Export Competitiveness of Luxury Products: An Empirical Investigation

Abstract

The first objective of this study is to investigate the luxury export strategies that affect the export competitiveness of luxury products. The second objective is to develop measurement scales for luxury export competitiveness through a resource-based view (RBV). The third objective is to examine how the export competitiveness of luxury products affects business performance, and the fourth objective is to examine how luxury export strategies affect business performance. Data were collected from 400 participants who were working in the luxury export products industry, which comprised food and beverage, fashion accessories, home decorative and furniture items, jewellery, cosmetics and skincare, and leather products. A self-administered survey method was utilized in this study. Questionnaires with a cover page were sent to luxury export firms in Thailand. Participants were export directors, export managers, export assistant managers, international marketers and export sales team members, and export employees who were responsible for export tasks and usually worked in export functions. Data analysis used exploratory factor analysis (EFA) and confirmative factor analysis (CFA) for the analysis of all measurement items, construct validity, and the reliability of each construct before using structural equation modelling (SEM). Finally, according to the findings, luxury export strategies have a positive effect on the export competitiveness of luxury products. Luxury export strategies consist of five variables: export market knowledge, export market commitment, experience in international markets, distribution channels for overseas markets, and government export sponsors. The new scales of luxury export competitiveness discovered were based on the significance of resources advantages that consist of six variables: luxury brand recognition in international markets, luxury brand management in the export markets, product differentiation, product quality management, attractiveness of country-of-origin export products, and foreign intermediate partners. These six variables were fully developed, whereupon luxury export competitiveness was tested by hypothesis setting. The results showed that luxury export competitiveness has a positive effect on export performance on the basis of empirical evidence. Luxury export strategies have a positive effect on business performance. There are nine hypotheses which were statistically significant (p=<.001). Based on the research findings, the theoretical contribution offers a comprehensive framework and provides the luxury product export competitiveness scale development. Meanwhile, the practical contribution is offered to the export business owners who would like to upgrade their product value to the luxury product category. Furthermore, the Department of International Trade Promotion, Ministry of Commerce, Thailand, can set of guidelines for designing and implementing effective international trade competition.

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