Luxury fashion’s transparency paradox on TikTok: balancing openness and exclusivity

Luxury fashion brands must balance transparency with exclusivity. Drawing on signaling theory, this research examines how transparency is communicated, perceived, and strategically managed on TikTok. Study 1 analyzes 5,565 posts, revealing limited explicit transparency and showing that production-focused content drives the highest engagement. Study 2 combines an online experiment with managerial expert interviews. Results show that production transparency increases perceived transparency and engagement, whereas social impact transparency reduces perceived exclusivity and engagement. Expert insights highlight how brand type and platform dynamics shape selective disclosure strategies. The findings extend signaling theory and offer guidance for managing transparency without eroding luxury value.

Management Slant
Luxury fashion brands rarely use explicit transparency on TikTok, with 52%–92% of posts focused on branding; when used, production transparency drives strong engagement through craftsmanship narratives that preserve brand value.

Production transparency boosts consumer engagement by enhancing perceived transparency without harming exclusivity, while social impact transparency can reduce exclusivity and engagement.

Brands adopt selective transparency strategically: traditional heritage brands limit disclosure to protect exclusivity, while challenger brands use controlled openness to engage younger audiences, underscoring the need for tailored strategies.