Exploring Fast Fashion renting and its influence on Brand Equity - A comparative study between Sweden and Russia

Abstract: Abstract Keywords: Fast fashion, Sustainable consumption, Collaborative consumption, Renting, Brand Equity. Purpose of the thesis: This thesis aims to discover changes in Millennials' Brand perceptions towards renting in Fast fashion, having a cultural comparison perspective between Russia and Sweden. Theoretical perspective: The study collects, analyses and narrows the existing literature on Brand equity, millennials and culture comparison in the given context. Hofstede’s five dimensions of culture are used, as well as The Brand equity framework by Chieng and Lee (2011). Methodology: The study employed a qualitative and exploratory method with data being collected from 16 in-depth cross-country interviews, guided by an abductive approach. Empirical data: Due to fast fashion renting being a new phenomenon, consumers shared their opinions on fast fashion brands before and after a fictitious renting scenario. Exploring changes in Brand perceptions, the study tested specific Brand equity dimensions: Brand association, Social image, Uniqueness, Perceived value, Brand personality, Brand loyalty and Trustworthiness. Findings: The findings suggest conflicting opinions on Brand perception change. The most significant positive change in Brand perceptions involves Perceived value. Russians generally emphasize utilitarian benefits, i.e., Financial and Convenience, while Swedish people raise hedonistic factors. ‘Brand personality’ and ‘Brand associations’ are mostly positively influenced. ‘Social image’ was found to impose the biggest cultural difference where Swedish people anticipate a social approval while Russians fear negative status effects. For ‘Trustworthiness’, consumers in Russia are often skeptical of the company's environmental goodwill. Swedish people believe to a larger extent that ‘Trustworthiness’ can be positively impacted with rental programs. Finally, ‘Brand loyalty’ and ‘Uniqueness’ show to have minor effects from Rental opportunities. Skepticism towards how well companies will integrate renting with transparency and efficiency further suppress people's excitement. Practical contributions: This study adds to the existing literature on Fast fashion and collaborative consumption by complimenting contextual theories on millennials and Brand Equity. It narrows the current lack of consumer understanding in the transition to a more sustainable fashion environment and thus, provides managerial recommendations in both Sweden and Russia on how to address renting alternatives.