brand & corporate culture: the burberry example
TRANSCRIPT
/Founder & CEO of Vivaldi/
Erich Joachimsthaler, Ph.D.
Berlin / October 5th, 2016
BRAND & CORPORATE CULTURE:THE BURBERRY EXAMPLE
BURBERRY STANDS FOR TRADITION AND BRITISH HERITAGE
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•Over 150+ heritage
•Trench coat
•Performance 8% versus Luxury
Sector of 14%
•Sub-scale (LVMH is 12 times
larger)
CAN YOU BRAND CULTURE?
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“We’re British. They’re not. How do we exploit that heritage?”Angela Ahrendts /CEO - Burberry/
FOCUS ON MILLENNIALS (PART 2 OF STRATEGIC PLAN)
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“We didn’t found the company,Thomas Burberry did—at the age of 21. He was young. He was innovative. … His spirit lives on”Angela Ahrendts /CEO - Burberry/
“I grew up in a physical world, and I speak English. The next generation is growing up in a digital world, and they speak social.”
Angela Ahrendts /CEO - Burberry/
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TECHNOLOGY (PART 3 OF STRATEGIC PLAN)
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“We want to be the first company that’s fully digital”
Angela Ahrendts /CEO - Burberry/
HUNKER DOWN OR OPEN UP?
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“The experience would be for the customers to have total access to Burberry across any device, anywhere, anytime.”Angela Ahrendts /CEO - Burberry/
BECOMING A DIGITALLY CONNECTED ENTERPRISE
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TWITTERBurberry made Twitter a central part of their plan early on. Burberry had its first “Tweet-Walk” in September 2011, tweeting images of models just before they hit the runway. They also were the first to utilize Twitter’s “buy now” button
FACEBOOKThe Brand launched its site in 2009, before many other luxury brands ever entered social media. They immediately started using the site for exclusive activities - such as giving away perfume samples prior to launch.
SAPThey co-developed an app with SAP to make customer and product data available to all sales associates, seamlessly integrating the sales experience.
SALESFORCE.COMThey integrated Salesforce in multiple ways, including a capability to track social media buzz
Sketch created by Salesforce.com CEO Marc Benioff on a napkin at a 2006
meeting with Angela Ahrendts in NYC, mapping out the customer-centric
technology ecosystem of “Burberry World”
SOURCE: HELIXA 2013
CHANGING PROCESSES
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“I needed (the CIO) to move from the back of the bus, where IT traditionally sits, to the front of the bus”Angela Ahrendts /CEO - Burberry/
THREE NEW FUNCTIONS:
•Social Media Department
•Mobile Department
• Insights & Analytics Department
NEW REPORTING RELATIONSHIPS:
•Marketing, IT, and Creative Media
report under one P&L
“It’s not just to create a great brand, but a great company.”
Angela Ahrendts /CEO - Burberry/
• Monthly webcasts from the
leadership for the workforce
• Streaming of all conference
appearances to all employees
• Weekly internal communication
videos
• Previews of ads to employees
before anyone else sees them.
BUILDING THE CULTURE
EXECUTING OVER TIME
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Launch “Art of the Trench”
digital campaign &
site
Launch of Burberry
Facebook page
Livestream of Burberry fashion
show
Instagramannounces
Instagram for video
Burberry posts video during Instagram
announcement
Twitter launches
“Buy now” button in
July
Burberry incorporates
“Buy now” button on
their Twitter profile in
September –as one of the first brands
to do so
Launch “Burberry Acoustic”
Burberry “Tweetwalk”
2016
Announce “See Now, Buy Now” Revolution
Launch“See Now, Buy Now”
Launch Apple TV Channel
Launch SnapchatDiscover Channel
LaunchBurberry “Kisses”
Launch of Burberry “Bespoke”
online
Re-opening of London Flagship
Store
Periscope Livestreamof Fashion
Show
App partnership
with WeChatAngela Ahrendts
joins as CEO
Announcement of Strategic Plan
Instagramlaunches
CONNECTING THE CUSTOMER WITH THE BRAND
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“We didn’t do Burberry Bespoke to make money. We didn’t do Burberry Acoustic to make money. We didn’t do Art of the Trench, our social media platform to make money. We did all of that to have the customer engage with the brand.”
/C. Bailey/
SOURCE: HELIXA 2013
130
Million
App
downloads
13 Million
registered
developers
+2 Million
developers
in 2015
alone
BNP PARIBAS DIGITAL COMPETITIVE MAP: JANUARY 2016
SOCIAL MEDIA PERFORMANCE
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Burberry Ralph Lauren Hugo Boss
17,131,788 8,592,160 7,718,815
7,700,000 4,500,000 1,500,000
7,070,000 1,890,000 620,000
271,201 33,721 47,993
32,172,989 15,015,881 9,886,808
REVENUES AND GROWTH
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Burberry Revenue
In Million GBP
Global luxury
industry revenues in
Million Euros
CAGR: +5.06%
CAGR: +12.1%
2006 2007 2008 2009 2010 2011 2012 2013 2014 20152005
147000159000
170000 167000
153000
173000
192000
212000218000
224000
253000
716 743850
995
12021280
1501
1857
1999
2330
2523
CHANGING HOW THE INDUSTRY WORKS = CHANGING CUSTOMER EXPECTATIONS
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September 19, 2016
• Burberry presents its new collection called
September and makes it available in stores
and online same day
• Other fashion houses show Spring-Summer
2017 collections
Christopher Bailey Begins Burberry’s See-Now-Buy-Now Revolution
Burberry Aligns Runway and Retail Calendar in Game-Changing Shift
Burberry Aligns Runway and Retail Calendar in Game-Changing Shift
“We look back on this time as like the great industrial revolution because it is. Our lives are changing so dramatically.”
/Christopher Bailey/
HOW DOES TECHNOLOGY AFFECT CULTURAL TRANSFORMATION?
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BURBERRYCULTURE
Customer Experience
Processes
Organization
Infrastructure
Business Model
Leadership
Capabilities
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0
20
40
60
80
100
0 20 40 60 80 100Linear Exponential
Intensity of Transformation
Cu
sto
me
r E
xp
ec
tati
on
sTransform
Meet
2006
2016