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Celebrity Endorsement In Fashion Industry

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CHAPTER 1: INTRODUCTION
This chapter is an introduction for explaining the topic of the usage of celebrity endorsement in fast fashion market. It introduces the background of study, the importance of research, objectives for investigation, research methodologies and the organization of this thesis.

1.1 Background of study
The fashion apparel industry has notably developed since 1980s (Djelic and Ainamo, 1999). However, several adverse factors such as mass production diminish, seasonal number increase and supply chain modification have compulsively altered fashion retailers to manufacture apparel in lower price and higher elasticity in design, quality, distribution and speed to market throughout the past twenty years (Doyle, Moore, and Morgan, …show more content…

The number of fast fashion brand for example H&M and Zara keeps proliferating despite costly rental fee and economic downturn in Hong Kong. H&M opened their first retail store in Hong Kong in 2007 and further set up 20 stores more within less than 10 years. Another well-know fast fashion brand, Zara have possessed totally 14 physical stores since 2005. Fast fashion market is proved to be highly successful when they are easily accessible nearby. It seems that it is taking over the traditional apparel industry, especially in Generation Y market. The power of fast fashion cannot be underestimated and they are worth …show more content…

2005). For example H&M, which is a well-known fast fashion brand, contracts with numerous celebrities gaining popular attention. However, marketing expert asserted celebrity endorsement is just not worth the cost with reference to the study in Social Influence Journal (Mohr, 2012). Furthermore, According to the University of Colorado Boulder study conducted by Mohr (2012), the tactic has no effect on competing brands in same market indicating no increase in market share for the company being endorsed. Several fast fashion brands do not apply celebrity effect. Mohr (2012) states “if a product is really strong, you do not need a celebrity to sell it to consumers.” It is believed strong brand could get over celebrity endorsement. Zara is credited with being a leader in fast fashion (The Economist, 2005; Strategic Direction, 2005, Foroohar and Stabe, 2005). Whereas they do not have any celebrity endorsement up to the moment, Zara could still gain the first place in fast fashion market. Inditex, the Zara’s parent company based in Spain, recently reported profits in the first quarter jumped by a whopping 28%. Sales were up by an impressive 14% in 2015 (Sachs, 2015). Sachs further contended fast-fashion retailers are challenging traditional ones and threatening status quo especially these 10

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