Premium Brand Pursuits: An Inevitable Asian Obsession? Work in Progress Authors

Literature suggests that Asian consumers are renowned for their premium brand pursuits. However, the motivation behind this ostentatious culture of brand obsession is not exactly known. Building on the preceding literature, the aim of this paper is threefold. First, we will review the relevant theories of conspicuous consumption. Next, we will provide an explanation for the motivation behind this Asian phenomenon. We will also examine the relevance of western theories to the eastern social and cultural values. Finally, we will suggest some directions for research developments. Introduction Branding is a manifestation of our consumer society. It reflects a world culture in which overstatement and ostentation have become acceptable. Corneo and Jeanne (1997) suggest that in economic terms, an individual reinforces his social status by indulging in visible consumption. Hunter (1997) echoes this notion by asserting that desirability rather than necessity is the motivation for acquiring branded merchandise reflecting designers’ names. This ostentatious behaving culture is well represented in Asia where consumers are dubbed as vivacious shoppers (Asian Business, July 1994; Dubois and Duquesne, 1993; Fortune 1/16/95; Tai and Tam 1997; Yau 1988). Fuelled by a booming economy during the early 1990s, Asians penchant for brand name luxury goods can be evidenced by the proliferation of American and European branded houses in the downtown shopping arcades (Robinson 1996). 50% of the total turnover of French conglomerate of luxury labels LVMH and 58% of cognac Remy Martin are concentrated in Asia (Asian Business 1994). Rolexes are worn loose on every languid wrist of any Hong Konger or Singaporean. Louis Vuitton seems to be Tokyo’s favourite French man (Economist 26, 1992). Building on the preceding literature, the aim of this paper is threefold. First, we will review the relevant theories of conspicuous consumption. Next, we will provide an explanation for the motivation behind this phenomenon in Asia and how it differs from western theories. Finally, we will suggest some directions for research developments.