Burberry is a British luxury fashion brand based in London, England. It currently designs and markets ready-to-wear clothing, including trench coats, leather goods, footwear, fashion accessories, eyewear, fragrances, and cosmetics.
Founded in 1856, Thomas Burberry initially focused on developing outdoor clothing. The brand has entered the high fashion market, developing trench coats and products made exclusively for the brand.
Burberry’s most famous designs are its coats. The company’s reputation was increased by Burberry’s development of “gabardine” – a tear-resistant material that was both weatherproof and breathable. This new fabric was particularly suited to military needs. It led Burberry to design an officer’s raincoat, which became an essential part of the standard uniform for British officers in the early 20th century.
During World War I, Burberry continued to produce officers’ raincoats, adding sizes such as shoulder straps, epaulets, and D-rings, now known as “trench coats.” Because of its association with the military, the brand also developed its distinctive patterns; the black, tan, and red pattern known as the Haymarket check or Burberry Classic Check was first used as the lining of Burberry trench coats in 1924. By 1967, the Burberry check was extensively used for scarves, luggage, umbrellas, and other accessories.
Returning to the financial part of Burberry, the brand’s annual profits fell from £62 million to £25 million in the financial year ending in 1998.
However, starting in 1997, Burberry completely retooled its business model and saw a marked improvement in its operating performance. The expansion of the product portfolio to include a broader base of buyers and the adoption of a multi-brand positioning mirrors many of the developments of other high-end international fashion retailers, including Ralph Lauren, Gucci, and Prada.
Firstly, Burberry has 48 million online users and is present on more than 20 social networking sites, such as Facebook (17 million users), Twitter, Instagram, WeChat, and Line. Personalized content posted on these platforms helps the brand stay in touch with its customers to understand changing needs and act accordingly.
Secondly, by Simplifying the product line, the company reduced the number of product options to approximately 15-20% while balancing its focus on solid product lines and innovative/new designs.
Thirdly, Burberry continues to focus on its unique patterns and plaids. Burberry has been a staple of luxury and durability since the early 1920s. The plaid theme has remained constant throughout the brand’s life and is the central fact that has propelled Burberry into its current market position.
The Burberry brand has broad consumer appeal. More than 50% of the brand’s revenue comes from the apparel business, which grew 5% in 2017. The company is balanced between non-apparel (36% of revenues in 2009/10), womenswear (35%), menswear (24%), and the more minor but high-potential children’s division (5%). Burberry is planning further growth in all business areas in the coming years.
Accessories support the mainline apparel business by providing customers with products that complement their style. This segment generates 38% of the brand’s revenue, as the products follow global fashion trends.
The company has grown through a series of reforms and marketing strategies to become one of the most valuable luxury brands worldwide.
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