Burberry, the iconic British fashion brand known for its beige mac and check print, is facing tough times. The company recently issued its third profit warning of the year, with retail sales dropping by 21% in the first fiscal quarter. Reports indicate that hundreds of jobs at Burberry are at risk, and the departure of CEO Jonathan Akeroyd has further shaken things up.
Burberry has a rich history dating back to the Victorian era when Thomas Burberry created gabardine, a weather-resistant fabric that led to the development of the iconic trench coat. Over the years, Burberry’s check print became synonymous with both high fashion and negative associations with rowdy behavior, hurting the brand’s image.
Under the leadership of designers like Christopher Bailey, Burberry experienced a revival in the early 2000s, blending traditional styles with a modern edge. However, recent years have seen fluctuations in the brand’s direction, with designers like Riccardo Tisci and Daniel Lee attempting to bring new life to Burberry.
Despite efforts to rebrand and elevate Burberry’s image to a global luxury level, the company’s strategy of drastically increasing prices may have backfired. As consumer spending habits shift in response to economic challenges, Burberry’s focus on high-end products may alienate aspirational shoppers.
With the appointment of Joshua Schulman as the new CEO, Burberry is at a crossroads. Schulman’s background in accessible luxury brands suggests a potential shift towards a more mainstream approach for the company. Addressing Burberry’s identity crisis and finding a balance between luxury and accessibility will be crucial for its future success.
As Burberry navigates through these challenges, the fashion industry will be watching closely to see if the brand can weather the storm and emerge stronger than ever. The legacy of Burberry’s heritage and iconic designs will continue to be a defining factor in its journey towards reinvention and resilience in the ever-evolving world of fashion.
