Imagine you are the senior manager for the LVMH-Owned luxury brand Hublot responsible for setting up its online strategy. Which strategic direction would you choose?
Since LVMH has developed a strongcompetitive market reputation, and has strong brand image due to its parent company, it is beneficial to develop an online store, enhancing the presence and driving the sales through online distribution. Such is due to the fact that, since with passing time, the consumersareshiftingtowardsthe ecommerce model and arelooking for time saving convenienceandexperience, offering the customer a dual service platform has become an importance aspect of brandsustainabilityand stability in the market.
In addition to this, the consumer behavior is shifting towardonline platforms. Over the last few years, the online sales have succeeded the retail sales, due to the fact thatconsumers arelooking for ease and convenience,making them purchase online. Moreover, since the customer lifestyle and market dynamicshavealso shifted,makingthem adoptthe on the go approach in shopping.
Recently, with the emergence of online models and highswitch rate of big brands towards the online model has greatly emphasized its potential.Today, the consumers are lookingto interact with the endbrand through active engagement, which creates loyalty, strongword ofmouth andstability in the market. Such has created a domino effect on the other retailors to sell through the online model in an attempt tomaintain its customer base and alignment with the market changes.
Moreover, the online strategy allows the company to attract a large customer base, creatinggreatattention and virality in the market. This allows the brands to create substantialengagement and communication leading to substantialsales.Apart from this, the market is becoming digitalized, technology innovation, smartphones and fast internet has opened the gateways that have totally transformed the paradigms of shopping.
HUBLOT Harvard Case Solution & Analysis
Such changes in the market have made the brands to adopt the particular strategy in order to offer value and ease to the customers, making it a strong part of customer satisfactionandthus, customer loyalty.According to (Freeman, 2012), maintaining the customerloyalty has become a key focus of the brand.Such is due to intenseproliferation of the other similarbrandsin the market drivingthe salesand potentialcustomers away.In such a situation,activeparticipationand engagement through online channel allows the brands to remainconnectedwith the customereradicating the factor of monotonous brand image from the mind of thecustomers.
Keeping theabove facts and potential of online sales in mind, Hublot should develop an online store.Itis due to the fact that such strategy will allowHublot to create a vast reach, gearing potential attention that may lead to sales. In addition, since thecompany is still in the initial growth phase, targeting thecustomer through online portal will allow the company to maintain its customer acquisition cost, leading to effective cost managementandthus,increasedprofit margins.
In addition to this, developing their own webpage or social mediapresence will allow the company to gauge the customer feedback easily.It is due to the fact that, with the advent of internet andecommerce model, the consumer tends to share the reviews forthebrand they use.Such reviews not onlypromote future sales, butalso allow the company to gauge the potential opportunityand unmet needs of the customers, makingthem innovate the brand and keeping them ahead of the competition...................
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