Burberry’s Post

British luxury brands have had this challenge for decades. With luxury conglomerates from France and Italy dominating the global market, #British #luxury #brands have been constantly asking themselves about their position. The iconic brand Burberry has tried a number of strategies to do that over the years and now they are returning to the concepts of #heritage and #britishness. Currently, the market is not responding well to this. This is because when a luxury brand is democratized, research from my lab involving Veronica Rosendo-Rios, Dina khalifa, Dr Sangeeta Trott, Daisy Jing Lyu shows that, the brand loses its distinctiveness, uniqueness and exclusivity signals, and thus consumers cannot self-differentiate using the brand. While going back to its roots of exclusivity and distinctiveness is a good idea that associates with the luxuriousness of the brand, it cannot be achieved overnight and the brand needs to stick to that strategy for the long-haul. The below Bloomberg article by Jennifer Creery captures this!

Burberry's Strategic Pivot Amidst Economic Headwinds. 🔻 Today, Britain's iconic luxury brand Burberry reported a significant 34% drop in annual operating profit, revealing the challenges it faced in repositioning itself in the high-end market amid a cooling demand for luxury goods. 📊 The financial report underscored a 12% decline in like-for-like sales in the final quarter, erasing earlier gains. However, Chief Executive Jonathan Akeroyd highlighted the progress made in refocusing Burberry's brand, despite these financial setbacks. Akeroyd acknowledged that the results fell short of initial expectations but remained optimistic. "We are using what we have learned over the past year to fine-tune our approach, while adapting to the external environment," he said, reinforcing his vision of Burberry as the "Modern British Luxury" brand. ⚜️ Looking ahead, Akeroyd projected continued challenges in the first half of the current financial year but anticipated seeing the positive impacts of their strategic actions in the second half. Burberry's journey is a testament to the resilience and adaptability required in today's volatile luxury market. 🪡 The brand's commitment to evolving and refining its strategy is crucial for staying relevant and competitive. As the industry watches closely, Burberry's adjustments could set a new benchmark for luxury brands navigating similar economic landscapes. #LuxuryMarket #BrandStrategy #FinancialResults #Burberry #MarketTrends #BusinessStrategy #Leadership #LuxuryBranding

Last week, Joshua Schulman was announced as the new CEO of luxury British fashion house, Burberry. As the fourth CEO in 10 years, Schulman’s appointment was announced as dividends were suspended and a profit warning was issued. Some investors (and customers!) had hoped the shuffle might result in a change in strategy - the introduction of lower priced products in a move toward #accessibleluxury.  But Burberry remains committed to an upward push - hoping to position itself amongst European luxury brands like Chanel. Watch below to learn more about the ins and outs of brand positioning, luxury and customer perception in the #fashionIndustry. #Primerli #BrandStrategy #LuxuryFashion

We're seeing more evidence that the economy is slowing: in this case with a Paris-based luxury group called Kering. The latest results announcement saw their total sales down 4% (that included Gucci and Yves Saint Laurent). These sorts of brands cater to the mass affluence (and even those below them) who have started needing to spend more cautiously. On the other hand, when the economy slows, the uber wealthy aren't really affected that much as they can still go out shopping. So brands like Hermes are still experiencing strong sales (I believe they recently announced double digit growth). Click for more: https://lnkd.in/gRSAc8nN

Post 5/5 – Vogue Business Turbulent Times: BURBERRY, the Warren Buffett Effect How Accessible should Burberry Be? Conclusion: Aligning Buffett’s Insights with Burberry’s Strategy By aligning Warren Buffett’s branding insights with Joshua Schulman’s strategic initiatives, Burberry can thrive in the competitive luxury sector. This integration reinforces Burberry's market position and exemplifies how traditional business acumen can guide modern branding strategies. Under Schulman’s leadership, if Burberry maintains its luxury pedigree while increasing accessibility through innovation in product offerings and digital engagement, this dual approach ensures Burberry responds effectively to evolving market dynamics and consumer expectations without compromising its core values of exclusivity and high quality. #Burberry #BrandStrategy.  #LuxuryMarket #JoshuaSchulman #WarrenBuffett #Innovation #Sustainability #DigitalMarketing #LuxuryFashion #BrandLoyalty #VogueBusiness

Am I the only person who that thinks while acquiring Richemont is technically feasible for LVMH, the ramifications could transform the entire luxury world into a dystopian Orwellian novel? Imagine a landscape where power is centralized under one entity, stifling independence, and competition. A scenario where one dominant force dictates terms, leaving little room for innovation and individual expression. Acquiring Richemont would catapult LVMH into a completely different stratosphere compared to the rest of the luxury industry. As enticing as the prospect of such a powerful conglomerate might be, it raises critical questions about the future of the luxury sector. Can we afford to trade diversity and creative freedom for monopoly and uniformity? #LuxuryIndustry #CreativeFreedom #MarketMonopoly #InnovationInPeril #LVMH #Richemont #LuxuryTakeover #IndustryFuture #BusinessEthics #FashionDebate

Generational shift at the top of LVMH: Toni Belloni, 69, the number 2 at the luxury group, is passing on the baton to Stephane Bianchi, 59. Arnault did say in January the head of the watches and jewelry unit would soon have new responsibilities. When we asked what exactly he'd meant after the annual results presentation, he didn't expand. Belloni spent over 2 decades at the top of LVMH, helping Arnault steer the bling ship. He'll still have some responsibilities, notably strategic missions and will be President of LVMH Italy. For Bianchi, it's quite the move. He joined LVMH in 2018 and steadily rose through the ranks. Becoming the number 2 at the second biggest market cap in Europe is no small feat. #lvmh #managementchanges

Insights on Gucci's Strategic Hire: Stefano Cantino as Deputy CEO While all eyes have been on Valentino appointing Alessandro Michele as their new Creative Director, there'e been another very significant appointment in my opinion - Stefano "Midas Touch" Cantino's appointment at Gucci. With my ex headhunter's hat on here are some key takeaways: 🔹 Strategic Talent Acquisition: Cantino brings deep industry knowledge and a strong reputation from Louis Vuitton and Prada, positions him to drive strategic initiatives in communications and marketing. 🔹 Navigating Industry Challenges: Gucci's move amid sales decline is about leveraging Cantino's expertise for effective turnaround efforts. 🔹 Elevating Brand Image: Gucci's wants to refine its image and market positioning while maintaining luxury appeal. 🔹 Impact on Investor Perception: Cantino's appointment is crucial for restoring investor confidence through strategic planning and his track record of delivering tangible results. 🔹 Collaborative Leadership Dynamics: Perhaps most important, is Cantino's ability to collaborate with the CEO and other key leaders will be essential for driving a unified vision and strategic direction at Gucci. 🔹 Strategic Vision and Execution: This appointment is pivotal for executing a comprehensive turnaround strategy and restoring Gucci's competitiveness. Many will be watching this closely and we wish Stefano Cantino the very best in his new role. #luxpreneur #luxuryinsights #luxurynews #linkedinnews #linkedinluxury #gucci #luxuryleaders https://lnkd.in/eYFgdpxP

Burberry's profits have fallen as sales decreased by 12% in the US and 19% in China ( Fourth Quarter). This decline in sales is due to higher interest rates and customers spending less on luxury goods. As a result, profits have dropped due to the fixed costs that cannot be quickly reduced to cover the shortfall in sales. The learning point here is to keep overheads low and to measure all costs against sales. Before incurring costs, ask yourself: "How will this benefit my customers?" Burberry needs to focus on brand messaging by defining why customers buy from them and what sets them apart from their competitors. #Burberry #LuxuryGoods #SalesDecline #BrandMessaging #CostManagement

Bernard Arnault, billionaire owner of luxury company LVMH, has made his 29-year-old son Frédéric Arnault the new CEO of LVMH's watch division. Frederic will oversee luxury watch brands including Zenith, Hublot, and TAG Heuer. He takes on this leadership role after previously serving as CEO of TAG Heuer and guiding the brand's move into smartwatches. #lvmh #luxurywatches #marketing ________________________________________________ Want to be in the loop of all the action, Follow Akshay Kamble for more thrilling updates 🚀