"A deep dive into the transformation of Burberry. The nearly 150-year-old British manufacturer of trench coats had lost its way in 2006 and started a digital transformation, which called for a complete overhaul of its technology infrastructure from the front-end customer experience to the back-end operations and global supply chain. But while the technology initiatives that changed the major processes of the company have been widely copied by other fashion retailers, it was the cultural transformation that Burberry pursued in tandem that put the company into the Champions league of the most admired luxury brands in the world forever: placing the trench coat front of the center of the organization as an object of pride; identifying and recruiting for key business-driving roles; leveraging new capabilities to create music, movies and storytelling to speak to millennials, etc... this is a study of how brand and corporate culture trasnformed the business. Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "

1. /Founder & CEO of Vivaldi/
Erich Joachimsthaler, Ph.D.
Berlin / October 5th, 2016
BRAND & CORPORATE CULTURE:
THE BURBERRY EXAMPLE

2. BURBERRY IN 2006 WAS OVEREXPOSED
2

3. BURBERRY STANDS FOR TRADITION AND BRITISH HERITAGE
3
•Over 150+ heritage
•Trench coat
•Performance 8% versus Luxury
Sector of 14%
•Sub-scale (LVMH is 12 times
larger)

4. CAN YOU BRAND CULTURE?
4
“We’re British. They’re not.
How do we exploit that heritage?”
Angela Ahrendts /CEO - Burberry/

5. THE BRAND STRATEGY (PART 1 OF STRATEGIC PLAN)
5
SOURCE: HELIXA 2013

6. FOCUS ON MILLENNIALS (PART 2 OF STRATEGIC PLAN)
6
“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/

7. “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/
7

8. TECHNOLOGY (PART 3 OF STRATEGIC PLAN)
8
“We want to be the first company
that’s fully digital”
Angela Ahrendts /CEO - Burberry/

9. HUNKER DOWN OR OPEN UP?
9
“The experience would be for the customers
to have total access to Burberry across any
device, anywhere, anytime.”
Angela Ahrendts /CEO - Burberry/

10. BECOMING A DIGITALLY CONNECTED ENTERPRISE
10
TWITTER
Burberry 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
FACEBOOK
The 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.
SAP
They co-developed an app with SAP to make customer
and product data available to all sales associates,
seamlessly integrating the sales experience.
SALESFORCE.COM
They 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

11. CHANGING PROCESSES
11
“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

12. “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

13. EXECUTING OVER TIME
13
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
Instagram
announces
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
Snapchat
Discover
Channel
Launch
Burberry
“Kisses”
Launch of
Burberry
“Bespoke”
online
Re-opening
of London
Flagship
Store
Periscope
Livestream
of Fashion
Show
App
partnership
with WeChat
Angela Ahrendts
joins as CEO
Announcement of
Strategic Plan
Instagram
launches

14. CONNECTING THE CUSTOMER WITH THE BRAND
14
“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

15. 130
Million
App
downloads
13 Million
registered
developers
+2 Million
developers
in 2015
alone
BNP PARIBAS DIGITAL COMPETITIVE MAP: JANUARY 2016

16. SOCIAL MEDIA PERFORMANCE
16
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

17. REVENUES AND GROWTH
17
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
147000
159000
170000 167000
153000
173000
192000
212000
218000
224000
253000
716 743
850
995
1202
1280
1501
1857
1999
2330
2523

18. CHANGING HOW THE INDUSTRY WORKS = CHANGING CUSTOMER EXPECTATIONS
18
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/

19. HOW DOES TECHNOLOGY AFFECT CULTURAL TRANSFORMATION?
19
BURBERRY
CULTURE
Customer Experience
Processes
Organization
Infrastructure
Business Model
Leadership
Capabilities

20. REVENUES AND GROWTH
20

21. 21
0
20
40
60
80
100
0 20 40 60 80 100
Linear Exponential
Intensity of Transformation
CustomerExpectations
Transform
Meet
2006
2016

22. BURBERRY STOCK PERFORMANCE RELATIVE TO FTSE
22

23. Thank you!
@ejoachimsthaler
ej@vivaldigroup.com
Erich Joachimsthaler, Ph.D.
/ Founder & CEO of Vivaldi /