To what extent can the sharing economy model impact luxury marketing? The case of the luxury fashion rental market.

Abstract

Around the world, people are facing many changes which are impacting consumer behaviour. Over time, new ways of consuming have been developed to respond to today's global issues. One of the most convincing challenges is to reverse climate change. To this end, new solutions are emerging, such as the sharing economy model. This study analysed the extent to which the sharing economy model can impact the marketing of luxury goods and services. We focused specifically on the luxury fashion rental market because the fashion industry is one of the most polluting sectors in the world. In our analysis, we noticed a dissonance between the sharing economy model and the luxury market. The sharing economy model allows access to goods and services, while luxury promises prestige and exclusivity. In other words, these are two opposing worlds that could become complementary to meet a new demand. The aim was to highlight the consumer's perception and attitude through this integration. We established four initial research questions concerning the influence on the attitude and perception of the consumer towards luxury brands, the impact on the perception of exclusivity as well as the interest of this type of service among the new generations. Our investigation of the phenomenon was twofold. First, we conducted a literature review to ascertain key concepts. Then, we performed an exploratory qualitative study involving 20 respondents aged between 24 and 32 years who possessed different socio-demographic profiles. Our research was based more heavily on psychological aspects which have not been thoroughly investigated: the perception of and the attitude of the consumer towards a luxury fashion rental service. We were able to identify the main motivation as the sustainable aspect. The consumer is inclined to participate in the rental of luxury items to exhibit ethical behaviour. Another identified motivation is the economic aspect with a reduction in costs affords other consumer profiles access to these luxury items. The social aspect was additionally highlighted, as the sharing economy allows for interaction and a certain proximity between consumers. Accessibility was another essential concept. It encompasses several benefits for the consumer as well as hedonism, which guides consumer behaviour in an emotional rather than rational way. Experience is central to both the sharing economy and luxury. In addition, a barrier was identified that marked the dichotomy of this research: exclusivity. Exclusivity is fundamental to the perceptions of and attitudes towards luxury brands. Providing access to luxury goods and services can be perceived as positive for certain criteria but can also negatively impact luxury marketing. This is because the sense of group membership, conspicuous consumption, prestige and perceived desire in luxury fashion consumption gradually diminishes. In conclusion, this research highlighted the perceived benefits and risks to the sharing economy and luxury. In so doing, its enhanced understanding of the positive and negative impact of consumer perceptions on attitudes on luxury marketing and towards the luxury fashion rental market.