Tuesday, November 16, 2010

Online marketing helps Burberry achieve 18% revenue increase

Through an “ambitious” digital campaign across several platforms, fashion house Burberry has achieved an 18% increase in their revenue for the first half of the year with digital sales rising by 50 percent.

Burberry’s investment in the wide-spread campaign has paid off, providing a rise in its gross business edge, which standards at 64.3 percent, with pre-tax profit rising to £117.7 million a 49 percent rise.

Using digital and content marketing technique, including the launch of a popular Facebook page, and the live transmission of their September runway show on the internet, Burberry has “expanded aggressively into social marketing”, reports Brand Republic. Over 650,000 Burberry devotees tuned in to watch the show, part of the three million Facebook ‘fans’.

The show was also shown to audiences across 25 flagship stores, through Burberry’s new “retail theatre” technology. Additionally, a new Burberry iPhone application allows users to make instant purchase, and a “global digital commerce platform” is currently undergoing tests, with a release due in the new few months.

The launch of a mini-website - focusing on the classic red, camel and black trench coats - has also improved Burberry’s brand reach. Sales of non-clothing products, such as accessories and bags have also seen a 26 percent growth.

Chief Executive of the brand, Angela Ahrendts is confident that the Burberry brand strategy and marketing campaign has been the key driver in their pre-tax profits: “the continued focus on the brand, ongoing investment in infrastructure…and a disciplined approach to driving growth, underpin our confidence in delivering long-term sustainable returns.”






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