BỘ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC KINH TÉ THÀNH PHÓ HÒ CHÍ MINH BÁO CÁO TÓNG KÉT ĐÈ TÀI NGHIÊN cứu KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG “NHÀ NGHIÊN cứu TRẺ UEH” NĂM 2024 DO LUXURY BRANDS IN FASHION INDUSTRY HAVE TO TRADE-OFF FOR SUSTAINABILITY? Thuộc nhóm chuyên ngành : 1 TP. Hồ Chí Minh, tháng 02/2024 ABSTRACT In the current global context, sustainability has become a paramount concern for individuals and businesses worldwide, including Vietnam. This study explores the intersection of sustainability and the high-end fashion industry, where consumers increasingly prioritize sustainability in their purchasing decisions. High-end fashion brands respond by actively integrating sustainability into their products to meet evolving customer preferences.
Despite the general favorability towards sustainable products, this research examines nuanced perspectives and reactions when juxtaposing "sustainability" with "luxury." The study investigates the impact of key factors—exclusivity, conformity, hedonic value, and attitude—on the purchase intentions of Vietnamese luxury consumers towards sustainable fashion brands. Through quantitative methods, a survey of around 300 luxury consumers in Ho Chi Minh City was conducted, employing Partial Least Squares Structural Equation Modeling (PLS-SEM) for data analysis. Results reveal that attitude exerts the strongest impact on consumers' intention to adopt sustainable high-end fashion, followed by hedonic value, exclusivity, and least significantly, the need for conformity. Sustainability partly influences customers' purchasing intentions, as those embracing sustainable trends seek to use sustainable products from beloved brands, shaping their shopping behavior.
The study aims to determine the extent to of luxury customers embrace a sustainable lifestyle and their willingness to invest. This exploration will guide luxury brands in navigating trade-offs between sustainability and traditional luxury, concluding with theoretical and practical implications, alongside portraits of potential influential customers in sustainable high-end fashion. Keywords: sustainable fashion, sustainability, luxury brand, purchase intention, luxury consumption. ii TABLE OF CONTENTS ABSTRACT.
i LIST OF FIGURES. V LIST OF TABLES. vi LIST OF A CRONYMS. vii CHAPTER I: INTRODUCTION.1 Problem statement and research rationale.
Objectives of the study. Research object, survey object, andresearch scope. Research significance, new contributions, andpractice.4 CHAPTER 2: LITERATURE REVIEW AND EMPIRICAL STUDIES.1 Related research concepts. The concept of luxury:.
Concept of luxury brands, luxury products, luxury fashion. Concept of sustainability. The concept of Sustainability related to luxury fashion. Concept of Purchase intention.
Background theories relevant to the research. Hofstede’s cultural dimension theory. Theory of Rational Action. Previous research articles.1 Need for exclusivity.
Need for conformity. Proposed research model. 18 CHAPTER 3: RESEARCH METHODOLOGY. Objects and methods of survey.
Size and method of sampling. Measuring The Need for exclusivity. Measuring the Need for conformity. Measuring The Hedonic needs.
Measuring Purchase intention toward sustainable luxury products. Data Analysis Methods. 26 CHAPTER 4: RESEARCH RESULTS. Description of survey form.
Evaluate the reliability of the scale by Cronbach’s Alpha reliability coefficient. Evaluate the reliability’ for the independent variables. Evaluate the reliability of the dependent variable. Confirmatory Factor Analysis (CFA) results.
Check the fit of the CFA model. Measurement model analysis results in SmartPLS 4. SEM structural model analysis results on SMARTPLS 4. Evaluation of collinearity and multi-collinearity.
Evaluation of impact relationships. Level of explanation of the independent variable for the dependency (R squared). Effect size value (f squared). 48 CHAPTER 5: DISCUSSION AND CONTRIBUTION.48 CHAPTER 6: MANAGERIAL IMPLICA TIONS AND LIMITA TIONS.1 Need for exclusivity.
Need for conformity. Limitations and directions for further research. 67 V LIST OF FIGURES Figure 2.1: Proposed research model 18 Figure 3.1: Research process 19 vi LIST OF TABLES Table 3.1: The scale of Need for Exculsivity 23 Table 3.2: The scale of Need for Conformity 23 Table 3.3: The scale of Hedonic needs 24 Table 3.4: The scale of Attitude 24 Table 3.4: The scale of Purchase intention toward sustainable luxury products 24 Table 3.5: The scale of Purchase intention toward sustainable luxury products 25 Table 4.1: Descriptive statistics on the characteristics of the survey sample 34 Table 4.1: Analysis of the reliability of the group of demand factors for exclusivity - EX 37 Table 4.2: Analyze the reliability of the group of factors that conform to social standards 37 Tabic 4.3: Analyze the reliability of the satisfaction factor group 38 Table 4.4: Analyze the reliability of the group of attitude factors 38 Table 4.5: Analyzing the reliability of the group of attitude factors after removing the observed variable AT 1.6: Analyze the reliability of the intention factor group 40 fable 4.1: Summary of CFA Analysis Information 41 Table 4.1: Outer loadings Matrix 42 Table 4.2: Composite Reliability Index and Average Variance Extracted 43 Table 4.3: Value of square root of total variance extracted by Fomell and Larcker 44 Table 4.4: Value of square root of total variance extracted by HTMT 44 Table 4.2: Collinearity Statistics (VIF) - Inner model 46 Table 4.3: Path coefficient 46 Table 4.4: R-squared and adjusted R-squared values 47 Table 4.5: f squared value 48 vii LIST OF ACRONYMS Number of Symbols Full name order 1 AT Attitude 2 AVE Average Variance Extracted 3 CFA Confirmatory Factor Analysis 4 CFI Comparative Fit Index 5 CMIN/df Chi-square value/Degree of Freedom 6 CO Need for conformity 7 CR Composite Reliability 8 cv Convergent Validity 9 EX Need for exclusivity 10 GF1 Goodness of Fit Index 11 HE Hedonic need 12 HTMT Heterotrait-Monotrait Ratio of Correlations 13 IN Purchase intention towards sustainable luxury products 14 PLS-SEM Partial Least Squares Structural Equation Modeling 15 RMSEA Root Mean Square Errors of Approximation 16 SEM Structural equation modeling 17 SPSS Statistical Package for the Social Sciences 18 TLI Tucker-Lewis Index 19 TPB Theory of Planned Behavior viii 20 TRA Theory of Reasoned Action 21 VIF Variance Inflation Factor 1 CHAPTER 1: INTRODUCTION 1.1 Problem statement and research rationale Following a temporary decline during the co VID-19 pandemic, the luxury goods industry has experienced a remarkable resurgence. Forecasts predict an annual growth rate of 4.5% from 2022 to 2027, with the fashion segment, the industry’s largest, reaching a market volume of USD 97.
This exceptional performance has drawn significant attention in the press, as luxury brands, striving for increased visibility and broader audiences, have become attractive targets for media coverage, both positive and critical. Consumers are increasingly demanding sustainable practices from businesses, including luxury brands. While such practices can enhance brand image and distinctiveness (Kim & Ko, 2012; Osburg et al., 2021), current perceptions often associate luxury with unsustainable, unethical, and excessive consumption (Kapferer & Michaut-Denizeau, 2020). This mismatch presents a challenge for luxury brands, as some studies suggest consumers who purchase luxury goods prioritize exclusivity and status over ethical considerations (Davies et al., 2012; Bhattacharya & Sen, 2004; Ehrich & Irwin, 2005).
This raises a critical question: If consumers don't value sustainability efforts in luxury brands, will such initiatives translate into positive financial outcomes? After all, consumer spending significantly shapes markets (Zollo Ct al., 2018), and misaligned investments could lead to wasted resources and potentially harm the brand image. Moreover, there are not a lot of studies examining the variables impacting customers' choices to purchase sustainable luxury goods or not. For many years, consumers have believed that sustainability and luxury are mutually exclusive (All et al. Il is more important than ever to comprehend consumer altitudes, buying patterns, and intentions toward sustainable luxury goods (Yarimoglu & Binboga, 2019).
According to certain research (Davies et al., 2012; Achabou and Dekhili 2013; Dekhili et al. 2019), luxury buyers do not place a high value on sustainability and are reluctant to purchase goods made of sustainable materials. A third of luxury consumers even say that they think luxury and sustainability are mutually exclusive (Kapferer and Michaut- 2 Denizeau 2017). Conversely, some research contends that some features of luxury products are consistent with sustainable practices.
Janssen el al. (2014), for example, suggest that luxury and sustainable resource usage are related to the longevity of luxury items. McKinsey and Company (2020) state that millennials and Generation z indicate a willingness to spend more for sustainable, recycled, upcycled, pro-environmental, and circular fashion products, indicating that consumers are becoming more aware of the present environmental concerns. Because approximately half of the luxury consumers in the future will be members of these digitally native and tech-savvy cohorts (Zoilo Ct al., 2020), fashion marketers need to highlight the environmental impact of their products to position them as "green” and sustainable (All Ct al.
These customers think that by making certain purchases, they may change the environment, and as a result, their attitudes and consumption patterns (Rizomyliotis et al. Therefore, it is essential to comprehend how green consumption and luxury fashion are emerging together. Sustainable products are more likely to be chosen by customers who are worried about how their consumption may affect the environment (Follows & Jobber, 2000). Thus, it is essential to investigate factors that either promote or inhibit consumers' adoption of environmentally friendly products (Nath et al.
An interesting aspect of the study landscape today is the variety of studies examining the complex interplay between sustainability and luxury. Some argue for a complementing relationship, while others propose a contradictory one. This raises the question of whether this viewpoint is the same everywhere or if it varies depending on the location. Specifically, should luxury businesses in Vietnam adjust to this shifting environment given that the country's economy is expanding quickly and that consumer interest in "green" lifestyle products is also growing along with brand loyally? This study aims to answer this important query.
"Attitude" should be added to the three typical factors identified in prior studies, to acquire comprehensive results. The literature that has already been stated, though insightful, offers contradictory findings and leaves open the question of how interested luxury consumers are in the sustainable initiatives of premium firms. The purpose of this article is to close this gap by examining whether or not consumers currently perceive a paradoxical relationship 3 between luxury and "green” consumption. It can be concluded that putting sustainability first undermines a product's luxury status if customers fail to understand the connection between "green" consumption ideals and luxury, and if these values neither encourage nor, worse, deter them from buying sustainable luxury products.
Research on responsible consumption frequently explores the topic of eco certification (Lozano el al., 2010) and concentrates on commonplace, generic goods like food and cosmetics (Ngobo, 2011). However sustainable development affects all sectors, and, interestingly, not many scholarly works discuss these more complex product categories (Davies Ct al. As such, this study docs not confine itself to any particular category of luxury goods; rather, it covers a wide range, encompassing luxury apparel, handbags, watches, fragrances, and any other goods produced and promoted by luxury brands that are accepted by customers. Objectives of the study - Measuring the impact of 4 main factors: Need for Exclusivity, Need for Conformity, Hedonic need, and Attitude on the purchase intention towards sustainable luxury products of Vietnamese customers.
- Giving appropriate implications to support managers to improve their understanding of customer desires, thereby making appropriate strategics to influence consumer buying behavior, increase growth development of sustainability in the field of luxury fashion in general and society in particular, minimizing the negative impact of humans on the environment. Research question - How is the impact of the 4 factors observed in the article on the purchase intention toward sustainable luxury products of Vietnamese consumers? - Do luxury brands have to trade off for sustainability? - What is the appropriate implication to support managers to improve customer understanding and then make the right strategics for sustainable luxury products? 1. Research object, survey object, and research scope Research object: The research focuses on the factors affecting the intention of Vietnamese customers to buy sustainable luxury fashion products. Survey object: The object of the survey is the customers, or consumers, who have been using high-end fashion products.
4 Research scope: The scope of the research topic is within the consumers of high- end fashion products in Ho Chi Minh City, regardless of age or gender, with average and fairly high incomes, willing to pay for luxury and high-end shopping needs.