Burberry, the well-known luxury fashion house based in Britain, has made a significant move to strengthen its outerwear segment and increase sales by acquiring an atelier from its Italian supplier, Pattern SpA. This acquisition comes at a time when Italy is witnessing a surge in investments from luxury brands like Fendi, Bulgari, and Dior, who are all expanding their manufacturing capabilities. Even Chanel recently acquired a majority stake in Fashion Art, a renowned jeans specialist. Burberry, which has been present in Florence’s leather goods hub since 2018, shares the belief in the quality of Italian craftsmanship and structures.
As part of the agreement, Burberry will become the owner of one of its long-time supplier’s companies. Pattern SpA has been working closely with Burberry for almost two decades, primarily producing outerwear at their Turin site. Despite the acquisition, the production will continue to be carried out at the same location, without any relocation taking place. The transaction, valued at 21 million euros, is subject to standard adjustments and closing conditions. It includes the transfer of around 70 employees, as well as equipment and existing stocks.
Through this strategic move, Burberry aims to gain better control over its production chain and further enhance the technical aspects of its collections. While Pattern SpA is on track to achieve carbon neutrality in its workshops this year, Burberry plans to strengthen the sustainability commitment of the manufacturing facility. This commitment comes just a few months after Burberry experimented with Land Art as a means to promote sustainable luxury.
Jonathan Akeroyd, the CEO of Burberry, expressed his excitement about this significant investment, calling it a crucial step in unlocking the full potential of their outerwear category. He believes that it will strengthen their capabilities, complementing their existing strengths in the UK. This acquisition will also provide Burberry with better control over the quality, delivery, and sustainability of their products. Akeroyd warmly welcomed the new colleagues from Pattern SpA.
Besides the recent appointment of creative director Daniel Lee, this supply chain-focused project could play a crucial role in optimizing Burberry’s sales. The brand experienced significant challenges in the Chinese market from October to December 2022, resulting in a slight growth of 1%, equivalent to £756 million, during that quarter. This acquisition could help Burberry regain momentum and expand its market presence.
Useful links:
1. Burberry – Official Burberry website for more information on their latest collections and initiatives.
2. Fashion Network – A reliable source for news and updates on the fashion industry, providing insights into the latest trends, brands, and market dynamics.
