Impact of Influencer Marketing on Consumer Purchasing Behaviour: Study of Burberry Group PLC
Abstract
Introduction: Several pieces of literature have evaluated the efficiency of influencer marketing and its effects on product endorsement. However, research on Burberry’s influencer marketing strategy and the use of social influencers to promote their brand’s products is scarce. It will be possible to learn crucial lessons from Burberry’s influencer programmes that will benefit both high-end fashion brands and the greater marketing community.
Research objectives: The goal of the study is to evaluate how Burberry’s influencer marketing has affected consumer-purchasing habits.
Methodology: The methodology chapter provides an overall approach for secondary qualitative research in studying how influencer marketing affects customer behaviour, with a specific focus on Burberry’s efforts. Interpretivism serves as the foundation for the analysis of influencer-consumer interactions. The inductive approach reveals complex patterns in consumer behaviour. The descriptive design has made the relationships between influencers and conduct in the UK fashion sector more clear.
Findings: The findings show how influencer marketing responds to changes in society, technology, and consumer preferences. Burberry has expanded its market reach through strategic alliances, market segmentation methods, and influencer decisions. Influencer endorsements influence consumer behaviour because they promote trust. The UK fashion business is concerned about the COVID-19 epidemic and Brexit. Burberry finally gained a significant revenue boost from influencer marketing, emphasising its revolutionary impact on consumer behaviour and economic performance.
Conclusion: The results of the research have significant implications for luxury fashion branding and influencer marketing. The analysis of consumer behaviour by influencers in the study underlines the importance of social proof, targeted accuracy, and trust. These findings offer recommendations for influencer identification, coalition building, and engagement techniques. The research provides useful guidance for creating sincere brand-customer interactions in the context of evolving consumer preferences, which will help the luxury garment industry grow.
Keywords: Influencer marketing, social influencer, Burberry.
Chapter 1: Introduction
1.1. Introduction
Burberry Group plc is a UK-based luxury fashion brand, which offers various types of clothing, accessories, and footwear. The brand is using an influencer marketing strategy to increase product sales. This chapter provides the research background, aim, questions, objectives and rationales along with the significance of the study.
1.2. Background
Figure 1.1: Use of influencer marketing in B2C business in the UK
(Source: Statista, 2023)
Influencer marketing has become widely popular among UK “B2C marketing” experts as nearly 68.27% of marketers have asserted they are using social influencers to endorse their products. Additionally, 32% of marketers have planned to use it according to the survey conducted among the B2C marketers. Burberry is using influencers to reach out to its targeted group of consumers. For instance, Burberry is currently collaborating with Marcus Rashford, an English national football player to attain success in their Instagram campaign (Burberry, 2023). In 2022, Burberry generated approximately GBP 2.8 billion (Statista, 2023) and has become one of the most valued fashion brands in the global market.
1.3. Rationale
In recent years, luxury fashion brands have been using social influencers to endorse their products on social platforms to garner the attention of potential consumers. The impact of influencer marketing and its effectiveness in endorsing products has been assessed in various literature. However, there is limited literature on Burberry’s influencer marketing and the utilisation of social influencers to endorse their brand products. Influencer marketing has been skillfully utilised by renowned luxury brand Burberry to accommodate changing consumer trends (Kouchih and Mataa, 2023). This research permits the disclosure of insights into the methods traditional luxury firms use to adjust to digital trends. Influencer marketing has a significant impact on consumer decision-making, and it plays a crucial role in shifting customer perceptions of brands, which makes it an appealing research topic. Examining Burberry’s influencer programmes will help reveal important implications for both high-end fashion companies and the larger marketing community.
1.4. Research Aim and Objectives
Aim
The study aims to assess the impact of influencer marketing of Burberry on consumer buying behaviour.
Objectives
- To describe various influencer marketing strategies used by Burberry
- To evaluate the effectiveness of influencer marketing used by Burberry in inducing consumer buying behaviour
- To highlight various challenges faced by Burberry when utilising an influencer marketing strategy
- To offer recommendations to reduce the challenges of influencer marketing of Burberry
1.5. Research questions
- What are the diverse influencer marketing strategies devised by Burberry?
- How effective is the influencer marketing strategy of Burberry in influencing consumer buying patterns?
- What are the obstacles faced by Burberry while incorporating influencer marketing techniques?
- How can Burberry resolve the emerging challenges of influencer marketing to facilitate product sales?
1.6. Significance of the study
Burberry has been utilising social influencers to endorse its luxury fashion products on digital channels and social media such as Facebook and Instagram. By examining Burberry’s efforts to reach out to prospective customers, the research is extremely important for tracking changes in consumer purchasing habits associated with influencer marketing. This study is timely since customer dynamics in the fashion sector are changing because of influencer marketing. Analysing Burberry’s strategy addresses the lack of thorough research on influencer tactics for luxury brands, which is essential given the shifting market environment. It is important to address this gap as it will help Burberry and its competitors navigate the obstacles of contemporary marketing. The research provides practical insights that can help brands position themselves and increase consumer interaction. Furthermore, the study adds to the theoretical framework in both influencer marketing and fashion contexts by analysing new influencer-marketing dynamics.
1.7. Structure of the research
The research includes a chapter covering the introduction, literature review, methodology, findings and analysis, and conclusion and recommendations.
Figure 1.2: Structure of the research
(Source: Self-created)
Chapter 2: Literature Review
2.1. Introduction
The literature review segment explores vital ideas, undertaking a methodical investigation of the impact of influencer marketing on consumer purchasing behaviour through analysing Burberry’s marketing strategy. It commences with an initial understanding of concepts, the creation of a conceptual structure, the utilisation of pertinent theory, and pinpointing gaps in the current body of literature.
2.2. Concepts
2.1.1. Influencer Marketing Strategy of Burberry
Influencer marketing has become an important and transformational tactic in the modern marketing environment. As per the understanding of Phau et al. (2022), it makes use of people who have loyal social media followings and credibility to promote goods or services to their audience. The rise of social media sites has decentralised the idea of influence, making it a powerful tool for attracting customers and promoting brands. Due to this change in traditional advertising strategies and its notable impact on consumer behaviour and brand perception, research into influencer marketing has become increasingly important. For example, Burberry has strategically collaborated with Marcus Rashford, a prominent national football player, as part of their Instagram campaign. In order to enhance the campaign’s visual appeal, the brand enlisted the talents of Jazz Grant, an accomplished collage artist, who skillfully crafted a mural portraying the footballer.
By leveraging social media influencers like Marcus Rashford, Burberry effectively targets specific consumer segments, aligning with its overarching brand objectives. Influencers are divided into a variety of groups, each with a unique scope of influence. Micro-influencers concentrate their efforts on niche topics and build sincere relationships with their followers, who frequently belong to tiny but very interested audiences. Kouchih and Mataa (2023) stated that macro-influencers generate greater followings in order to reach a wider audience. Depending on the objectives of the campaign and the target audience, a certain influencer type is chosen by brands. In another notable influencer partnership, Burberry joined forces with “Sylvaniandrama,” a well-known TikTok content creator. “Sylvaniandrama” specializes in producing engaging videos inspired by soap operas, employing miniature figures from the “Sylvanian Families” toy line to curate delightful visual content. The channel’s distinctive and unique humour has cultivated an impressive TikTok following of 1.9 million viewers.
2.1.2. Negotiations and Relationships
Burberry employs a rigorous process for selecting influencers, taking into account crucial factors. These factors involve aligning with the intended audience, preferring influencers with matching followers, and prioritising those with active engagement rates. According to Lee and Junqué de Fortuny (2022), Burberry emphasises finding influencers whose style and values resonate with their brand, which helps consumers connect with influencers’ perspectives. Content quality is pivotal, focusing on influencers who consistently produce visually engaging posts, while the significance of relevance lies in highlighting fashion-related elements. This meticulous approach ensures that chosen influencers seamlessly embody Burberry’s brand identity and marketing objectives.
The collaboration between Burberry and influencers is characterised by a seamless partnership in designing impactful content. Zhang et al. (2022) state that this collaboration involves thorough discussions regarding compensation and aligning campaign objectives with mutual plans. Clear content guidelines are provided to maintain a cohesive brand narrative, ensuring alignment with Burberry’s unique identity. Authenticity remains pivotal in this relationship, as both Burberry and influencers prioritise resonating genuinely with their respective audiences. This collaboration extends beyond individual campaigns, nurturing lasting relationships that bring enduring value. Such collaborations not only benefit influencers but also enhance the visibility and resonance of Burberry’s luxury brand.
2.1.3. The effectiveness of influencer marketing of Burberry in facilitating consumer buying behaviour
Numerous indicators that measure the impact of influencer marketing on consumer behaviour can be used to evaluate its effectiveness. These measures include brand sentiment, reach, engagement, and conversion rates. Engagement measures the level of interaction and attention sparked by an influencer’s work, while reach measures the size of their following. The smooth transition from engagement to actual sales is indicated by conversion rates, while audience impression of the brand is measured by brand sentiment. Using Burberry’s case study as an example, influencer marketing plays a significant part in building social proof and encouraging trust in the brand’s high-end products. Burberry takes use of its reputation for authenticity by deliberately engaging with trustworthy influencers to promote goods. According to Chen et al. (2021), in “social proof” effect, consumers use the decisions of influential people as a guide for their own choices. According to Kouchih and Mataa (2023), this strategy also uses influencers as relatable intermediates, which eliminates the exclusivity frequently associated with luxury companies.
The importance of transparent influencer collaborations is emphasised by Pangarkar and Rathee (2022) in order to increase trust and improve customer alignment. This transparency is demonstrated through Burberry’s partnerships with well-known fashion influencers, which strengthen the brand’s legitimacy. As a result, Burberry’s adequate use of influencer marketing, as demonstrated by its collaborations with public figures like Marcus, not only creates social proof but also successfully influences consumer buying habits by making luxury more approachable and achievable.
Figure 2.1: Revenue of Burberry
(Source: Statista, 2023)
The brand spends almost 60% of its marketing budget on digital promotion including influencer marketing (Statista, 2023), which has helped to gain a significant profit in its business. This strategic approach is clearly reflected in the impressive results. In the financial year 2023, Burberry achieved a notable wholesale revenue of approximately 743 million GBP (Statista, 2023) an achievement particularly striking in the Americas region alone, which highlight the clear impact of influencer marketing on Burberry’s financial success through “consumer buying behaviour”.
2.1.4. Challenges faced by Burberry regarding influencer marketing
The spending habits of UK consumers have changed due to the negative impact of COVID-19 and Brexit. Consumers are now being more careful due to the reduction in “discretionary income”, which reduced their spending on essential things. According to Jhawar et al. (2023), the decrease in discretionary income is a challenge for Burberry as the firm sells luxury products with premium pricing. Burberry faced a challenge in making sure influencer partnerships feel genuine and believable. Sehar et al. (2019) state that finding a balance between the brand image and the content created by the influencers is necessary. Choosing influencers who genuinely appreciate Burberry’s products is crucial because people trust influencers more when they offer genuine recommendations.
Moreover, the challenge with the influencers is many of them work with various brands and this makes it important for them to be clear about their partnerships. Zhang et al. (2022) opined that it helps people differentiate between an influencer genuinely expressing their liking for something and an influencer, who is used as a paid content creator. This concern has developed an idea of promotion in the exchange of money, which has affected Burberry’s influencer marketing promotion negatively.
Figure 2.2: Conceptual framework
(Source: Self-created)
2.4. Theoretical Application
A theoretical framework is crucial to research because it offers a well-structured foundation. It specifies how hypotheses are developed, techniques are developed, and results are interpreted. The chosen theoretical framework, “Social exchange theory”, lays the groundwork for this research project, creating the essential framework that directs the investigation and determines its course. This idea offers a prism through which to carefully examine how influencer marketing affects customer-purchasing decisions. The complexity of interactions and relationships is explored in “Social exchange theory”, with a focus on the equilibrium between costs and rewards in transactions (Stafford and Kuiper, 2021). The usefulness of this approach rests in its ability to shed light on how consumers view the value exchange present in influencer interactions, which in turn affects how they make judgements about what to buy. The practical application of this theory in analogous contexts has demonstrated its effectiveness in comprehending consumer behaviour shaped by social engagements. By employing this framework, the research can explore the diverse motives underpinning consumer choices within the sphere of influencer marketing.
2.6. Conclusion
The chapter explores the impact of influencer marketing on customer behaviour by analysing Burberry’s marketing strategy. The success of influencer marketing is explored in depth in this chapter, with a focus on measures like brand sentiment, reach, engagement, and conversion rates. The final section introduces the theoretical framework known as “Social exchange theory,” describing how it can be used to examine consumer behaviour that has been influenced by influencer interactions and to make consumer decisions in this area by utilising its understanding of value exchanges.
Chapter 3: Methodology
3.1. Introduction
By evaluating Burbbery’s influencer marketing strategy, the methodology chapter highlights various methodical processes, which have been utilised to investigate the effect of influencer marketing on consumer behaviour in the UK. It describes the research strategy, data-gathering, and analysis process to ensure a positive research outcome.
Figure 3.1: Research onion
(Source: Mardiana, 2020)
3.2. Research philosophy
The dynamic interaction between Burberry’s influencer marketing and customer behaviour has been investigated using interpretivism as the research philosophy. The social contexts and individual perceptions affect customer decisions; hence, interpretivism has been appropriate in analysing the impact of influencer marketing on Burberry. Investigating the specific interpretations, that various people experience in their encounters with influencer-driven marketing content has been analysed through interpretivism (Lê and Schmid, 2022). By using this philosophical approach, the study has captured the diverse viewpoints of people regarding to better understanding of how Burberry’s influencer collaborations affect the consumer decision-making process.
3.3. Research Approach
The investigation of the connection between consumer behaviour and influencer advertising in the context of Burberry employs the inductive research methodology. This choice has been effective since it has allowed for the analysis of specific incidents and findings linked to the use of influencer marketing and their influence on consumer decisions regarding luxury fashion products. The inductive approach has assisted in discovering patterns in the obtained data set to determine the many economic variables of Brexit and the impact of COVID-19 on consumer buying patterns. Obtaining many perspectives on an event through inductive reasoning is a very effective technique to examine the problems of Burberry and highlight possible recommendations (Harris et al. 2019). This method has allowed the research to analyse the leakage between Burberry’s influencer endorsement and its impact on consumer preferences in the UK luxury fashion market.
3.4. Research design
In this study, a descriptive design has been used to investigate numerous aspects of influencer marketing and its effectiveness through analysing Burberry’s marketing strategy. The descriptive design has been suitable as it concentrates on providing a thorough overview of the present state of the UK fashion sector (Vaughn and Jacquez 2020). This design offers insightful perspectives on how consumers interact with influencer content and how this interacts with their purchasing decisions for Burberry’s products. The descriptive design has made it easier to document trends and patterns in the UK fashion sector by promoting a greater understanding of the relationship between influencer marketing.
3.6. Research Strategy
In this study, a qualitative method is used to assess the relevant information influencer marketing strategy of Burberry. An in-depth analysis of the interactions between influencer endorsement of Burberry and customer purchasing habits has been achieved through qualitative research. This strategy has been appropriate, as it has helped in underlining the unique experiences and viewpoints of consumers who engage with content created by social influencers (Strijker et al. 2020). This qualitative strategy has highlighted various patterns of consumer behaviour to investigate the underlying motivations, viewpoints, and significance impacting customer behaviour in the context of Burberry’s influencer marketing campaigns. This study employed the qualitative research approach to collect qualitative data about Burberry’s strategy of influencer marketing in endorsing their luxury products (Köhler et al. 2022). It has aided in the gathering of descriptive data, which aligns with the research design to assess the shift in consumer behaviour while buying the company’s high-end clothing items, especially in the aftermath of Brexit and the COVID-19 pandemic.
3.7. Data collection
The research has utilised secondary data collection to gather qualitative data to gain insight into Burberry’s influencer marketing initiatives in the UK luxury fashion sector. Using reliable sources such as academic journals, research papers, and articles, the study has helped to understand the underlying reasons behind Burberry’s usage of influencer endorsements. Secondary data enables quick access to pertinent information for the research as the information has been easily collected from online databases such as Google Scholar, ProQuest and the official website of Burberry (Williams, 2021). It has assisted in examining the impact of influencer marketing on consumer behaviour in the luxury fashion industry of the UK.
3.8. Sampling technique
The word “sampling process” implies the method of selecting data sources for a study. The simple random sample technique has been used in this research to gather secondary qualitative data on influencer marketing and consumer behaviour in the UK luxury fashion industry, with a focus on Burberry. In this procedure, data sources are frequently chosen at random, which helps to reduce personal bias. Random sampling is one of the simplest methods for gathering relevant information and aids in the elimination of personal bias. (Denny and Weckesser, 2022). Using a basic random sample has allowed the scope of analysing different experiences and viewpoints by collecting data sources randomly. Using this method has broadened the understanding of the impact of influencer marketing on consumer behaviour, especially Burberry.
3.9. Data analysis
The research has employed thematic analysis to review the collected secondary data on Burberry’s influencer marketing strategy to highlight its impact on consumer behaviour. Utilising this method, the research has been able to uncover recurring patterns and insightful information on the influencer marketing of Burberry and its effectiveness (Chalmers and Cowdell, 2021). Thematic analysis is a useful technique for highlighting various themes in the obtained data on consumer preferences and buying habits. As the study seeks to evaluate relationships between influencer marketing and customer behaviour in the larger context of luxury fashion in the UK, the study’s objectives and thematic analysis are aligned.
Through the thematic analysis, the study has acquired a greater understanding of the motives, preferences, and responses, which influence consumers’ responses to influencer-driven endorsements. This analytical approach has provided an effective conclusion to the research, which greatly contributes to assessing the influence of Burberry’s influencer marketing strategy on consumer behaviour (Skarbek, 2020). The study has been able to provide a thorough evaluation of how influencer marketing affects consumer behaviour, which is presented by the combination of thematic analysis with a secondary research approach.
3.10. Ethical considerations
Ethical considerations are the regulations and guidelines to maintain transparency and reliability of the research outcome. Throughout the process of acquiring secondary data for the study, various regulations have been maintained. In order to gather factual data about the influencer marketing of Burberry, the study has employed reputable publications, scholarly journals, and research papers, among other sources (Suri, H., 2020). Careful source selection has been done when choosing the data sources to prevent the usage of incorrect information in the research. Google Scholar and ProQuest have been utilised to source the journals, research papers, articles, and news that have been integrated into the study. In order to include current information in the study process, data sources have been limited to the last 5 years. It highlights the adherence of the research to various ethics and indicates its dedication to moral research practises (Suri, H., 2020). The “Data Protection Act” has been effortlessly included in the research procedure, maintaining proper transparency for the study.
3.11. Summary
The methodology chapter, which focuses on Burberry’s influencer marketing methods, provides a comprehensive view of the methodical approach to studying how influencer marketing affects customer behaviour. Interpretivism guides the examination of influencer-consumer interactions. The inductive technique reveals complex patterns in client behaviour. The descriptive design has explained behaviours and the links between fashion influencers in the United Kingdom.
Chapter 4: Findings
4.1. Introduction
The research findings are presented in this chapter, highlighting the insights gained from examining how Burberry’s influencer marketing affects consumer behaviour. An in-depth analysis of the impact of influencer marketing on customer choices and opinions in the luxury fashion industry is provided in this section.
4.2. Thematic analysis
4.2.1. Theme 1: Evolution of influencer marketing
Influencer marketing has evolved significantly, mirroring technological changes, consumer preferences, and marketing approaches. Its progression can be segmented into pivotal phases. Initially, it emerged alongside online communities and forums, where specific individuals gained influence within their respective niches. The popularity of social media platforms marked a turning point, propelling individuals with substantial followings into the spotlight as influencers capable of effectively reaching and engaging audiences (Boerman, 2020). The importance of authenticity rose as micro-influencers, who had smaller but highly engaged audiences, gained favour due to their authentic connections. The landscape diversified as content formats expanded to include tutorials, video reviews, and live streams, allowing brands to engage with consumers creatively (Ibáñez-Sánchez et al. 2022). Platforms and agencies emerged to facilitate collaborations, streamlining influencer-brand partnerships and providing tools for campaign measurement.
Transparency became vital as audiences sought authenticity, leading to increased trust between influencers and followers through transparent disclosures of paid endorsements. Long-term partnerships became a strategy, enabling brands to form deeper associations with influencers (Dhanesh and Duthler, 2019). Technological advancements in the area of AI have led to enhanced capabilities in selecting suitable influencers and accurately measuring the impact of campaigns.
4.2.2. Theme 2: Strategic collaboration and market segmentation of Burberry
Burberry’s strategic collaborations have been very important in extending its reach and enriching its brand narrative. Notable among these collaborations are instances where the brand harnessed the power of influencer marketing to connect with audiences in innovative ways (Rondoni et al. 2020). Burberry collaborated with Marcus Rashford, a famous English footballer and activist, known for his connection with a young and socially conscious audience (Burberry, 2023). This collaboration helped Burberry link its brand to significant social matters, which is helping to gain substantial attention in both the fashion and activism areas. Moreover, Burberry’s partnership with the imaginative “Sylvanian Families”, a fictional stylish family, highlights the brand’s ability to blend creativity. This collaboration fused real-world fashion with a cherished fictional universe, revealing Burberry’s brand equity and captivating a wide range of people.
Market segmentation is a key strategy for Burberry, which enables the brand to cater to diverse consumer groups. Burberry customises its product lines to align with the distinctive preferences and requirements of various segments, including factors such as location, gender, age, and lifestyle (Cabigiosu and Cabigiosu, 2020). For instance, the luxury-focused Burberry Prorsum line appeals to those seeking high-end designs, while the Burberry “Brit line” targets a younger and more casual demographic (Woodroof et al. 2020). This approach helps Burberry create personalised experiences and connect with customers on a deeper level, enhancing customer satisfaction and loyalty.
4.2.3. Theme 3: Selecting appropriate influencers and sustainable relationship of Burberry
Burberry places great importance on choosing influencers who align with the brand’s values, aesthetics, and target audience. The brand seeks influencers who genuinely resonate with Burberry’s image, which helps the brand to authentically incorporate its products into influencers’ content (Breves et al. 2021). These influencers often have followers who share interests in fashion, luxury, and lifestyle, ensuring a seamless fit for collaboration (Nash, 2019). Burberry places a strong emphasis on cultivating “long-term relationships” with influencers as the brand considers this as a core element of its influencer marketing strategy. These relationships are built on mutual alignment, which allows influencers whose values and audience align with the brand’s image to engage.
These connections go beyond just promoting products. Influencers work closely with Burberry, creating special products together and joining in brand events. The continuous partnership helps Burberry to make sure its brand story stays consistent and that people trust and stay loyal to the brand (Hermanda et al. 2019). This strategic approach boosts the influence of influencer endorsements and nurtures a stronger, authentic, and lasting connection between the brand and its influencers.
4.2.4. Theme 4: Impact of influencer marketing of Burberry on consumer behaviour
Burberry’s influencer marketing efforts have significantly impacted consumer behaviour in expanding brand engagement and awareness through authentic influencer endorsements. These endorsements build trust and authenticity, which helps drive consumer-purchasing decisions (Shan et al. 2020). Collaborating with influencers aligned with their target audience, Burberry ensures precise targeting and increases conversion rates. Furthermore, by creating a sense of social proof, influencer marketing motivates consumers to trust the brand and make timely purchasing decisions. Influencers’ first-hand experiences with Burberry products enhance the customer journey, while their cross-platform presence amplifies brand reach and interaction (Taillon et al. 2020). Altogether, Burberry’s influencer marketing approach has made a significant impact on “consumer behaviour”, trust, driving engagement, and targeted appeal, in enhancing the shopping experience.
This strategy’s effectiveness is underlined by Burberry’s impressive global revenue, which reached approximately 3.1 billion British pounds in 2023 (Statista, 2023). Burberry exemplifies the effectiveness of influencer marketing, displaying how genuine endorsements and understanding consumer behaviour can lead to significant business achievements. The connection between influencer-driven tactics and revenue growth highlights the crucial role influencers play in driving Burberry’s success in a competitive market.
4.2.5. Theme 5: Analysis of challenges due to the changing environment of the UK fashion industry
The UK fashion industry is facing challenges due to shifts caused by Brexit transitions. After the UK left the EU, new trade rules, tariffs, and customs processes emerged. These changes have disrupted established supply chains, leading companies to reconsider how they source materials (L. Dey et al. 2023). These changes affect how well companies operate and can also cause delays in delivering goods, leading to uncertainty about costs, timing, and market access. Additionally, the COVID-19 pandemic has brought a major economic and social crisis, deeply affecting the UK fashion industry (Verma and Naveen, 2021). Lockdowns, travel restrictions, and changes in “consumer behaviour” have greatly affected supply chains and consumer demand.
With physical stores, closing and more people shopping online, fashion companies have had to quickly adjust to new market conditions. The economic slowdown has also led to less spending on non-essential items like fashion, adding to the industry’s financial challenges (Osei-Frimpong et al. 2020). These challenges, reflected in Burberry’s global revenue of about 2.9 billion British pounds in 2021, highlight the adverse impact of these factors on the industry’s financial performance.
4.2.6. Theme 6: Effectiveness of influencer marketing in facilitating the financial performance of Burberry
Influencer marketing has profoundly affected Burberry’s financial performance through various perspectives. The strategic collaboration with influencers has led to a remarkable amplification of product launches (Severo et al. 2019). As influencers endorse new offerings, their enthusiastic followers generate buzz, fostering anticipation and rapid product adoption. This effect not only bolsters initial sales but also establishes a trajectory of sustained interest. Additionally, influencer partnerships have been instrumental in customer acquisition and retention. Authentic endorsements resonate with specific segments of the audience, attracting new customers and enhancing loyalty among existing ones (Onofrei et al. 2022). The relatable content shared by influencers cultivates lasting relationships, leading to repeat purchases and extended engagement.
Consequently, these strategies have synergistically driven revenue growth for Burberry, as increased visibility, consumer trust, and brand resonance translate into higher sales and improved financial outcomes. As an illustration, during 2023, the “Americas channel” recorded a revenue of around 743 million GBP, the “EMEIA channel” saw approximately 1004 million GBP, and the “Asia Pacific” channel contributed around 1297 million GBP in revenue (Burberry, 2023). The connection between partnerships with influencers and the growth of revenue highlights the effectiveness of “influencer marketing” as a powerful tool driving Burberry’s financial achievements.
4.3. Discussion
Influencers with devoted social media followings adeptly endorse products, reshaping conventional influence and engaging customers. Collaborations between Burberry and influencers such as “Marcus Rashford” and “Sylvaniandrama” highlight the brand’s strategic alignment with specific consumer segments and narrative designing (Burberry, 2023). This theme echoes in the findings, which intricately detail Burberry’s influencer selection process, content quality, and context. The results confirm these ideas through real examples of influencer partnerships, such as the TikTok collaboration with “Sylvaniandrama.” This supports the idea from the literature that influencers have a strong impact on a wide range of audiences. The literature review searches even deeper into the efficacy of influencer marketing in moulding consumer purchasing behaviour (Kouchih and Mataa, 2023). Fundamental concepts such as brand sentiment, engagement, reach, conversion rates, and brand authenticity are meticulously examined as clear indicators of the influence it wields.
The findings confirm these ideas, vividly showing how Burberry’s influencer marketing creates social proof and builds trust, guiding consumer decisions. These findings from the study align well with the literature’s emphasis on how relatable influencers play a key role in breaking down the exclusivity often associated with luxury brands (Ibáñez-Sánchez et al. 2022). This makes luxury more attainable for a wider range of consumers. The literature also casts a spotlight on the obstacles encountered by Burberry within its influencer marketing strategy. These challenges, both discussed within the literature review and findings, come to the forefront. The changes in how people spend money due to COVID-19 and Brexit, along with the importance of forming authentic influencer partnerships, are important topics of discussion (Jhawar et al. 2023). The literature’s strong message about the importance of open and trust-building partnerships strongly connects with the challenges Burberry has faced.
In this aspect, making sure partnerships are genuine and balancing the brand’s image carefully becomes extremely important. The results support this idea by highlighting the importance of real partnerships and honesty. They show how these challenges can significantly affect the effectiveness of influencer marketing. Both the literature review and the findings come together to emphasize a crucial point, which is how influencer marketing affects Burberry’s financial performance (Taillon et al. 2020). Inside the literature, a thorough examination reveals how influencer-driven strategies play a significant role in boosting revenue. These arguments are strongly supported by the results, which smoothly offer clear examples of how influencer marketing has led to actual increases in revenue. The literature’s stress on revenue increase influenced by influencers harmonizes with the findings. The link between partnering with influencers and actual revenue figures significantly highlights the real financial impact of influencer marketing (Pangarkar and Rathee, 2022). Furthermore, the research results take a comprehensive step, exploring the difficulties that the UK fashion industry has faced due to the combined impacts of Brexit and the COVID-19 pandemic.
4.4. Conclusion
The findings highlight how influencer marketing changes in reaction to societal and technological changes as well as customer preferences. Burberry’s market presence is improved via its strategic alliances, segmentation plans, and influencer decisions. Influencer endorsements influence consumer behaviour by establishing trust. Brexit and the epidemic present problems for the UK fashion business. Influencer marketing ultimately makes a major financial contribution to Burberry, underscoring its revolutionary impact on consumer behaviour and business outcomes.
Chapter 5: Conclusion
5.1. Conclusion
The findings of the study have important implications for influencer marketing and premium fashion branding. Influencer marketing is evolving, as seen in the stages of its growth, which emphasises how adaptable it is in attracting customers. Collaborations with specific goals in mind, like Burberry’s ties with Marcus Rashford and “Sylvanian Families,” provide businesses with the potential to increase their reach and strengthen their storylines. Burberry’s focus on market segmentation highlights the importance of specialised plans for various consumer demographics, fostering customer loyalty. Genuine alignment between influencers and companies builds trust and long-lasting relationships. The study’s analysis of how influencers affect customer behaviour emphasises the need for social proof, targeted accuracy, and trust. These observations guide influencer identification, alliance formation, and engagement strategies. The report offers practical advice for developing genuine brand-customer relationships within the context of changing consumer tastes, making a positive contribution to the growth of the luxury apparel sector.
5.2. Linking with Objectives
Objective 1
The first objective was to describe the influencer marketing techniques used by Burberry. This goal is supported by the literature study, which charts the development of influencer marketing through key stages. This review explains how Burberry intentionally works with celebrities like Marcus Rashford and the “Sylvanian Families” to increase brand awareness and create engrossing stories. By highlighting the many influencer categories, ongoing ties, and the crucial importance of authenticity within Burberry’s influencer marketing strategies, the findings further clarify this purpose.
Objective 2
The second objective was to evaluate the effectiveness of Burberry’s influencer marketing in influencing customer buying patterns. The literature study explores how influencer marketing affects customer behaviour, placing special emphasis on indicators like engagement, reach, and conversion rates. The finding of the research supports this by showing how influencer marketing by Burberry significantly alters consumer behaviour through the development of trust, social validation, and well-timed purchasing decisions.
Objective 3
The third objective was to identify any problems Burberry had with its influencer marketing strategy. This goal is consistent with the literature evaluation, which outlines difficulties with partnership credibility, authenticity, and transparency. The findings highlight these difficulties by delving into problems brought on by changes in consumer buying patterns and the necessity of genuine influencer cooperation.
Objective 4
The fourth objective was to offer Burberry solutions to the problems it was having with influencer marketing. The literature review suggests tactics including cooperating with influencers that have a comparable following and emphasising transparency. The findings, show how Burberry’s affiliations with influencers can resonate with the brand’s culture. The study highlights specific influencer campaigns, regional strategies, and open collaborations as crucial strategies.
5.3. Recommendations
Burberry can use strategies like working with influencers whose followers match their target demographic to address the highlighted problems in influencer marketing, which will increase authenticity (Vrontis et al. 2021). Interaction with a wide variety of consumer groups can be possible by interacting with varied influencer categories including fashion experts and travel lovers. Influencers can help Burberry engage multiple consumer segments while maintaining its core identity by adhering to its ideals. Creating influencer messages and revealing ties transparently not only increases trust but also reduces scepticism (Campbell and Farrell, 2020). Burberry can boost consumer confidence and underline the sincerity of its influencer-driven ads by giving influencers clear instructions and encouraging real product endorsements. Executing localised influencer campaigns includes customising material to appeal to certain geographic areas or demographic groups.
This strategy acknowledges the significance of cultural and demographic preferences, leading to ads that closely align with the opinions of local consumers. It can help Burberry enhance its brand image and provide fashion products, which are relevant to the consumers. Localised projects can increase resonance and engagement by incorporating relatable components like language, customs, and preferences (Kim and Kim, 2021). This approach can help Burberry in utilising target audiences’ emotional and cultural connections to strengthen the bond between the brand and its customers. This increases marketing effectiveness and has a more significant impact on consumer behaviour since the material of influencer marketing is more appropriately targeted and meaningful to the audience.
5.4. Limitations
The research has employed a secondary research technique to collect qualitative data from articles, journals, research papers, and various online databases. However, the application of primary research would have been suitable to collect direct information from the consumers, who follow social influencers to purchase luxury fashion products. Secondary research has been unable to include direct information from the consumers, which could have provided an in-depth understanding of the impact of influencer marketing.
5.5. Future research questions
- What long-term effects do influencer marketing campaigns have on brand loyalty and customer retention in the luxury apparel industry in the UK?
- How do consumer attitudes to influencer-based marketing initiatives within the UK’s luxury fashion sector vary depending on cultural and demographic factors?
- Which ethical concerns need to be taken into consideration by high-end fashion companies, such as Burberry, when engaging in influencer marketing?
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