For five consecutive years, Burberry has been named a digital Genius in L2’s annual Digital IQ Index: Fashion. For four of those years, Burberry was ranked No. 1, until Gucci took the top spot and pushed the British brand to second in the Index in 2016. This this digital performance, however, does not extend to Burberry’s Beauty business. In fact, Burberry’s Beauty business was labeled as ‘Challenged’ in L2’s latest UK Beauty Index. In the US, Burberry’s beauty arm did much better: ranked 30th and in the Gifted category – still a far cry from the top.
It appears as if Burberry has realized the difficulties of improving its beauty business without help. This week, the company announced a licensing partnership with Coty to accelerate the growth and development of its beauty division, four years after taking the label in-house. But can Coty revive a business that has stalled under its digitally savvy owner? L2’s 2017 Digital IQ Index: Beauty UK reveals that the average Digital IQ for Coty brands declined 12% between 2016 and 2017. The US Beauty study shows a 9% declined between when the 2015 and 2016 reports were published.