Luxury Beyond Labels: Investigating the Effectiveness of Co-Branding vs Brand Extension in Transforming Fashion Houses into Hospitality Brands
(A2024-119735)

AUTHORS

LATOYA QUAMINA, UNIVERSITY OF WESTMINSTER; Rahul Chawdhary, Kingston University ; Melanie Xue, LANCASTER UNIVERSITY

ABSTRACT

In the ever-evolving landscape of luxury fashion, a conspicuous transformation is underway as renowned brands extend their reach into services, particularly in hospitality industries such as hotels, restaurants, and cafes. Despite its growing popularity in practice, there is a paucity of research exploring the strategic implications and challenges inherent in this brand expansion approach. Employing an experimental study, we examine the viability of co-branding versus brand extension as a diversification strategy for luxury fashion brands looking to expand into hospitality services. Underpinned by Categorization and Information Integration theories, we find co-branding a more viable than brand extension as a strategy for luxury fashion brands expansion into hospitality. Our research advances knowledge on luxury consumers’ evaluations of different brand leveraging strategies and provide relevant implications for luxury fashion brand managers wishing to expand into luxury services.