Getting in late last night on British Airways, I suddenly felt the enormousness of New York City, the noise of it, the speed of it, the lonely obliviousness of so many people trying to get ahead. My London bravado began to evaporate. I wished I was with Harry, who I knew would be sitting at his computer in front of his study window, in Kent, furiously pounding away about Rupert Murdoch.
Less than a fortnight after renowned chief creative officer Christopher Bailey announced his departure from Burberry, the plot has thickened considerably. In an update last week, newly arrived CEO Marco Gobbetti finally revealed his long-term strategy for the brand. Prices will go up, accessible retail doors will be closed and significant sums of money will be invested in raising both the look and prestige of the remaining Burberry retail boutiques.
And when I say prices will go up, I mean up. Almost a billion pounds has been wiped from Burberrys market capitalisation as a result of the new strategy. Only a fool, and your humble columnist, would bet against him pulling this off.
He is quite capable of making this strategy work. But indulge me while I explain why he will probably fail. Burberry might end up being a strategic car crash, but it will be one that takes place in slow motion and from a very long distance.
Luxury brands certainly do need to be revitalised. Their extended age ensures that a good CEO will always need to keep updating and evolving the brand. But revitalisation is a very different affair from repositioning.
Then, rather than repeat the ancient tactics of the past, you ask the key question: While that almost certainly means new tactics, those tactics are derived from a respect for, and connection with, the history of the brand.
Burberry are focussing on creating excellent internal communication throughout the company in order to effectively connect the brand with employees. The Results Burberry’s continuing focus on digital has helped them to become one of the most popular and admired brands in the srmvision.comon: Parallax, Leeds, LS2 7ES, West Yorkshire. It was essential that Burberry focussed on their key iconic assets, repositioning themselves as a luxury brand and moving away from creating products for the masses. Creating A Digital Culture Burberry hit the digital world srmvision.comon: Parallax, Leeds, LS2 7ES, West Yorkshire. Mark Ritson: Burberry’s luxury repositioning won’t work, it’s not in the brand DNA After dispensing with chief creative officer Christopher Bailey, new Burberry CEO Marco Gobbetti wants to take the brand upscale, but it goes against its history and traditions.
This was all about a fresh new approach for Burberry, but one that was anchored by CEO Rose Marie-Bravo — and her newly hired creative director Bailey — in understanding and then applying the formula from the past in a new and contemporary way.
What Gobbetti proposed last week is a radical change in the way Burberry does its business.
And that usually spells disaster. After all, it was the brand that was worn by King George V, but also by his infantry. It was founded by a young, working class man from Basingstoke, not Bond Street.
He was a draper, not an aristocrat.
And Burberry is not a pure fashion brand like Prada or Gucci. Burberry has a solid stripe of functionality to off-set its fashion appeal. This is a brand in which it can be fashionable to be functional.Burberry slightly suffered when the brand became popular with "hooliganism and the chav culture".
This brand image had caused damage to its reputation and that is when Burberry knew it was time to reposition and get back into the luxury market. S.N.
Case Title: 1: Mobile Value Added Services (MVAS Mobile): The Next Big Avenue for Mobile Operators? 2: Tech Mahindra Acquiring Majority Stakes in Satyam Computer Services Ltd., for Value Creation Out of Dump. Sticking to the Core. Burberry is years old; its coats were worn in the trenches of World War I by British soldiers, and for decades thereafter they were so much a part of British culture that.
Burberry has also been steadily expanding in China and built 50 stores in The Lesson: Brands can be successfully revamped by adapting current styles while celebrating its history.
After dispensing with chief creative officer Christopher Bailey, Burberry CEO Marco Gobbetti is repositioning the brand against its history and traditions. Burberry slightly suffered when the brand became popular with "hooliganism and the chav culture".
This brand image had caused damage to its reputation and that is when Burberry knew it was time to reposition and get back into the luxury market.