Perceived ESG and Brand Loyalty in the Fashion Industry: The Mediating Role of Brand Love

Thu Trang Tran and Hong Van Nguyen

Abstract
This study explores the impact of perceived Environmental, Social, and Governance (ESG) practices on brand loyalty in the fashion industry, with a focus on the mediating role of brand love. Using a survey of 270 young Vietnamese consumers, the research employs structural equation modeling (SEM) to analyze the effects of ESG on customer loyalty and love for the fashion brands. The results show that perceived ESG significantly affects both brand love and brand loyalty, confirming that customers are more loyal to brands they perceive as environmentally and socially responsible. Additionally, the study finds that brand love partially mediates the relationship between perceived ESG and brand loyalty, indicating that emotional attachment strengthens customer loyalty when a brand is seen as committed to sustainable practices. The findings emphasize the strategic importance of ESG initiatives for fashion brands aiming to build strong, long-term customer relationships.

Keywords
ESG, Brand loyalty, Brand love, Fashion, Consumer perception