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.