AdultShop.com: establishing legitimacy with the `virgin' consumer

Despite the recent failures of many e-businesses, the consensus remains that firms will need to develop e-commerce strategies if they are to compete in the future. However, there is little by way of empirical research on how firms can successfully do so. We examine a case of a large global Internet start-up in a heretofore neglected sector, that of adult entertainment. Our findings indicate the difficulties faced by Internet start-ups, as they seek to build mass-market penetration while controlling marketing and acquisition costs. The case also demonstrates the role that historical positioning and previous industry associations play in the development of an online brand.