Fashion collaboration effects on consumer response and customer equity in global luxury and SPA brand marketing

Today's consumers tend to focus on uniqueness and on personal and intangible values when making purchase decisions. Thus, companies undertake such innovative strategies as brand collaborations, especially in the fashion industry where brands collaborate with artists, celebrities or other brands to raise awareness, build relationships and achieve competitive advantage through differentiation. However, researchers have not yet focused specifically on luxury and SPA brands to examine how certain fashion collaboration types affect consumer responses and long-term company–customer relationships. In this study, the authors consider luxury and SPA fashion brand collaboration cases and defines their impacts on consumer response and relationships in terms of customer equity drivers, customer lifetime value and customer loyalty. The paper concludes with several academic and industry-related implications to enable further growth of this profitable and innovative brand strategy.