The impact of the social media on consumer behaviour amid economic crisis: the case of luxury consumption
by Deepesh Kumar Srivastava; Madhurima Ganguly; Girish Bagale
International Journal of Intellectual Property Management (IJIPM), Vol. 14, No. 1, 2024

Abstract: Since 2019, the ongoing economic crisis has severely impacted the luxury industry, resulting in an overall loss of 8%, significant changes in consumer behaviour, and increased competitive pressure on luxury fashion enterprises' strategic responses. Financial crises change customers' motives, values, and attitudes. More people are considering their wants and needs before buying. During a recession, a luxury company wants to compete. It must know what drives luxury purchases and how the economic crisis affects them, which could change luxury consumption. In this exploratory research on consumer behaviour and luxury fashion executives' brand tactics in times of financial crisis, a survey was sent to over 150 respondents, of whom only 123 answered the questionnaire. Senior executives from a multi-brand store (CADRANS) and a luxury mono-brand were also interviewed (ELIE SAAB). This study's qualitative and quantitative data may help us understand how customers react to economic crises and how luxury businesses respond. Most consumers in the study are paid in Lollar or Banquer Cheques, which reduces their purchasing power and restricts them from buying luxury items. Despite the crisis, clients continue to buy luxury goods within their budgets, though the ratio has decreased.

Online publication date: Wed, 17-Jan-2024

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