Social Media Engagement and Brand Value in the Fashion Industry: Evidence from Instagram

Abstract Book of the 11th International Conference on Research in Business, Management and Economics

Year: 2026

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Social Media Engagement and Brand Value in the Fashion Industry: Evidence from Instagram

Hsiao-Yin Lin

ABSTRACT:

This research investigates the mechanisms of brand value creation within the luxury fashion sector, focusing on the impact of social media communication. Utilizing the Stimulus–Organism–Response (S-O-R) framework, the study develops a conceptual model linking specific content strategies to digital engagement and long-term brand equity. A panel data was constructed by tracking seven iconic luxury houses (e.g., Louis Vuitton, Chanel, and Prada) from 2017 to 2024. This approach integrated official Instagram performance metrics with financial brand valuations from Interbrand’s annual reports, resulting in 55 brand-year observations.
Data analysis via Partial Least Squares Structural Equation Modeling (PLS-SEM) reveals that while overall posting frequency and celebrity-centric content serve as potent catalysts for social media engagement, ESG-related messaging does not yield a statistically significant effect. Furthermore, although engagement shows a marginally significant correlation with brand value, the anticipated mediating role of digital interaction is not supported. These findings indicate a disconnect between immediate social media ‘buzz’ and formal asset valuation. For luxury brand managers, the results suggest that current digital engagement strategies—while effective for visibility—require more nuanced alignment to drive sustainable growth in brand equity.

Keywords: S-O-R Model; Instagram; Brand Value; Fashion Industry; ESG