Effect of a Luxury Brand’s Presence in One’s Country | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Significantly improves my perception | 58 | 32.22% | 32.22% | 32.22% |
Slightly improves my perception | 64 | 35.56% | 35.56% | 67.78% |
No impact | 39 | 21.67% | 21.67% | 89.45% |
Slightly worsens my perception | 13 | 7.22% | 7.22% | 96.67% |
Significantly worsens my perception | 6 | 3.33% | 3.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 17 Most Engaged Luxury Segment | ||||
Segment | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Fashion and accessories | 73 | 40.56% | 40.56% | 40.56% |
Watches and jewelry | 42 | 23.33% | 23.33% | 63.89% |
Automobiles | 37 | 20.56% | 20.56% | 84.45% |
Perfumes and cosmetics | 28 | 15.55% | 15.55% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 18 Preference for Digital Personalization and Ai-Driven Shopping Experiences | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Strongly agree | 68 | 37.78% | 37.78% | 37.78% |
Agree | 61 | 33.89% | 33.89% | 71.67% |
Neutral | 27 | 15.00% | 15.00% | 86.67% |
Disagree | 18 | 10.00% | 10.00% | 96.67% |
Strongly disagree | 6 | 3.33% | 3.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 19 Preferred Payment Method for Luxury Purchases | ||||
Payment Method | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Credit card | 66 | 36.67% | 36.67% | 36.67% |
Debit card | 41 | 22.78% | 22.78% | 59.45% |
Digital wallets (Google Pay, Apple Pay) | 37 | 20.56% | 20.56% | 80.01% |
EMI/Installment plans | 24 | 13.33% | 13.33% | 93.34% |
Cryptocurrency | 12 | 6.66% | 6.66% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 20 Importance of Customer Service in Luxury Brand Experience | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Extremely important | 73 | 40.56% | 40.56% | 40.56% |
Somewhat important | 58 | 32.22% | 32.22% | 72.78% |
Neutral | 29 | 16.11% | 16.11% | 88.89% |
Not very important | 14 | 7.78% | 7.78% | 96.67% |
Not important at all | 6 | 3.33% | 3.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
A majority of consumers (65.56%) find luxury brands engaging with local cultures appealing, suggesting that brands incorporating regional aesthetics and traditions into marketing are more likely to succeed. A small fraction (16.11%) dislikes this approach, implying that some consumers still prefer globally recognized luxury styles.
Social media plays a significant role in luxury brand engagement, with 57.78% following brands weekly or daily. However, 15% of respondents never engage with luxury brands on social media, indicating a segment that prefers traditional shopping experiences.
Instagram dominates luxury brand engagement (40.56%), showing that visual storytelling and influencer marketing are crucial for luxury branding. YouTube (28.89%) follows closely, highlighting the importance of video content. Luxury brand websites (10.56%) and Facebook (15%) are less prominent, indicating a shift towards newer platforms.
Influencer reviews (32.22%) and brand campaigns (28.33%) have the greatest impact on luxury purchases, confirming the effectiveness of social media marketing. Celebrity endorsements (23.33%) remain influential but have declined compared to past trends. User-generated content (16.12%) has the least impact, suggesting that luxury consumers still trust brand-led promotions over peer reviews.
A majority of respondents (62.78%) have purchased luxury items due to influencer recommendations at least once, highlighting the significant impact of digital personalities on consumer behavior. However, 14.44% do not trust influencers at all, indicating that traditional branding methods still hold value.
A majority (67.78%) feel that a brand’s presence in their country enhances its perception, indicating the importance of local availability and market expansion. Only 10.55% believe it worsens their perception, suggesting that global brands rarely lose prestige by entering emerging markets.
Fashion and accessories (40.56%) dominate luxury engagement, followed by watches and jewelry (23.33%). Automobiles and cosmetics have lower engagement, likely due to accessibility and price constraints.
A significant majority (71.67%) favor AI-driven and personalized shopping experiences, showing a preference for technology-driven luxury retail. A small percentage (13.33%) oppose it, indicating that a segment of consumers still values traditional shopping.
Credit cards (36.67%) remain the preferred payment method, followed by digital wallets (20.56%). EMI options (13.33%) suggest that some consumers prefer flexible payment plans, while cryptocurrency adoption (6.66%) remains low.
Customer service is a major factor in luxury experiences, with 72.78% of respondents considering it important or extremely important. Only 11.11% find it unimportant, showing that customer interactions remain a critical differentiator in luxury retail Tables 21-32.
Table 21 Most Valued Aspect of Luxury Brand Packaging | ||||
Packaging Preference | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Aesthetic and exclusivity | 68 | 37.78% | 37.78% | 37.78% |
Sustainability and eco-friendliness | 42 | 23.33% | 23.33% | 61.11% |
Innovation and uniqueness | 41 | 22.78% | 22.78% | 83.89% |
Packaging does not matter to me | 29 | 16.11% | 16.11% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 22 Factors Discouraging Luxury Purchases in Emerging Markets | ||||
Factor | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
High taxes and import duties | 64 | 35.56% | 35.56% | 35.56% |
Lack of authentic luxury stores | 46 | 25.56% | 25.56% | 61.12% |
Social perceptions and pressure | 37 | 20.56% | 20.56% | 81.68% |
Unavailability of exclusive products | 33 | 18.33% | 18.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 23 Inclination Towards Buying Luxury Goods with Personalized Pricing | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Strongly agree | 73 | 40.56% | 40.56% | 40.56% |
Agree | 58 | 32.22% | 32.22% | 72.78% |
Neutral | 29 | 16.11% | 16.11% | 88.89% |
Disagree | 14 | 7.78% | 7.78% | 96.67% |
Strongly disagree | 6 | 3.33% | 3.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 24 Perception of AI’S Role in Luxury Branding | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Enhances the brand experience | 68 | 37.78% | 37.78% | 37.78% |
Makes luxury less exclusive | 42 | 23.33% | 23.33% | 61.11% |
No impact | 37 | 20.56% | 20.56% | 81.67% |
Not sure | 33 | 18.33% | 18.33% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 25 Preference for Local Designer Collaborations in Emerging Markets | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Yes, it adds cultural relevance | 82 | 45.56% | 45.56% | 45.56% |
No, I prefer international exclusivity | 46 | 25.56% | 25.56% | 71.12% |
Neutral | 52 | 28.89% | 28.89% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 26 Definition of Luxury In The Digital Age | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Exclusivity and tradition | 52 | 28.89% | 28.89% | 28.89% |
Innovation and modernity | 46 | 25.56% | 25.56% | 54.45% |
Personalization and accessibility | 42 | 23.33% | 23.33% | 77.78% |
Status and wealth | 40 | 22.22% | 22.22% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 27 Support for Experience-Based Luxury Marketing (Vip Events, Memberships, Etc.) | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Strongly agree | 66 | 36.67% | 36.67% | 36.67% |
Agree | 58 | 32.22% | 32.22% | 68.89% |
Neutral | 31 | 17.22% | 17.22% | 86.11% |
Disagree | 17 | 9.44% | 9.44% | 95.55% |
Strongly disagree | 8 | 4.45% | 4.45% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 28 Interest in Luxury Purchases Via Metaverse or VR Shopping | ||||
Response | Frequency | Percentage | Valid Percentage | Cumulative Percentage |
Yes, definitely | 46 | 25.56% | 25.56% | 25.56% |
Maybe, if the experience is immersive | 73 | 40.56% | 40.56% | 66.12% |
No, I prefer in-person shopping | 61 | 33.89% | 33.89% | 100.00% |
Total | 180 | 100.0% | 100.0% |
Table 29 Chi-Square Test for Association between Digital Engagement and Consumer Perception of Luxury Brands | ||
Value | df | Asymp. Sig. |
Pearson Chi-Square | 21.346 | 3 |
Likelihood Ratio | 22.578 | 3 |
N of Valid Cases | 180 |
Table 30 Chi-Square Test for Impact of Sustainability Initiatives on Luxury Brand Purchase Decisions | ||
Value | Df | Asymp. Sig. |
Pearson Chi-Square | 16.874 | 3 |
Likelihood Ratio | 17.951 | 3 |
Table 31 Chi-Square Test for Differences in Luxury Brand Preferences Across Age Groups | ||
Value | Df | Asymp. Sig. |
Pearson Chi-Square | 19.452 | 4 |
Likelihood Ratio | 20.339 | 4 |
N of Valid Cases | 180 |
Table 32 Chi-Square Test for Influence of Localized Marketing on Consumer Trust in Luxury Brands | ||
Value | df | Asymp. Sig. |
Pearson Chi-Square | 22.781 | 3 |
Likelihood Ratio | 23.958 | 3 |
Aesthetic appeal and exclusivity (37.78%) are the most valued packaging aspects, followed by sustainability (23.33%). A significant portion (16.11%) does not prioritize packaging, suggesting that functional and minimalist designs may appeal to some consumers.
High taxes and import duties (35.56%) are the biggest obstacles to luxury purchases in emerging markets, making products less accessible. Lack of authentic stores (25.56%) also discourages consumers, while social pressures and unavailability of exclusive products play a smaller but significant role in limiting demand.
A significant majority (72.78%) support personalized pricing, indicating that price adjustments based on local market conditions would increase luxury purchases. A small segment (11.11%) opposes the idea, preferring global standardization in luxury pricing.
Most respondents (37.78%) see AI as enhancing the luxury experience, while 23.33% believe it diminishes exclusivity. A notable portion (18.33%) is uncertain, suggesting that AI's role in luxury branding is still evolving.
Nearly half of respondents (45.56%) appreciate luxury brands collaborating with local designers, indicating a strong demand for culturally relevant products. However, 25.56% prefer traditional international exclusivity, highlighting a segment that values established luxury heritage.
Luxury is primarily associated with exclusivity and tradition (28.89%), but innovation (25.56%) and personalization (23.33%) are also key defining factors, indicating a shift towards modern luxury branding.
A strong majority (68.89%) favor VIP experiences and exclusive memberships, suggesting that luxury brands should expand experiential marketing in emerging markets. A small segment (13.89%) disagrees, indicating that luxury experiences are not equally valued by all consumers.
While 40.56% are open to VR shopping if the experience is immersive, 33.89% still prefer in-person luxury shopping, showing that traditional retail remains highly relevant. A quarter of respondents (25.56%) are already ready for luxury Metaverse experiences, indicating potential growth in digital luxury retail.
Hypothesis Testing
Hypothesis 1
A Chi-Square Test for Independence was conducted to examine the relationship between digital engagement and consumer perception of luxury brands. The Pearson Chi-Square value of 21.346 with three degrees of freedom resulted in an Asymptotic Significance (p-value) of 0.000, which is below the conventional threshold of 0.05. This signifies a statistically substantial correlation between digital engagement and consumer perception.
Given that the p-value is below 0.05, the null hypothesis (H0) is rejected, and the alternative hypothesis (H1) is affirmed, indicating that digital engagement significantly affects consumer perception of luxury brands in emerging markets.
Hypothesis 2
A Chi-Square Test for Independence was performed to examine the impact of sustainability initiatives by luxury brands on consumer purchasing decisions. The Pearson Chi-Square value of 16.874, accompanied by three degrees of freedom, resulted in an Asymptotic Significance (p-value) of 0.002, which falls below the conventional threshold of 0.05.
Given that the p-value falls below 0.05, we reject the null hypothesis (H0) and accept the alternative hypothesis (H2), suggesting that sustainability initiatives have a significant impact on purchasing decisions for luxury brands in emerging markets.
Hypothesis 3
A Chi-Square Test for Independence was used to determine if significant differences exist in luxury brand preferences across age groups. The Pearson Chi-Square statistic of 19.452, with four degrees of freedom, yielded an Asymptotic Significance (p-value) of 0.001, which is below the significance threshold of 0.05.
We reject the null hypothesis (H0) and endorse the alternative hypothesis (H3) since the p-value is below 0.05. This indicates a significant disparity in luxury brand preferences across age demographics among consumers in emerging markets.
Hypothesis 4
A Chi-Square Test for Independence was used to determine if regional marketing strategies influence consumer confidence in luxury brands. The Pearson Chi-Square value of 22.781 with three degrees of freedom yielded an asymptotic significance (p-value) of 0.000, which is less than the 0.05 significance limit.
The p-value is less than 0.05, rejecting the null hypothesis (H0) and accepting the alternative hypothesis (H4), indicating that localized marketing strategies significantly impact consumer trust in luxury brands in emerging markets Warrington & Shim, (2000).
This study investigates the dynamics of luxury branding in emerging markets, emphasizing the impact of digital engagement, sustainability initiatives, and customized marketing strategies on consumer perceptions and purchasing decisions. The results indicate that consumers in these markets place great importance on both tradition and innovation, demonstrating a notable preference for digital customization and experiences enhanced by AI. Sustainability has transitioned from a peripheral concern to a fundamental one influencing judgments about luxury brands. The study underscores the essential equilibrium between affordability and prestige, indicating that high taxes and limited access to authentic luxury merchants remain substantial barriers to luxury purchasing in these regions.
Moreover, the study reveals that preferences for luxury brands differ markedly among various age demographics, highlighting the necessity for brands to implement a range of marketing approaches. Older consumers tend to value exclusivity and craftsmanship, whereas younger buyers are significantly swayed by social media, influencer marketing, and the ease of digital access. The findings indicate that localized branding significantly boosts consumer trust, highlighting the necessity for luxury brands to tailor their messaging and partnerships to align with local cultures and traditions.
This research offers important perspectives, yet it is essential to acknowledge its constraints. While the sample is indeed representative, it is limited to a specific set of emerging markets, potentially overlooking broader global variations in luxury purchasing behaviors. Furthermore, given that the research relies on self-reported data, there is a possibility of biases related to consumer perception and purchasing behavior being introduced. Understanding long-term trends through longitudinal studies and transaction data could provide valuable guidance for upcoming research endeavors.
The intersection of high-end technology, eco-friendly engagement methods, and personalized strategies significantly influences the expansion of luxury branding in developing markets. The enduring advantages of regional cooperation regarding sustainable practices and symbolic justice could yield significant insights into the behavior of luxury consumers. Companies aiming to swiftly enter rapidly growing markets should consider broadening their research to encompass emerging luxury sectors and identify other luxury opportunities.
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Received: 21-Apr-2025, Manuscript No. AMSJ-25-15917; Editor assigned: 22-Apr-2025, PreQC No. AMSJ-25-15917(PQ); Reviewed: 21-May-2025, QC No. AMSJ-25-15866; Revised: 25-May-2025, Manuscript No. AMSJ-25-15866(R); Published: 31-May-2025