Burberry, the renowned British luxury brand, is embarking on a journey to reclaim its competitive edge with a new leadership team. Jonathan Akeroyd, the company’s chief executive, is set to unveil his strategy to boost growth and align Burberry with its European rivals. Although the brand has a strong presence in China, it has faced challenges due to COVID-19 lockdown restrictions. Akeroyd’s plan will address this issue, among others. One of his key moves is appointing Daniel Lee as the new chief designer. Lee, formerly of Kering’s Bottega Veneta, is expected to focus on enhancing Burberry’s runway, streetwear, and menswear collections in order to appeal to younger consumers.
Mario Ortelli, managing partner at Ortelli&Co, believes that Lee will play a critical role in reigniting interest in the brand. Additionally, Burberry should concentrate on expanding its leather goods and footwear business, as these segments currently lag behind its competitors.
Former CEO Marco Gobbetti initiated a repositioning plan in 2018 to establish Burberry as a luxury brand. This involved increasing prices, limiting distribution, and reducing discounts. The brand’s former chief designer, Tisci, introduced a fresh design language with the TB monogram, which appealed to younger luxury consumers. The final phases of Burberry’s five-year plan aimed to accelerate revenue growth and boost profits. Unfortunately, the pandemic disrupted these goals due to store closures and travel restrictions. While Burberry reported a modest 1% increase in comparable store sales in the quarter ending July 2, its competitors such as LVMH and Kering experienced double-digit sales growth.
Akeroyd and Lee aspire to replicate the success of Gucci’s CEO, Marco Bizzarri, and creative director, Alessandro Michele, who rejuvenated the brand and significantly increased profits from 2015 to 2019. Lee’s appointment indicates a potential reassessment of Burberry’s British heritage. His unconventional approach to transforming Bottega Veneta into a cult and trendsetting label suggests a departure from traditional interpretations of British luxury. Akeroyd, known for his success in revitalizing established brands like Alexander McQueen and Versace, is expected to leverage his expertise to breathe new life into Burberry. Strengthening the brand’s appeal will cultivate customer loyalty and elevate the desirability of Burberry products, according to industry analysts.
In conclusion, Burberry’s new leadership duo is determined to infuse the brand with fresh energy, accelerate growth, and regain its competitive position in the luxury fashion industry. By targeting younger consumers, expanding important product categories, and reimagining Burberry’s heritage, Akeroyd and Lee are poised to revive the brand and position it for continued success.
For more information on Burberry’s strategy and new leadership, click here. To explore Burberry’s latest collections and products, visit their official website here.
