Innovation

The Future of Brand Flagship Stores: Strategy Update

In the middle of global store lockdowns, 100+ lifestyle brands announce the opening of new flagship stores.

Versace, Puma, Under Armor, Gucci, Saint Laurent, Montblanc, Adidas, Lacoste, Dior, Hermes, Supreme and more report new flagship store openings. All that adds up to retail investments of US$ 200m (assuming standard buildout cost and store sizes) in a time when the internet is booming.

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How India’s Digitization Impacts Retail and Brand Distribution

India has been on an exciting digitization journey since 2009. Many key elements that will form the backbone of ‘Digital India’ also serve to enhance retail and brand distribution.

Some of  the building blocks are already well in place, tried, tested, validated, and nationally rolled out, and others will be introduced in the next 2-3 years.

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Evolution of Store Design

Retail as we know it is dead. That much is certain. But for brands that place the human at the centre of their world, there is much hope for the store of the future.

As we emerge from the Covid-19 pandemic, innovation, technology and brand experience are leading an exciting rebirth in the delivery of offline retail, resulting in more opportunities with community-led and experience-based retail. Here we explore some of the ways store design helps brands to reshape their portfolio

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How US Brick & Mortar Stores Can Survive in the Digital Age

Brick and mortar in the digital age: learn how Nike, Recreational Equipment Inc and other leading retailers thrive despite the ongoing retail shakeout in the United States.

Numerous articles over the past few years have discussed the retail apocalypse occurring across the United States. Already this year, almost 8,000 stores have announced that they will be closing their doors with projections to reach 12,000 doors by year end. This will amount to the single largest net loss of retail stores over the past eight years.

brick & mortar digital age
(Source: CoreSight)

Despite many prognosticators promoting the end of the brick and mortar store, there are multiple examples of brands who are leveraging their physical and digital footprints to establish deeper, more meaningful relationships with their customers.  However, before we dive into the future, it’s important to examine the key lessons from the past.

Oversupply + Little Differentiation = ‘Sea of Sameness’

Moving back to the United States after living in Europe for a few years, I was struck by how similar each shopping center looked, no matter what part of the country I was in. The sheer size of the US, access to cheap capital, and a heavy reliance on the automobile fueled a massive expansion of retail stores. Retailers could largely drive annual revenue increases by simply opening up more and more doors. As of 2015, there was five times more total retail space per capita than in France or the UK but only 50% higher sales per capita.

brick and mortar in the digital age
(Chart: Chilton Capital Management)

The rise of e-commerce, which has reached 35% of all US apparel sales last year, has only accelerated the inevitable demise of many venerable retailers such as Kmart, Toys’R’Us and Payless Shoe Source. An increasing number of doors were competing for the same customers with nearly the same product offering and in-store experience. This resulted in a ‘sea of sameness’.

The Future of Brick and Mortar in the Digital Age

Rather than viewing their stores as a dinosaur, successful retailers are transforming their physical locations to create a deeper, more tactile experience than online-only shopping can. Since omnichannel customers purchase twice as often and spend more than single-channel customers, retailers will need to adopt three basics principles to ultimately survive in the US marketplace.

Create Digitally Connected Journeys

US retailers are investing millions of dollars annually to enable greater omnichannel integration, yet there remains a long way to go. According to L2’s recent omnichannel report, just over 25% of US retailers offer BOPIS (Buy online, pick up in store) and just over one-third provide ship from store capability.

Nike’s new Innovation House in Shanghai and New York, for example, has heavily embedded digital in-store technology to provide consumers greater choice and ease in their shopping journey. Using the Nike app, consumers are able to ‘Shop the Look’, which places a mannequin’s entire outfit in a virtual shopping cart. ‘Scan to Try’ allows the consumer to send items to a fitting room of the their choice.  ‘Instant Checkout’ speeds up the payment process by allowing consumers to skip the line and buy their items through the Nike app.

brick and mortar digital age
(Photo: Nike)

Evolve from Selling Products to Selling Experiences

It’s not just millennials who are placing greater emphasis on experiences. Research shows that almost 75% of all Americans surveyed prioritise experience over products or things. While this might threaten many traditional retailers, some brands are expanding their offering to meet consumers where they are and, ultimately, create a deeper relationship.

Recreational Equipment Inc (REI), the largest outdoor retailer and cooperative in the US, is aggressively expanding its rental offering and used gear options. Knowing that consumers may feel intimidated about venturing into the outdoors, REI “sees the expanded rental and used gear program as keeping us moving towards a sustainable and accessible outdoor future by offering a new model of access to great outdoor gear and apparel,” says Ben Steele, Chief Customer Officer at REI.

Each rental occasion also offers REI two additional consumer touchpoints, one upon pick-up and another when returning the gear. And each touchpoint gives REI the opportunity to not only sell additional products but also share its knowledge and passion for the outdoors.

brick and mortar in the digital age
(Source: REI)

Evolve the Sales Associate to a Service Partner

In an age where consumers have so many choices to spend their hard-earned money, the days of the inattentive or pushy salesperson are coming to an end. Despite consumers’ reliance on smartphones through their shopping journey, there remains a need and a potential source of differentiation for stores to provide the compelling service.

In Nike’s Innovation House, the new Expert Studio is Nike’s first dedicated floor to provide member-only experiences such as one-to-one appointments, access to exclusive products and the option to create personalised products in the Nike By You Studio. Most luxury brands already offer an elevated level of service due to their high price points. Nike is providing a similar high-touch consumer experience, and with the Nike app a segmented product strategy and in-store experience to keep the most valuable customers in the Nike DTC ecosystem.

Not all brands in the crowded and competitive US marketplace will be able to make this transition and ultimately not all will survive. While some past market leaders, like Sears and Toys’R’Us, have not been able to pivot their business model, this does not mean that brick and mortar retail is dead in the US. Strengthening omnichannel integration and creating experiences that are meaningful to their most valuable customers are critical steps for all retailers to consider as they try to thrive in a very competitive and tumultuous marketplace in the United States.


About the Author:

With 25+ years in the sports and fashion industry across the United States, Europe and Asia, John Ensminger, has worked with leading brands including Nike, The North Face, K2 Sports and Carhartt to develop breakthrough, actionable strategies that strengthen their brand position and drive growth and profitability. Read his posts here or connect with him on LinkedIn to further discuss brick and mortar in the digital age.

Strategic Brand Management at its Best

Shoppers love unique products and great brand stories. If on top you sell upcycled products, are a niche company from a small country, that makes all the ingredients for a great brand story. For us that delivers great learning on strategic brand management.

If someone had told you in 1993 that someone would manage to turn truck tarps into it bags in Seoul by 2019, and create a best practice brand development story in the process, you may have questioned their judgement.

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Why the Netherlands Have Become a Last Mile Innovation Lab & What We Can Learn From It

Parcel costs are on the rise and customers disapprove of growing numbers of delivery vans on the streets. As a result, cities and the logistics industry are piloting alternative solutions in last mile innovation.

Note: There is an updated version of this article in 2022 available, which can be found here:

The Online Boom Drives Parcel Volume

The ongoing boom in ordering goods online has led to a boom in the logistics industry in the Netherlands with 295 million packages delivered (plus 30% compared to 2015).  However, it is only now that consumers have begun to complain about the high number of delivery vans clogging up the narrow streets of Amsterdam.

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Update Your Brand Management Reading List

As the summer holiday season kicks in, we’re here to help you get your brand management reading list for all those long flights up to date.

Choose from our curated reader favourites from this past quarter for topics as diverse as the latest trends in edited retail, high and low tech fashion size finders, an update on fashion retail in India, creating memorable store experinces or Adidas’ Global Cities strategy. We’re sure there’s something for everyone. (more…)

Size Matters! 4 High and Low Tech Solutions for Fashion Size Finding

Fashion size finding remains a challenge for retailers and consumers. Choose the right fit for you from our shortlist of size finding technologies.

Finding the right size is of course crucial when shopping for fashion. It is therefore no big surprise that failing to find the correct size or fit is the reason that consumers mention most frequently for aborting a shopping experience, both online and in brick and mortar stores.

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Branding in 3D: How Edited Retail is Catering to the Attention Economy

Technology and new expectations have made confident, purposeful ranging a more valuable asset than ever before. In the attention economy, edited retail rules!

Utah is, perhaps, one of the last places you might expect to find achingly trendy sneakers and urban wear. Yet for KITH, the arid terrain of Canyon Point UT is much more than a lookbook location.

The most recent capsule to be issued under the retailer’s sport-tech EEA (Element Exploration Agency) imprint is aggressively visual and exotic. More than that, it’s a container for improbable, extraordinary products from Columbia Sportswear, adidas, Oakley, G-Shock and Tumi. Each is an artefact that blends seamlessly into the collection’s indigenous, sun-baked palette.

Edited Retail (Source: KITH)
(Source: KITH)

It’s doubtful that KITH’s influential guru, Ronnie Fieg, needs outside endorsement to sell out his sixty-piece Utah capsule in days, but these brands’ investment in Fieg’s creative vision brings flair and intrigue to the equation. They are touchstones for a collection that might otherwise have been just another trendy take on nineties sportswear nostalgia. But their baked-in collaboration makes it tangible and – to use a term from Seth Godin remarkable. ‘Did you see that KITH Tumi case?’ is so much more compelling than ‘Did you see that KITH suitcase?’.

Only weeks before Utah’s release, Bloomingdale’s leveraged a cultural meme called MAR10 Day by launching Super Mario-themed corners aimed at grown-ups. Pixel-heavy, selfie-friendly zones featured exclusive items created by fourteen brands under sublicense, and a curated selection of on-topic products from unaffiliated labels. In February, Nordstrom used a near-identical format to connect Snoopy to the advent of Chinese New Year.

Edited Retail Bloomingdale's
(Source: Crescendo Brands, Halo Licensing Survey)

Concept stores and directional labels are notorious for using extraordinary – often audacious – products to illustrate elaborate, escapist concepts. But in spite of their obvious magnetism, batch-drops like KITH’s are often too readily dismissed as indulgences of brands with access to some kind of elite fashion bubble.

For the likes of Bloomingdale’s – and the vast majority of more than ninety similar campaigns launched by retailers during Q1 2018 – elitism was well down their list of objectives. Instead, most of them shared a common commitment to generating a strong and explicit editorial context.

Edited retail is the art of purposefully curating products to be discoverable and discernable to a wide audience seeking thrills and trophies.

Edited Retail is Like Branding in 3D

Hyper-connectivity is creating a world where the need for self-expression and the ability to discover perfectly personalised forums, ideas and products are turning all of us into little connoisseurs. A few years ago, we might have talked about feature collections like those above as generating surprise and delight. But their growing frequency and spread point to a climate in which campaigns are less directed at capturing upside, and more about avoiding averageness and anonymity through lack of editorial relevance.

Alongside product and place, editorial intrigue provides a crucial third dimension that enables products to shine in today’s cluttered landscape.

Since the beginning of time, shopkeepers’ ability to curate relevant offerings for their customer base has been turning the wheels of commerce. In recent years ‘curation’ has become a rather abused term, but few would deny that shoppers are growing fonder of the idea of hand-picked selections. With reputations built on curation, brick-and-mortar retailers have the ideal DNA to respond to this evolution, but need to adapt to the speed and heuristics of the attention economy in order for their talents to be valued. For retailers, an important success factor in the brave new world is the ability to connect product ranges to culture by thinking like editors.

Encoding ranges with references and terms favoured by media and social media puts brands in the path of discovery-seekers. By offering the exclusive Tumi suitcase or the special Mario backpack, the searchability of these terms offers exposure to a whole tranche of consumers that didn’t even know they were shopping.

Without an editorial approach, brands not only miss opportunities to develop and grow, they face having their market incrementally chipped away by others with a more recognised flair for curation. Over recent years, the number of vendors set up to sell the exceptional rather than the ordinary has risen steeply – both in physical and, especially, digital retail.

There has been an explosion in concept store openings – Colette may have bid adieu, but H&M Group has green-lit several new multi-brand concept chains. Specialist brands and eCommerce exist for practically every category and interest. Publisher and blogger eCommerce platforms like Hodinkee have transitioned from community to commercial platform with spectacular success. Meanwhile, buying clubs like MassDrop, as well as custom and aftermarket shops like ColorWare are banking new sales and margins from obsessive shoppers. Besides taking revenues from conventional sellers, these disruptors are also helping to expand common perceptions of value and redefine consumers’ expectations.

Edited Retail
(Source: Crescendo Brands)

Over the same period, exclusive and special-batch products have become much more prevalent. As consumers have become more informed and attuned, so too has there been a broadening of perceptions as to what constitutes value in an exclusive offering. Consumers are increasingly inclined to perceive retailers as creative originators and the driving force in the relationship between brand and store.

The Storytelling Gap: When Content Ignores Product

By now, most brick-and-mortar retailers have responded to the rise of the internet by building eCommerce and investing in digital content. While the opportunities that digital platforms offer to grow sales, build communities and tell stories have been well heard, across the retail spectrum we see many more examples of brands talking product or telling stories, than of brands using products to tell stories. Yet, for decades, consumers have been giving retailers permission to do precisely that.

Content that informs and entertains is a positive force, but retail mustn’t lose sight of consumers’ expectations for it to come up with exciting product propositions. No-one is demanding that KITH release a hip-hop mix tape, or to play a custom version of Mario Kart at Bloomingdale’s. Both campaigns comprise visually stimulating products with multiple, baked-in story hooks – brain candy that attracts, engages and entertains.

Brands of all kinds fail to take opportunities to connect products and stories. Often a root cause is the relationship between marketing and buying/design functions. Editorial concepts can originate in any of these departments, but seamless execution needs a clear plan and coordination of responsibilities. Whether the resulting product range is large or – as in the overwhelming majority of cases – small, each contributor to the creative mix has a role to play in framing and telling the story.

Among retail brands, more common causes may be internal policy or lack of information. Some may believe that zooming in on a narrow range of products misrepresents the broader assortment, or risks cheapening the brand. In making these assessments, management should take into consideration the rising proclivity of consumers to seek out remarkable experiences at the expense of average ones. After all, for close to twenty years now we have watched society emphatically prefer singles over albums: consumers are curating their lives and identities with a select mix of hits and rare grooves.

Which select tracks did you rely on to drive traffic last season? Whose mental playlists did they make it onto? Retailers often struggle to take the actions needed to answer these questions convincingly. Perhaps they see themselves as outside the elitist fashion bubble (or outside fashion) and fail to notice how widespread edited retail offerings have become. Or perhaps they are aware, but aren’t informed about the tools and models available to boost their editorial mojo.

In a highly competitive information landscape full of increasingly meticulous consumers, what supports do retailers have to realise more discoverable offerings?

From Curated Retail to Edited Retail

When it comes to the task of crafting easily discoverable products, vertical monobrand stores have a head start on other retail formats. Over the last decade, many brands – from luxury to grocery – have discovered how micro-innovating with small capsules and special editions energises their brand and inserts it into conversations.

Across all sectors, collaboration has become a particularly important platform for realising remarkable, personalised offerings. In my work as a brand innovation consultant, I track around 250 power-users like Converse, MAC Cosmetics and Rimowa, who rely on collaborations between three and fifty times a year to tell stories and leave their mark.

Edited Retail
(Source: Crescendo Brands)

Collaborations use popular names and terms as editorial markers and offer a simple visual/verbal language that gives consumers tiny puzzles to discover and solve. With the vast majority of collaboration campaigns based on limited edition products, distribution is often concentrated on eCommerce and preferred outlets – meaning that the brand’s own locations are often best positioned to convert high editorial appeal into impressions, traffic and sales.

Despite the advantage monobrand retail holds, multi-brand retailers have more freedom to merchandise around editorial ideas and have more credibility as curators. To create editorially engaging product campaigns, multi-brand retailers have two key avenues at their disposal:

  1. Boutique Collaboration – developing exclusive products with key suppliers and (for extra editorial intrigue) auteurs and/or outlier brands. The best examples use strategic market units sourced from different suppliers and coordinate them around a theme that resonates with internal values, cultural factors, or current trends;
Edited Retail
(Source: Sources: Barneys, Hudson’s Bay, Aesop)
  1. Direct to Retail (DTR) licensing – licensing is a turnkey resource for cultural connectivity. Offering a vast range of cultural content, licensed material can be used to boost private label product or, via sublicensing, to create a red thread between products from different sources. As with boutique licensing, editorial appeal and exclusivity are heightened when iconic intellectual property is fused creatively to a specific story or theme;
Edited Retail
(Source: Burton, Adidas, Carhartt, Urban Decay, Apple, Valvoline)

In both scenarios, a common technique stores use for continuity is to superimpose their own vision onto familiar brands, properties and products over time – using, for example, store identity (like the Hudson’s Bay Company Collection), brand values (like Shinola’s rootsiness or Elevenparis’s irreverence), or abstract themes (like Bucherer Blue Editions).

The New Market for Discoverable Products and Brands

Exclusive styles and licensing can hardly be considered new additions to the retail brand management arsenal. What is new, however, is an information ecosystem increasingly geared to favour remarkable, extraordinary ideas. Also new are the disruptors and progressive retailers gaming the system to command attention and showcase their curatorial skills to an audience far beyond the shop window.

Edited retail campaigns that use multi-lateral relationships are particularly good at showing creative leadership, and make exclusivity easier to preserve. They can bring about great efficiencies too: in the Peanuts x Nordstrom example cited above, media attention on just one of the campaign’s minor participating brands complemented – and possibly even exceeded – the store’s own PR effort.

In their role as editors, retailers also have the freedom to bring designers, artists or celebrities into the creative/storytelling mix. Establishing a three-way dynamic between store, brands and extraordinary talent is a popular way of giving reach and originality to editorial ideas. A high-profile exponent of this is Uniqlo, whose recent fusion of Doraemon and Takashi Murakami provides brain candy to fans of both camps – and a memorable trifecta of Japanese pop culture.

The Way Forward

The fast-evolving information landscape has changed consumers’ behaviours and expectations, and created new advantages for vendors who make their products easily discoverable. By adopting an editorial mindset across the creative process, retailers can create special product offerings to command attention, tell stories and show their curatorial savoir-faire.

Boutique collaboration and DTR licensing are models that expand retailers’ creative options and increase the chances of in-house ideas and values gaining traction beyond the store walls. Both models are being used with increasing frequency, originality and sophistication in market sectors and strata far beyond the elitist fashion bubbles they began in. But then again, as Seth Godin points out, we’re all in the fashion business now.


About the author:
Gavin Brown grew up far from anywhere, longing to own the stuff featured at the back of magazines like MAD, SHOOT! and NME. Today, he channels his lost childhood and 20+ years in brand and licensing management into helping European companies appeal to consumers’ urge to own. Find out more about brand innovation via his monthly newsletter or by getting in touch via email.

Offline Retail: Get Out of the Comfort Zone!

An open letter to all offline retailers on how to attract new customers in the face of online competition (if you’re not too tired for a pillow fight).

It’s a sunny afternoon and I’m on a business trip somewhere in Bavaria. As the phone rings, a local German radio station wants a short interview. ‘Tomorrow is the Day of Online Shopping …’, they say. ‘Did you proclaim it?’ I ask.  ‘No, it is a conference in Berlin. We want to report on it and would like to get a statement from you on what e-commerce means for physical retailers and how they can attract new customers’, explains the editor, and we arrange a second call later that day.

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Burberry: Classic Design with a Future-proof Retail Strategy?

An inside report by Cate Trotter on the strengths of Burberry’s retail operations.

Burberry made headlines when Marco Gobbetti replaced Christopher Bailey at the head of the company, and when Riccardo Tisci was named as Burberry’s new designer. In the context of the management change, the question whether the successors can fill the shoes left for them has been raised time and again. Cate Trotter believes they can, as the brand’s strength extends beyond fashion statement or management and lies in Burberry’s retail strategy.

Inside the Retail Strategy of Burberry

The Burberry name is one of the biggest in British fashion – and beyond. Founded in 1856, the brand is known for being forward-thinking since the very beginning. It doesn’t just design and sell clothes, but was born of innovation for founder Thomas Burberry also invented gabardine, the weatherproof cotton material which Burberry’s famous trench coats are made out of. Before today’s fashion-forward shoppers, Burberry gabardine was used by polar explorers, race car drivers, aviators and military officers.

Burberry opened its first store in London in 1891. Since then the company has built up a network of more than 200 own-brand stores worldwide, plus a similar number of department store concessions. Its online business is also booming with a web presence in more than 40 countries worldwide. We take a look at how it does it and what Burberry can teach the rest of retail.

Retail Strategy Burberry, flagship store London
Burberry Flagship Store London (Photo: Brand Pilots)

Digital Innovation

Burberry may be a heritage brand, but it never been happy to rest on its laurels. Unlike many other long-established brands, Burberry has always been out-in-front when it comes to digital innovation. Since 2006, the company has shifted its mindset to incorporate social media, AI, big data and more into its strategy. Today the brand reaps the benefits of this investment, while others struggle with the changing wants and needs of customers.

Burberry has a presence across 20 different social platforms and a combined following of more than 50 million. In 2016, Burberry launched a chatbot through Facebook Messenger as part of promo around its runway shows. Customers could use the chatbot to get updates and see behind-the-scenes content from the show.

Today they can chat with the bot to browse current collections, see pricing and get recommendations on matching items and accessories. It even has integration with Uber to help customers make their way to the brand’s stores. The chatbot strategy has now been extended to other messaging platforms such as Line and Kakao. Customers can also use the tech in Burberry’s app. By embracing new communication channels, Burberry makes its brand more attractive to younger shoppers. This is vital for the company to ensure it has a new generation of customers.

As far back as 2009 Burberry was experimenting with live-streaming its annual runway shows in order to increase their global reach. Since 2016, Burberry has adopted a ‘see now, buy now’ format for its runway shows with some products available to buy immediately after the show.

Retail Strategy Burberry
(Photo: London Scout)

Burberry has also been a first mover in many other new digital channels. It was the first luxury brand to experiment with personalised experiences on Pinterest and the first brand to use a Snapchat Snapcode. Both initiatives were part of specific product campaigns with Burberry tailoring the digital partner to the content – in the case of Pinterest it was make-up and Snapchat was fragrances. Other Burberry firsts include a dedicated Apple Music channel. The brand is also experimenting with enabling customers to buy through the WeChat social media service.

Luxury brands can often be seen as old-fashioned, but Burberry is shaking off this image by incorporating these digital services into its strategy. It also means it can market itself to customers earlier and earlier in the relationship. A teenager might see Burberry’s content on Instagram or Snapchat and start to form an interest in the brand. If Burberry is able to cultivate this then when that teenager becomes an adult with money they may turn to Burberry.

Another way that Burberry is using tech to its benefit is around the challenge of counterfeiting. The company has teamed up with Entrupy, a tech-based authentication service, to use image recognition to determine if a photo is of a genuine Burberry product. The image only needs to be of a tiny section, with the tech able to spot fakes with 98% accuracy through looking for inconsistencies in the texture and weave.

Counterfeiting is a serious and costly issue for luxury businesses. Burberry’s willingness to explore new ways to overcome this will pay dividends if it’s able to weed out the fakes and make sure all sales are for the real thing. The tech also means the company can respond much faster to new instances of fakes being sold online to shut them down before they get going.

Retail Strategy Burberry
Burberry Flagship Store London (Photo: Brand Pilots)

Customer data

Perhaps most interesting though is that Burberry has amassed a huge collection of customer data – as of November 2016 the brand had 12 million people in its database. Customers voluntarily share their information with the brand through its loyalty and reward schemes in exchange for personalised recommendations. It also has an impressive 85% success rate in capturing data from a customer once in-store, which means most visitors are happy to hear from the brand again.

This approach certainly seems to be paying off. In 2015, Burberry revealed that by investing in personalised customer management programmes it had achieved a 50% increase in return business. Burberry is also able to use its database to help sales assistants access a customer’s purchase history and social media activity. This enables them to offer a more personalised experience.

Every type of retailer is aware of the value of customer data. Burberry has worked hard to make sure that what it gives it customers in return for their data seems valuable enough to warrant handing it over. Apart from helping refine its communications, and personalise interactions, this data can also give Burberry a higher-level view of who their customers are. This can help inform everything from its designs to visual merchandising.

Retail Strategy Burberry
(Photos: Burberry)

Physical stores

Burberry’s stores are where a large number of people interact with its brand. The company has implemented a company-wide service model to make sure that all staff work to the same high standards of service. It also ensures that they focus on building long-term customer relationships.

This is because Burberry understands that someone may not buy on their first visit to the brand, but they may well buy in the future. Likewise, if someone does make a purchase, the brand wants to make sure it’s not a one-off. Having a relationship with a brand is an important element of this. If a customer feels understood, appreciated, wanted and valued then they are going to want to keep spending time with the company that gives them that attention.

The design of the stores and visual merchandising are also carefully thought out. Wall colours are usually neutral with darker accents and furniture. Together it brings to mind Burberry’s classic trench coat or tartan. This is a clever bit of branding that’s often missing from other retailers’ stores.

Retail Strategy Burberry
Burberry Brand Store Covent Garden (Photo: Brand Pilots)

As usual, Burberry is very much ahead of the curve with its in-store tech. While RFID is still being explored by retail as a whole, Burberry has been implementing the tech in-store since 2012. Many products in its range are fitted with RFID tags. Shoppers can use their smartphone to interact with these to gain access to extra content – from how a product was made to recommendations on looks.

In fact, when Burberry opened its Regent Street flagship in 2012 it was designed to be the physical version of its website, known as Burberry World Live. Alongside RFID tags, the store uses tech to make its service more seamless. This includes the ability for assistants to take payments anywhere, high-speed lifts that help with speedy stock checks and iPads for kids to draw on in childrenswear.

The store also offers unique experiences, whether it’s live-streaming the latest Burberry runway show, or a live gig on the in-store stage. Burberry understands that customers are coming to the store for something that they can’t get elsewhere – particularly online.

This desire for experience may be particularly strong when it comes to luxury. If you’ve saved up to buy a Burberry trench coat would you rather just click buy on a website, or would you want to go in-store to get the VIP treatment?

Retail Strategy Burberry
(Photo: Sandid)

Refocus on luxury

Burberry has always been a luxury brand, but reports from late last year indicate that new chief exec Marco Gobbetti plans to make it even more upmarket. In order to do this it will pull Burberry products from some department stores, and up the prices on some product ranges.

It’s an interesting approach. By reducing the number of outlets carrying its products outside of its own stores, Burberry will create a greater feeling of exclusivity around them. Higher price tags will also push the products out of the range of more shoppers, which again will make them seem more exclusive. It may also increase the aspirational nature of the brand.

But Burberry will have to weather a drop in sales, hopefully just short-term, while this new strategy is put into place. The brand may also incur some negative publicity from brand fans that may not be able to afford the higher prices.

The new strategy also includes plans to refit Burberry physical stores to heighten the luxury experience. This may help the brand to justify its higher prices by setting them against a more expensive-feeling backdrop. With physical stores being the easiest way for a brand to totally immerse a customer in their world, it makes sense that Burberry would focus efforts here when trying to reposition itself.

Retail Strategy Burberry
Classic Cashmere (Photo: Burberry)

What can we learn?

As you can see there’s much retailers can learn from Burberry. Number one though is to not be afraid to take risks. Burberry is a pioneer in many new developments and is always on the cutting-edge of what new tech is out there. It’s already looking into virtual and alternate reality possibilities. Even if nothing comes of this, the fact that the brand is aware of the tech and educating itself on it puts it ahead of many others.

It’s not afraid to dip a toe in and try something – whether that’s through a new social media channel or sales model. This reputation as an innovator means that even when it’s not doing something new, people are still watching Burberry with interest.

The company is also very secure in who it is as a brand. It’s proud of its heritage and history, but always looking ahead. It balances serving its existing client base with the knowledge that it also needs to attract the next. Its stores offer customers a slice of special treatment that they can’t buy online and this is tied into the value felt in its products. And any good retailer should want to do the same.

(This article first appeared on Insider Trends and is re-published here with permission.)


About the Author:

Cate Trotter is Head of Trends at Insider Trends, a leading London-based retail futures agency that helps global brands create world-leading and profitable retail spaces. It does this by clarifying what’s coming next in the world of retail, and what clients can do to get ahead of their competitors. Reach Cate via e-mail or read more of her work here.