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  • December 2021 (Revised May 2022)
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Troverie (A)

By: Thomas R. Eisenmann, Lindsay N. Hyde and Olivia Graham
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

Six months after the August 2018 launch of Troverie, a U.S.-based online retailer of luxury watches, the average cost of acquiring a customer is much higher than originally projected, and the startup is incurring a substantial loss on each sales transaction. Could customer acquisition costs be reduced through optimization of marketing messages and channels, or did high marketing costs presage a fundamental problem with Troverie's business model? Troverie was an authorized retailer of 17 luxury watch brands, and had partnered with brick-and-mortar jewelry retailers that would drop ship the watches from their inventory in exchange for a share of Troveries's revenue. The brands were authorizing online sales for the first time, to combat "grey market" outlets that sold their watches without the manufacturer's warranty.

Keywords

Startup; Luxury Goods; Customer Acquisition; Entrepreneurship; Business Startups; Luxury; Failure; Internet and the Web; Revenue; Fashion Industry; United States

Citation

Eisenmann, Thomas R., Lindsay N. Hyde, and Olivia Graham. "Troverie (A)." Harvard Business School Case 822-068, December 2021. (Revised May 2022.)
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About The Authors

Thomas R. Eisenmann

Entrepreneurial Management
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Lindsay N. Hyde

Entrepreneurial Management
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Related Work

    • December 2021
    • Faculty Research

    Troverie (B)

    By: Thomas R. Eisenmann, Lindsay N. Hyde and Olivia Graham
    • December 2021 (Revised May 2022)
    • Faculty Research

    Troverie (A)

    By: Thomas R. Eisenmann, Lindsay N. Hyde and Olivia Graham
Related Work
  • Troverie (B) By: Thomas R. Eisenmann, Lindsay N. Hyde and Olivia Graham
  • Troverie (A) By: Thomas R. Eisenmann, Lindsay N. Hyde and Olivia Graham
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