Evolution of the house up to present day
Founded in 1856 by Thomas Burberry, Burberry is internationally recognized as a British luxury and noble brand. Today the house has a wide range of collections such as men’s, women’s, children’s, luxury accessory and luxury jewelry. The headquarters is located in London to maintain the image of its British tradition. The house started by producing high quality outer called ’Gabardine’ that is the predecessor of its famous trench coat. Thomas got this idea from the cloth that farmers wore during work. ‘Gabardine’ became famous, had been used in various field from aviation, ski to World War I. In 1920s, Burberry Check, which is registered as a trademark and makes the brand different from other brands, was introduced in its collection as a lining of trench coat. In 1955, Burberry is chosen as Royal warrant by Queen Elizabeth II and made a strong relation with Royal family by establishing precious position. While building success and fame, after the death of Thomas Burberry in 1926, the house had started facing with difficulty. In 1955, the house was taken over by a subsidiary of Great Universal Stores. Burberry lost not only its familial independence but also its brand image of innovation. After the acquisition, Great Universal Stores continually updated Burberry’s brand image and encouraged to expand internationally. 1980s were the period of development in foreign countries especially in United States and in Japan by the demand for fine traditional goods. Two third of the company’s sales are constituted by export.
In 1998, Roberto Menichetti became a creative director for Burberry under the mission of re-branding the brand, creating the blend of British heritage, elegance and high-end sport essence. As a result, he enormously contributed the profit increase. In 1999, Burberry hired Kate moss for the collection Autumn/Winter1999 and started its famous iconic campaign photographed by Mario Testino, who is the only campaign photographer of Burberry since 1999. Later on, He shot various models such as Danny Beauchamp and Kiera Gormley. From Spring/ Summer 2011, Cara Delevingne was welcomed to the brand as an icon. In 2014 Kate moss joined her in the photo shoot for the My Burberry fragrance, the legendary collaboration with two of brand’s icons.
The house have seen the great change in 2009, Christopher Bailey has become Chef creative director. He contributed Burberry’s global success by his innovative direction such as A-list movie star campaign advertisements. Emma Watson played role as a Campaign model in the same year and brought valuable image as well as profit increase to the brand. In 2010 Burberry has started digital marketing, which is very new and innovative to luxury brands. This advertisement allows customers to feel closer the brands, collections and casts. By this technological approach, the house has seen further growth and acquired the new young generation of customers (under 20) by succeeding in creating positive outlook towards British tradition.
Under the direction of CEO Angela Ahrendts, the house has placed emphasis on building its own retail network, reducing number of small sellers instead of focusing on luxury retailers and wholesales to reinforce image of luxury. As a consequence of this strategy, it decided to phase out license agreements that make less profitability with Spain (2010) and Japan (2015). Especially in Japan, there are special lines called ‘Burberry black label’ for Men and ‘Burberry Blue label’ for women. These lines offer collections with affordable price range. Therefore the image of Burberry in Japan is not luxury. Angela doesn’t agree this strategy and that became one of the decisive raison to stop license agreement.
From the opening of store in Paris in 1910, Burberry doesn’t stop expanding in the world. In total, the brand opened more than 500 stores over 90 countries in three regions. In particular, flag shops play important role to share brand DNA, heritage and history with customers. Flag shop on Regent Street was established for the fusion with physical and digital world. The store was similarly designed as its website and offer various shopping experience by specially selected music and space.
Nowadays, Sales in Chinese market is increasing both inside country and travellers’ consumption outside country. Still it is difficult situation for the house given that Chinese market may have slowed. The brand faces global challenges in the years ahead.