Online strategies of brands: A case of Portuguese luxury fashion designers

Abstract

The assertive online strategies of Portuguese luxury fashion brands/designers (LFBDs) are essential for managers to succeed in the digital medium and establish long-lasting relationships with clients. This paper explores the challenges in digitizing all the distinctive elements of a luxury fashion brand: the product characteristics, the luxury atmosphere, the personalization of the service, and the services provided. Fourteen Portuguese brands/designers were selected for content analysis. According to Hansen’s framework, 43% of Portuguese LFBDs fail to share information about their companies on their websites, and only 43% include promotions. Only 36% have a community outside the websites, compared to 93% of the international luxury fashion brands. Moreover, Portuguese websites lack 360° technology and augmented reality. Considering the Digital Visual Merchandising – MVD Grid, Portuguese LFBDs do not allow multiple zooms and 2D F/T cursor change, while international brands feature these tools. Regarding the Social Media Performance Analysis Grid, the global average engagement rate of Portuguese LFBDs on Facebook is 0.19% and on Instagram – 0.89%. According to Social Media Content Analysis Grid, Portuguese brands bet a lot on sharing content in story format, mainly on Instagram; however, Facebook has a higher network value. Therefore, the findings show that Portuguese LFBDs should be present and market their products online. This online presence must be supported by a multi-channel strategy while maintaining luxury product characteristics and elements of differentiation.