The application of origin effects in the development of Russian luxury brands in the internationalisation process

Abstract

Goal: To identify Origin Effects for Russian luxury brands and suggest ways of effectively applying them for brand development on international markets Objectives: 1. Classify the studies on Origin Effects to arrive at a model consisting of the steps to be taken to apply Origin Effects, and suggest propositions for further research; 2. Identify the Origin Effects of Russia across different industries and product characteristics, focusing on the luxury sphere; 3. Determine what are the prospects for development of Russian Origin Effects; 4. Establish patterns of application of Origin Effects for brand development; 5. Give recommendations to existing and potential Russian luxury brands on applying Origin Effects when going on international markets Within the current paper, the key steps a company has to take to apply OE for its brand development were identified: determine the sector (industry) with positive OE; find positive country characteristics; decide on the way to apply OE in the brand identity; decide on the ways to use OE in the marketing campaigns; implement the designed strategy. After conducting primary research, which involved an opinion survey, as well as in-depth interviews and desk research, it was concluded that Russia overall negative Origin Effects (OE). However, OE are positive for particular products: Vodka, Furs, Jewelry, and Porcelain, and for the Quality of Raw Materials characteristic. It is expected OE linked to Russian Innovativeness will develop in the future. Primary ways of applying OE to brand development were identified as being: brand name and logo creation, and integration of OE into the culture of the brand. OE can then be used in marketing activities by passive means of demonstrating the brand and actively by means of advertising, ambassadors or event sponsorship. Examples on how foreign brands apply OE were presented; practical recommendation on applying the identified OE have been given to both existing and potential Russian luxury brands.