Burberry Goes Digital – The Economist

Choosing a new direction for a company can be a very risky decision. For company’s as old and established as Burberry, the risk is even larger. Unfortunately, the recent decline in sales and popularity of Burberry requires new tactics to revive the brand founded in 1856.  In Asia, the company has seen a significant fall in sales growth while other luxury brands like Louis Vuitton and Hermes have been scarcely affected. The firm’s current CEO, Angela Ahrendts, believes that an integration of technology is the way forward for the company. Along with interactive screens in stores, Ahrendts plans to implement ‘Customer 360’. It will allow store clerks to access the customer’s buying history.

New Burberry store opened in London features a 22 feet high screen

Although these ideas seem very modern and technologically savvy, it takes away from the reason shoppers choose Burberry in the first place. The brand has an identity of providing luxury garments in a sophisticated setting. The current, loyal customers of Burberry do not come to the store expecting to be amazed by technological innovations. The article mentions a quote from a London designer: “Louis Vuitton offers them deep-pile carpets. Burberry offers them big computer screens,”.  This sums up the loss of Burberry’s identity. It’s important for companies to not forget their initial attraction. As a luxury clothing brand, Burberry needs to maintain their image as a prestigious place for higher-class shoppers.