Burberry results digital and mobile make it a luxury firm in a million: WE LOVE BURBERRY
Burberry results digital and mobile make it a luxury firm in a million:
Burberry’s in the news at the moment. No, wait, Burberry’s always in the news. Just more so at the moment. Only a couple of days after announcing Christopher Bailey would step down as CEO, the company issued a trading update this morning that the news media is jumping all over.
Newspaper and websites largely jumped on the negatives in the announcement and perhaps that’s not a shock given that Burberry has some major challenges ahead (not least among them a new management structure that replaces Christopher Bailey with an external CEO while appearing to give him as much power as ever).
But what’s more interesting than the basic sales figures is its news around digital. Digital grew strongly in all regions during Q1 (no surprise there) and Burberry’s digital growth is being driven by mobile that now approaches 60% of traffic to its site.
Let’s just step back a minute and look at that figure. This is a luxury brand, part of a sector that took virtually a decade to even recognise the existence of the internet. It’s also part of a sector that loves beautifully crafted websites that are seen at their best on large retina screens.
Yet that 60% means Burberry is enjoying the kind of website traffic via mobile that we’d expect to see in the mass-market from brands such as New Look or River Island.
It’s a testament to the investment Burberry has put into digital and a signal to its luxury peers that the ‘M’ in m-commerce can stand for lots of things as well as mobile (Mass, Margins, Momentum, and downright Marvellous, for instance).
Importantly, Burberry has also focused clearly on omnichannel where the stores work with the e-store and the warehouses for a seamless customer experience. The company said this morning that its single pool of inventory model has been further expanded, with about 90 stores now live globally, improving stock availability for all online markets and helping to drive digital/mobile growth further.