LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR

BY

MISS KARNCHANOK ITTHIROJANAKUL

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

OF MASTER’S DEGREE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2014

COPYRIGHT OF THAMMASAT UNIVERSITY

LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR

BY

MISS KARNCHANOK ITTHIROJANAKUL

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

OF MASTER’S DEGREE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2014

COPYRIGHT OF THAMMASAT UNIVERSITY

(1)

Independent Study Title LUXURY FASHION BRANDS IN THAILAND: A STUDY OF ON-LINE PURCHASE BEHAVIOR

Author Miss Karnchanok Itthirojanakul Degree Master’s Degree Program in Marketing

(International Program) Department/Faculty/University Faculty of Commerce and Accountancy

Thammasat University Advisor Prof. Dr. Paul G. Patterson Academic Year 2014

ABSTRACT

In the recent years, luxury fashion industry has vastly expanded in

Thailand, more than 30 luxury fashion brands have opened to serve an increasing

demand of luxury products. This expanded number of luxury brands indicates there

are rising of income levels as well as purchasing power. Luxury fashion brands, for

example, like Chanel, Dior, Mulberry and Balenciaga are gaining more recognition

and acceptant among Thai consumers that pursue sophisticated hi-style of living.

The competition of luxury fashion industry has become stronger. Not

only traditional marketing activities, for example, like advertisings and events are

being used. Social media are now taking an important role to stimulate trends and

demand. The growing of popularity of social media, for instant, Facebook and

Instagram is creating a remarkable impact on sales and brand popularity. As a rapid

growth in the number of internet users, it is a great opportunity for luxury fashion

business to get closer to consumer.

Club 21, a company from Singapore established by an entrepreneur-

hotelier Christina Ong in 1972, as a leading importer and distributor in luxury fashion

goods in Thailand has developed the marketing strategy in order to stimulate sales

performance in 2013. Both vertical and horizontal expansion was developed under

strategic marketing movement. Apart from traditional marketing activities, Club 21

was known as a fashion company with a best practice in leveraging online channel in

order to enhancing customer shopping experience.

(2)

For this reason, this study is proposed has a goal to understand online

purchasing behavior of Club 21 (Thailand) consumer by investigating their online

decision making process and find out influential factors that related to each decision

process as well as perception towards Club 21 (Thailand). The objective of this study

is to understand consumer insights and their behaviors which are significant for

Club 21 (Thailand) to set up effective strategies for digital communication plan

and to develop their E-Commerce to be the efficient channel for consumer to access

the product and customer service.

In this study, qualitative research will be collected data from 18 – 24 Club

21 (Thailand) customers who living in Bangkok area by one-on-one interviews. In-

depth interview will be entirely conducted by the researcher with Naturalistic

Inquiries. The criteria of respondents profile will focus on people have buying luxury

fashion brand experience as well as purchasing through online channel experience to

make a certain that researcher will have related insights into the research topic.

Snowballing method will be used as a recruitment to obtain respondents. Main

findings from this study include the keys barriers of online purchasing intention

among Thai female consumers, for example, concerns about safety of personal

information and inability to touch and feel the product. All findings in this study

highlight important marketing intelligence which useful for fashion luxury players to

consider and understand consumer in technology era.

Keywords: Luxury Fashion, Online Decision Making Process, Club 21 (Thailand),

E-Commerce

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ACKNOWLEDGEMENTS

First of all, I would like to express my sincerely grateful to my advisor,

Prof Dr. Paul G Patterson, for his contribution, inspirations, valuable advice and

encouragement throughout learning process of this independence study. This study

would not have been possible without his guidance and persistent help.

I would like to sincerely thank you to every interview participants for

support, kind cooperation and useful information to complete this study.

In addition, I would like to use this opportunity to express thank my

division manager, marketing manager and all of my colleagues at Club21 (Thailand)

for kind understanding, unceasing encouragement throughout my master program.

A special thanks to my MIM friends for aspiration, friendly advice and

sincerer encouragement. I truly appreciate for your helps, truthful views and happy

times that we have spent together.

I am thankful to my family that words cannot express how grateful I am

for being your daughter. Thank you for my mother and father for greatest

encouragement and sacrifices.

Finally, I also place on record, my sense of gratitude to one and all, who

directly or indirectly, have lent their hand in this venture.

Karnchanok Itthirojanakul

TABLE OF CONTENTS

Page

ABSTRACT (1)

ACKNOWLEDGEMENTS (3)

LIST OF TABLES (5)

LIST OF FIGURES (6)

CHAPTER 1 INTRODUCTION 1

1.1 Problem and Significant of the study 4

1.2 Objectives of research 5

CHAPTER 2 LITERATURE REVIEW 6

2.1 Priceless Engagement Concept 6

2.2 e-Distribution Characteristics 6

2.3 Psychographic Segmentation 7

2.4 Factors which determine user acceptance of online shopping 7

CHAPTER 3 RESEARCH METHODOLOGY 9

3.1 Research Framework 9

3.2 Exploratory Research Methodology 11

3.3 Limitations of the study 12

CHAPTER 4 DATA ANALYSIS AND RESULTS 13

4.1 Key findings from secondary research - consumer 13

4.2 Key findings from secondary research - Club21 e-Shop 14

4.3 Key findings from in-depth interview with consumer 15

CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 25

REFERENCES 27

APPENDICS 28

Appendix A: Example of Club 21 Facebook Page And Instragram Account 29

Appendix B: Discussion Guideline 30

Appendix C: Respondents’ Profile 32

Appendix D: Example of Content Session In Club 21 E-Shop 33

Appendix E: Example of Brand List Available In Club 21 E-Shop 34

Appendix F: Example of Product Pricing Strategy 35

Appendix G: Example of Club 21 E-Shop Packaging 37

Appendix H: Example of Outdoor Media Advertising Of Club E-Shop 38

BIOGRAPHY 39

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LIST OF TABLES

Tables Page

2.1 Factors which determine user acceptance of online shopping 8

3.1 Criteria groups of respondent 12

(5)

LIST OF FIGURES

Figures Page

1.1 Asia-Pacific HNWI Population, 2008 – 2013 (by market) 2

1.2 Asia-Pacific HNWI Wealth, 2008 – 2013 (by market) 2

3.1 Framework of online consumer behavior 10

1

CHAPTER 1

INTRODUCTION

For the luxury industry, Asia is considered as a huge market opportunity.

China market is the quickest growth in emerging markets for luxury brands while

South Korean is a trend-setter and great influencer of Asian marketing trends. For

Southeast Asia, Singapore, Malaysia and Thailand also has a room the growth. In the

recent year, most of luxury retails has become more globalization and found that they

decided to expand to emerging market. The new market entries, for instance, are

China, Indonesia, Kazakhstan, Malaysia, Pakistan and Thailand. (Shea, 2013)

With a reference to article “2014 annual global luxury study”, global

luxury market is estimated to reach 278 billion dollars in 2014. Personal luxury

goods, such as apparels, accessories and bags, are continued to buoy the market

leading by luxury accessories which gained 29 percent of market share with 4

percent of growth rate following by apparel and hard luxury which are next two

largest categories. For overall personal luxury category, retail channel is still growing

with 30% of market share by estimated. For physical store channel, consumers prefer

a monobrand (one brand) environment. In contrast, for online channel, consumers

prefer variety and assortment of product which mean they prefer buying in a

multi-brand e-environment. (BAIN & COMPANY, 2014)

According to Asia-Pacific Wealth report by Royal Bank of Canada and

Capgemini Consulting, the number of the population of HNWIs (High-Net-Worth-

Individuals) grew strongly by 9.2% in 2013 to 80k (See Figure 1.1), while wealth

grew by 11.6% to US$ 396 billion (See Figure 1.2)

The expansion of wealthy people in Thailand has brought sophisticated

style of living and drive strong demand of luxury goods. This recent year, many

luxury fashion brands opened their physical retails store in Bangkok such as Proenza

Schouler, Jil Sander, Miu Miu and more. For this reason, Thailand has indicated as

another opportunity for growing the luxury retail sector via the volume of tourist

shoppers and growing local middle class. In a global survey by MasterCard, it was

found that Bangkok visitor spending contributed to annual USD 14.4 billion dollars,

ranking 4th globally in visitor spending. (Ho, 2013)

2

Figure 1.1: Asia-Pacific HNWI Population, 2008 – 2013 (by market)

Source: Asian Wealth Report 2014 by Capgemini and Royal Bank of Canada Wealth

Management

Figure 1.2: Asia-Pacific HNWI Wealth, 2008 – 2013 (by market)

Source: Asian Wealth Report 2014 by Capgemini and Royal Bank of Canada Wealth

Management

3

For market context in Thailand, some of luxury brands like Prada,

Chanel and Dolce and Gabbana are wholly-owned subsidiaries of their parent

company and being fully operated by their headquarter with in-line global marketing

strategies. Another type of retails is operated by distributor like Club 21 and PP

Group which are the two leading of importer and distributor in luxury brands. The

strategy of this type company is to extend variety of brands with vertical and

horizontal expansion and supported by corporate strategy and strong customer loyalty

program.

Due to intensity of competition, luxury fashion brands in Thailand

are trying their best to increase brand exposure by adapting digital and social

media. While traditional media like Magazine advertising and direct mailer remain

important in their role to create brand awareness and direct engagement, Facebook

and Instagram are the new efficient and effective marketing tools, using for talking

about their product, influencing trends with celebrities’ endorsement and enhancing

customer relationship.

For every brands, their official social media account and website are fully

operated by headquarter to represent global strategies. On the other hand, the brands

under distribution by distributors will have additional benefits of local marketing

strategies operated by those distributors. An example of successful in leveraging the

power of social media is Club 21 (Thailand)’s Instagram and Facebook account

which is reached more than 138K of Instagram followers and 157K of Facebook

subscribers which is about 5 times higher compared to PP Group (See Appendix

A)

Apart from social media expansion, e-commerce trend in Thailand is now

growing and projected to expand by 20-30 percent annually. In 2013, online trading

was valued at 22.6 billion dollars, of which about 20 per cent or Bt140 billion was

business-to-customers and the rest business-to- business and business-to-government

(Pratruangkrai, 2014)

The interesting point of this case is how Club 21 (Thailand) could step

forward in the right way on leveraging digital media and e-commerce channel and

make it as a strong tool for driving sales and enhancing shopping experience.

4

1.1 Problem and Significant of the study

Obviously, internet is a perfect way in increasing brand awareness at low

cost and it’s now a key tool for luxury fashion brand to provide necessary brand

content, brand stories and brand actuality. On the other hand, selling luxury

product through e-commerce channel would be extremely risk as it might reduce

dream value of the brand, for instance, the case of Burberry and Louise Vuitton in

2011. Each of them had millions of followers on Facebook. Of the Burberry

followers, 30 percent of them went to Burberry website to make a purchase while only

3 percent of Louise Vuitton did. For the interesting point in this case, Burberry

customers do not go to Burberry shop while Louise Vuitton’s customers still prefer to

visit and make a purchase at physical store (KAPFERER & BASTIEN, 2012)

One of the discussion issues in this day is about the relationship

between digital and luxury brand which is love-and-hate. Brands a l s o wonder

how to use digital channel without damaging their brand identity and their core

value of luxury and sophistication (Anne-Flore Maman Larraufie &

KOURDOUGHLI, 2014) while digital channel is an essential part of modern

world in order to capture young consumer who is digital expert.

The challenge of Club 21 (Thailand) is how to embrace digital channel

in the professional way and lead to positive impact in increasing sales turnover,

brand exposure , brand image and customer relationships.

Another point to be concerned is about how Club 21 (Thailand) should

set up the e-commerce strategy to avoid the confliction of exclusive shopping

experience as well as to avoid sales cannibalization with physical retails.

The result of this study will be useful for Club 21 (Thailand) to

understand their customers’ online behavior and important factors that have

significant affect to each decision stage. The result of this study is benefit to

marketers for using this study to applying to Club 21 (Thailand) online marketing

strategies in order to increase sales and enhance customer shopping experience.

5

1.2 Objectives of research

To improve Club 21 (Thailand) digital marketing strategy, this research is

aimed to get a better understanding of consumer by to explore what is the key

benefit that consumer are seeking from online shopping as well as understand their

online shopping behavior towards luxury fashion items.

Specifically, the research objectives are:

1. To study consumer’s online purchasing behavior on luxury fashion

products.

2. To study consumer’s key decision criteria and perceived benefit in

online shopping for luxury fashion products.

6

CHAPTER 2

LITERATURE REVIEW

In this study, literature review is an analysis of past theoretical research

and journal articles which researcher used to be guideline and general idea in

understanding consumer behavior framework of this study.

2.1 Priceless Engagement Concept

The real power of digital is its ability to fully engage the consumer in

brand experience. The internet does not only play a big part in luxury decision making

but also gives opportunity to explore the potential of selling more luxury goods.

Above 70 percent of luxury buyer looks information from website or application

along their path to purchase and source of inspiration. The drivers and barriers for

online purchasing luxury fashion, for instance, the desire to physically see and touch

the product and the risk of buying imitations instead of genuine products. However,

there are also strong reasons to buy luxury online. Convenient of purchasing

whenever and wherever is perceived by approximately 53% of consumer.

Additionally, consumer also perceive that online purchasing leads to better deals

(Chehab & Merks-Benjaminsen, 2013)

2.2 e-Distribution Characteristics

Customer have expectation towards e-commerce different from physical

store as customer view e-commerce as the combination of branded content,

storytelling, gaming and customization. Customer also uses the e-commerce as a

channel for comparing possibilities, low prices and discount and 24-hours-a-day

shopping possibilities. Finally, consumer still perceives e-commerce as risky of

online transactions and after sales services. (Anne-Flore Maman Larraufie &

KOURDOUGHLI, 2014)

7

2.3 Psychographic Segmentation

The marketing psychographic segmentation divides the customers into

groups according to personality characteristics, lifestyle, attitudes and values of the

potential consumers. People from the same demographic or ethnic group can exhibit

very different profiles.

The previous analysis of the Impact of collectivism and Confucian

values on luxury goods has shown several cultural criteria which can be used to

define the consumption behavior of customer with similar demographic, for

example, ‘Luxury intellectuals’ are not influenced by the trends.’ Luxury laggards’

are not sensitive to the luxury goods as such (low sense of luxury and fashion) because

their priority is the functionality side of the products. (Ferdinandi, 2014)

2.4 Factors which determine user acceptance of online shopping

Various major factors, that affect on user acceptance of online shopping,

have been studied in many previous studies. Personal perceived value, design of

website and consumer characteristics are factors that relate to consumer acceptant in

shopping which are presented in Table 2.1

Consumer characteristics involve personality traits like the knowledge of

the internet and the social environment (Li and Zhang, 2002), self-efficacy which

refers to one’s belief of his /her ability and means to successfully complete a certain

action (Perea y Monsuwé, Dellaert and de Ruyter, 2004), demographic profile which

contains variables like age, gender, education and income (Dholakia and Uusitalo,

2002), and last acceptance of new IT applications which refers to the user’s attitude

towards the adoption of IT (Al-Gahtani and King, 1999).

8

Table 2.1: Factors which determine user acceptance of online shopping

Factor Variables References

Con

sum

er c

hara

cter

istic

s Personality Traits O’Cass and Fenech, 2003; McCrae and Costa, 1997; Li and

Zhang, 2002

Self-Efficacy Eastin, 2002; Li and Zhang, 2002; Perea y Monsuwé, Dellaert

and de Ruyter, 2004; Bandura, 1997

Demographic Profiles

Koufaris, 2002; Park and Jun, 2003; Mutum and Ghazali,

2006; Dholakia and Uusitalo, 2002; Perea y Monsuwé, Dellaert

and de Ruyter, 2004

Acceptance Of New IT

Applications

Childers et al., 2001; Citrin et al., 2000; O’Cass and Fenech,

2003; Al-Gahtani and King, 1999

Pers

onal

per

ceiv

ed v

alue

s Perceived Danger

Eroglu, 1992; Pedersen and Nysveen, 2005; Mathews and

Healy, 2007; Cheng and Huang, 2007; Gupta, Su and Walter,

2004; Youn, 2005; Shergill and Chen, 2003; Ratchford,

Talukdar and Lee, 2001; Senecal 2000; Sukpanich and Chen

1999; Han, Ocker and Fjermestad, 2001; Li and Zhang, 2002

Perceived Convenience

Eastin, 2002; Eastlick and Feinberg, 1994; Lim and Dubinsky,

2004; Wang et al, 2005; Li, Kuo and Russell, 1999;

Wolfinbarger and Gilly, 2001

Perceived

Web Site Quality

O’Cass and Fenech, 2003; Shergill and Chen, 2003;

Wolfinbarger and Gilly, 2001; Gefen and Straub, 2000

Perceived Benefits Eastin, 2002; Childers et al, 2001; Bakos, 1991; England et al,

1999

Web

site

des

ign

Security

Belanger, Hiller and Smith, 2002; Liao and Cheung, 2001;

Ranganathan and Grandon, 2002; Swaminathan, Lepkowska-

White and Rao, 1999; Mummalaneni, 2005; Youn, 2005; Chou,

2007; Li and Zhang, 2002; Park and Kim, 2003; Kelly and

Erickson, 2004; Flavián and Guinalíu, 2006

Privacy

Belanger, Hiller and Smith 2002; Ranganathan and Grandon,

2002; Swaminathan, Lepkowska-White and Rao, 1999;

Dolnicar and Jordaan, 2006; Birring, 2007; Galanxhi-Janaqi

and Fui-Hoon Nah, 2004; Flavián and Guinalíu, 2006; Wang,

Lee and Wang, 1998

Product

Peterson, Balasubramanian and Bronnenberg, 1997; Perea y

Monsuwé, Dellaert and de Ruyter, 2004; Lian and Lin, 2008;

Bhatnager, Misra and Rao, 2000; Liao and Cheung, 2001;

9

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Framework

Framework of online consumer behavior that will be used for this

study is “Framework of online consumer behavior” (M., Cheung, Zhu, & Timothy

Kwong, 2003) which is a thorough literature review that examined a total 351 articles

in the area of online consumer behavior from 1944 to 2002. The model “Framework

of online consumer behavior” was developed from the base model of Intention,

Adoption and Continuance (MIAC) for online consumer behavior. According to the

article, this framework does not only provide a cohesive view of online consumer

behavior, but also set a good guidance for researchers in order to study online

consumer behavior.

Additionally, this framework also indicates five major spheres that

affect consumer decision in each stage, for instance, individual/consumer

characteristics, environmental influences, product/service characteristic, medium

characteristics and online merchant and intermediaries characteristics.

3.1.1 Individual/Consumer Characteristics

In this study, Individual/Consumer Characteristics refers the factors

specific to the consumer such as demographic, personality, value,

lifestyle, attitude, behavioral characteristics, motivation and experience.

3.1.2 Environmental Influences

Environmental factors like culture, social influences, peer influence and

mass media play an important role in affecting consumer purchasing

decision.

10

3.1.3 Product/Service Characteristics

Product/Service characteristics mainly refers to knowledge about product,

product type, frequency of purchase, tangibility, differentiation and price.

3.1.4 Medium Characteristics

Medium characteristics is relevant to an ease of use and navigation,

interface, network speed, commerce system security and reliability.

3.1.5 Online Merchants and Intermediaries Characteristics

Factors like services quality privacy, security control, brand reputation,

delivery/logistic and after sales service are attributes of Online Merchants

and Intermediaries Characteristics.

Figure 3.1: framework of online consumer behavior (M., Cheung, Zhu, & Timothy

Kwong, 2003)

11

3.2 Exploratory Research Methodology

3.2.1 Secondary Research about consumer

Secondary data will be collected related information regarding online

purchasing behavior on luxury fashion from published literatures and

researches and online articles.

3.2.2 Secondary Research about Club 21 e-shop

The researcher gathered data about Club 21 e-Shop with propose to

understand purchasing process from e-Shop and price compared to other e-Shop. In

addition, researcher collected Club 21’ promotion in terms of communication

activities in offline and online channels.

3.2.3 In-depth interview with consumer

The mixed approaches will used to obtain the data from respondents, for

example, face-to-face interview and telephone interview which rely on respondent’s

convenience to gather insightful information with discussion guideline (See appendix B).

The in-depth interview was conducted with 18 respondents.

To serve a very specific need of this study topic, researcher will use purposive

sampling method in order to select the right target of informants combining with

Snowballing sampling method for utilize respondent’s connection who are likely to have

the similar profile and match with researcher criteria. 18 - 24 of female respondents who

living in Bangkok will be asked for in-depth interview. The filter criteria are;

• Respondent age range is between 23 - 40 years old.

• Respondent need to have at least one time experience purchasing product

from Club 21 (Thailand) in the past 1 year.

• Respondent need to have experience in (any) online purchasing at least once

a year (during March 2014 – March 2015)

• Respondent is recruited equally in each group range to reduce bias of age

factor related to decision making criteria and attitude towards online

purchasing as presented in Table 3.2

12

Table 3.1: Criteria groups of respondent (See Appendix C for respondents’

profile)

Age 23 – 28

years old

29 – 33

years old

34 – 40

years old

Experience

Club 21 e-Shop 3 persons 3 persons 3 persons

None experience

Club 21 e-Shop 3 persons 3 persons 3 persons

3.3 Limitations of the study

Amount of time is a constraint in this research which limited researcher to

study consumer in only Bangkok area. From a practical point of view, this study could

not accurately represent Thai consumer. Thus, this research may not be able to use as

indicator of the perception and motivations for other geographical areas. Researcher

suggest that the future research should study consumer in other cities of Thailand to

explore to find more factors that affect to consumer online purchasing process on

luxury fashion items.

This research was study under context of luxury fashion that included any

products from apparels, footwear, handbags, jewelry and accessories. The findings

from consumer are based on generic idea of luxury fashion. The results of this study

could not use to generalize the whole industry of luxury products or other category of

luxury product.

Additionally, this research was conducted with only female consumer. As

a result, this study could not be able to accurately present consumer behavior in

overall of luxury consumer. Therefore, it would be worthy to take study to compare

how different of consumer decision making process in different gender in order to get

a better understanding in larger group of luxury consumer.

13

CHAPTER 4

DATA ANALYSIS AND RESULTS

4.1 Key findings from secondary research - consumer

Secondary data was collected from various sources to find related

information regarding online purchasing behavior on luxury fashion such as published

literatures, researches and online articles. As followings, key findings are found as the

same direction as a previous study “The Role of Digital Media in Strategic Luxury

Brand Communications in Thailand” (Srisiriwongchai, 2014)

• Traditional advertisement, such as print advertising in fashion magazine, ,

advertorial in magazine, outdoor billboard and in-mall posters, is still

being major marketing tools to enhancing brand awareness and

recognition.

• In recent years, digital media like facebook and instagram become more

powerful tool to create brand exposure among Thai consumer.

• According to the study, digital media still lacks of ability to lead

consumer to visit store as consumer still need sense of touch and feel.

• According to the study, the lack of touch and feel experience are key

barriers that discourage customers from online purchasing.

However, online channel still could be used as a tool to drive sales

through different approach, for example, better pricing and unique product offering

(McKinsey & Conpany, February 2015)

Additionally, from another study, “An Exploratory Study on Young Thai

Women Consumer Behavior toward Purchasing Luxury Fashion Brands” (Kamolwan

Tovikkai, 2010) shows that the actual need of buying luxury product is about

emotional value as Thai female consumers express their self-value by purchasing

luxury fashion brand to fulfill needs of uniqueness, conformity and vanity.

Additionally, Thai female consumers think that it is better to purchase luxury fashion

brand from foreign countries in terms of monetary value (cheaper) and emotional

value (fulfillment) which could be indicated as ethnocentrism is related factor to

luxury fashion purchase intention.

14

4.2 Key findings from secondary research - Club21 e-Shop

Club 21 e-shop was first time launched in 2012 across seven countries -

Singapore, Malaysia, Thailand, Indonesia, Brunei, Vietnam, the Philippines, Club 21

Online carries close to 70 brands for both men and women. A propose of the company

is to be multi-channel in order to make a commitment on delivering customer

experience not only complementing existing brick-and-mortar boutiques with

extensive fashion brands but also carries sought-after labels that are exclusive. The

site also currently hosts a series of engaging fashion editorial content that is refreshed

frequently to enhance customers’ experience. (See Appendix D)

Product Assortment: e-Shop offers variety of product category for both

women and men such as Apparel, Shoes, Handbags, Jewellery and Accessories as

well as variety of Brands which including 80 designer brand from around the world

(See Appendix E).

Price positioning: Nationality of brand is a factor that affects pricing due

to the imported taxes. Price of U.S. brand like Alexander Wang selling in Club 21 e-

Shop is about 3 - 5 % higher than same item selling in Net-A-Porter and Alexander

Wang e-store On the other hand, price of brand imported from Italy, such as Marni,

selling in Club 21 e-shop is about 3 – 5% cheaper than same item selling in Net-A-

porter and Farfetch but it is 10% higher than the same product selling in Marni’s e-

shop. Finally, Club 21 is using strategy in offering ‘free-shipping’ service and ‘taxes

and duty estimation’ for consumer consideration (See Appendix F).

Packaging sophisticated packaging with box tied with white ribbon (See

Appendix G)

Communication: Facebook, Instagram, Magazine Advertising, Online

advertising banner, Outdoor Advertising such as Skytrain Wrapping (See Appendix

H), Sale promotion activities.

Loyalty Program: Integration between offline and online channel, Club 21

members could collect membership points from either brick-and-mortar or e-shop.

15

4.3 Key findings from in-depth interview with consumer

The information that collected from consumer interview session provides

contains variety of responses due to the open-ended question set in the discussion

guideline. Obviously, key findings from the consumers who had experience with Club

21 e-shop are different from customers who are non-experience on Club 21 e-shop.

For ease of understanding on result interpretation, the data that collected

from respondents are reported under the framework of research study as specified in

chapter 3 of this study. Regarding to the “Framework of online consumer behavior” as

indicated to be study framework in the previous part, key findings will be summarized

in terms of factor that affect consumer online decision in each stage.

Consumer Online Purchase Intention

From consumer interview, online security is the most key concern of

consumer and main barrier of online purchase intention. Thai consumers are still

afraid on personal privacy and hackers. Weakness of internet law in Thailand is a

main drawback that prevent consumer to purchase online. Consumers still have

seriously concern and question towards their personal information safety. Hacking

and lack of personal contact are major causes that increase consumer’s anxiety and

reduce online purchase intention.

Inability to feel product is one of another limitation that perceived by

consumers. Most of consumers give a reason to shop in offline channel because they

want to touch and feel product before buying. Many of the consumers also want to

have check product by themselves which is not possible in online purchasing.

“I have never bought brand name bag from online channel or website

because I want to check the bag first so if there’s any problem on the bag

I can change to the new one immediately” Manita A., 30, Business Owner

“I want to try on first especially bags and shoes as I want to make sure

that they fit on me in both sizing and styling” Napak C, 29, Employee

16

Many of consumers also give a reason that they would like to use the

product right after purchasing while purchasing product online requires timing on

delivery. Delay in delivery is also a factor that reduce online buying intention

Although these limitations have caused consumer to be wary about

ordering products online, other factors that help enhancing online purchase intention

are also found from this study. All factors are summarized in five domain areas which

suggested in research framework in previous chapter of this study.

Consumer characteristic that affect online purchase intention

In the study of consumer online purchase intention, researcher found that

consumer’s knowledge on fashion is important factors that could be considered as a

determinant of consumer online purchase intention.

The prior stage of decision making process, consumers tend to collect

product information based on personal experience and stop to collect when amount of

information is reached to a certain level. From the in-depth interview, consumers with

high fashion knowledge tend to have higher intention to buy luxury fashion product

from online channel than consumers with lower fashion knowledge. Consumers with

high fashion knowledge, e.g. knowing well on many new designer brands or knowing

the elements of genuine items, are likely to have purchase intention as they aware of

the value of the product in terms of emotional value.

Additionally, consumer who has high fashion knowledge would be likely

to visit e-shop that has curated offer, for example, the site that selling brands or items

that hard to find or nobody else sell online. According to the interview sessions, some

respondent stated that ‘Net-A-Porter’ is one of their favorite online site since it offers

many new designer brands that do not sell in Thailand so they always enter the site to

update information. Interestingly, consumers with better knowledge are less

persuaded by pricing and tend to rely on product quality. However, detail on pricing

factor is thoroughly described in product/service characteristic that affect online

purchasing intention.

“I love shopping luxury fashion items online because I could find many

unique items. Most of the product I want does not available in Thailand”

Ms. Paradee T., 40, Senior Manager

17

On the other hand, consumers with lower fashion knowledge would rather

to buy luxury fashion items from physical store than e-shop as they need more

information about product, and especially, product trial or physical examination

before making purchase decision. Consumers with lower fashion knowledge treat

online site as a source of information more than another store. As a result, they tend to

visit brand’s social media channel like facebook page and Instagram more than

brand’s e-shop.

Another point of view regarding online behavior, most of respondents or

17 from 18 of respondents use search engines to find specific product or online site.

Even they know the web address, they still put the web name in the search engines

instead of directly type URL of the page.

“I google everything I want to know even I know the web address … I still

type them on google” Pattinee C., 38, Manager

“Actually I do not remember exactly what the web addresses are…

Google knows everything even I misspelled some character so it’s easier

to search things in google. Nasanan L., 26, Business Owner

Environmental influences that affect online purchase intention

Social influence, especially in social media, is a strong factor in

stimulating consumer purchase intention. From in-depth interview, all of respondents

are already followers of at least one fashion bloggers in facebook page or Instagram

Top reasons suggested by respondents of blogger following are to get style or mix and

match advices and to get inspiration, trends and brand updates.

Social media is not only being a useful source of information but also

being a powerful channel to stimulate purchase intention on luxury fashion product

from either offline or online channel. All of respondents also admitted they need to

buy some new products if that product has a large number of exposures in social

media. Some statements on this topic were, “I want to buy a new bag of Proenza

Schouler because I usually see them in various street style pictures and used by

various fashion bloggers.

18

On the other side, customer reviews and recommendation from other user

in e-commerce site do not stimulate purchase intention and have a potential lead to

negative effect on prestige brand image of luxury brand.

Product / Service characteristics that affect online purchase intention

Consumers have intention to various ranges of luxury fashion product

online, particularly, with product categories that do not needed to be tried such as

handbags, scarves and small leather goods. For the product that needed to fit in size

like apparels and footwear, consumers have less intention to buy these product

categories from online channel.

Special price offer is a key factor in stimulating online purchase intention

among price oriented consumer group. According to interview session, 10 of 18

respondents said that special price offer on luxury products encourage intention to

buy.

Personalized product, exclusive designer brands and limited edition of

product are a great factor to create intention to buy luxury fashion items online. To

give some example, about 44% of respondent responded that they used to consider

ordering personalized luxury product like bags and scarves from websites. About 61%

of respondents said that they considered purchasing limited edition of products from

e-shop since those products do not available in Thailand.

Medium characteristic affect online purchase intention

Consumers mentioned about lack of trust in online transactions which is

main reason for the abhorrence of online shopping. Interestingly, beautiful web design

could help reducing perceived risk and positively influence purchase intention. With a

reference to interview session, 13 of 18 respondents have a same agreement that

beautiful and sophisticated web design stimulate their need on product showing in the

website. Additionally, 8 from 18 respondents used to purchase products from websites

were perceived as beautiful design.

19

Image is more important than text content as a tool to create brand

awareness and interest. According to the interview, 14 of 18 respondents admitted that

they want to purchase new luxury fashion item by seeing images and pay less

attention to product description or text content.

Online merchants and intermediaries characteristic affect online

purchase intention

Multichannel merchants are perceived to have lower risk than pure play

e-merchant due to the fact that online business is intangible. Consumers are seeking

for tangible elements to create trust which online vendor reputation could be

represented by brick-and-mortar stores of the same company. Trustworthy that

perceived in offline channel could help lowering transaction risk and reduce customer

anxiety.

The interesting factors that influencing purchasing intention are free

shipping, fast delivery and return policy. As 38% of respondents shared that these

service offers help stimulating intention to buy as it help reduce perceived risks

towards buying luxury fashion items online. In addition, the most common and major

barrier affecting purchase intention is a tariff, i.e., a tax on imports.

Special price, as mentioned in the previous page, is a key factor in

stimulating purchase intention among price-oriented consumers, however, incentives

and special offer are more interesting among fashion-forward consumer. Incentives

from credit card, point redemption and special gift with purchase are more likely to be

interested by fashion-forward consumer due to product price is not a main criteria on

purchasing fashion items among this group.

Consumer Online Purchase (Adoption)

Key findings in this stage also could be defined in five main areas that

affect consumer acceptance of online shopping which are:

20

Consumer characteristic that affect online purchase (Adoption)

According to the research, various demographic profiles of respondents

were recruited. The consumer characteristic in terms of age, lifestyle and occupation

are not related to consumer attitude towards online shopping. Respondents who are

housewives and working women may have the same attitude towards online shopping

and their shopping decision while personal perceived value are more likely to influent

consumer purchase decision.

Personal perceived value, for instance, variety of products and time

savings are main characteristics that lead to online purchase decision. With a

reference to 5 of 18 respondents, they tend to shop with multi-brand site than single-

brand site or tend to shop with e-shop that offers a wide range of product for them.

“Mostly, I visit website like Club21, Net-A-Porter and Farfetch to explore

new product. I think it is more convenience for me as they contain many

brands and products. I don’t have to waste my time to search for each

single brand in search engine” Paradee Ti,40, Senior Manager

For consumers who value in time saving, 4 of 18 respondents are likely to

shop from e-shop with a reason of ability to buy whenever and wherever at their most

convenience. Another reason is an ease and shorten time in finding a specific product

they want.

“I’m very busy with my jobs so I do not have so much time for going

shopping, especially, brand name store that closed at 8pm so I often buy

things from e-shop, bags and shoes, anytime I want ” Pasrapa K., 31,

Employee.

“I feel more private and more easier for go shopping online as I can

compare product of each brand by just clicking” Apichaya P., 30,

Employee

21

Environment influences that affect online purchase (Adoption)

Findings indicate that environmental factors like comments of reference

group and requirement of product in festive / special occasion, e.g. Valentine’s Day

and Christmas Day, influence consumer to have impulse buying. Brand’s

advertisements during festive season also help to recall needs. Peers and family

pressure help to motivate consumers to make a faster purchase decision in both online

and offline channels.

Product/Service characteristic that affect online purchase (Adoption)

Luxury or exclusive experience becomes less important to consumer.

Consumers are changing their point of views towards shopping at physical store.

Luxury consumers value on easy shopping and product experience more than luxury

shopping experience with special treatment. With a reference to interview session, 14

of 18 respondents said that product trial and product inspection are key benefits that

they are looking from purchasing at physical store while 4 from 18 respondents said

that they expect exclusive service and luxury shopping experience at physical stores.

The cost of shipping is one of barrier of online purchase intention,

consumer are more motivated by free shipping or delivery cost. According to the

interview, 5 of 18 respondents have a negative perception towards brand that charge

for delivery fee as they feel overcharged by merchant.

“Free shipping offer is one of the reasons that I decided to buy a bag

from Club21 e-Shop” Chananant .W, 27, Student

“I’d rather walk to store than pay for shipping fee. It’s already very

expensive” Napak .C, 29, Employee

Medium characteristic that affect online purchase (Adoption)

Consumers tend to purchase product from online site that easily to find in

search engine. Consumers also expect that even they type shorten or misspelled name

of website, the site should be appear the first in the search engine. It could be

concluded that consistent of site findability and accessibility are important factors in

adoption process.

22

Speed of purchase or shorter in payment process is a major medium

characteristic affecting purchase decision. Complicated payment process, amount of

information that needed to fill in and lengthy process, all of these medium

characteristics, cause irritation as well as reduce satisfaction and interrupt online

transaction. On the other hand, too short of payment procedure is indicated as less

secure of payment process.

Product elements, including, product assortment, product features and

product presentation, affect directly to the consumer experience. Product images with

less text might adequate to create purchase intention among luxury consumer.

However, in the purchase decision stage, consumers are seeking for large amount of

information including size, color, composition and price to make purchase decision.

Varies angle of product image, closed up tool and styling guide are also perceived by

consumer as important web elements to motivate purchase decision.

Interestingly, having local language on site is less important factor to

consumer. The site which using English language leads to positive perception towards

brands in terms of represents luxury image and credibility as international merchant.

From the study, 12 of 18 respondents prefer to buy luxury fashion item from website

that using English more than using Thai.

Finally, aesthetics design of the website is considerable factor for

encouraging consumer buying decision. Creative and beautiful elements of online site

attract consumer and increase pleasant of online shopping experience. From the

interview session, 10 of 18 respondents said that they used to exit the site that they

feel less attractive on web design without consideration.

Online Merchants and Intermediaries characteristic that affect

online purchase (Adoption)

Multi-channel merchant are perceived higher reputation that web pure-

play merchant. The good reputation of physical store helps eliminate risk in online

purchasing, however, does not significantly help in increasing rate of switching

channel. The results from none experience customer group show that consumer

perceive credibility in Club 21 e-shop but perceive less relative value in buying from

online channel. For none experience with Club 21 e-Shop consumers, physical store is

23

the best source of product information as they want to see actual product and try on

product before buying. Physical store is critically important to them in term of reduce

risk towards product quality and utility.

Concrete policy is one of factor of buying consideration, i.e., clear

ordering, clear payment term and clear refunding procedures help consumer reduce

risk of online transaction and enhance positive perception in term of brand credibility.

Consumer Online Repurchase (Continuance)

In continuance stage, positive shopping experience on first time

purchasing lead to consumer satisfaction and lead to continuance in next purchase

respectively. Consumer satisfaction and repurchase decision on luxury online

shopping depends on few issues which are described as follows:

Consumer characteristic that affect online repurchase

The e-shop that could delivery good shopping experience will likely

become top-of-mind page for the next time search. Customers who have good

experience tend to have more intention on repurchasing and become fans of the page

by subscribing to receive newsletter, follow the social media site of the brand or

merchant. Consumers who have a good experience with website are likely to be more

open-mined to receive news and updates from merchant. Moreover, those consumers

tend to tell their friend or family member about the website and brand.

Product/Service characteristic that affect online repurchase

Sophisticated packaging enhances satisfaction and good perception

towards brand which lead to repurchase intention. Key finding was found that

sophisticated package indicated good service quality and brand reputation.

Short time of delivery process increase impression and intention on

repurchase. Delivery timing within five day is perceived as usual while delivery

timing over 7 days is unacceptable and delivery timing within 3 days creates

satisfaction.

24

“I’m so impressed with Net-A-Porter. I think the packaging is so

beautiful, my order was packed in black box and black ribbon which is

look so premium and it took only 3 days for delivery” Thanomkhwan C.,

37,Business Owner

Medium characteristic that affect online repurchase

Key findings from interview with respondents were found that medium

characteristic like ease of navigation, friendly user interaction and straightforward

payment process make website more enjoyable to browse and lead to repeat visits.

Some customers gave an example of their favorite website like VIP ‘things you may

like’ or ‘promotion notification of wish list item’ enhance good perception towards e-

merchant and encourage them to buy.

Website / Online site update also related to brand image in consumer

point of view. According to interview, every respondent spend time on surfing

internet to check fashion news, fashion update at least 1 hour per day. Websites /

Online sites that keep updated on content are likely to be more visited by consumer.

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CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

This study is aimed to get a better understanding of consumer about their

online purchase on luxury fashion products in the stage of Intention, Adoption and

Continuance. Therefore, from the findings, it was found that consumer buying

decision dependent on various factors.

Many barriers are found from the study and there are key factors that

have caused consumer to prefer buying product from brick-and-mortar channel more

than e-commerce.

Firstly, the drawbacks of online purchasing intention among Thai female

consumer are perceived risk on security, privacy and product imitation. Security of

online payment system and personal privacy are still major concerns among Thai

luxury female consumers. Consumers still have seriously concern about the safety of

their personal information. Secondly, Inability to feel product and inability to have to

product immediately are also the key barriers that prevent Thai consumer to purchase

fashion items online.

According to the key findings, multichannel merchants are perceived to

have lower risk than pure play e-merchant due to the fact that online business is

intangible. Therefore, Club 21 is taking advantage as the first multichannel luxury

retailer that offer offline and online stores. Club 21 should leverage brand reputation

across channel and advertise through existing over 50 brick-and-mortar stores, for

example, point-of-sale advertising at brick-and-mortar store, sales script or physical e-

store card that could deliver to potential consumers who visit the store.

Varies of factors also found that could help reducing risk such as aesthetic

of the web design, product delivery time shortening, security of the transaction also

enhance online purchase intention. Club 21 also could consider taking strong

partnership with trustworthy financial institution, Internet Security Software and

shipping company in order to leverage their reputation and increase rate of security in

each point.

This study indicated distinct opportunity to drive sales in distinct group of

consumer. Club 21 could use pricing approach to appeal price-oriented consumer and

26

offer personalized items or unique designer brands that aren’t available elsewhere

online to appeal fashion-forward people.

Amazon.com has been grown up substantially in the recent years and it is

good example of using innovative system to collect customer preference. This

innovative system could identify pattern and trend of consumer preferences. When

such information is identified, system suggests item that customer has not purchased

but might want. Not only sales has been increased but also customer satisfaction by

offering additional product they may like. (Ulric Gelinas, 2010). This innovation

system could be applied with Club 21e-shop for collection and analysis customer

purchase and searching data pattern in different group such as price-oriented

consumer and fashion-forward consumer.

Study also indicates that search engine is powerful most pathway

connecting consumer and merchant together. Search engine are perceived as the most

convenient tool and source of information that should not be neglected. Most of

online consumers value convenience so that Club 21 should offer function to serve

this point.

In this study, all findings emphasize important marketing considerations

for all luxury players. Multichannel merchants have to become accept that all

channels are not working as mutually exclusive but integrated. Apart from advertising

communication to enhance brand awareness and exposure, innovation to reduce

perceived risk among consumer, exceptionally well-web design and superior online

experience lead to customer satisfaction are key elements for digital marketer to

concern.

27

REFERENCES Anne-Flore Maman Larraufie, P., & Kourdoughli, A. (2014). The E-semiotics of

Luxury. Retrieved December 18, 2014, from marketing-trends-congress.com: http://www.marketing-trendscongress.com/archives/2014/pages/PDF/268.pdf

Bain & Company. (2014, October 14). 2014 annual global luxury study proclaims the rise of the consumer as luxury markets settle in for lower, but more sustainable long-term growth. Retrieved December 2014, 14, from Bain.com: http://www.bain.com/about/press/press- releases/bain-and-companys-2014-annual-global-luxury-study.aspx

Chehab, M., & Merks-Benjaminsen, J. (2013, September). A Look at Luxury Shoppers Around the World. Retrieved December 14, 2014, from thinkwithgoogle.com: https://www.thinkwithgoogle.com/articles/luxury-shoppers-around-world.html

Ferdinandi, M. (2014). Profiling The Luxury Good. Casia Center. Ho, T. (2013). Thailand poised as the next luxury shopping destination. Asian Pulse

Feature Report , 1. Kamolwan Tovikkai, W. J. (2010). An Exploratory Study on Young Thai Women

Consumer Behavior toward Purchasing Luxury Fashion Brands. Kapferer, J. N., & Bastien, V. (2012). The Luxury Strategy Break the Rule of

Marketing to Build Luxury Brand. United State: Kogan Page Limited. M., C., Cheung, K., Zhu, L., & Timothy Kwong. (2003, June 9-11). Online Consumer

Behavior: A Review and Agenda for. 16th Bled eCommerce Conference , p. 201.

McKinsey & Conpany. (February 2015). The opportunity in luxury online fashion. McKinsey & Conpany.

Ratruangkrai, P. (2014, August 26 26). Thai firms urged to adapt to e-commerce trend. Retrieved December 9, 2014, from nationmultimedia.com: http://www.nationmultimedia.com/business/Thai-firms-urged-to-adapt-to-e-commerce-trend-30241739.html

Shea, E. (2013, July 15). Global retailers entered 25 new markets in Q1: Accenture. Retrieved December 12, 2014, from luxurydaily.com: http://www.luxurydaily.com/global-retailers-entered-25-new- markets-in-q1-accenture/

Srisiriwongchai, A. (2014). The Role Of Digital Media In Strategic Luxury Brand Communications In Thailand. Chulalongkorn University.

Taylor-Powell, E., & Renner, M. (2003). Analyzing Qualitatve Data. Wisconsin: Cooperative Extension Publishing Operations, University of Wisconsin System.

Ulric Gelinas, R. D. (2010). Accounting Information Systems. South-Western Cengage Learning.

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APPENDICS

29

APPENDIX A EXAMPLE OF CLUB 21 (THAILAND) FACEBOOK PAGE AND

INSTRAGRAM ACCOUNT Club 21 (Thailand) Facebook and Instagram Account as of December 18, 2014 Source: https://www.facebook.com/club21thailand http://instagram.com/club21thailand

EXAMPLE PP GROUP FACEBOOK PAGE AND INSTRAGRAM ACCOUNT PP Group Facebook and Instagram Account as of December 18, 2014 Source: https://www.facebook.com/ppgroupthailand?fref=nf P Group Instagram Account as of December 18, 2014

30

APPENDIX B DISCUSSION GUIDELINE

Interview questions for respondents related to the individual study topic -

Luxury Fashion Brands in Thailand: A Study of On-Line Purchase Behavior 1. Demographic profile

1.1. Age 1.2. Level of education 1.3. Level of Income 1.4. Occupation

2. How many hours per day that you spend time on internet 3. How do you describe yourself in term of fashion? (Trend Follower /

Fashionista (Fashion Influencer) / Unique and Independent / etc.) 4. What is your favorite brand of luxury fashion? Why? 5. Please name luxury fashion brand(s) that you buy most often? Why? 6. What kind of product category that you buy the most (Apparel /

Footwear / Accessories / Bag / etc.) (Ranked) 7. How often do you buy luxury fashion brand? 8. How often do you buy luxury fashion brand from Club 21? 9. What is/are the most important factor(s) that affect your purchasing

decision? (Brand / Price / Special Promotion / Trends / Member Privilege / etc.)

10. Do you always update the fashion trend? How often? 11. Which source of information that you use for updating fashion trends? 12. Do you have any favorite fashion website / blogs / facebook page /

Instagram / etc.? 13. What is/are the reason of buying luxury fashion item? 14. What is/are your concern of buying luxury fashion items? 15. Do you search for product information when you want to buy a luxury

fashion item? How? And which one is your most favorite? Why? 16. How long do you need to consider buying a luxury fashion item? 17. What is the first thing come up in your mind when you think about

buying luxury fashion items from e-channel? 18. Can you name any e-commerce or e-shop you know that is/are selling

luxury fashion item? 19. How do you know them? 20. Have you ever purchased or considered purchasing luxury fashion

item from e-shop? How? Why? 21. What is/are you concern about buying luxury fashion items trough e-shop? 22. Where do you get information to help you make a decision on

purchases from e-shop? 23. What do you expect from purchasing luxury fashion item from e-shop? 24. What is the main reason or factor that causes you to decide to buy

from e-shop? 25. What is/are benefit that you are seeking for? 26. As usually, how long do you need to consider buying a luxury fashion

item from e-shop / e-commerce channel?

31

27. Where do you usually go for shopping luxury fashion item? 28. How much do you spend per one time purchase? 29. What is/are satisfaction that you receive from provider 30. What do you expect from retailers in the online checkout and delivery

experience? 31. Have you ever heard of Club 21 e-shop? 32. Have you ever visit Club 21 e-shop site? 33. What do you think about Club21 e-shop? 34. Do you follow Club 21 facebook Page and Instagram? Why? 35. How important are returns in the overall online shopping experience? 36. How is multichannel retailing changing consumer purchasing and

returns expectations? 37. How are mobile and social media channels changing your shopping

habits and expectations?

32

APPENDIX C RESPONDENTS’ PROFILE

Age 23 – 28 years old 29 – 33 years old 34 – 40 years old

Expe

rienc

e C

lub

21 e

-Sho

p

Ms. Vipaporn Suppanitwong, 27, Employee Ms. Chananant Wongkunanant, 27, Student Ms. Nasanan Lohapipatanakul, 26, Business Owner

Ms. Pasrapa Kalyangkura, 31, Employee Mrs. Tareerat Sapsrithong, 32, Housewife Ms. Apichaya Prapapan, 30, Employee

Mrs. Patchara Pongpipat, 35, Housewife Ms. Paradee Tiyavacharapong, 40, Senior Manager Ms. Pattinee Cholvanich, 38, Manager

Non

e ex

perie

nce

Clu

b 21

e-

Shop

Ms. Virin Kumlertluck, 27, Flight Attendant Ms. Katevisut Sukpisan 28, Student Ms. Natthinee Jitkrongtam, 28, Doctor

Ms. Manita Amornsirisomboon, 30, Business Owner

Ms. Napak Chumprom, 29, Employee Ms. Nantanee Prasitjutrakul, 29, Employee

Ms.Thanomkhwan Chutithanawong, 37, Business Owner Mrs. Tidarat Vaitayaporn, 40, Senior Manager Mrs. Penrawee Permkitpaisarn, 35, Director

,

33

APPENDIX D EXAMPLE OF CLUB 21 (THAILAND)

CONTENT SESSION IN CLUB 21 E-SHOP

Source: http://eshop.club21global.com/th-en/

34

APPENDIX E EXAMPLE OF BRAND LIST AVAILABLE IN CLUB 21 E-SHOP

1. 1 BY O'2ND 2. 10 CROSBY DEREK LAM 3. 3.1 PHILLIP LIM 4. ALEXANDER WANG 5. AMI 6. BALENCIAGA 7. BAO BAO ISSEY MIYAKE 8. BLACKBARRETT 9. BUILDING BLOCK 10. CALVIN KLEIN platinum 11. CARVEN 12. CHRISTOPHER KANE 13. CITIZENS OF HUMANITY 14. CO 15. COMME des GARCONS GIRL 16. COMME des GARCONS SHIRT 17. COMME des GARCONS

WALLET 18. COMMON PROJECTS 19. COUNTY OF MILAN 20. DANIELE MICHETTI 21. DOLCE & GABBANA 22. DRIES VAN NOTEN 23. EMANUELE BICOCCHI 24. FALLON 25. FLAMINGOS 26. FRAME DENIM 27. J.W. ANDERSON 28. JIL SANDER NAVY 29. JONATHAN SAUNDERS 30. JOOMI LIM 31. JUUN.J 32. LANVIN 33. LES CERISES DE MARS 34. MAISON MARGIELA 35. MAISON TAKUYA 36. MAIYET 37. MARIA BLACK JEWELLERY 38. MARKUS LUPFER 39. MARNI 40. McQ ALEXANDER McQUEEN 41. MIHARAYASUHIRO

42. MM6 MAISON MARGIELA 43. MOTHER OF PEARL 44. MR. HARE 45. MSGM 46. MULBERRY 47. MYSUELLY BAGS 48. NEIL BARRETT 49. O'2ND 50. ORLEBAR BROWN 51. OSTWALD HELGASON 52. PAUL SMITH ACCESSORIES 53. PAUL SMITH BLACK 54. PLEATS PLEASE ISSEY

MIYAKE 55. PROENZA SCHOULER 56. PS PAUL SMITH 57. PUBLIC SCHOOL 58. RAG & BONE 59. RHIE 60. RICK OWENS 61. RICK OWENS DRKSHDW 62. RICK OWENS X ADIDAS 63. RISTO 64. RODARTE X SUPERGA 65. SACAI 66. SACAI LUCK 67. SIMONE ROCHA X J BRAND 68. SOPHIE HULME 69. STELLA McCARTNEY 70. SUECOMMA BONNIE 71. SUNO 72. T BY ALEXANDER WANG 73. TABITHA SIMMONS 74. THAKOON ADDITION 75. THOM BROWNE 76. TWISTY PARALLEL

UNIVERSE 77. UNDERCOVER 78. VICTORIA BECKHAM DENIM 79. WANT LES ESSENTIELS DE

LA VIE 80. WOOYOUNGMI

35

APPENDIX F EXAMPLE OF PRODUCT PRICING STRATEGY BETWEEN

Club21, Net-A-Porter and Farfetch

36

APPENDIX F (CONTINUED) EXAMPLE OF PRODUCT PRICING STRATEGY BETWEEN

Club21, Net-A-Porter and Farfetch

37

APPENDIX G EXAMPLE OF CLUB 21 E-SHOP PACKAGING

Source: http://www.dhanis.net/2012/09/club21-eshop.html

38

APPENDIX H EXAMPLE OF OUTDOOR MEDIA ADVERTISING OF CLUB E-SHOP

39

BIOGRAPHY

Name MISS.KARNCHANOK ITTHIROJANAKUL Date of birth January 9, 1988 Education attainment Bachelor Degree in Communication Arts, Chulalongkorn University Work Position Assistant Marketing Communication Manager Club 21 (Thailand)