SWOT Analysis on Burberry
SWOT Analysis on Burberry
Strengths
Burberry is a luxury brand with a distinctive British identity (Marco Percoco, 2017) with two royal warrants, awarded by Prince Charles and The Queen (Davis, 2018). Burberry already acquired 465 outlets worldwide as of March 2020 (Statista, 2020) including outlets in Bangalore, Hyderabad, Kolkata, Mumbai, and New Delhi (Burberry, 2020). In terms of sustainability Burberry has achieved its best score in Dow Jones Sustainability Index in 2020 also marking its sixth consecutive appearance in the index (Hughes, 2020). Similarly, there are 17+ million fans who have liked Burberry’s Facebook page, 17+ million Instagram followers, 8.2+ million followers on Twitter confirming that this luxury brand and lifestyle products have a decent social media attraction. Likewise, Burberry is among the top 5 luxury brands that are doing digital marketing right (Joy, 2017). Furthermore, Ayushya (2016) has found in his case study, that Burberry has been outstanding in establishing long, eternal bonds with consumers and fans over their digital campaigns. Burberry’s brand value is reported to be $5,722 million as per Millward Brown’s latest BrandZ Top 100 Global Brands Report in 2017 (Joy, 2017).
Burberry became the first luxury brand that launched reusable and sustainable safety masks to the fashion market with antimicrobial technology (Kloster, 2020). However, by taking steps towards fashionable safety products, the British heritage classic luxury brand showed the ability to change their operation strategy towards the market perspective.
Weaknesses
Burberry has only 350,000 subscribers on their official Youtube channel, while 68% of online shoppers used YouTube to make their purchasing decisions (Dunwiddie, 2019). Excluding the elite class 4% who are considered as a potential market for luxury brands in India (Gupta, 2017), the majority 96% of the Indian population more likely unable to own a product from Burberry because of its luxury price. Additionally, the lack of product diversification of Burberry may influence consumers to purchase from competitors with more variety of lifestyle products. Furthermore, records indicate a decline in gross profits since 2016 consecutively from 2.849 billion US$ in 2015/16 to 2.168 billion US$ in 2019/20 (Macro Trends, 2020).
Indians have their own versions of everything, such as Google.in, Amazon but Burberry still has not customized or created an Indian version for the burberry.com website or social media. Nevertheless, Burberry still doesn't have a direct delivery system for online customers using in.burberry.com (Appendix X). Then the customer is advised to contact the nearest local store to check the availability which will lose the customer. Even the customer support representatives do not have access to the available stocks online in local outlets in India (Appendix Y). However, even if the product is available it takes 7 to 10 days to reach the customer via a basic mail order delivery system which is far away from luxury (Appendix Y).
Opportunities
The luxury market in India projected to achieve $180 Billion by 2025 a consistently growing at a pace between 20% to 25% PA during recent past years. (Luxury, 2020). Product diversification with fashionable reusable and sustainable safety products with high technology which is already launched (Kloster, 2020). Likewise, Competitive brands were in traditional face-to-face selling are now facing difficulties in getting into e-commerce while Burberry already has all the platforms (Dr. Sheetal Jain, 2020).
Threats
Berberry is ranked in the last place among the most popular online luxury brands of 2020 (Beauloye, 2019). Likewise, placed 19th among the list of top 100 Global Powers of Luxury Goods - 2019 (Arienti, 2019). Regular threats that are common to all luxury brands, such as maintaining the quality, brand image, customer satisfaction, and attractive loyalty programs are required. Besides, the emerging premium brands with comparable quality without the regular high price tag are a threat for brands like Burberry (Danziger, 2020). Furthermore, Imitation fashion products, exact designer replicas, lead to declines in sales and will be resulted in disappointed customers (Hardy, 2019). Finally, Indian culture, government-influenced programs, and campaigns such as “Buy Local” “Great Indian Sellers” backed by Google, Amazon India, and Bollywood celebrities with social media influencers is a major threat like British-originated brands like Burberry. (Tewari, 2020)
Appendix X - Screenshot of the popup message while attempting to make an online order
https://drive.google.com/file/d/1a-H1B_sZ61u_nFr8xVt9xluuhoIyud3j/view?usp=sharing
Appendix Y - Complete chat session with Burberry customer care representative Ms. Harriot, as a customer on 19/11/2020
You at 17:40, Nov 19:
Hello
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Info at 17:40, Nov 19:
Welcome! We're excited to offer you messaging, allowing you to reply to us in your own time. A consultant should reply within 10 minutes
We will use your information to help manage any orders or queries you may have and to offer an enhanced customer service tailored to your preferences. For more information about how we use your personal information please visit https://burberry.com/legal-cookies/privacy-policy/
Harriet at 17:40, Nov 19:
Welcome to Burberry, how can I help you today?
You at 17:41, Nov 19:
How can I purchase online? Do you deliver? Web site says that you don't deliver in India?
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Harriet at 17:41, Nov 19:
Thank you for your query, I would be more than happy to assist with this. My name is Harriet. It will be my pleasure to assist with a purchase to India.
You at 17:42, Nov 19:
I'm Asanka Hello Harriet.
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Harriet at 17:42, Nov 19:
Although we do not yet ship to India on Burberry.com, I am pleased to inform you that we do offer a Mail Order Service which would enable you to place an order with a myself. Would this be something that you wish to proceed with, Asanka?
You at 17:43, Nov 19:
https://in.burberry.com/reversible-checkmonogram-cashmere-scarf-p80336091
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You at 17:43, Nov 19:
This is the product I need to purchase
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You at 17:44, Nov 19:
Colour is Light Grey
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Harriet at 17:44, Nov 19:
I must say, what a fabulous scarf. It is one of my favourites in the collection. I love the contrast between our signature monogram. Will it be for yourself or a gift for someone special?
You at 17:45, Nov 19:
Yes I want to send this as gift. But I want to pay using my debit card.
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Harriet at 17:46, Nov 19:
wonderful, what a fabulous gift. I am sure they will love it. Will it be for a special occasion? In relation to the purchase to India, the mail order will be subject to a couple of conditions.
Harriet at 17:46, Nov 19:
-The Mail Order must be placed through this communication chain
-Orders will be charged in Great British Pounds (GBP) and the cost of shipping is GBP £20.00 per order.
-The order will take approximately seven to ten days to arrive by international courier.
-Customers will be liable for all duties and taxes the order may incur upon arriving into their country. This amount will vary depending on the product that is being shipped into the country as well as the country’s individual taxes and duties.
-Mail Orders can only be shipped to the cardholder’s billing address.
Harriet at 17:47, Nov 19:
How does that sound for you?
You at 17:47, Nov 19:
So I can't purchase using my cards? online
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You at 17:48, Nov 19:
And you need ten days to deliver to an address in India?
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Harriet at 17:49, Nov 19:
You can absolutely pay with Debit card. As this will be shipped from the UL, I do hope that explains the timeframe.
Harriet at 17:49, Nov 19:
I can assure you that it will be worth the wait.
You at 17:50, Nov 19:
Don't you have this available in local indian stores of Burberry?
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You at 17:51, Nov 19:
Because I need this in 3 days to gift to my sister on her nirthday please?
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Harriet at 17:51, Nov 19:
It will be my pleasure to have a look into this for you. May I ask for your location in India?
You at 17:51, Nov 19:
Mumbai
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Harriet at 17:55, Nov 19:
Wonderful, what a fabulous place I have always wished to visit. Let me check the stock for you.
Harriet at 17:58, Nov 19:
Although I cannot confirm if the item is available. You can contact the Mumbai store on +91 22 4080 1994 and they will endeavour to provide you with the best possible assistance.
You at 17:58, Nov 19:
Don't have access. to their stock available quantities? Do I have to call and check the stock?
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Harriet at 18:00, Nov 19:
Please note that our India stores are not directly owned and operate under a different agreement, and so we are unable to supply you with a definitive answer on the stock availability.
You at 18:01, Nov 19:
Thank you harriet.
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You at 18:02, Nov 19:
May I know who is the partner of Burberry in india? Just for my information please.
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Harriet at 18:03, Nov 19:
As they are Joint Ventures, they are still Burberry, just operating separate to Mainline Burberry.com I can confirm, Asanka
You at 18:04, Nov 19:
You are so helpful. Enjoy the rest of the day.
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Harriet at 18:05, Nov 19:
Of course, it is my pleasure. should you not be able to reach to the store or that it is not available, it will be my pleasure to set the basket up for you as previously discussed.
You at 18:05, Nov 19:
Do you have a system to rate your assistance? If so give me I'll give you 10/10
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Harriet at 18:05, Nov 19:
That is very kind, I appreciate the feedback! I will be sure to pass that on to the relevant department.
You at 18:06, Nov 19:
You are welcome.
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Harriet at 18:06, Nov 19:
It was my pleasure to assist you today, it is what I am here for. My name is Harriet, if you do have any further questions please do not hesitate to let me know. Take care in the meantime and have a wonderful rest of your day.
References
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