Burberry’s chief creative officer thinks Brexit is an amazing opportunity for the London fashion firm best known for its trench coats and checkered scarves.
“Britishness resonates globally”
When it leaves the EU, Britain will develop a more distinct identity.
And that’s something that Burberry has always traded on: a British identity.
Its fortunes are intrinsically tied to consumers, notably in Asia, who want to buy products which resonate British heritage. So by leaving the Union, “Britishness” will become more potent, and these consumers should become even more attracted to Burberry’s products.
In its last quarterly results, revenue was up, beating expectations. Again, look to Brexit: the weakness of the pound encouraged Chinese visitors to the UK to stock up on Burberry bags.
And talking of bags
New CEO Marco Gobbetti is focussing on growing the firm’s handbag business. This strategy is a steal from the playbook of rivals Louis Vuitton and Hermes. Both brands make a lot of money out of their leather goods range.
It’s been a struggle to retain its luxury image in the US.
Over there, department stores have been slashing Burberry’s prices.
Sell it yourself.
Burberry has now reduced its concessions and is instead selling more goods at Burberry shops for a higher price.
Then there’s the firm’s use of AI and Big Data.
By collecting data from loyalty schemes, the technology guides customers to new products which they might like based on their purchase history.