Burberry’s Digital Presence

Ms Ahrendts made changes to the Burberry product line by making the check more subtle and using it mainly in linings and discreet areas of garments. She also placed greater emphasis on higher margin accessories such as handbags and perfumes, and top-of-the-range fashion. She continued to use British celebrities such as Agnes Deyne and Emma Watson to represent the brand. Burberry also opened stores in emerging markets such as China, India, Russia, the Middle East and eastern Europe. In 2008 Burberry’s first standalone children’s-wear store in Hong Kong was opened, and in 2011 the company bought out its Chinese franchise partner in order to tighten its rein on its global image. It also built up its presence in the USA with the opening of its new headquarters in New York and further store openings.

Page 284Ms Ahrendts also improved efficiency by installing new IT systems and replacing 21 scattered distribution centres with three regional hubs in the USA. Her attention was also placed on better sourcing in an effort to improve margins.

Another major focus was to revive Burberry’s heritage to the digital generation. Where once luxury brands were reluctant to use the Internet, believing it would cheapen their image, Burberry embraced digital. Now digital represents 60 per cent of the marketing budget. Burberry live-streams seasonal shows online and in stores, allowing customers to order products for early delivery with a personalized touch, such as an engraved nameplate in a coat or bag. Pictures of the latest designs are posted on Twitter before they are released to traditional media. Burberry has over 8 million Facebook fans, who can watch most of its catwalk shows live and purchase Burberry products direct from its virtual store.

Burberry’s digital presence extends to China, where sales have soared. The brand features on Chinese sites such as Sina Weibo (China’s