Central European Business Review 2020, 9(4):59-72 | DOI: 10.18267/j.cebr.246

Exploration of Opportunities for Development of CEE Domestic Luxury Brands: Case of the Czech Republic

Květa Olšanová1, Gina Cook2, Petr Král3, Ondřej Vilikus4, Marija Zlatić5
1 University of Economics, Prague, Faculty of International Relations, Department of International Business, Prague, Czech Republic, kveta.olsanova@vse.cz
2 Metropolitan State University of Denver, Department of Management, Denver, United States of America, gcook13@msudenver.edu
3 University of Economics, Prague, Faculty of International Relations, Department of International Business, Prague, Czech Republic, petr.kral@vse.cz
4 University of Economics, Prague, Faculty of Informatics and Statistics, Department of Statistics and Probability, Prague, Czech Republic, ondrej.vilikus@vse.cz
5 University of Economics, Prague, Faculty of International Relations, Department of International Business, Prague, Czech Republic, marija.zlatic@vse.cz

Country of origin (COO) plays a vital role in the luxury market. This paper investigates the extent to which luxury shoppers are aware of domestic luxury brands, and in which categories they would consider buying them. Our results, based on a survey of 253 luxury buyers in the Czech Republic, indicate that there is an opportunity for local brand development in categories such as luxury glass and crystal home accessories, designer furniture and lights, which are outside the scope of the “traditional luxury industry”. Additional findings are also highlighted: for more than two-thirds of actual luxury shoppers; the local COO would be a reason to consider purchasing a luxury brand. Perceptual differences of domestic vs global luxury brands are also indicated.
Implications for a Central European audience: Managerial implications target at managers of domestic or emerging luxury brands in non-traditional luxury markets with a specific demographic segment of potential mature luxury customers. They have a higher affinity for domestic luxury products.

Keywords: luxury; country of origin; branding; domestic luxury
JEL classification: M31, M39

Received: March 16, 2020; Revised: May 15, 2020; Accepted: May 20, 2020; Prepublished online: September 22, 2020; Published: September 30, 2020  Show citation

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Olšanová, K., Cook, G., Král, P., Vilikus, O., & Zlatić, M. (2020). Exploration of Opportunities for Development of CEE Domestic Luxury Brands: Case of the Czech Republic. Central European Business Review, 9(4), 59-72. doi: 10.18267/j.cebr.246
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