By making its London and Paris runway shows “shoppable” in a special
streaming video preview for its 15 million Facebook fans, London’
fashion house Burberry is transforming the entire “value chain” fashion
retailing, says Erich Joachimsthaler, CEO of Vivaldi Partners Group, a
global brand consulting firm, in this interview with Beet.TV
He explains how the preview, streamed as a rehearsal one hour before
the official runway show, allows customers to shop directly from the
video and have items shipped to their homes or stores around the globe. He describes the value of this approach to sales and inventory management.
The Vivaldi firm has evaluated the “social currency” of some 60 global brands in 19 industries via 5,000 consumers, in a just-released report. In evaluating the impact of Burberry, the report’s finds:
“Burberry wins new Social Currency, grows the business intelligence of its fan base, and gets closer towards reinventing the traditional value chain. Designing, prototyping, engaging followers, and receiving payment even before spending for the costs of goods (fabrics, buttons, etc.) means the customer is financing the business. The consumer input in the front-end steps should minimize manufacturing, inventory, and logistics costs and create efficiencies beyond those that exist today.”
The full report is embedded below as a slide show.