Burberry, the iconic British luxury brand, is undergoing a strategic shift to revitalize its business. The company is prioritizing its classic products, such as trench coats and scarves, and scaling back on leather goods, a focus under previous creative director Daniel Lee.
A Return to Core Strengths
Under the leadership of new CEO Joshua Schulman, Burberry is aiming to recapture its core identity. The company is introducing “scarf bars” in its stores, highlighting its luxurious cashmere scarves, priced from $450 to $1,050. This move aims to elevate the visibility and sales of these iconic accessories.
A Focus on Outerwear
Outerwear, particularly trench coats and puffer jackets, is another key area of focus for Burberry. The brand plans to expand its outerwear offering, including quilted coats and wool and cashmere coats. This strategic shift is aimed at capitalizing on the brand’s strong heritage in outerwear and competing with other luxury brands in this category.
Addressing Pricing Concerns and Improving Store Productivity
Burberry has acknowledged that recent price increases may have alienated some customers. The company is committed to striking a balance between luxury positioning and affordability. Additionally, the introduction of scarf bars is expected to improve store productivity, measured by sales per square foot.
A More Integrated Design and Marketing Approach
To ensure a more cohesive brand vision, Burberry is integrating its design and marketing teams. This move aims to align product design with marketing strategies and consumer preferences. By focusing on core products and a more integrated approach, Burberry hopes to mitigate the risks associated with relying heavily on a single creative director’s vision.
A Cautious Outlook
While the shift in strategy is a positive step, analysts caution that relying solely on classic products and scarves may not be sufficient to drive significant growth. Burberry will need to continue innovating and adapting to evolving consumer preferences to secure its long-term success.
