The Role of Product Innovation and Digital Marketing Strategy in Building Competitive Differentiation through Brand Image: A Study on Uniqlo Indonesia

Abstract

The intense competition in the fashion industry has compelled Uniqlo Indonesia to continuously innovate its products and adopt digital marketing strategies in order to strengthen its brand image and achieve competitive differentiation. This conceptual paper examines the role of product innovation and digital marketing strategy in building competitive differentiation through the mediation of brand image. Drawing on recent theoretical frameworks, we posit that product innovation and digital marketing exert a positive influence on brand image and a firm’s competitive advantage. Through a review of up-to-date literature, this article explores the concepts of product innovation, digital marketing strategy, brand image, and competitive differentiation and develops a conceptual framework along with research hypotheses. The insights from this discussion are expected to contribute to the development of business strategies for Uniqlo Indonesia and other fashion retail companies in leveraging innovation and digital marketing to build a strong brand image, thereby securing a differentiation-based competitive edge in the market.