Sephora Leads a Wake Up Call
One thing the overly heralded tech-driven start-ups do not have is brand recognition. They do not have the indelible consumer connection that has taken the “old world” power brands years and millions of dollars to nurture, build and maintain.
Brand recognition aside, the techie entrepreneurs do have three advantages over established brands that afford them the ability to launch and quickly ramp up their businesses:
- Creative new way to market a product or service.
- Understanding how technology can facilitate the concept.
- Limitless funding from “casino playing” investors, allowing them to scale without making any money.