Burberry records big WeChat win in China, as luxe brand boosts sales thanks to high-end advertising rethink
In the second quarter, Burberry’s global sales jumped 4 per cent thanks to its advertising push on the Chinese social media app
In a bid to reinvigorate sales in the massive Chinese market, British luxury fashion brand Burberry has, this year, ramped up advertising on China’s popular social media app WeChat. It’s a strategy that’s paid off handsomely for Burberry, which saw a 4 per cent rise in overall sales in the second quarter. That’s more than expected, thanks largely to a resurgence in China, where sales had slowed in recent years.
Analysts note the company boosted spending on the WeChat app, which has almost a billion users in China and serves as a multipurpose app, combining social media and shopping services.
The company says its advertising campaign on WeChat for the launch of a new bag – the DK88, which retails for almost US$2,000 – saw its customer reach triple on the app. The sales growth in the country was in the mid-single digits above the global growth rate.
Burberry launches DK88 bag collection
Ken Odeluga, an analyst for City Index, says that focusing so heavily on WeChat is a strategic move that competitors in luxury goods have yet to make. Some companies prefer to focus on physical stores to preserve the aura of luxury. Also, some online shopping sites have been accused of selling fakes.
