Digital Marketing for Luxury Brands

Burberry recently reported its half-year revenue number at over $1.5B, the first time the retailer has reached this milestone. With a 17% same-period YoY increase in revenue, Burberry’s outgoing CEO Angela Ahrendts largely credits a renewed digital marketing strategy for the bump.

Surely, the strengthening global economy contributed to Burberry’s revenue increase, as luxury goods manufacturers are particularly sensitive to macroeconomic headwinds since their goods are considered completely discretionary. But Ahrendts statement of strongly attributing the positive earnings report to digital marketing efforts should send a message to other luxury goods manufacturers. Though Burberry thrives off its retail stores in which customers can physically touch and experience high-priced clothing and merchandise, the strength of its brand alone is enough to ensure that customers will buy these items without physically interacting with them first. Burberry’s moves across search and social have worked to expand its customer base and raise awareness of its products to consumers who wouldn’t normally venture into a Burberry brick-and-mortar store.

While the in-store showcasing experience has historically driven sales and defined the brand to consumers, Burberry can now reap the rewards in the digital space and continue to boost revenue as it refines its digital strategies in months to come. Other established luxury retailers would do well to learn from Burberry’s success and tap into the digital economy.