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  • Advantages of Digital vs Traditional Communication Instruments of Global Luxury Beauty Brands in Emerging Foreign Markets Exemplified by Christian Dior and Chanel in Russia and China

Advantages of Digital vs Traditional Communication Instruments of Global Luxury Beauty Brands in Emerging Foreign Markets Exemplified by Christian Dior and Chanel in Russia and China

Student: Shanskaya Arina

Supervisor: Elena Panteleeva

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2021

There are many studies on the use of digital media tools, their benefits by international companies, but there is a clear research gap and an insufficient theoretical background in the research on this topic regarding luxury companies, especially the luxury cosmetics sector in emerging markets. Therefore, our goal is to reveal the advantages of digital communication tools, showing their effectiveness over the traditional ones, thus, helping global luxury beauty brands, operating in emerging markets, to focus more on enhancing their online presence. The countries of Russia and China were not chosen for this study by chance. According to Bain & Co. 2021 “The Future of Luxury” report, China is the only country showing year-over-year growth, accounted for almost half of overall luxury spending, showing a high shift to digital, especially in luxury beauty industry. While Russian luxury market shows a very high potential for luxury goods consumption, still even despite the recession due to COVID-19, which is temporal and gradually shows the signs of recovery. Due to this, many Western luxury companies pay special attention to it, establishing their presence both online and offline. Russian luxury beauty segment is to be one of the other segments which will recover in 2 years. (Bain, 2021) Moreover, both countries are having a great unrealized post-pandemic e-com potential that could be successfully fulfilled (USD95 million and USD918 million of unrealized online sales). (Euromonitor, 2021) These facts drives global luxury brands to have a strong focus on Russian and China, expanding their online capacity. To follow the purpose of the study the following objectives are to be solved: - to identify the main advantages of digital communication instruments over the traditional ones; - to reveal the specifics of digital communication instruments usage by global luxury beauty brands in emerging foreign markets in terms of recent digital trends and change of consumer behavior; - to analyze how COVID-19 forces global luxury beauty brands to redefine the significance of digital communication instruments usage in order to survive in the rapidly changing world of a new consumer; - to develop the recommendations for the use of digital communications instruments, applicable to the global luxury beauty brands in Russian and in China.

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