Abstract
Luxury fashion is one of the most rapidly expanding and lucrative industries. Although
previously prominent in developed economies, growth within the luxury fashion industry has
shifted to emerging markets, such as South Africa. The luxury fashion industry is particularly
gaining momentum with the rising popularity among the young modern population belonging
to the millennials, increased wealth of the middle class, uptake of new technologies and
smartphone usage. The consumer market for these luxury fashion goods is changing, with
millennials becoming a key driver within this industry. The COVID-19 pandemic has not only
transformed customer behaviour, but has accelerated the adoption of online shopping and
millennials are particularly influenced by social media platforms, such as Instagram, and tend
to have a higher level of interaction and engagement with luxury fashion brands, thus
developing strong customer-brand relationships online. For this reason, luxury fashion retailers
need to better anticipate and understand these female millennials’ purchase intentions, what
makes them brand-conscious, and how they can be managed more successfully through the
social media platform, Instagram.
An empirical investigation was conducted to examine the relationship between social media
marketing – with specific reference to Instagram – customer-brand relationships, brand
awareness, and purchase intentions of South African female millennial customers of luxury
fashion brands. The primary objective of the study was to determine the influence of social
media marketing on South African female millennials’ purchase intentions towards luxury
fashion brands on Instagram. The study’s target population consisted of female millennials
aged 23 to 38 who use social media (specifically Instagram) and reside within Gauteng. A
quantitative non-probability research approach was employed and a two-pronged sampling
process was applied to identify and select 300 participants. In the first sampling phase,
sampling units were selected via quota sampling, according to the three metropolitan areas
within Gauteng – namely the City of Ekurhuleni, the City of Johannesburg, and the City of
Tshwane. In the second sampling phase, convenience sampling was used. Data was collected
using a self-administered questionnaire adapted from previously validated scales. Descriptive
analysis, exploratory factor analysis, confirmatory factor analysis and structural equation
modelling were applied to achieve the objectives of the study.
The findings of the structural equation modelling procedure indicated that social media
marketing significantly influences purchase intention, customer-brand relationships, and brand
awareness. Both customer-brand relationships and brand awareness were found to have a
v
positive significant relationship with purchase intention. In addition, the data analysis of the
mediators confirmed that customer-brand relationships and brand awareness mediate the
relationship between social media marketing and purchase intentions. From these results, all
research hypotheses were accepted. Furthermore, a reliable and valid model was developed
to assist South African luxury fashion retailers in improving their customer-brand relationshipbuilding
efforts and brand awareness with customers through Instagram to enhance South
African female millennials’ purchase intentions towards luxury fashion brands on Instagram.
Based on the results obtained for this study, implications, recommendations, and proposed
strategies were outlined for luxury fashion retailers. Various recommendations were provided
to assist luxury fashion retailers better understand and anticipate the purchasing journey of
female millennials within the luxury fashion industry online. The alignment of the
recommendations with the proposed strategies will contribute to stronger customer-brand
relationships, enhanced brand awareness, and increased intention to purchase luxury fashion
brands on Instagram. Consequently, luxury fashion retailers will have the necessary insight
into how to operate within the highly competitive and lucrative luxury fashion industry as well
as better understand their position relative to other luxury players within the market to
effectively plan and position themselves within the future market.