Date of Award

2026

Document Type

Dissertation

Degree Name

Master of Arts (MA)

Department

Luxury Business

Abstract

Propelled by converging social, cultural, and macroeconomic forces, the luxury industry has faced challenges due to plummeting profits. This contextualised research examines the shift in psychographics from logo-centric consumption to a new paradigm where authenticity and integrity are paramount. Employing an interpretivist philosophy, the study utilises in-depth, semi-structured interviews with three industry experts, respectively from design/production, retail and marketing departments, and twelve luxury consumers to approach this topic from the perspectives of different stakeholders. The interviews were analysed through a rigorous thematic analysis framework.

The findings indicate that luxury customers are becoming increasingly sceptical and critical, while craftsmanship offers a unique touchpoint within the luxury customer journey, effectively enhancing purchase intentions and customer-perceived value while maintaining an exclusive image. Craftsmanship-related initiatives also contribute to intangible brand assets, including CSR, cultural capital and human resources. The study reemphasises that the value creation has shifted from a product- to a firm- and client-centric view. It contradicts the existing literature that recognises luxury retail as producer-oriented rather than customer-oriented. Moreover, this study did not find direct negative repercussions of craftsmanship-related CSR programmes, as past studies on CSR of luxury companies did. However, it did find that luxury brands should contemplate customer expectations and cultural interpretations when incorporating craftsmanship into CSR actions to avoid negative perceptions.

This study contributes to the understanding of the role of craftsmanship in redefining the contemporary luxury paradigm, defined by new customer psychographics. It also sheds light on strategic frameworks where craft-based initiatives are adopted to respond to shifting consumer values in the long term. It also proposes a craft-oriented strategic framework for brands, advocating for transparency, humanistic service, and educational cultural stewardship.

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