1. Introduction
Since the 21st century, most developed countries have entered the digital age. The time people spend online has become the new social paradigm, and the time people spend in virtual space has gradually erased the boundary between real and virtual life, accelerating the trend of entertainment life and business branding into the digital age. A company's image can be strengthened or shattered overnight in the digital age. The Internet allows companies and consumers to achieve more direct communication, and establishing a particular connection with a wide range of users through online platforms is just a new starting point for marketing [1]. Many brands have concluded that they should take advantage of the marketing prospects in the meta-universe and thus have started experimenting with brand marketing. Brands like Nike, Disney, Snapchat, and Facebook are building virtual communities and providing virtual content to expose people to the fashion and art world.
As one of the industries most concerned with brand image, the luxury industry is now also moving towards digital marketing. Burberry is one of the first luxury brands to join the digital trend. While digital is gradually becoming a growth driver, digital marketing expands the brand's reach and attempts to capture the attention of its audience [2]. Extensive digitalization is affecting and changing the entire value chain of luxury brands. The attitude of luxury brands towards digital transformation has changed from "hesitant" to "fully embracing," and they are constantly iterating their services and online service experience. AR, 3D, and other digital technologies are also becoming increasingly popular in the interaction between luxury products and new audiences online [3]. It is convenient to buy luxury goods online without losing the sense of prestige so that people can get almost the same exclusive services and standards as offline brands. Currently, consumers in the luxury industry are iterating generation after generation, providing new growth drivers. Meanwhile, digital transformation has accelerated recently, and e-commerce and NFTS continue to grow. This paper will analyze Burberry's digital marketing strategy and provide further suggestions for developing digital marketing in the luxury industry.
2. Analysis of Burberry’s Digital Marketing
2.1. Overview of Burberry Company
Burberry was founded in England by Thomas Burberry at the age of 21. The founder's original intention was to design clothing that would protect people from the dreary British weather. As a result, Burberry is a symbol of classic upper-class British style. Perhaps the most iconic of Burberry's products is British leather, whose iconic checkered print helps define the brand's image in popular culture. Burberry applied for a registered trademark for the classic check pattern in 1921, and the design has been closely associated with the brand. The check consists of a beige background with interlocking black, white and red stripes, and today the design is one of the most recognizable patterns in the world [4].
With 421 stores worldwide, Burberry is present on all except Antarctica's continents and has a significant following in Europe and Asia. Their stores are designed to provide a luxury store experience while improving customer service. Over the years, Burberry has mainly focused on self-promotion through digital channels. The company regularly launches new campaigns and uses various types of promotions. For example, they placed ads in premium magazines, TV, billboards, and other places to target specific demographics. Burberry also recognizes the importance of social media marketing and has signed up national brand ambassadors and several celebrities, including Kate Moss and Agnes Dane, to promote their products [5]. The use of digital technology was a critical factor in the success of the promotion.
Throughout the digital channel, Burberry's goals are consistent. People can now buy online, pick up in-store, place orders in-store via Burberry.com, and access a unified shopping cart on mobile and desktop devices. In addition, with synchronized channels, Burberry can more easily access new markets, including Japan and Korea, and use social media platforms for online shopping.
2.2. Product Digitization (Virtual Products)
The intersection of the real and the virtual has been the most important social phenomenon in recent years. The virtual world is becoming a part of the consumer's life scenario, and the fashion industry has been picking up on this trend for a long time. In 2021, Burberry and the popular game "Glory of Kings" launched two skins of the famous hero character "Yao," using the classic Burberry check pattern that is well known in the market, which generated much attention in social media. This is the first time that "King of Glory" has jointly launched hero skins with a luxury brand, both designed by Burberry's creative director Riccardo Tisici.
From Burberry's perspective, this collaboration is not about selling more game skins for profit but essentially a marketing campaign to build the brand's image in the Chinese market, clearly targeting the wide range of young users in the local Chinese market who may not be loyal users of luxury fashion brands but are interested in fashion elements and topics. As a result, Burberry succeeded in mobilizing the interest of this segment of consumers.
2.3. Digitalization to Open up Marketing Channels
At present, luxury brands have substantial control over all aspects, from design, production to sales, and the proportion of direct sales channels is expanding. In addition, the epidemic has driven the transformation of channels in the luxury industry, and online channels have become the new frontier for brand marketing, bringing new customer increments. As a result, luxury e-commerce has made significant progress in the past two years.
The primary luxury goods market is mainly divided into online and offline channels, among which offline channels include travel retail, department stores, specialty retail, and single-brand stores. However, the offline channel was severely hindered by the impact of COVID-19. However, the online channels in the primary market were not affected by the epidemic, mainly including sales on the official website and self-operated, franchised, and wholesale e-commerce platforms.
Burberry has a strong digital team, with content shared on platforms and mobile devices created in-house. Burberry was the first brand to use Snapchat to promote its men's fragrance and beauty line, Mr. Burberry. In addition, Burberry launched its Facebook page in 2009 and was one of the first luxury brands to use the social network to promote itself. Facebook is Burberry's most popular account and has attracted 17 million followers. They use Facebook's live streaming feature to share product events, backstage content, runway clips, announcements, and store openings. They even have a solid online presence on YouTube, Instagram, and Twitter [6].
Last year, Burberry created the official Twitter account @BurberryService to provide customer consultation services, and Burberry also ran a Twitter buy button at the 2014 fashion show to make mobile purchases instant. The Twitter account has also been rolled out to several different international locations.
YouTube has worked remarkably well in its digital marketing. For example, Burberry posts videos of different products, events, and behind-the-scenes footage on YouTube, and Burberry has created some great unique content. With over 100,000 followers and hundreds of thousands of plays, it continues to grow in popularity.
2.4. Digital Interaction to Enhance Brand Promotion
Burberry has created an outstanding online consumer experience through social media and its website. Moreover, he has been innovative in his approach to digital, building a fashion website that includes digital content and drives e-commerce. Burberry has also designed unique digital content that allows consumers to interact with the brand, offering customization opportunities to match the tastes of younger customers. Burberry has also created Art of the Trench, a community where users can upload photos of themselves in their daily lives wearing Burberry trench coats; the company invites photographers and trench coat owners to participate, putting the consumer at the center of the brand and then adding the best-submitted photos to the site. Users can then comment and share the photos, attracting thousands of users [7].
3. Some Suggestions for the Luxury Industry Based on Burberry’s Analysis
3.1. Combined with Digital to Vigorously Develop Co-branded Products
Every luxury brand has strong brand potential and a high-quality raw material origin. There is also a brand history of more than 100 years, family handcrafted, craft heritage, texture optimization, etc. The strong brand power makes it a great luxury brand. Each luxury brand has its brand strengths, categories, and different commercial spaces. The brand alliance of joint promotion product customization has become an essential form of luxury brand promotion. Brands' mutual excavation and joint operation have become an essential form of "brand potential promotion."Luxury brands should continue building strong brand potential, illuminating industry-level brand promotion, and effectively combining brand promotion methods.
3.2. Utilize Social Marketing to Improve User Cognition
Popular in social marketing, many industrial-level brand planning and marketing have influenced industry brand management. The consumer value represented by sensation and consumer evaluation trial as a touch point amplifies the characteristics of luxury brands. As a result, social marketing will be more distinctive and fulfilling. Social marketing planning not only lights up the perception of luxury brands and enhances the visual feeling and experience resonance of users but also makes more users feel the brand value through text push and video feeling and makes more users feel the product features and brand sedimentation through audio communication and community activities [7]. In short, it is urgent to ignite brand social content, improve the accuracy of luxury content pushing and fully light up the user feeling in social marketing [4].
3.3. Use Digital Technology to Drive Brand Experience
The application of digital technology enhances users' consumption experience, enabling them to deeply perceive the quality of luxury goods and feel the fabrics, artistry, and characteristic craftsmanship of luxury goods with a high-quality touch. It also makes sense of the value of luxury brand planning more prominent and gives a firmer grip on the marketing planning of the luxury industry. In addition, better fabric experience, value presentation, product features, etc., give users more brand awareness [5]. The application of digital technology makes luxury brands more intimate and attentive.
In short, it is urgent to continuously integrate into the wave of digital technology iteration, innovate digital brand experience, and strive to enhance the digital interactive perception of luxury goods. The high-quality brand value refreshes the user's perception and makes the brand interaction more valuable to the industry [1].
4. Conclusion
Burberry is a fantastic brand with a strong presence in the luxury fashion market, and Burberry's continued focus on digital has seen its sales soar. This brand blurs the line between online and brick-and-mortar shopping and expects digital partnerships to be a key source of future growth for the luxury industry. Across the digital landscape, Burberry is investing in building an omnichannel presence, the Burberry app, and using data and analytics to help the brand thrive in the new digital ecosystem. In addition, the brand will curate product and merchandise assortments that allow customers the flexibility to choose their preferred payment and delivery options, enabling them to switch seamlessly between physical and digital distribution channels. The brand will also create product categories that vividly illustrate the digital shopping experience through compelling product stories. In the future, it is hoped that Burberry will use digital to drive the brand experience, leverage social marketing to increase user awareness, and integrate with digital to develop a solid co-branded offering.
References
[1]. Kim, Soyoung, and Ma Jin Joo (2019) “A Study on the Digital Transformation Strategy of a Fashion Brand.” https://koreascience.kr/article/JAKO201932569394425.page
[2]. Hilary Milnes (2015) “How Burberry Became the Top Digital Luxury Brand.” https://digiday.com/marketing/burberry-became-top-digital-luxury-brand/.
[3]. Alexa Gustavsen (2022) “What Are the 8 Types of Digital Marketing?” https://www.snhu.edu/about-us/newsroom/business/types-of-digital-marketing.
[4]. Moore, C.M. and Birtwistle, G. (2004) "The Burberry business model: creating an international luxury fashion brand." https://doi.org/10.1108/09590550410546232
[5]. Michel Phan, Ricarda Thomas & Klaus Heine (2012) Social Media and Luxury Brand Management: The Case of
[6]. Bruno Godey and Aikaterini Manthiou et al. (2016) "Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior." https://www.sciencedirect.com/science/article/pii/S0148296316304325?casa_token=n-JtIqfSMbQAAAAA:aUD52reH6Oz8oehFUwXrZ19lpa2wuoeBm0DjcUtebBIZTU_dwWsRp_Yk-d9H02UL5p9H8Mx2w
[7]. Ann Yang (2021) “Age Doesn't Limit Burberry's Digital Transformation.” https://medium.com/marketing-in-the-age-of-digital/age-doesnt-limit-burberry-s-digital-transformation-70d81204aa33.
Cite this article
Yan,Y. (2023). Analysis of Burberry's Marketing Strategy. Advances in Economics, Management and Political Sciences,17,241-245.
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References
[1]. Kim, Soyoung, and Ma Jin Joo (2019) “A Study on the Digital Transformation Strategy of a Fashion Brand.” https://koreascience.kr/article/JAKO201932569394425.page
[2]. Hilary Milnes (2015) “How Burberry Became the Top Digital Luxury Brand.” https://digiday.com/marketing/burberry-became-top-digital-luxury-brand/.
[3]. Alexa Gustavsen (2022) “What Are the 8 Types of Digital Marketing?” https://www.snhu.edu/about-us/newsroom/business/types-of-digital-marketing.
[4]. Moore, C.M. and Birtwistle, G. (2004) "The Burberry business model: creating an international luxury fashion brand." https://doi.org/10.1108/09590550410546232
[5]. Michel Phan, Ricarda Thomas & Klaus Heine (2012) Social Media and Luxury Brand Management: The Case of
[6]. Bruno Godey and Aikaterini Manthiou et al. (2016) "Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior." https://www.sciencedirect.com/science/article/pii/S0148296316304325?casa_token=n-JtIqfSMbQAAAAA:aUD52reH6Oz8oehFUwXrZ19lpa2wuoeBm0DjcUtebBIZTU_dwWsRp_Yk-d9H02UL5p9H8Mx2w
[7]. Ann Yang (2021) “Age Doesn't Limit Burberry's Digital Transformation.” https://medium.com/marketing-in-the-age-of-digital/age-doesnt-limit-burberry-s-digital-transformation-70d81204aa33.