Apple has announced that Angela Ahrendts, CEO of Burberry, will join Apple's executive team, becoming the company's first female senior executive in a decade. Starting from 2014, Ahrendts will be responsible for Apple's online and offline retail teams.
Given her background in the luxury goods industry, many tech blogs have speculated whether her recruitment is in preparation for the iWatch. Two weeks ago, I was fortunate enough to attend the Innovation By Design conference hosted by FastCompany in New York. In addition to the CEOs of technology companies like Jawbone, Ahrendts from Burberry also participated in the discussion. On the day of the discussion, she shared several insights on how this 150-year-old British brand sparks creativity with electronics, design, and the internet.
She built a design-led company
In 2008, as the global financial crisis spread, people began tightening their belts for winter, presenting an undoubtedly challenging time for luxury brands. However, Ahrendts and her team saw it as a rare opportunity to rebuild the company's team. They seized the moment when London real estate was low to purchase an office building in the city, bringing together employees who were previously scattered across London. This significantly changed the atmosphere and work methods within the team.
When designing the building, Ahrendts and her trusted assistant, Chief Creative Director Christopher Bailey, planned the layout of the headquarters together. They designed the building with only one entrance and exit, making every employee aware that they represent Burberry upon entering or leaving. One of the most controversial decisions might have been placing the design team on the top floor of the building. They hoped to convey a message to the company: design is the most important department at Burberry, and designers are the most crucial link in our team.
I believe that more important than placing designers on the top floor is that Burberry established a corporate structure where designers can directly communicate with the CEO. The collaboration between Burberry's Chief Creative Director Bailey and Ahrendts is the best proof of this.
However, in many tech companies, the design team is often part of engineering. Engineers first decide the specifications and dimensions of the product, and then designers add a shell to the product. But both Apple and Burberry chose a different corporate structure; they let designers take the lead, developing products from the perspective of users and design. I believe it is precisely this recognition of design leadership that made Ahrendts a member of Apple's executive team today.
She boldly innovates in digitalizing retail
When Ahrendts first became CEO of Burberry, she asked, "Who are the next-generation consumers of luxury goods?" All consulting firms gave the same answer: "digital natives," the young generation that grew up with the internet. This gave Ahrendts confidence to establish a digital team within the company. They used the London Burberry flagship store as a test bed, creating a retail experience that blends the virtual and the real. Ahrendts described this flagship store as: "It's like walking into the Burberry website."
Burberry's digital innovation also attracted the attention of many tech companies. Google volunteered to collaborate with Burberry to launch a mail program for long-distance lovers to send kisses to each other. Not long ago, Burberry collaborated with Apple, using the iPhone 5s camera instead of traditional professional cameras to live-stream Burberry's autumn fashion show.
Under Ahrendts' leadership, Burberry transformed from a 150-year-old consumer brand into a leader in digital innovation. I look forward to seeing Ahrendts integrate Apple's online and offline consumer experiences as she did at Burberry.
Her down-to-earth personality and leadership
The Ahrendts I met at the conference was completely different from what I imagined a luxury goods CEO would be like. She was very grounded and sincere, possibly due to growing up in a small village in America, giving her character an especially fresh simplicity. When answering questions from the audience, she would pause for a few seconds after hearing each question, thinking about it, organizing her thoughts, and then responding. Each response was very candid and clear, without any ambiguous official jargon.
After the conference, I became curious about Burberry and visited a Burberry boutique in Boston over the weekend, chatting with one of the staff members, Conrad Tracy. When I mentioned Ahrendts, he became very excited, saying that every time he listened to Ahrendts' speeches, it made him feel proud to be a member of Burberry.
For Apple, over 50% of its employees worldwide work in retail positions, making retail an essential component of Apple's user experience. I believe that Ahrendts' personality and leadership will enable this large team to move more closely together, achieving even greater accomplishments that will impress people.