The Impact of Rebranding on Consumer Perceptions in the Luxury Fashion Market

How does rebranding reshape consumer perceptions? Let’s explore the journey of Dorsa Leather Goods. 

Introduction: Why Rebranding is a Game-Changer 

In the luxury fashion market, where competition is fierce and consumer expectations constantly evolve, staying relevant requires bold moves. Rebranding is one such strategy—a powerful way to refresh a brand’s identity and reconnect with its audience. In 2020, Dorsa, a leading Iranian luxury brand, took a leap of faith. They decided to rebrand, not just to modernize their image but to deepen their connection with Iranian culture while attracting younger generations. My research investigates the impact of Dorsa’s rebranding on consumer perceptions, brand loyalty, and how the brand balanced innovation with tradition.

Objectives of the Research 

The study aimed to answer one core question: "To what extent has Dorsa’s rebranding impacted consumer perceptions, and how have different consumer segments responded?" 
To address this, the research focused on three key objectives: 

• Understanding Consumer Perceptions: To evaluate how Dorsa’s rebranding changed the way consumers perceive its luxury status and cultural identity.
• Segmented Analysis: To explore how different age groups (younger vs. older customers) responded to the rebranding.
• Impact on Brand Loyalty: To assess whether the rebranding strengthened or weakened customer loyalty. 

 
Before and After: What Changed in Dorsa? 

Before the Rebranding 

For years, Dorsa followed global trends in luxury fashion. Its designs were modern but lacked a distinct connection to Iranian heritage. While the brand maintained its reputation for quality, it struggled to differentiate itself in a competitive market. 

What Dorsa Did in 2020: 

In 2020, Dorsa launched a transformative rebranding initiative. Here’s what changed: 
 
Cultural Integration: The brand embraced Iranian culture by incorporating traditional motifs and Persian-inspired designs into its products. This wasn’t just a design change—it was a narrative shift, making Dorsa a proud ambassador of Iranian heritage. 

Visual Identity: A new logo inspired by Persian calligraphy was introduced, symbolizing the brand’s roots and future vision. 

Targeting Younger Consumers: The rebranding included bold, innovative designs aimed at appealing to younger, style-conscious customers. 

Product Diversification: Beyond leather goods, Dorsa expanded into luxury home decor and jewelry, showcasing its ability to innovate while maintaining quality. 

Conclusion: What Every Brand Can Learn from Rebranding 

Rebranding isn’t just a cosmetic change—it’s a strategic move that can redefine how customers perceive a brand and engage with it. Dorsa’s journey highlights lessons that are relevant to any brand considering rebranding: 
 
Embrace Authenticity: Consumers connect deeply with brands that feel genuine and rooted in a story or culture. Whether it’s leveraging heritage or embracing modern trends, authenticity is key to creating emotional bonds with customers. 

Know Your Audience: Rebranding should address the needs and expectations of all customer segments. For brands, this means striking a balance between innovation to attract new customers and retaining the loyalty of existing ones. 
 
Rebranding is More Than Visuals: A new logo or slogan isn’t enough. Successful rebranding involves redefining a brand’s purpose, vision, and value to its customers, creating a meaningful narrative.

Invest in Quality and Value: Even in luxury markets, customers expect value for their money. Rebranding efforts should include a focus on improving quality and aligning pricing with perceived value. 

Stay Future-Focused: The best rebranding strategies prepare a brand for long-term success, anticipating market trends and evolving customer preferences. 
 
In today’s competitive marketplace, rebranding is an opportunity for transformation and growth. When done thoughtfully, it can help brands stay relevant, connect with their audience on a deeper level, and carve out a distinct identity in even the most saturated markets. Dorsa’s example shows that with the right mix of tradition and innovation, brands can thrive in a rapidly changing world.

Short biography of Authors: 

Pouyan has extensive experience working in the luxury retail industry, particularly with the renowned Dorsa Luxury Leather Goods brand in Iran. He began his career with Dorsa in 2017 as a seller, where he gained firsthand insights into customer preferences and brand loyalty. By 2020, Pouyan advanced to the role of Specialist Merchandiser, a position he held until 2023, contributing to product presentation, market strategy, and brand identity enhancement. 

Now living in Finland, Pouyan is passionate about combining design and marketing to create impactful brand experiences. With a keen eye for aesthetics and an understanding of market trends, he aspires to bring creative strategies to life that bridge the gap between visual appeal and consumer engagement. 

Short biography of Supervisor: 

Emmanuel Ndzibah is a University Lecturer and the Study Track Manager for MSc in Industrial Systems Analytics at the School of Technology and Innovations, University of Vaasa – Finland and Novia University Applied Science of Vaasa- Finland 

Emmanuel holds an International Certificate in Marketing (CIM-UK), a M.Sc. in Business Administration with International Marketing as a major, and Ph.D. in Industrial Management from the University of Vaasa in Finland. 

His expertise includes but is not limited to renewable energy, sustainable strategies, and intelligent management strategies for developing economies. He has over a decade experience in the diffusion of Renewable Energy Technology (RET) to developing countries. He has also participated in and led various workshops and seminars in RET, especially on solar PV. 
He is a board member of the Centre for Renewable Energy Entrepreneurship and Innovation (CREEI), Ghana.