Golden Goose: The Power Of Social Media

Luxury sneaker brand Golden Goose recently announced its public listing on the Milan Stock Exchange. The company aims to reach significant growth, driven largely by social media. A TikTok trend called the “Old Money Style” boosted the popularity of their low-top sneakers, highlighting the power of modern marketing.

This newsletter explores how social media is transforming marketing, focusing on cost-effectiveness, targeted advertising, real-time engagement, data analytics, and brand reputation. Golden Goose exemplifies the ability to leverage social media for rapid growth and adaptation.

Current Affairs

Golden Goose: Social Media And Free Marketing

Luxury sneaker brand Golden Goose has recently announced that it will be publicly listing on the Milan Stock Exchange at €9.75 a share, with a total offering of up to €595.7 million.

Alongside this monumental moment for the company, they have high hopes of operating at the upper echelon of companies, targeting net sales of €1 billion by 2029, with sales year on year up by €587 million.

But the question is, what causes a half a billion euro increase in sales? The answer...

TikTok.

Social Media Trends And Their Business Impacts

The company's sales saw a snowball effect after their low-top style sneaker started trending on TikTok and other social media platforms as part of a trend called the “Old Money Style.” Characterised by a more traditional and European way of dressing, the trend aligned perfectly with Golden Goose’s minimal and European-styled pieces.

Coupled with the brand’s luxury appearance, they have been able to generate staggering revenue numbers.

However, the purpose of this article is to give insight into how social media is changing the way companies do marketing. Let’s take a look at some key aspects.

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Operational Efficiencies

1. Cost-Effectiveness: Traditional marketing methods such as TV commercials, print ads, and billboards require substantial investment. Social media platforms, on the other hand, offer a more cost-effective way to reach a broad audience. This allows companies to allocate resources more efficiently, optimising their marketing budget while still achieving high visibility.

2. Targeted Advertising: Social media platforms offer sophisticated targeting tools that allow businesses to reach specific demographics. This precision ensures that marketing efforts are directed toward potential customers who are more likely to convert, improving the return on investment (ROI) of marketing campaigns.

3. Engagement and Interaction: Unlike traditional marketing, social media allows for real-time engagement with customers. Companies can interact with their audience through comments, direct messages, and live videos. This interaction builds a stronger connection with the brand and fosters customer loyalty.

4. Data Analytics: Social media platforms provide valuable analytics and insights into customer behavior. Companies can track engagement metrics, monitor trends, and analyse the effectiveness of their campaigns. This data-driven approach enables more informed decision-making and continuous improvement in marketing strategies.

Brand Reputation and Social Capital

In today's digital age, a company's brand reputation is closely tied to its social capital—the goodwill and positive perception held by its stakeholders. Social media plays a pivotal role in shaping and enhancing this reputation:

1. Transparency and Authenticity: Social media demands transparency and authenticity from brands. Companies that openly share their values, mission, and behind-the-scenes content tend to build trust with their audience. This trust translates into social capital, which is invaluable for long-term success.

2. Influencer Partnerships: Collaborating with influencers can amplify a brand's reach and credibility. Influencers often have dedicated followers who trust their recommendations, providing a powerful platform for brands to promote their products authentically.

3. Crisis Management: Social media allows for immediate communication with the public during a crisis. By promptly addressing issues and providing clear, honest updates, companies can manage their reputation effectively and mitigate potential damage.

4. Community Building: Brands that actively engage with their audience and foster a sense of community build strong social capital. This community acts as a support network, advocating for the brand and contributing to its positive reputation.

Golden Goose's current situation provides a compelling example of how companies can effectively leverage social media and swiftly adapt to changing circumstances.

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