Sunday, October 20, 2013

Luxury meets Technology.


This week Burberry announced that Angela Ahrendts will be stepping down as CEO to join Apple as Senior Vice President of Retail and Online stores.  As noted in the flurry of media activity surrounding the announcement, this is Apple’s second notable hire from the luxury fashion industry, the first being Paul Deneve, the former CEO of Yves Sant Laurent. 

What does it all mean? I suspect that Ahrendts success in transforming Burberry from a stodgy old British brand into a digitally savvy powerhouse is key to the transition.  But what can Apple, a highly successful retailer in its own right, learn from Ahrendt’s strategy at Burberry? The key to Buberry’s digital strategy is integration and stimulation.  Burberry’s online experience is seamlessly integrated into it’s mobile and brick & mortar platforms so that customers can easily transition between looking at a product on the subway platform, viewing it in greater detail at home on their PC, to picking it up in the physical store.  Furthermore, Burberry broke the luxury protocol of long lead times between what is seen on the runway to what is available in stores.  The last few fashions shows have been livestreamed in high profile public places like Times Square and to the everyday fashionista online.  Immediately following the shows, the products were available on the company’s website and through it’s fully optimized mobile platform.  This type of integration is rare and exemplifies a comprehensive digital strategy.   In terms of stimulation, Burberry seeks to interact with the consumer through creative partnerships.  For instance, earlier this year, Burberry partnered with Google to allow customers to kiss their screens, and then send the digital kisses around the world. And during London Fashion Week, Burberry partnered with Apple’s iPhone 5s to display images/videos shot with the devices online prior to the ready-to-wear show.

So how will this all translate at Apple? Perhaps Ahrendts will enhance the Apple retail store by creating a more seamless omni-channel experience…although, isn’t Apple already doing that? I’m interested to see what happens.

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