Using digital technology to measure relationships and interactions with customers, thereby allowing firms to better understand purchasing behaviour of their customers, ultimately enhancing profitability.
Published in Chapter:
Designing a Digital Marketing Strategy for Start-Up Luxury Brands: The Case of Vidda Royalle
Gitte Rosenbaum (University of Southern Denmark, Denmark), Marta Isabel Coutinho Carneiro (University of Porto, Portugal), Cristina Maria Norte Gomes (University of Porto, Portugal), and Laura Andrade Marques (University of Porto, Portugal)
Copyright: © 2022
|Pages: 18
DOI: 10.4018/978-1-7998-9008-9.ch021
Abstract
This study investigates how a luxury start-up can use a digitalization strategy to overcome the liabilities of smallness and newness and compete with well-established incumbents. Given that many luxury firms have been relatively slow in adopting digital technologies out of brand-dilution concerns, start-ups can compete if they can successfully manage the “internet dilemma” of marketing high-value brands online, and especially if these competences can be leveraged across geographical markets. This study examines the case of Vidda Royalle, a Portuguese luxury start-up already operating in international markets. Based on case data, the authors find that Vidda Royalle´s digital strategy is based on the brand´s ability to leverage its unique collaboration with renowned artists in the production of its luxury bedlinen. The study presents a series of strategic recommendations based on the RACE framework (reach, act, convert, engage) for further enriching the online customer journey, and enhancing its competitive advantage.