Brand loyalty in the retail fashion industry

Abstract

The study focused on brand loyalty in the local retail fashion clothing sector. This study was primarily inspired by the growing number of retail outlets in various locations, the increased brand availability, accessibility and the increased presence of fashion brands over the internet. All these factors clearly reflect intense competition and undoubtedly increase the importance of brand loyalty. This study aspires to identify the factors which could bring about brand loyalty and put forward recommendations on how retailers could enhance brand loyalty. This study employed both secondary and primary data. Heavier emphasis was made on primary data collection methods including a questionnaire, a series of focus groups as well as an interview with one of the main fashion retailers in the Maltese Islands. The questionnaire was distributed to customers, making use of a stratified sample. Secondary data was mainly obtained through academic journals, websites and fashion books. Primary data was mainly used for analysis while the secondary data was used in building up the literature review. The study results clearly reflected the large availability of brands which are found locally and the difficulty in sustaining brand loyalty. Brand switching is found to be very common amongst local customers. Hence retailers must strive harder to retain customers and build long term relationships. Factors which appeared to be important while analyzing the data were price, quality, after sales service and word of mouth. Other factors such as branding, store atmospherics and exclusivity were also relevant but not considered to be fundamental by the sample population. The study concludes by outlining the brand loyalty factors on basis of the retail marketing mix and on a practical footnote presents a sample promotional toolkit for retailers. It also highlights some general recommendations on which retailers could build their loyalty programme.