Small, independent and privately owned luxury companies face a number of challenges in today’s globalized and increasingly digitalized luxury market dominated by big luxury groups. However, the Internet and Social Media also create new opportunities. They enable luxury brands with limited resources to reach out to an international clientele and build brand awareness. Moreover, new channels and platforms allow for multifaceted storytelling, interactive communication with customers and data analysis for quick and continuous learning and improvement of strategies. While many luxury brands have long struggled in the digital sphere, which in many cases represents the exact opposite (e.g. openness, accessibility, dynamic change, etc.) of what luxury stands (or stood) for, a growing number of young and daring luxury brands with no legacy and heritage, embraces digital technology as an important, if not vital part of their business model from day one. Given the often high investment needed to start and sustain a company in the luxury segment, “born digital” luxury start-ups need to show a great deal of creativity, pragmatism, flexibility and a good sense for the actual tastes and preferences of their globally dispersed target group in order to be successful and cut out their share of the market in due time and despite fierce competition. By analyzing the case of VAULT, a Swiss luxury watch brand founded in 2014, the present study explores the main challenges of the young luxury brand with regards to positioning, communication, distribution and business development and the role of the Internet and Social Media for the company’s success. By deriving recommendations for similar brands, the study aims at a practical, but also a theoretical contribution.

ABSTRACT
 INTRODUCTION
 THEORETICAL BACKGROUND
  Behavior & Expectations of the Contemporary Luxury Customer
  Strategic Challenges & Success Factors of Luxury SME
  The Luxury Brand & the Digital Sphere: Opportunities for New and Small Companies
 RESEARCH OBJECTIVE
 METHODOLOGY
 CASE STUDY: VAULT – A BORN DIGITAL LUXURY BRAND
 RESULTS AND CONCLUSION
  Limitations
 REFERENCES

• Fabio Duma(Zurich University of Applied Sciences, Switzerland)
• Maya Gadgil(Zurich University of Applied Sciences, Switzerland)