Luxury retailers and the challenges of emerging markets
: Loja das Meias case study

  • Mafalda de Sá Couto Antunes (Student)

Student thesis: Master's Thesis

Abstract

The luxury industry has been growing strong for the past decade. Luxury is now everywhere and accessible to many more consumers. The present thesis investigates how emergent foreign consumers interact and impact the situation in Portugal, where most retail areas sank in the recession, the luxury market seems to be rising with several international high-end brand opening new stores in Lisbon. Throughout this thesis one question will be answered: “how can Portugal’s luxury retailers can be the bridge between international luxury brands and the consumers from emergent countries, with a closer focus on the Portuguese-speaking countries, such as Angola, Brazil, and Mozambique”. Loja das Meias, one of the oldest Portuguese luxury retailers, will illustrate which changes, and new strategies a retailer has to undergo to better reach and serve emergent consumers. To support the findings, an interview to the Director of Stores was conducted, as well as a survey to general luxury consumers to help shed some light into the profiles of these new consumers. Thus, consumers can be divided into two groups: (1) Snobs, composed by Angolans and Brazilians who value the internal dimensions of luxury, and attach importance to price as a signal of quality and exclusivity; (2) Bandwagon, featuring Chinese consumers who given their collectivistic culture are more prone to purchase in groups and conspicuous consumption. The majority of luxury retailer is increasingly more depended upon this new customer base, who seeks in Portugal a wider and more affordable offering. Finally, a teaching note is also provided to help scholars and students analyse the case study in a class situation.
Date of Award10 Jul 2014
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorPedro Celeste (Supervisor)

Keywords

  • Consumer behavior
  • Emerging markets
  • Democratization of luxury
  • Loja das Meias
  • Luxury brands
  • Retailing

Designation

  • Mestrado em Gestão

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