What Should Burberry Do Next?

According to the world clothing shoes and hat network, now, the Rose Marie Bravo drafting agreement from the American businessman will pform the classic wear-resistant trench coat into the famous British tradition

brand

It has been 20 years since then, when the brand was all dressed up by the Chavs, the British working class, because of its logo design, it was mounted on cake moulds, pads and aprons, and the brand value was seriously diluted.

In 2001, Bravo invited the designer Christopher Bailey, who had worked for Tom Ford and Donna Karan, to take charge of the creative power of Burberry, and appointed Angela Ahrendts as her successor in 2006.

Over the next 8 years, Ahrendts and Bailey proved to be an excellent two person group.

They jointly cleaned up their business, repurchased their authorized management rights, and converted Burberry into a trusted luxury brand. Some of them also included restrictions on the company.

Abuse.

During their tenure, Burberry became a new star in the global luxury industry.

As of 2011, Burberry's revenue reached 1 billion 500 million pounds, an increase of 27% over the previous year and a market value of 5 billion 800 million euros, which is two times the revenue and market growth rate of LVMH during the same period.

At the same time, Burberry's smart digital strategy has also been recognized.

The famous "Art of the Trench" (windbreaker Art) has become the phenomenon of street shooting style originates from the Internet in the 2000s. Please come to the street patting blogger The Sartorialist photographer Scott Schuman, shooting the shape for the consumer community wearing the windbreaker.

The brand is one of the first luxury companies to make use of social media and online community strength.

Season after season, Burberry shows how to use the latest Internet technology to interact with the outside world from the streaming media to Twitter, Facebook, Instagram and Snapchat.

This strategy is twofold. It can test a promising new messaging strategy. Two, it enables the brand to drive public relations value by creating "digital aura", which also returns to Thomas Burberry's own innovative spirit.

The brand adds new excitement and energy to French and Italy fashion brands, even though consumers can smell that Burberry is not really a luxury brand.

But this formula will eventually be obsolete. The fashion show's walking shows seem to follow some strict template: the same trench windbreaker, the same place in the Kensington Gardens in London, the same British Independent Music, the same models, the same front row spectators, and even the final racks will fall off the same racks roof.

Then, even the product is the same.

Some observers believe that the Burberry led brand "purification" action has been successful in some aspects, but it has constrained creativity and limited its ability to create new and desirable products.

Others say that focusing on digital innovation actually distracts attention.

As other brands have launched their own digital products, Burberry's digital marketing brings about diminishing returns.

In 2014, Ahrendts was selected by Apple Corp (Apple Corp) to take charge of its retail plan. The surprise action of fashion industry and financial market was that Bailey was appointed chief creative officer and chief executive officer.

This has since proved unwise: on the one hand, this new dual role seems to have undermined Bailey's ability to focus on products.

Under his leadership, Burberry's revenue and profit growth both declined.

In the fiscal year ending March 2017, the company's revenue declined by 2% and its operating profit dropped by 21%.

Nevertheless, under the dual role of Bailey, Burberry has made some progress: starting from the second half of 2015, it began to integrate and reduce the cost of the company's huge brand hierarchy, and began to pition to the new mode of operation and creativity. Bailey took the lead in participating in the "instant shopping" trend. The main players including Tommy Hilfiger and Tom Ford quickly followed the footsteps.

But these changes still failed to meet expectations.

This came back to Marco Gobetti, who was officially appointed Burberry chief executive officer at the beginning of this month.

For this digital innovation company, choosing Gobbetti as CEO is really inspiring - if not unexpected.

Prior to joining the Burberry, he and the young designer Phoebe Philo, led the amazing pformation of the C line brand, and made this belonging to LVMH's fashion company into a top fashion brand.

Interestingly, C e line runs counter to the digital road advocated by Burberry, even though consumers spend more and more time on the Internet with money and mainstream brands competing to capture fans' hearts.

But Gobbetti undoubtedly has rich experience in retail management, and a deep understanding of leather products. This is a category that Burberry has not yet played on energy efficiency.

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To be sure, this brand of Burberry, which is almost the same as all British luxury goods, is still huge.

And Dior and Chanel must take into account the concept of Paris's advanced custom fashion, or the many luxury brands that have to take into account the concept of "Italy manufacturing". Burberry is a global luxury brand that can compete with all these brands. Burberry is an outgrowth.

But what do Gobbetti and Bailey do to make the brand potential?

For Bailey, his attention must focus on creativity and create products that sell consumers' excitement.

Although digital strategy has now become a key pillar of Burberry business, and the progress of the company in this field is beneficial to today's media reality, it can not be at the expense of real product innovation.

With the products that people really thirst for, digital marketing can play magic.

Now there is the first sign that Burberry may be turning over to make up for the lack of creativity: Bailey announces surprising cooperation with Russian designer Gosha Rubchinskiy, and the design inspired by Rubchinskiy's youth / skateboard group in Eastern Europe is cutting the blemish of "little street bluddlers" in Burberry history.

Bailey now seems to surpass the strict boundaries he once drew himself.

In order to boost revenue growth, Burberry can also be steadfast in the strategy of "watching and buying", expanding the media influence and creating a restless time that can really attract all the focus of fashion week.

If Burberry will continue to insist on holding a quarterly conference, it may be able to learn from the Tommy Hilfiger of the global show: after taking over the Santa Monica port of Losangeles, it will step into the backyard lawn of Burberry in London this September.

The complementary skills and experience of Bailey and Gobbetti should bring confidence to Burberry investors. Burberry

Now what they need to do is concentrate on their own tasks.

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