The Influence of Instagram: The Promotion of Luxury Fashion by Influencers & Luxury Brands

Literature Review

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This page showcases a review of previous literature regarding how the luxury fashion industry uses social media marketing and more specifically how they use social media influencers to help market their brand. The following study leverages previous results from research in the marketing communication field to study how social media influencers market luxury fashion brands on digital platforms.

To view the full review of the literature, click here.

Social Media Marketing Must be Adapted by Brands in the 21st Century.

How has social media transformed marketing over the last decade?

Social media marketing boosts brand's identity and equity since daily media usage is at an all-time high.

The 21st Century has been coined the ‘digital age’ due to the momentous increase in technology and digital communication. With the introduction of the ‘digital age,’ companies quickly had to adapt to the ever-evolving marketing industry and learn how to switch from traditional marketing to social media marketing. An intensive analysis of previous scholarly research regarding the transformation of traditional marketing to social media marketing was conducted by Faruk et al. (2022) and the trends in the research being studied demonstrated that over the past decade, traditional marketing has shifted to exist on digital social media platforms.

Nowadays, with more than seven-in-ten Americans using social media (Pew Research Center, 2021), companies must adopt social media marketing strategies in their promotional agenda if they want to speak to where consumers are in their buying process. A social media marketing strategy for a business according to Decker (2022), involves planning out digital content that will be posted, making sure the social media team understands their responsibilities, and knowing which social media platforms best promote the business.

Defining Social Media Marketing

Vangelov (2019) prefaces the study of analyzing influencer social media posts, by giving a brief definition of social media marketing in which it is explained to readers that it is a tool used by marketers to boost a brand’s identity by applying traditional marketing goals and tasks to a digital social media platform.

Electronic Word of Mouth

The unique aspect of eWOM is that social media makes it inherently easier for individuals to find people with shared interests and connect. This concept was reiterated by research done by Gupta & Kim (2004), who studied the implications of virtual communities and explained that websites can act as “coffee shops” in which people can formulate relationships with others based on shared interests.

Social Media Influencer Marketing

Kàdekovà & Holienčinovà (2018), defined a social media influencer as an individual that has a strong following on one or more social media platforms and is hired by brands to promote their products and boost brand awareness. When studying the leveraging of influencers on social media by brands, Booth & Matic (2012) found that if a brand hires an influencer that fits into their brand’s message, they are guaranteed to have measurable results and increase brand equity.

Influencers Can Serve as a Communication Medium Between A Brand and A Consumer.

What is an Influencer?

The modern concept of social media influencers is fairly new in the marketing industry. Marketing professionals must rely on research to understand what a social media influencer is in contemporary society. Various researchers have defined what it means to be a social media influencer, such as Nurfadila & Riyanto (2020), who analyzed influencer marketing data in the luxury fashion industry and determined that an influencer has extensive knowledge and social influence in their field. In 2017, the platform Instagram released a study explaining that an influencer is the first to try new trends, and they are highly extensive in their knowledge of products within their field (Instagram, 2017).

Successful brands conduct extensive research on potential influencers they want to hire because they are relying on the influencer to uphold the brand image while also boosting the brand’s equity.

Photo by Emma Chamberlain on Instagram

Macro-Influencer

Celebrities or influencers with over 100,000 followers are considered macro-influencers (Nizri, 2022).

Photo by Lauren Caruso on Instagram

Micro-Influencer

Individuals with less than 100,000 followers but more than 10,000 are considered micro-influencers (Nizri, 2022).

Photo by Artur Lutfiu on Instagram

Nano-Influencer

Nano-influencers would be considered as individuals that have a considerable following but whose following count is below 10,000 (Nizri, 2022).

Characteristics of Influencers and Their Followers

Vangelov (2019) conducted a content analysis analyzing sponsored posts by influencers on Instagram and concluded that there are several characteristics of an influencer. According to Vangelov (2019), the influencers studied have a commonality of creating a trusting relationship with their audience. Marketing professionals ought to seek influencers who have a trusting relationship with their followers because these influencers are likely to come across as credible when promoting a product.

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What Causes Consumers to Follow an Influencer?

Farrell et al. (2022) conducted a recent study analyzing data from exploratory focus groups and online surveys in an attempt to minimize the gap in research regarding the differences consumers have when it comes to their motivation to follow an influencer. According to the study, three factors cause an individual to follow an influencer which includes: (1) attractiveness, (2) power, (3) source trust, and three motivations they have for the following which includes: (1) deal-seeking, (2) entertainment, and (3) inspiration (Farrell et al. 2022). Trust and inspiration are the factors that marketers would want to see in their influencer’s followers considering that if a follower trusts an influencer they are more likely to purchase the product they are endorsing (Vangelov, 2019).

Luxury Fashion Is Unique Mainly due to its Heritage and Quality.

OvervieOverview of the Luxury Fashion Industry & its Consumers

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What dictates if an item is luxury?

What constitutes an item as luxury may be subjective, therefore Upmarkit (n.d.), describes the characteristics of a luxury product as a high level of price, quality, aesthetics, rarity, extraordinariness, and symbolic meaning.

The luxury fashion industry in particular is comprised of apparel and footwear that possess these given characteristics. Given select consumers’ fascination with the luxury fashion industry, it has been studied by scholars to determine what makes it unique and valuable within society.

Top Luxury Brands

There is a standard for brands for them to be considered luxury such that they must be high quality, have a function or emotional benefits, be worthy of a higher price, and create a deep resonance with a consumer (Vinerean et al. 2019). When studying which luxury fashion brands had the most prominent global presence, “The Most Popular Designer Brands in the World” (2022) coined Hermes, Louis Vuitton, and Chanel as the three top-performing luxury fashion brands. These three brands all create value and emotional benefits for their consumers, making them heritage luxury brands.

Digitalization in the Luxury Fashion Industry

A large competitive advantage of the luxury fashion industry is its customer value which is why marketing professionals in the industry must find a way to obtain this value while adjusting to the new digital era. Since the emergence of e-commerce, scholars have been studying its role in the luxury industry, and according to a study done by Dauriz et al. (2014), online luxury sales increased by 20% in 2013 with 40% of luxury being influenced by a consumer’s digital experience.

Social Media is an Integrated Marketing Tool for the Luxury Fashion Industry

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How does social media serve as a marketing tool in the luxury fashion industry?

Luxury brands leverage social media by using marketing tactics such as visual storytelling, curating trends, using classy copy, and narrating their brand heritage

Luxury fashion brands cannot rely on the same marketing strategies as non-luxury brands given that the demand for the price is significantly higher. Vinerean et al. (2019) analyzed social media practices on Instagram by coding posts by brands such as Tom Ford, Valentino, and Balmain to assess the marketing strategies of luxury fashion brands on social media. The researchers reflected on the Instagram content and argued that luxury brands can take a unique approach to social media marketing by using visual aesthetics and emotional persuasion (Vinerean et al. 2019). Aside from using influencers in their social media marketing strategies, there are several other approaches that luxury fashion brands take.

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How Luxury Fashion Brands Use Influencers in Their Social Media Marketing Approach

According to “The Science of Social Media - Persuasion Techniques” (n.d.), the concept of ‘social proof’ is the idea that individuals are likely to follow the behaviors of others. This concept plays a significant role in the persuasion techniques of luxury fashion brands since they leverage social media influencers to promote content, hoping their followers will want to follow the influencer’s behavior and purchase from the brand. Nurfadila & Riyanto (2020) completed a comprehensive review of past research regarding the fashion industry’s use of influencers and how it affected consumer behavior. The researchers found that influencers are “the most powerful force in the fashion marketplace” (Nurfadila & Riyanto, 2020, p.8).

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The Role of Social Media Platforms for Luxury Fashion Marketing

According to Dauriz et al. (2014), luxury shoppers are more likely to purchase luxury goods after conducting research on a given product through their digital device which makes sense since the fashion industry has been transformed through digital media. Scholars have studied the roles of various social media platforms in the luxury fashion industry and there has been debate over which platform gives the highest-performing results. When analyzing the content of social media posts, Dauriz et al. (2014) found that luxury shoppers use Twitter when wanting to learn about or comment on live events, use Facebook to find coupons, and use other media forums when they want to comment about experiences or products they have purchased.

The Luxury Fashion Industry Uses Sponsored Influencers to Reach a Niche Audience.

How does the luxury fashion industry leverage social media Influencers?

Previous scholars have shed light on the significance of social media influencers in the new digital era of marketing and how they play a large role in incentivizing consumers to engage with a particular brand. A clear finding from the previous literature mentioned in this study was that social media marketing allows consumers to have a voice and although this makes it difficult for brands to control what is being said, they can use influencers to encourage consumers to speak positively about the brand (Booth & Matic, 2012). While a large amount of research is conducted about consumers’ brand views based on influencers, there is little research on what marketing strategies influencers implement in their posts to create a message about a brand. There is also a gap in the literature regarding the comparison of marketing tactics used by official luxury brand Instagram posts in comparison to the marketing tactics used in the posts by the influencers they sponsor. There is also a gap in previous studies regarding the comparison of marketing tactics of luxury brand-sponsored posts in comparison with marketing tactics in posts by non-sponsored influencers. Previous studies indicate that the fashion industry has shifted from traditional to digital marketing (Nurfadila & Riyanto, 2020). This study in particular will compare three variables; the marketing tactics of official luxury fashion brand Instagram posts, the marketing tactics of luxury fashion posts by sponsored social media influencers, and the marketing tactics of luxury fashion posts by non-sponsored influencers. This paper will analyze the luxury sector of the fashion industry and its leverage of social media influencers given that luxury brands must reach a higher quality standard when marketing online compared to non-luxury brands (Shepherd, 2022). Given that the marketing tactics of social media influencer content in the luxury fashion industry have not been extensively studied to date, the following research questions will be used to study this phenomenon further:

RQ1: Is there a difference in how luxury fashion products are marketed on Instagram by official brand accounts as opposed to sponsored influencer accounts?

RQ2: Is there a difference in the way luxury fashion products are marketed on Instagram by sponsored influencers vs. non-sponsored influencers?

To view the methodology for this research, click below.

Methodology

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