LB5235 APPLIED RESEARCH PROJECT

ASSESSMENT TASK 3 CRITICAL ANALYSIS: RESEARCH

REPORT
“LUXURY SHOPPING BY GLOBAL CONSUMERS IN THE
DIGITAL SPACE: A SYSTEMATIC LITERATURE REVIEW”

RESPECTIVE TUTOR

Dr. K. Thirumaran

PRESENTED BY
GROUP MEMBERS STUDENT ID
Deep Hitendra Thakar 14021693
Ming Yu 13980743
Muhammad Rizky Ramadhan 14065331
Weitong Mo 13824938
Zeyu Bian 13829350
 PEER GROUP ASSESSMENT

Peer group assessment is a part of the grading system and is designed to prevent ‘free-riding’
and encourage everyone to participate fully in group work.
Please write the names of each of your group members and indicate what percentage of the
final mark you feel they deserve. Please note that the percentage of the contributions does not
necessarily have to equal and there is a need to consider the kind of workloads agreed upon by
the members and each members’ strengths and weaknesses. The following rating system is
provided to help guide the assessment process.

Description of Explanation: Levels of participation and contribution

Rating
Excellent:80+ Consistently carried more than his/her fair share of the workload in all areas.
Very good: 70+ Consistently did what he/she was supposed to do, very well prepared and
cooperative
Usually did what he/she was supposed to do, well prepared and cooperative
Reasonable:66 Often did what he/she was supposed to do, reasonably prepared and
cooperative
Marginal:50 Sometimes failed to show up or complete tasks, rarely prepared, slow to
respond to emails.
Deficient:45 Often failed to show up or complete tasks, rarely prepared, did not respond to
some emails
Unsatisfactory:40 Consistently failed to show up or complete tasks, unprepared, little or no
communication
Superficial:20 Practically no participation
No show:0 No participation at all

In a team that worked well, everyone would receive between 70% to 100% of the total
mark.

Name Percent of total mark Signature

Deep Hitendra Thakar 100% Deep

Ming Yu 100% Ming
Muhammad Rizky Ramadhan 100% Rizky
Weitong Mo 100% Weitong
Zeyu Bian 100% Zeyu
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 Table of Contents

ABSTRACT................................................................................................................................. 4
1. INTRODUCTION................................................................................................................. 4
2. METHODOLOGY................................................................................................................5
2.1. DATA SOURCES AND SEARCH STRATEGIES..............................................................5
2.2. SELECTION OF STUDIES...............................................................................................6
2.3. DATA EXTRACTION PROCESS AND QUALITY ASSESSMENT...................................6
2.4. ELIGIBILITY CRITERIAS..............................................................................................6
2.5. CONSTITUTION OF THE ANALYSIS.............................................................................6
2.6. CHARACTERISTICS OF INDCLUDED STUDIES...........................................................8
3. FINDINGS.......................................................................................................................... 10
3.1. DIGITAL PRESENCE & TECHNOLOGICAL ADVANCEMENT IN THE LUXURY
SHOPPPING.............................................................................................................................. 18
3.1.1. DIGITALIZATION ON LUXURY SHOPPING SHAPING CONSUMER BEHAVIOUR....18
3.1.2. INCREASE IN PURCHASING RATE...............................................................................19
3.1.3. INTENSIFICATION IN CONSUMERS’ CONVINCEMENT.............................................19
3.2. ISSUES AND CHALLENGES.........................................................................................22
3.2.1. ISSUES ON DIGITALIZATION OF LUXURY SHOPPING.........................................23
3.2.2. CHALLENGES ON THE DIGITALIZATION ON LUXURY SHOPPING....................24
4. DISCUSSIONS.................................................................................................................... 24
5. CONCLUSION................................................................................................................... 26
LIMITATION............................................................................................................................ 27
REFERENCES........................................................................................................................... 28

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 ABSTRACT
Globalization underlines the business process and its value chain as it interlinks with the
industrial revolution. Furthermore, the paper projects the vision in customer’s experience by
adopting the advanced technological elements in luxury shopping and how it controls partially in
the luxury purchases’ process. This particular concept disrupts the conventional business practice
in luxury shopping in a greater impact on the consumers' behaviors, particularly in the global
spectrum due to its high enthusiasm and higher GDP (gross domestic products) countries. The
paper’s objectives circulate on providing concrete and clear-cut concepts and ideas on how
significant the digital space impacts luxury shopping and how it disrupts the consumers’ lifestyle
and shopping ordeals. A systematic literature review is applied by collecting the peer-reviewed
journals stored in the One Search aggregator and applying the predetermined filters to construct
more relevant, legitimate, and prevalent ideas, and conducting an intensive sorting process
through keywords and its content analysis for a month of scanning and reviewing by all the
authors. Deriving on the findings from the systematic literature review we intend to define and
determine the singular conceptualization which highlights the target audiences in the decision-
making process and underlines the key role of online and digital technologies in improving the
luxury retail growth and being a trendsetter for the future world. Thus, technologies like
augmented reality, virtual reality, Big Data, and IoT (internet-of-things) integration could assist
and captivate the supreme consumers in utilizing the technologies to shift an ultramodern
service.
Keywords: social media platforms, digitalization, luxury shopping, fashion brands, consumer’s
behavior, decision-making process, technological advancements, online shopping, the luxury
market

1. INTRODUCTION

Luxury shopping presents a kind of power, satisfaction, and hierarchy to luxury customers. One
of the biggest reasons why they would like to spend so much money is the exclusive and world
well-known brand names. Luxuries need to be scarce, along with that, they must have a very
high price and the prices are always on the rise. The global mega-brands usually have dozens of
sub-brands under them to take over more market shares and to influence more customers’
purchasing decisions. Today, digitalization has enabled luxury brands to be more accessible to
global customers and digital advances keep influencing them day by day. To be mentioned,
many small cities lack luxury brand counters or physical stores but there are still a lot of
potential luxury buyers and demands. Almost no one would bother going dozens of, even
hundreds of miles away to other bigger metropolitans for only just a shopping experience.
Especially under the circumstance of the global pandemic, purchasing everything including
luxury goods on digital space and having them delivered by the door has become the major
choice. Online shopping has so far flourished and massive numbers of brands have set up their
online flagship stores to attract a great number of customers. Thanks to the great development of
technological skills, there are online dressing room buttons, Virtual Reality, online try-on

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buttons, and so forth. Also, usually digital stores own a more comprehensive stock than a single
physical store. Not only online retail stores but also social media like Facebook, Instagram,
WeChat, Weibo platform send notifications and eye-catching advertisements to influence
people’s consuming behaviors and boost sales (Dauriz, et al., 2014). Website designers and
capitalists try their best to interest as many digital surfers as they could. The purpose of this
research is to identify the possible future outlook of luxury shopping with the presence of today’s
digital era (Hennigs et al., 2012). The paper intends to adopt a systematic literature review
methodology to analyze relevant literature peer-reviewed journals in the recent ten years and to
find similarities and possible problem resolution. Some articles are stating that social media play
a great important role in promulgating sales, and luxury brand information. They engage people
to buy and to keep buying back more products. The focused field of the studies for the selected
journal articles encompass business marketing, the fashion industry, consumer behavior, social
media platforms, applied brand management, and digital technology.

The paper will systematically analyze the literature articles and define the future outlook of
luxury shopping in today’s digital macro environment. Moreover, the result of the project is
probably showing that the overall outlook of online luxury shopping has a bright future, but also
with certain drawbacks, and the result offers better opportunities for purchasers to have better
purchasing experiences.

Research Question
 How does digitization and technology advancement bring significance and various
impacts to the luxury shopping market?

Research Objectives
 To examine implications of luxury digitization marketing on the global customers, such
as purchase intentions and acculturation
 Also to examine the drawbacks and risks of online luxury shopping such as flawed items,
counterfeits, slow and inefficient delivery systems, etc.

2. METHODOLOGY

The paper has followed the PRISMA (Preferred reporting items for systematic reviews)
guidelines to determine the findings. PRISMA helps to understand the importance of a report,
what the author did, and what they found out. Systematic reviews, therefore, generate various
types of knowledge for different users of reviews (Tetzlaff et al., 2020). PRISMA provides strict
guidelines and methodology which was followed in this paper. This helped to contribute quality
assurance to the paper which was followed along the way. A review protocol was developed,
describing the article selection criteria, search strategy, data extraction, and the data analysis
process (Bardin, 2011). The paper proposed to adopt PRISMA (Preferred Reporting Items for
Systematic Reviews and Meta-Analyses) as the basis in our systematic literature review and it
sets the checklist critical review per journal articles in addressing and assuring the quality and
perfect set of revisions.

2.1. DATA SOURCES AND SEARCH STRATEGIES

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We systematically searched the journals from one search database aggregator between the years
2011-2021. This search engine consists of a highly valued database for luxury shopping and
digitalization. The paper identified peer-reviewed journals that were written only in English
excluding the book chapters, reviews, and conference proceedings. Two researchers manually
searched the database to identify as many eligible studies as possible. Broadening the research by
including keywords like luxury shopping, marketing, social media, digital space, and technology.
Selected journals were then assessed through their abstracts and titles.  

2.2. SELECTION OF STUDIES

Titles and abstracts were reviewed by all 5 researchers who used the mentioned criteria and
standards to determine the eligibility of the paper which should be included in the study.
Moreover, all the 26 articles were reviewed for including the articles in the study. 

2.3. DATA EXTRACTION PROCESS AND QUALITY ASSESSMENT

The extraction process was applied and conducted by all the five reviewers independently
namely for all the collected 474 journal studies and openly discussed and properly giving each
opinion whether the papers are suitable in constructing the evidence and formulating the key
ideas which will be used in describing the findings and further investigation into the discussion.
Although there are some debates and critiques incurred, however, all the researchers agree and
solve any discrepancies through democratic ways as possible. 

2.4. ELIGIBILITY CRITERIA

Carefully selecting and sorting out the relatable articles, this paper using three major rounds in
the process as the first one would be an analysis of the titles and abstracts by the three
researchers with the adequacy of judgments in contents and its research outcomes. In the
subsequent process, it will be independently reviewed by all five researchers in assuring the
appropriateness and legitimacy usage in the systematic literature review as the basis on the
judgment would link back to the research question. Eliminating and reducing the journal search
that is published before 2011 is one of the strategies to present and establish the current analysis.
In the final round, all five researchers come to a decision-making process in verifying the final
sorted articles in which these comprehensively examined to include those articles for our study.
The articles which did not address our specific research questions were excluded from the
paper.            

2.5. CONSTITUTION OF THE ANALYSIS

 
The presented articles were organized by the language, year of publication, and reviewing Peer-
reviewed journals. The selected articles were then coded with colors, where green meant relevant
articles, red meant nonrelevant, and purple meant similar articles. The strategies and procedure in
the analysis were followed by Bardin.

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The search conducted from the database aggregator provided a total of 6744 articles. Different
filters were applied to this search according to the dates which were selected between 2011-
2021, selecting only peer-reviewed articles and removing the articles which were not in the
English language.

Figure 1. Prisma Diagram for the Paper’s Analysis

2.6. CHARACTERISTICS OF INCLUDED STUDIES

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 Figure 2. Frequency of publications per year

Deriving from the collected academic journal articles related to the main theme, the paper
intended to present and expounds the numbers and detailed graphs which reflect the reviewer’s
comprehension and critical investigation on filtering and sorting the related papers.

Based on Figure. 2. It can be evaluated that most of the journals we used are those studies that
were published around 2018 to 2021 with a total of 18 articles which made more than 50% of our
collected papers for our systematic review analysis. Furthermore, this paper aspires to emphasize
and propose the theory with the most current trend. Most of the journals that we filtered are on
qualitative analysis and some of them are assessed and researched through quantitative analysis. 

Assessing through Figure. 3 it can be defined that one paper represents one field of study which
in the graph’s content mainly stresses fashion, electronic commerce, advertising, brand
management, and information, communication, technology, and consumer behavior. 

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 Figure 3. Frequency of paper per journal

In the subsequent part, the paper presents the table to describe the focused field of studies for the
collected journal articles. Looking through Figure 4. the focuses are much on business fashion
marketing, business, applied brand management, economics, consumers, franchising, digital
media, luxuries, and social media platforms, scenario planning, and so forth. 

Field of Knowledge N

Business Marketing 4

Fashion Industry 9

Consumer Behaviour 2

Luxury Shopping 3

Social Media Platforms 2

Digital Technology 4

Applied Brand Management 2

Figure 4. Table on The Field of Knowledge

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 3. FINDINGS

Detailing our findings, the paper intends and aims to present the table of 26 articles as a sample
for our systematic literature review process which will be later used as a base theme in
formulating the technical mind maps as more in-depth and bringing forth the academic strength
in presentation.

No. Authors and Years Themes Websites/Resources Findings

1. Athwal, N., Istanbulluoglu, The allure of luxury Luxury shopping User activities, from observing
D., & McCormack, S. E. brands’ social media options to commenting and liking
(2019) activities: a uses and luxury brand content, can
gratifications satisfy two types of needs:
perspective. emotional needs and cognitive
Information needs. The two emotional
Technology & People needs met by luxury brand
social media marketing
activities are aesthetics and
entertainment. Cognitive needs
are met through the functional
use of social media as an
information source.
2. Dasgupta, S., & Grover, P. IMPACT OF Luxury shopping This has been quantitatively
(2019). DIGITAL options measured using the correlation
STRATEGIES ON test on SPSS to show the
CONSUMER connection. The research
DECISION results show that social media
JOURNEY: SPECIAL. marketing is a very important
Academy of Marketing tool for online apparel brand
Studies marketers. It can be used to
lead new fashions, announce
sales, and most importantly
generate positive reviews and
word of mouth because these
reviews are the most important
Sought after.
3. Kizgin, H., Jamal, A., Dey, The Impact of Social Social media influence Social media has become an
B. L., & Rana, N. P. Media on Consumers’ important and effective means
(2018). Acculturation and to help and recognize the
Purchase Intentions. activities and exchanges
between colleagues,

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 consumers, and organizations
that transcend time and space
constraints. Studies have
shown that social media is an
important means of cultural
change, as well as a driving
force for cultural adaptation
strategies and consumer
choices, and has made a
significant contribution to
consumer cultural adaptation
research.
4. Loureiro, S. M. C., Engaging fashion Luxury shopping Desire is the most important
Maximiano, M., & consumers in social options driving factor for consumer
Panchapakesan, P. (2018). media: the case of participation.
luxury brands.
5. Jain, V., & Schultz, D. E. How do digital Buying propensity In emerging countries such as
(2019). platforms influence India, consumers are tech-
luxury purchase savvy and can easily connect
behavior in India? to digital media platforms.
They even use these platforms
to buy luxury goods. Two
qualitative studies were
conducted on young Indian
consumers because they are
the heaviest users of digital
platforms and the most
frequent buyers of luxury
brands.
6. Hennigs, N., Wiedmann, Luxury Brands in the Social media options Different groups of people
K.-P., & Klarmann, C. Digital Age – have different choices of social
(2012). Exclusivity versus media because of their
Ubiquity.  different cultural backgrounds
and education levels. For
example, minorities have their
specific cultural backgrounds,
and they differ from Western
countries in choosing social
media.
7. Kluge, P. N., Königsfeld, J. Luxury web Social media options The luxury homepage design is

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 A., Fassnacht, M., & atmospherics: an different from the traditional
Mitschke, F. (2013). examination of homepage design in four main
homepage design. aspects: the use of a darker
background color, the use of
larger or full-screen space to
present stage content, the
horizontal navigation bar, and
the drastic reduction of
elements. Second, the
experimental results show that
the luxury homepage design
significantly affects
consumers’ perception of
conspicuousness and
uniqueness
8. Lee, J. E., Hur, S., & Visual communication Luxury shopping When people are familiar with
Watkins, B. (2018). of luxury fashion options classic luxury brands, their
brands on social media: perception of luxury is
effects of visual stronger than more complex
complexity and brand images. However, when the
familiarity. brand is unfamiliar, a complex
image can reflect a sense of
luxury more than a simple
image. Further, the results
show the sequential mediating
effect of perception of luxury
goods and product attitudes on
the relationship between visual
complexity and behavioral
intention (that is, purchase
intention and intention to share
images).

9. Pentina, I., Guilloux, V., & Exploring Social Luxury shopping Luxury marketers can
Micu, A. C. (2018). Media Engagement options strengthen the required brand
Behaviors in the associations by providing high-
Context of Luxury quality visual content, thereby
Brands. maintaining their unique

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 position in social media.
10. Passavanti, R., Pantano, E., The use of new Market influence The luxury goods sales
Priporas, C. V., & technologies for industry has fully realized the
Verteramo, S. (2020). corporate marketing benefits of using new media as
communication in marketing communication
luxury retailing: tools, but the effective use of
Preliminary findings. these new media is still
limited.
11. Von Wachenfeldt, P. The Mediation of Buying propensity The dissemination of luxury
(2019). Luxury Brands in goods and traditional ideas in
Digital Storytelling. contemporary popular media is
contemporary. The one that is
often exposed in popular
media, especially on
Instagram. The world
represented in Instagram and
later TV shows distorted the
desire or life experience of
luxury into something unique
and unique, turning it into an
object of kitsch.
12. Liu, S., Perry, P., & The implications of Market influence WeChat better helps sales staff
Gadzinski, G. (2018). digital marketing on to connect with customers.
WeChat for luxury WeChat can help employees
fashion brands in better handle relationships with
China. customers and help customers
solve problems.
13. Yu, S., Hudders, L., & Targeting the luxury Market influence Luxury marketers should not
Cauberghe, V. (2017). consumer. Journal of worry about the shortening of
Fashion Marketing and the distance with consumers
Management due to the use of the Internet.
A shorter distance does not
mean less mystery, but a closer
relationship with consumers.
Luxury brands do not have to
be as indifferent and
pretentious as an indifferent
robots. A closer relationship
with consumers will bring
more positive effects.

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14. De Koning, M. (2019). Fashion and Luxury
Product Franchising in
the European Digital
Landscape.
15. Ngai, J., & Cho, E. (2012). The young luxury
consumers in China
16. Yeoman, I., & McMahon- The future of luxury:
Beattie, U. (2018). mega drivers, new
faces and scenarios
17. Silva, E., Hassani, H., Googling fashion:
Madsen, D., & Gee, L. Forecasting fashion
(2019). consumer behavior
using Google Trends
Market influence The digitalization of luxury
sales makes up for some of the
shortcomings of traditional
shopping. On the other hand,
the development of
digitalization has also brought
some crises to society. The
government needs to establish
laws and regulations to
regulate the market.
Buying propensity Using the Chinese market as
the example to analyze which
section will impact Chinese
customers buying luxury.
Meanwhile, we identify how to
do digital works in the Chinese
market.
Market influence The future outlook on the
luxury market will be many
probes in increase wealth of
the consumers, the bourgeoise
status in influencing the
growth of the luxury market,
and importance of the
experience as a source of
luxury entertainment, and the
distinctive value possessed by
the luxury concept in the
shopping experience.
Market influence Using digital programs to
analyze fashion consumption
behavior will become the
mainstream business analysis
model for the future. For
example like google trends,
import specific formulas, and
data, we can more accurately
analyze the popular
commodity data in the current
market and make effective
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 predictions on the future
market through the data.
Nowadays many brand
companies have begun to use
these digital programs to plan
for their markets.

18. Martín-Consuegra, D., Exploring relationships Market influence Examine the moderating effect
Faraoni, M., Díaz, E., & among brand of social media on the
Ranfagni, S. (2018). credibility, purchase relationship between brand
intention and social credibility, brand image and
media for fashion purchase intention of fashion
brands: A conditional brands is a good way to To
mediation model analyze whether social media
contributes to the development
of the luxury market. Social
media has created a new field
and partnership between the
company and its customers.
Base on the data research we
find brand credibility has a
positive influence on brand
image and purchase. Secondly,
brand credibility has a direct
effect on purchase intention
through the mediating effects
of brand image.

19. Yu, S., Hudders, L., & Selling the luxury Market influence Many luxury brands and online
Cauberghe, V. (2018). online: a new business retailers are struggling with
model to sell luxury how to sell luxury products
online. The huge profits
brought by online sales are
also accompanied by huge
risks. As online sales have
become the mainstream
market, Many brands have
tried many different ways to
avoid risks like adding a
quality label to a luxury

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 product. At the same time,
After-sales service,
transportation procedures, and
other processes are
accompanied by network sales
for this change and upgrade.
From this point of view, online
sales have changed the overall
business process of many
brands to ensure product
quality and customer
satisfaction.

20. Maman Larraufie, A., & The e-semiotics of Technology In this paper we find the e-
Kourdoughli, A. (2014). luxury semiotics systems brand new
changes have taken place in
the promotion of luxury
brands. This e-semiotics
system makes each luxury
brand more unique and
recognizable. Base on the
research The world-renowned
luxury brands have their
unique logos, and these logos
have also become effective
means of brand promotion.
21. Díaz, E., Martín- A persuasive-based Technology For this article, we find the
Consuegra, D., & Estelami, latent class website (informativeness,
H. (2016). segmentation analysis usability, credibility,
of luxury brand inspiration, involvement, and
websites reciprocity) and find out how
does it impact the luxury
market. Development of
corporate social responsibility
in several areas: environment,
society, training procedures
that provide more information
about the ethical principles of
the organization. There are
three key factors for website

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 visual design, involvement,
and reciprocity variables
represent the motivating
factors. These three factors
have an important impact on
luxury brands, which can
directly affect the attitude
toward the luxury site and
increase online purchase
intention.

22. Mohr, I. (2013) The Impact of Social Social Media The purpose of the paper is to
Media on the Fashion address social media as a
Industry like Facebook marketing strategy to manage
using on the luxury market shrinkage in fashion
market and luxury markets. We base
on the attendees of Mercedes
Benz Fashion Week in New
York to do the research, we
find the social media has
encouraged customers to
interact with brands. Another
point is The information
provided by social media has a
great influence on the
judgment of consumers.
23. Fazeli, Z., Shukla, P., & Digital buying Digital Consumer’s Assessing the various of
Perks, K. (2019). behavior: The role of Behavior impacts consumers’ luxury
regulatory fit and self‐ purchasing intention through
construal in online diverse digital advertisement
luxury goods purchase efforts and how the in-store
intentions would react to such disruptions
and evaluating the interaction
in the digital space.
24. Kim, H. Y., Lee, Y., The digital atmosphere Consumer’s Behavior The digital nuance shaping the
Cho, E., & Jung, Y. J. of fashion retail stores. consumer’s decision-making
(2020). process in fashion retail stores
by the process of AIDSAS or
attention-interest-desire-
search-action-share as how it

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 can be so prominent in the
luxury fashion retailers,
25. Rovai, S. (2018). Digitalization, luxury Market Influence Assessing the issues and
fashion and challenges on the luxury
“Chineseness”: The digitalization towards its
influence of the exclusivity by adopting China
Chinese context for as a specific target location of
luxury brands and the the research, it implies that
online luxury digital carries a greater impact
consumers experience in increasing digital literacy
and awareness in the digital
market.
26. Shen, B., & Bissell, K. Social media, social Social Media Social media is a critical
(2013). me: A content analysis platform in enhancing
of beauty companies’ awareness and prolonging
use of Facebook in brand loyalty as it is utilized as
marketing and the platform in exchanging
branding information, in the paper,
evaluates different high-end
makeup brands as it discusses
the various digital marketing in
bringing viral marketing as the
main framework.

3.1. DIGITAL PRESENCE & TECHNOLOGICAL ADVANCEMENT IN THE LUXURY

SHOPPING

In this part, the paper attempts to propose the key themes which comprised of the key role of
social media marketing catered in different social media platforms such as Facebook, Instagram,
TikTok, and YouTube in bring forth advancing the luxury fashion brands and also to
accommodate the critical information on the products information and features. Moreover, this
section would assess and evaluate how the digital marketing strategies could lure the prospective
consumers in purchasing the products and shifting the consumer behavior and how it increases
the retention and engagement rate in the market

3.1.1. DIGITALIZATION ON LUXURY SHOPPING SHAPING CONSUMER

BEHAVIOUR

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The whole globe’s luxury markets continue to be ever-growing and gradually to be strong and
competitive. People are getting used to purchasing not only daily commodities but also luxury
products online (Athwal et al., 2019). Usually, a large luxury brand has hundreds of sub-brands
to have a “central attack” on customers. As an example, Christian Dior, Tiffany & Co are all
subsidiaries under the LVMH (Moët Hennessy Louis Vuitton) Group (Loureiro et al., 2018; Von
Wachenfeldt, 2019). Alongside digital franchises, the top brands, online store managers can get
extra time-saving and money-saving since they do not need to physically show up in these stores
(Kim et al., 2020; Ngai & Cho, 2012). They could focus more on jobs with fewer distractions.
Besides, one of the concluded studies in the paper determining the digital platforms influence
luxury purchase behavior in India, based on multiple consumers’ interviews, the researchers have
developed a cyclical framework that digital media fulfill the need of virtual enjoyment,
aspirations, and lifestyle (Jain, 2019). However, digital shopping does have some drawbacks, of
course. It could not offer the same immersive experience as people in physical places (Liu et al.,
2018).

3.1.2. INCREASE IN PURCHASING RATE

The world has to acknowledge that Chinese people donate the most revenue to the luxury
shopping industry with such a big population base and fashion awareness (Ngai & Cho, 2012;
Rovai et al., 2018). The millennials and the youth are the main force of consumption largely
because they are the principal body of social media users (Dasgupta & Grover, 2018; Kizgin et
al., 2018). They are quite active on TikTok, Webo and they keep posting moments much more
frequently than the older group. The well-known Chinese “double eleven” shopping festival
refers to the online promotion day on November the 11th every year. The revenue of Alibaba
Platform peaked at up to 40 billion US dollars on a single day (Rovai, 2018). The shopping
website will set up a big data system to monitor the content people frequently browse and the
products of interest, and continue to push the items that may be attractive to everyone, so that
their shopping carts are full. As the top, one social media application used by Chinese people,
paying bills, shopping, and calling taxis can be simply achieved in the WeChat platform. With
this frequent and active application and social media platforms, users can be hit by a blizzard of
luxury brands and items in all sizes, shapes, and colors. Stuff like pop-up advertisements, and
unavoidable notifications provide extreme convenience for luxury marketing (Passavanti et al.,
2020).

3.1.3. INTENSIFICATION IN CONSUMERS’ CONVINCEMENT

Today, with such a comprehensive delivery system, friendly online salespersons, password
protection structure, and free return strategies, consumers feel a great deal of satisfaction and a
sense of safety. Furthermore, items in physical retail stores are limited, while the digital official
website sets out thousands of delicate luxuries. Even more successful, luxury brands nowadays
would like to use terms such as “environmentally friendly” products and “sustainable”
organizational culture to touch the customers. This paper initiated an investigation on how

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beauty brands employ social media to increase brand awareness and reinforce brand loyalty. The
key point is to underline how social media changed the traditional marketing model. Based on
the research, only a few luxury cosmetics brands chose to use social media to communicate with
their customers in the past times (Shen & Bissell, 2013). Nowadays, the technology has
intensified the beauty and fashion brands to further adopt diverse social media platforms
especially Facebook and Instagram, also, combining with viral Marketing to strengthen their
brand. Strengthen direct and potential contact with customers.

In this part, we base on the 26 articles to do the research and summarize the following findings
through a technical mind map in Figure 5. We focus on luxury shopping and conclude 4 main
sections: Digital marketing, Digital space, Technology, and Social media.

Figure 5. Technical Mind map for Digital Presence and Technological Advancement

At the current pace, digital marketing has become the main market method in luxury shopping.
Based on our findings, many luxury brands have developed in the digital market such as Chanel,
Burberry, Louis Vuitton, and Givenchy. They develop a new method for their business and use it
to extend their market reach. Compared to the traditional market, the digital market shows more
efficient and wider coverage. For this method, online shopping has become the main method of
luxury brands. (De Koning, 2019; Martin-Consuegra et al., 2018). Online shopping is good for
advertising development yet continuous advertising input is a new method for the luxury market.
For example, in the recent Chinese market, it reflects that although digital consumption will not
be accepted by all consumers in the luxury goods sector, it is undeniable that with the continuous
increase in the number of Chinese Internet users, digitization is gradually becoming the main
consumption mode because it is faster in the transaction process and more convenient. At the
same time, luxury goods manufacturers have also found that due to China's large population,
using digital markets helps them reach more customers and increase sales. Therefore, they are
also increasing investment in the digital market to get more profits. On the other hand, customer
relationship management is the main point in digital marketing. As the research digital marketing
has created new customer relationships. This customer relationship has been transformed from
reality to the virtual space supported by the internet. During this transition, both the guests and
the company are constantly learning and adapting to this new model that deriving from the data
entries reputation issues and product quality is underlining the main reasons of the digitalization
in the luxury shopping process (Jain & Schultz, 2019).

20
Henceforth, the enterprises are now starting to create a new system: e-semiotics systems. This e-
semiotics system makes each luxury brand more unique and recognizable (Maman-Larraufie &
Kourdoughli, 2014). The world-renowned luxury brands have their unique logos, and these logos
have also become effective means of brand promotion. Meanwhile, the digital space has made
great changes in this area, it changed the traditional semiotics to the e-semiotics. Strengthening
the connection with customers and accelerate the speed of promotion contrary to the traditional
method, although some actual contacts of the guests are reduced, the selectivity and contrast of
the guests are increased. (Shen & Bissell, 2013)
 
The subsequent main idea would be in technology. Another main finding from these references
is due to the presence of new technologies and increasingly digital markets. the customer begins
to desire and expect the best online buying experience. This trend creates many companies have
to change and sifting the original business model. Digital commerce truly defines either success
or failure in the fashion industry. Luxury companies need to build and maintain an exclusive
brand image to win the competition in the digital market. Thus, companies need to use digital
systems to more comprehensively collect customer preferences, interests, and other data. The
digital market has spread and emerged to become a prominent global market. For instance, the
3D projection, Virtual Reality (VR), advancing the AR (Augmented Reality) platforms, and
website design (Diaz et al., 2016). These technologies are all used in the luxury market.

The critical value in using digital programs is to analyze and assessing fashion consumption
behavior as it will become the mainstream business analysis model for the future. The usage in
Google Trend would import specific formulas and data as it can be able to do an accurate
analysis of the popular commodity data in the current market nuance, and make effective
predictions on the future market through the real-time data (Fazeli, 2019; Silva et al., 2019;
Yeoman & McMahon-Beattie, 2018). Nowadays many brand companies have begun to use these
digital programs to plan and forecast their markets. Moreover, digital technology not only
directly participates in the operation of the market, but also provides many auxiliary programs to
make the market operation completer and more efficient. It shows digital technology has made a
good contribution to the luxury market.
 
The third key concept would be social media marketing as it is defined as a strategy in utilizing
both free posts and paid advertisements on social media sites to connect with your target market
and build your brand (Yu et al., 2017). Examining the moderating effect of social media on the
relationship between brand credibility, brand image and purchase intention of fashion brands is a
good strategy to analyze whether social media contributes to the development of the luxury
market. The transpiring and emerging social media platforms will be equally contributing to the
luxury market as they will be set as a future tool and important media in marketing operations
(Yeoman & Beattie, 2018; Yu et al., 2017). Besides, Social media has created a new atmosphere
in collaboration and partnership between the company and its customers. Based on the data
research the paper found brand credibility has a positive influence on brand image and purchase.
Secondly, brand credibility has a direct effect on purchase intention through the mediating
effects of brand image (Mohr, 2013).

The fourth main idea concept is the digital space which refers to what is displayed on the screen
of a digital device (e.g. laptops, computers, tablets, or smartphones). What can be displayed in

21
digital spaces is vast and diverse, and can take countless forms. The home screen of the device,
applications (or applications), movies, photos, and website all occupy digital space. Based on the
systematic literature review, Digital space is a concluding concept and ideology for all the three
sections the paper has mentioned. Digital space has great changes and impacts that made to the
luxury goods market, such as changing the original business model, customer relationships,
purchasing methods, and supply relationships. In the findings, the digital reformations have
become apparent for the luxury goods enterprise to advance their business. In a sample scenario,
it will answer what kind of opportunities does VR present to luxury brands which in this sense
the further research and development also innovation in the field has been limited. Brands such
as Christian Dior and Tommy Hilfiger have dabbled, intending to give their customers an extra
incentive to visit their stores. Another brand, for instance, Dior has brought Dior Eyes – it's very
own VR headset with built-in 3D sounds – and launched it in-stores last June with content that
allowed viewers to explore behind the scenes at their ready-to-wear fashion shows. (Altarteer, et
al., 2013).

3.2. ISSUES AND CHALLENGES

With the ubiquitous digital media entering people's lives it alters the way people search for
information before purchasing has been interpreted as a tremendous phenomenon. Traditional
consumers usually rely on word-of-mouth recommendations among people before purchasing
products. However, due to the advancement of technology and digitalization consumers now
choose products primarily because of advertising on digital media, especially social media
platforms (Dasgupta & Grover, 2019; Rovai, 2018). Alongside the development of digitalization,
social media has become an essential and effective means in luxury marketing. Exploiting the
market through social media can help luxury brands transcend time and space limitations in the
activities and exchanges between colleagues, consumers, and organizations. Although scholars
have published articles before the study of this article acknowledging the role of social media as
a promoter of cultural change, the role of social media in influencing consumer choice is still
unknown. This section
will evaluate what kind of
issues and challenges that
digital media brings to
people's luxury shopping,
including the influence of
digitalization on people's
buying tendency and the
development and design
of luxury web pages.

22
 Figure. 6
Technical Mind Map for Issues and Challenges

3.2.1. ISSUES ON DIGITALIZATION OF LUXURY SHOPPING

The definition of luxury is a consumer product with unique, scarce, and rare characteristics
beyond the scope of people's needs for survival and development. Consumers as luxury goods
also have their judgments and choices regarding luxury purchases (Yu et al., 2018). The sales of
luxury goods rely on products that give them high value and are willing to pay a premium. To let
this part of the consumer group understand and convey information, recently, this kind of
advertising has been extended to social media. Social media is a general term that includes
various digital platforms, tools for marketers and brand managers to achieve specific brand
goals. One strategy for communicating brand identity is to provide visual brand identity
touchpoints. These are visual sensory clues, including logos, colors, slogans, and slogans
provided to consumers with unique brand associations. This is to build a stronger brand identity
to increase the company's visibility and revenue. Social media represents a form of "own" media
that allows organizations to create and distribute content featuring their brands and products.
Over the past ten years, these platforms have developed to include social networking sites (such
as Facebook and Instagram), popular among young people. Among them, Instagram, Pinterest,
and Snapchat are some social media sites with the fastest-growing number of followers on the
homepage, thus proving that visual content is the key. However, not everyone will follow the
same social media pages. According to the research of the article, it is found that some groups
have their specific cultural backgrounds, so they also have a tendency to choose one social
media. For example, some ethnic minorities (Lee et al., 2018). They have their social groups and
also have a cultural tendency to be collectivist. Generally speaking, ethnic minority consumers
prefer to use their native language to communicate with others on social media, which affects the
influence of consumption choices (Jain & Schultz, 2019; Kizgin et al., 2018).

Therefore, some luxury goods will compare the homepage of the social media platform with the
traditional homepage design with a more sense of design and will make appropriate adjustments
according to the local culture. A good homepage and design can increase the visibility of a
luxury brand, thereby attracting more people to browse the homepage (Diza et al., 2016; Pentina
et al., 2018). Consumers of luxury brands expect luxury products to provide the highest quality
products in the relevant market. They infer whether the brand is in line with their preferences by
browsing its homepage on social media. By using high-quality media content and specific design
elements, such as colors, fonts, luxury brand homepages have greater visual appeal and beauty

23
than traditional homepages (Kluge et al., 2013). Therefore, the luxury homepage design will
increase people's awareness of product quality because the luxury homepage design can improve
the perceived quality of luxury brands. For luxury brands, designing a social media homepage
that conforms to the brand culture and history while also attracting attention is a challenge
brought by digitalization.

Although, digitalization has brought some negative effects to people, such as system and fault
errors in virtual systems. There are cyber-attacks and personal information and data leakage in
luxury shopping. Especially financial fraud and spam due to data breaches (Yu et al., 2018).
Spamming also impacting the prospected consumers; lives most directly. A large number of e-
mails distributed by luxury brands have caused a large number of people to disseminate
(Maman- Larraufie & Kourdoughli, 2014). Spam has caused congestion of the mail server and
reduced the operation of the entire network. At the same time, spam may also lead to the
disclosure of customers’ privacy and increase hackers’ secrets. For example, a rich website was
scammed, leading to information leakage. Viruses cause people's computers to be paralyzed
(Yang, 2015).

3.2.2. CHALLENGES ON THE DIGITALIZATION OF LUXURY SHOPPING

The social media brought about by digitalization has brought a new way of promotion and sales
for luxury shopping, but at the same time because of the limitations of social media. The
promotion of social media and the popularity of online shopping has caused some people to lose
the experience of buying luxury goods on-site. The primary reason why some consumers prefer
to shop in physical stores is to personally view, experience, and test products before buying.
There is a site where people can go to make sure the product meets their requirements. For
example, the size and color of the product to dispel the doubts of consumers and help complete
the sale. Seeing things in person can also reduce the risk of returned products due to incorrect
size/color/material. At the same time, shopping in luxury stores can get the clerk's quality service
to customers and get professional advice when choosing products. Some people buy luxury
goods not only for goods but also to experience excellent sales services (Bo Dai et al.,2014;
Mohr, 2013; Yu et al., 2018).
Furthermore, the younger generation can better adapt to the convenience of the digital
generation, such as online shopping and homepage promotion on social media. They can get
enough information to help them choose products. This has led to the need for luxury brands to
consider two different consumer needs: the purchase demand from social media and the purchase
demand in the on-site store. From the perspective of luxury goods sales, how to balance the
needs of the two without increasing high operating costs is the challenge and problem that luxury
goods need to face in the current digital age (Thekkat & Anandkumar, 2021l Rovai, 2018).
Moreover, advertising luxury goods on social media may exaggerate product information and
cause false publicity. Even some counterfeit shops sell fake goods on social media. For the
counterfeit market, there are many cheap imitations on social media for luxury brands. People
who sell counterfeit products advertise a large number of imitations and discounts on the
Internet. They not only provide detailed views of luxury goods and potential customers and
counterfeit suppliers. This may help the latter make cheap imitations that look like the original.

24
Therefore, if consumers search for a specific luxury item online, hundreds of fakes are shown as
genuine. These stores have seriously affected the image of luxury brands. As the Internet image
is a fake discount channel with abundant resources, luxury brand owners are worried that online
retail will damage their brands. However, as the Internet has become the leading search and
purchases environment for many consumers, including the rich and the super-rich, the display
and availability of products in the online environment guarantee access (Beuckels & Hudders,
2016; Silva et al., 2019).

4. DISCUSSIONS

Acknowledging the research question which evaluating on how substantial and consequential is
digitalization and technological advancements towards the luxury shopping market, this
subsequent part will provide the clear-cut and transparent key points which have been derived
from the paper’s findings. Moreover, investigating the digital space and the presence of
technological advancements in shaping luxury shopping prospected to establish more prosperous
and well-maintained economic infrastructure at large. Two major key concepts being emphasized
are the digital presence carried in luxury shopping and the shortcomings and challenges of
digitalization and technological advancement in the luxury market.

Gaining ground, digitalization brings social media as a trailblazer idea in the luxury shopping
atmosphere which caters not only to virtual entertainment but also spiritually delivered the new
lifestyle. The wider range on social media platforms such as Instagram, TikTok, and YouTube
advancing the luxury brands’ advertisement effort and shaping the product offering. Estee
Lauder and Dior Beauty as examples of employing celebrity influencers to invite and attract their
target markets through a non-conventional influence (Yeoman & McMahon-Beattie,2018). The
emerging push and pull marketing in such digital set-ups create absolute enjoyment and
satisfaction to the luxury shopping consumers. Furthermore, digitalization is indirectly
considered as a new way in advocating the environmentally-friendly and more sustainable brands
and products due to physical stores’ curtailment by converting into AR (augmented reality)
platforms such as e-Commerce websites and virtual salesperson in extending the luxury brand’s
loyalty (Diaz et al., 2016). Digital marketing as a gamechanger giving rise to conventional
market in further spread the brand awareness and how it expands its market reach into a wider
reach in a global perspective and how it skyrockets the profit eventually.

Digitalization as a critical concept in the sector brings new oxygen to these brands on how the
integration of technological advancement with the applied brand management has become
essential for the luxury industries to pursue. Estee Lauder and Dior Beauty have efficiently
executed the brand tremendously by observing how they operate the social media platforms and
driving globalization in leading the customer’s preferences and interests through a creative
campaign and engaging advertisement (Shen & Bissell, 2013). The phenomenon also interprets
that the digital impacts could deliver reliable and valid data through Google Trend as the main
utility and a dominating search engine platform in assessing and evaluating the real-time data
inputs, forecasting the market growth, and defining the luxury bandwagon which aiding their
strategic marketing and further captivates the interested stakeholder in boosting the luxury as a
promising business sector. Besides, social media as the main branch enhances the consumers’
decision-making and purchase intention to be more critical which made the tendency for the

25
luxury brands in products and services shall consider and invigorate huge investment in R&D
and innovation to heighten their business sustainability and to survive in such intense
competition. The shift and alteration towards social media marketing indeed bring a significant
positive impact to the luxury brand companies in extending their support prolonging their
commitment to providing an outstanding service for their prospective consumers, and as a media
to bring forth the unique selling proposition. Digitalization in luxury shopping relying upon the
emotional touch and service quality possession in exceeding the consumers’ perception of their
expectations. Moreover. digitalization is perceived as the desired framework due to the
improvement of the efficiency and effectiveness through the digital tools and media in catering
to different needs and demands in the payment or selecting the items for instance. Besides, it is
one of the plans that could prolong their loyalty and satisfaction.

The subsequent concept discussing the setbacks and shortcomings of digitalization and
technological advancement. Big Data is interpreted as a key driver in retrieving the business
performance in an authentic and detailed way and signifying how it could maintain safe and
secure data protection for both the enterprise and consumers when conducting a transaction and
various business activities. However, these phenomena could reflect the rejection and negligence
to different parties due to low awareness and lack of skills and expertise on executing the proper
way as possible on this advancement and modernity nuance. Perceived risks and issues may
hamper such as luxury brand imitations circulation in the e-Commerce, security breach
accidents, and consumer’s data theft and glitch that would make disruption and potholes on the
digitalization and it may degrade the luxury as a concept and being biased which make it as a
severe consequence.

In addition, the cultural shift of luxury shopping as a response to digitalization diminishing the
physicality of the business transaction as it has an absence of the touch and smells where the
industry pressurizes on the tangible products mainly on the atelier and high-fashion industries
which not only catering from the high-end textiles to perfumes. Other shortcomings would be
discussed on the overexposure on one particular social media in one specific ethnic group which
may limit the flexibility of the digitalization itself in establishing the convenient way in shopping
experience. Social media platforms as a main tool for the digitalize industries induced for the
forfeited and fake luxury product market to emerge which may lead to false marketing and
possess a great danger for luxury shopping industries’ and its luxury brands’ reputation. Besides,
the progressive transformation in global consumers’ behavior to be more hedonic and
consumptive could lead to the significant alteration in some cases which negatively affected their
traits and values (Fazeli, 2019).

Technological advancement and digital space creation in the luxury shopping business will
create an orthodox and mainstream concept and how it best suited in the fast-paced era as a
digitalization impact. Supervising the development also affecting the market shift to the
millennials or Generation-Z due to their capability, tech-savviness, interest, and knowledge in
technology could bring a new character to the luxury shopping as it is reflected to be more
vibrant and diverse in character would set the business to be more adaptive and flexible in
unforeseen challenges and circumstances (Rovai, 2018). The advancement also shapes the new
consumer behavior on the decision-making and how it enhances their motivation in product and
services consumption to be more constant by the fast delivery option and ordering system.
Besides, how it intensifies the data management system as a fundamental media in keeping them

26
safe and secure realm in the virtual space as it will enhance the larger consumers’ acceptance in
converting the digital way of shopping experience.  

5. CONCLUSION
This paper aims to examine the various studies conducted in the field of digitalization and luxury
shopping. It also considers the impact of social media marketing to bring forth advancing luxury
fashion brands. The paper highlights the relevance of sustainability, luxury shopping, and
digitalization in the database chosen for their impact and quality assurance. The paper suggests
that future research may include studies from other databases to determine more sources of
variability. Results identified in this paper consider a global perspective mainly due to most of
the studies that have originated focusing on the overall consumer luxury brand. 

The existence of cyber security risks has been advancing year after year. The key principle of an
eCommerce business is to build trust in establishing reliability, integrity, and security. There are
several risks involved in online shopping due to which customers avoid buying online. Few
security threats cause major problems like hacking, misuse of personal data, monetary theft,
phishing attacks, credit card fraud, and unprotected provision of services. As the world turns
towards a more modernized digital era, the more advanced technology enhances. Here are some
of the few common ones that often plague online businesses.

1. DDoS: Here the hacker has the ability to bombard an organization’s server with large
volumes of simultaneous data requests. This makes the organization’s server vulnerable
and cannot handle any legitimate requests. 
2. Credential-based attacks: These attacks happen when the hackers try to steal the
credentials that the IT workers use in the organization to access the systems. Hackers
could illegally access sensitive information stored or could disrupt the operations of the
organization. 
3. Malware: In this kind of attack a malicious software is engineered to attack information.
Ransomware, spyware, and trojans are some of the types of malware. This type of
malware helps the hacker to steal and block sensitive data.  
4. Phishing: The main purpose of the malware is to trick the target into downloading the
malware. This malware is developed in a way that it could access all the content available
in the system. Hackers socially engineer malware and this file is then sent through mails
or any social media messenger.               

Luxury companies have a distinctive way of portraying themselves to the consumer through
social media. In order to stay on the top, the company needs to engage with the customers
through social media. Since social media has no geographical boundaries it is a great way to
reach global consumers. Through this tool, companies can show their support for a specific cause
and can spread awareness regarding the discounts, material, and quality of the product they are
offering. Digitalization and sustainability share similar values in terms of the creation of social
and environmental values. To sustain the competition in the market, the company needs to have a
competitive advantage and establish itself in a competitive position. Organizations should try to
engage and invest in digital and sustainability to attract affluent customers. By incorporating
sustainability in the business, it can help the company to stay ahead of its competitors.        

27
LIMITATION
Addressing the limitation for our analysis it can be implied that lacking grey literature comprised
of government reports and official transcripts may establish and create biases. Moreover, the
adoption of statistical heterogeneity assessment and in-depth regression method is not
implemented which tends to be slightly far from the accuracy and detailed findings as to the
limited number of databases still limit the paper’s research expression and further reflections.

28
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