Burberry sales soar on the back of digital and brand strategy

Burberry: digital strategy pays off
Burberry: digital strategy pays off

Fashion house Burberry has reported a 18% year-on-year jump in revenue to £673m for the first six months of the year on the back of ambitious digital campaigns focusing on the brand and simplifying buying.

Burberry will continue to invest in digital marketing strategies in the New Year to capitalise on the increased brand reach the group has achieved since launching its new strategy in autumn 2010. Digital sales were up by 50% over this period.

The brand is continuing to push a premium position, with "classic" designs never before sold at a discount, helping to push its gross business margin up to 64.3%. Pre-tax profit leapt 50% to £117.7m.

Angela Ahrendts, chief executive, said: "The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns."

Digital marketing has been a success according to the interim statement. It said: "Burberry now has nearly three million Facebook fans, the largest of any luxury brand, and over 650,000 people viewed the livestream of the September runway show.

"This was also transmitted to invited audiences in 25 flagship stores through Burberry's new 'retail theatre' technology. A global digital commerce platform is being tested for roll-out in the coming months."

Burberry has expanded aggressively into digital and social marketing in the past year, with iPhone apps enabling consumers to buy instantly, and the launch of the artofthetrench website to promote its classic coat designs.

Sarah Manley was appointed chief marketing officer last month, and the group appointed Universal McCann as its global media buying and planning agency in April as part of its ongoing communications consolidation strategy.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers