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Can Digital Innovation Revive Burberry and Redefine Luxury’s Future?
Heidi Truong
- Fashion Blogger -
Burberry is leaning heavily into digital innovation as part of its brand revival strategy, raising an important question: Can digital tools help luxury brands like Burberry reclaim their prominence in an increasingly competitive market? From virtual try-ons to gamified experiences, the luxury fashion industry is betting big on technology to bridge the gap between tradition and modernity.
Burberry is leaning heavily into digital innovation as part of its brand revival strategy, raising an important question: Can digital tools help luxury brands like Burberry reclaim their prominence in an increasingly competitive market? From virtual try-ons to gamified experiences, the luxury fashion industry is betting big on technology to bridge the gap between tradition and modernity.
Burberry’s Digital Push: Virtual Try-Ons and More
Burberry has partnered with Wanna, a digital fashion technology platform, to offer a virtual scarf try-on service. This initiative is a nod to both the brand’s British heritage and its commitment to digital innovation. Customers can now explore and try on Burberry’s iconic scarves digitally, making the shopping experience more personalized and interactive.
“Burberry’s virtual scarf try-on experience is an exciting offering that speaks to our British heritage and digital innovation,” said CEO Joshua Schulman. “Our scarves have protected people from the weather for decades, and this festive season we’re delighted to help customers find the perfect match.”
This virtual try-on feature couldn’t have come at a more critical time. Burberry has faced a series of financial setbacks and is actively working on a turnaround strategy under Schulman’s leadership. Key components of this plan include focusing on outerwear, revisiting accessible pricing, and reconnecting with the brand’s core identity. By embracing digital solutions, Burberry aims to not only enhance the shopping experience but also reduce return rates, which can significantly impact profit margins.
Why Virtual Try-Ons Matter for Luxury Brands
The benefits of virtual try-on technology extend beyond customer satisfaction. Research shows it can lead to a notable decrease in return rates and an increase in conversions.
For instance, Yoox Net-a-Porter (YNAP) piloted Deepgears’ virtual try-on technology on 90 styles from its in-house brand Mr P, sold on its men’s platform Mr Porter. The results were impressive: a 25% reduction in return rates and a 28% increase in conversions for products offering the digital mannequin option.
Similarly, Perfect Corp’s trends report highlighted a 2.5x increase in sales conversions for brands leveraging virtual try-on technology. This underscores how integrating digital tools can directly impact the bottom line, providing an edge in a competitive market.
Valentino’s Digital Transformation
Valentino’s Digital Transformation
Burberry isn’t the only luxury brand betting on digital. Valentino, under the new creative direction of Alessandro Michele, is also embracing virtual innovation to navigate a challenging market. Following a mixed reception to Michele’s debut collection at September’s fashion month, Valentino has collaborated with Wanna to digitize items from its Avant Les Débuts Spring 2025 collection.
Shoppers can now use Valentino’s website to digitally pair the brand’s Bay By Bay sneakers and 9to5 bag with their outfits before purchasing. This level of interactivity not only elevates the shopping experience but also positions Valentino as a forward-thinking brand ready to cater to tech-savvy luxury consumers.
The Role of Gamified Fashion in Engaging Younger Audiences
The Role of Gamified Fashion in Engaging Younger Audiences
While Burberry and Valentino focus on virtual try-ons, other brands like Versace are exploring gamification. Versace has joined the fashion styling app Drest, which recently relaunched after a six-month hiatus.
Drest combines luxury fashion with entertainment, allowing users to style virtual looks, earn digital rewards, and interact with exclusive in-game products. Versace will be the first brand to debut the app’s new “Quests” feature, introducing challenges tied to the brand’s new Versace Tag Bag.
Drest’s gamified approach democratizes luxury fashion by making it more accessible and engaging. Beyond entertainment, the platform has the potential to drive tangible sales. Users who style digital renderings of luxury items can click through to purchase the physical versions directly from the brands’ websites.
The Growing Role of Web3 in Luxury
The Growing Role of Web3 in Luxury
Gamification aligns with the resurgence of Web3 technologies, particularly within gaming platforms. Platforms like Roblox have demonstrated how virtual environments can become powerful commerce tools.
Roblox’s styling game, “Dress To Impress,” attracts approximately 250,000 players at any given time, ranging from tweens to adults. In September, the platform took its virtual influence a step further by enabling brands to sell physical goods through a Shopify integration.
Given Roblox’s success, platforms like Drest could potentially replicate this model. For luxury brands, engaging younger, digitally-native audiences through gamified experiences and virtual worlds could unlock new revenue streams and strengthen brand loyalty.
Can Digital Innovation Revive Burberry?
Can Digital Innovation Revive Burberry?
For Burberry, digital innovation isn’t just a trendy addition to its strategy; it’s a lifeline. Schulman’s focus on modernizing the brand while retaining its heritage aligns well with initiatives like virtual try-ons. This approach not only boosts customer engagement but also addresses critical operational challenges like high return rates and low conversion rates.
Burberry’s digital-first mindset reflects a broader trend in the luxury industry, where brands are leveraging technology to meet evolving consumer expectations. From Valentino’s digital lookbooks to Versace’s gamified experiences, luxury houses are exploring diverse avenues to stay relevant.
However, success requires more than just adopting new technologies. It demands integration with the brand’s overarching narrative and a commitment to delivering authentic, meaningful experiences.
Looking Ahead: The Digital Luxury Frontier
Looking Ahead: The Digital Luxury Frontier
As luxury brands navigate a rapidly changing landscape, digital tools offer a way to connect with modern consumers. Whether through virtual try-ons, gamified experiences, or immersive digital worlds, these innovations allow brands to bridge the gap between exclusivity and accessibility.
Burberry’s foray into digital innovation marks a significant step in its brand comeback journey. If successful, it could inspire other heritage brands to rethink their strategies and embrace the digital future.
For luxury to thrive in the digital age, brands must strike a delicate balance between tradition and technology. The future of luxury lies not just in products but in the stories, experiences, and connections that digital tools can help create.
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