The Role of Digitization in Brand Strategy: Impact on Brand Performance in the Hobby Industry

This paper examines the role of digitalization in shaping brand strategy and its impact on brand performance within the hobby industry. The theoretical framework highlighted that digitalization represents not merely a technological upgrade but a strategic transformation influencing all dimensions of brand management - from communication and customer engagement to reputation and competitive positioning. By integrating digital tools and platforms, brands can achieve higher levels of interactivity, personalization, and efficiency, thus fostering long-term consumer loyalty and improving overall market performance. The empirical research conducted among residents of South Serbia confirmed a positive correlation between brand digitalization and various dimensions of brand performance, including reputation, awareness, and competence. Although the correlations were characterized as weak to moderately strong, the statistical significance (p < 0.01) across all tested hypotheses (H1–H4) validates the positive impact of digitalization on brand performance indicators. Respondents generally perceived digital transformation as a crucial factor in enhancing brand visibility, strengthening reputation, and improving competence in the marketplace. The findings underscore that successful digital brand strategies rely on the ability to combine technological innovation with a deep understanding of consumer expectations. In the context of the hobby industry, digitalization enables companies to expand beyond local boundaries, leverage data-driven insights, and engage with consumers through social media, e-commerce platforms, and other digital channels. Consequently, digitalization not only enhances brand competitiveness but also contributes to the sustainable growth and modernization of the industry. Future research could expand the current study by including a larger and more diverse sample, as well as by employing qualitative and longitudinal methods to explore how digitalization continuously influences brand performance over time. Additionally, investigating mediating factors such as consumer trust, brand authenticity, or digital engagement could provide a deeper understanding of the mechanisms through which digitalization drives brand success.