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The Impact of Digitalization on the Brand Competitiveness in the Global Luxury Fashion Market (Case of Gucci)

Student: Polina Kovrigina

Supervisor: Tatiana G. Filosofova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2021

Up to date, there is a wide range of studies exploring the impact of digitalization on the brands’ business model. Nevertheless, most of works focus on a descriptive analysis of digital tools and promotional strategies used by brands. There is a lack of research on evaluating the impact of digital activity on brand competitiveness with the use of quantitative analysis. This work aims to identify groups of brands according to the levels of digital development, to determine the most effective tools and mechanics of promotion, as well as to assess their impact on the economic performance of luxury fashion brands. 13 fashion brands were analyzed based on 5 indicators that characterize digital activity using factor and cluster analysis. Gucci was identified as a digital genius. Next, digital transformation of Gucci since 2015 was analyzed. To assess the impact of digital activity on brand competitiveness a linear regression model was used which showed the impact of brand’s social networks and website development on its competitiveness. The study contributes to existing research on digitalization of fashion industry and brand competitiveness. Moreover, proposed model may be used by the management of fashion houses to adjust their digital development strategy.

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