Burberry New Logo Gets Market Praise, Transformation First Saw

In July 16th, the British luxury brand Burberry (Bo Baili) announced the first quarter of the 2019/2020 financial year sales. Thanks to the excellent performance of the new letter printing pattern series and the limited "B series" launched by the new creative director Riccardo Tisci, as well as the multi-faceted reform of the new CEO Marco Gobbetti, the Burberry five year transformation strategy plan achieved initial results. The first quarter sales of the 2019/2020 fiscal year increased to 498 million pounds, up from 479 million a year earlier, and the growth rate was 2% based on the fixed exchange rate.

At the end of 2017, Burberry announced the five year transformation strategy plan. After the new CEO Marco Gobbetti took over, she began to innovate in all aspects of creativity, marketing, digital distribution and so on. 2019/2020 fiscal year is the second year of Burberry's five year transformation strategy.

Last year, the new creative director, Riccardo Tisci, released a new letter print pattern, changing the traditional camel print pattern, intertwined the initials of the brand name Thomas Burberry name (T and B), and launched a new style of exclusive logo series. (see "ornate ambition" report: Burberry has changed its brand logo and letter printing pattern for the first time in nearly 20 years).

Shortly after the launch of the new letter printing pattern, Burberry announced the launch of the "Drop" new mode, that is, the limited sales mode, and the Burberry limited B series has been a great success. The B series is designed by Riccardo Tisci. The first product is a sportswear with black Burberry Logo, priced at 450 pounds. It was first launched in September last year and sold out in less than 24 hours. Since then, Burberry has been offering 24 hour limited time products on Social Networking software such as Instagram, WeChat, Kakao and Line on 17 every month. (see "ornate ambition" report: luxury goods also need to be renewed every month! Burberry joined the "Drop" new camp; "B series" was a great success, and Burberry continued to enter the Instagram social networking business.

Burberry's customers react differently to Burberry's new print pattern, but most customers welcome Burberry's new products.

According to a Reuters reporter in Beijing, a 22 year old young woman from Zhengzhou said: "I buy Burberry scarves every year. As for the letter print pattern of Burberry, I think it looks too old, which is contrary to the beauty of our young people."

Another 26 year old young woman from Shanghai said: "Burberry's new print is younger and brighter than the previous camel lattices. Now I'm going to Burberry more frequently than I used to be."

According to a Reuters correspondent in New York, a Burberry store clerk in New York said, "the new brand printing product series has been selling well, and the customers are enthusiastic about this."

Since the beginning of twenty-first Century, Burberry has suffered huge losses because of its classic camel square pattern. To some extent, the brand new printing pattern of Burberry also reshaped the brand image and enhanced brand awareness. The famous luxury brands Gucci (Gucci) and LV (Louis Weedon) continue to enhance their brand awareness with their classic logo Alphabet Patterns, and have been widely recognized by consumers.

According to fashion trends Forecast Ltd WGSN data show that in the first quarter of 2019, online luxury retailers in the United Kingdom increased the supply of single logo goods by 15%. "Customers respond well to brands that incorporate Trademarks into print patterns," said Celenie Seidel, editor of Farfetch, a senior fashion woman at fashion shopping platform.

At present, the Burberry exclusive logo series with new letter printing patterns mainly consists of T-shirts, women's coats, baseball caps, wallet, tote bags, waist bags, camera bags and so on. With the further development of Burberry transformation, in order to compete with Gucci and LV, more high profit leather products will be launched in the future Burberry.

As of June 29, 2019, the main financial position of Burberry 2019/2020 for the first quarter of fiscal year (13 weeks) is as follows:

Sales amounted to 498 million pounds, up from 479 million a year ago, unchanged at the exchange rate, an increase of 2% over the same period last year.

The delivery rate of new products designed by Riccardo Tisci is higher than that of the same period last year, achieving double-digit growth.

The sales share of new products in the main stores increased by about 50%.

Through social media marketing, digital marketing and opinion leader marketing mode, Burberry brand has been upgraded. Brand new image is well known to consumers.

With the accelerated pace of distribution transformation, the experience of its 23 stores has been in line with the brand new vision.

Double digit growth for men's clothing business

Thanks to the excellent performance of new products, it can increase by 4% over the same period of the same period. The sales volume of comparable stores in the Asia Pacific region is higher than that of the stores in the mainland, driven by the consumption of young and middle-aged consumers in China. Sales of comparable stores in Europe, the Middle East, India and Africa (EMEIA) show a low unit growth. Comparable sales in the Americas are flat compared with the same period last year.