Thanks for your comments and questions, @iBot. Indeed it will be interesting to see where Burberry goes from here. I think they have been able to spot trend early on which enabled them to lure the millenial through digital marketing and their digital retail stores. With higher spending trends among young people, compared to the previous generation – luxury brands do not need to wait for people to reach their 50s to buy their first Burberry coat. Do they really need to balance their old-school, traditional history if they are able to create a brand identity for right set of customers willing to spend on their products? Also, these millenials are the future – grabbing their attention early could help the company keep them engaged through their later years too possibly.
Thank you for sharing your experience here, Jack. Yeah, indeed bold to go out there all digital to reach the “masses”, hoping that the right(rich) audience will sieve through. I was particularly surprised by its presence and high activity on SnapChat which in my head is basic – but clearly, they are doing it all right – the stocks say so!
Thanks Ricardo! I was actually just thinking about that. One of the blogs here is on Sephora and reading that I realized that most of their digital initiatives are to improve customer experience and deliver better product/service. Very little of the digital space is being used for actual marketing. In contrast, Burberry seems to capture most of the digital space in the form of advertising and marketing. Apart from its high-tech retail store which is blurring the line between physical and digital worlds for its customers, there aren’t much “experience-driven” digital initiatives. Great thought, thanks!
Great blog! I agree with London L. above on how the brand that Mattress Firm has somehow created is that of a “cheap, basic” company. Funnily, that’s the image I told too!
Agree with you on the Omnichannel approach is worthy of a trial, but I wonder if simply keeping a physical store along with digital presence solves the purpose in today’s world. I think the world is moving towards a place where physical is luxury, exclusive and experience is important, while digital is quick and convenient. If that analysis of mine is to be believed, Mattress Firm did not stand a chance. I will enter a physical place to make a purchase, watch a show or study in classrooms only if the experience is what sets it apart. A “cheap, basic” Mattress Firm-like store gives me no incentive to leave my couch where I can easily shop around, compare prices and get someone to come to my place to deliver me the items. The retail experience has to be more than just a store.
Great blog, Trishi! I did not know that Sephora was the only beauty brand that maintained a physical store within the lab space to test in-store experiences. This speaks about the brand’s retained focus on customer experience, and not just product innovation. Today with other forms of marketing like those through social media influencers advocating for specific brands, I wonder if Sephora (with that data that it has already) can create its own “influncers” platform or some form of “crowd-sourcing” to advertise but exclusively for Sephora.
All the digital steps taken so far seems to align with making the customer experience better. While that has an advertising component, I am thinking if Sephora will indulge in pure advertising “Digital” initiatives too.
Great post, Danielle!
I agree with your analysis that the market for MOOC is large and multiple players catering to different segments of this market can operate together in harmony. But wonder how a for-profit organization like Coursera plans to keep its edge against an almost similar-segment player like Khan Academy which is non-profit and is free. Quality of content could be a differentiating factor. I wonder if Coursera been able to use technology to bring itself an advantage over Khan Academy?
Thanks Krish, for bringing up a thriving Indian startup to this discussion. While I totally agree that the young company could leverage its position and come across as a winner at a time of crisis (demonetization) , I would like to know your opinion on the way forward. Fintech is rapidly picking up in India and competing companies such as Mobikwik are gaining traction. With still only 21% internet and smartphone penetration in the country, obviously the potential market is huge and may be there is room for many players. But, isn’t it also a threat that a new player with more savvy digital capabilities take a lion share’s of the remaining 80% of the market? Do you know if Paytm is doing much on technology and innovation side to keep away competition?
Thank you for your comment, Chris. Agreed that Burberry’s position in the market allowed it certain power – but I am not sure if the “millennial” segment that it identified and targeted through technology back in 2006 was where it had a leg-up back then. My feeling is that they created this market for themselves.
Yeah, it would be interesting to see how they use all these years worth of data to outperform their peers and if their strategy is any different from the rest in the years to come.