DEFINING CONSUMER VALUE : A study of the effect of Chinese-manufacturing on consumers in luxury fashion

Abstract: The country-of-origin aspect adds value of a place-image, which luxury brands use as a business strategy resulting the delocalization of luxury brands to be viewed seen as devaluing the brands’ origin and aesthetics. Hence, subjectivity of luxury. Luxury brands are moving their production to China, yet the demand for luxury brands item remains. There are several theories regarding to the factors within the consumer value framework why consumers continue purchasing luxury brand items even though they may disapprove the location of production. In order to understand the consumers’ demand, their perspectives and the luxury business model have to be examined. The study requires interpretivism in qualitative research to gain different interpretations of the responding knowledge and social context. The research process includes different components provides depth and insight for this particular thesis. The findings are based on observation and interviews with consumers and employees within the industry. The result shows that each consumer is affected by Chinese-manufacturing differently, which demonstrates that some consumers care while some others stay unbothered. Thus, it is each consumer’s decision to define their own perception of value.