Burberry is a British luxury fashion house launched in 1856 by Thomas Burberry. It is headquartered in London, England. Specialising in luxury trench coats, leather accessories and footwear. The Brand caters to the affluent consumers seeking exclusivity and sophistication
History Of Burberry
The Burberry trench coat was first made during the First World War. Equipped with a functional design including epaulettes for suspending military equipments such as gloves and whistles. The gun flap to provide extra support when in action.
The Burberry Check is the registered trademark of the brand , symbolising lining to their rainwear
Luxury Slowdown
Britain’s Burberry is experiencing a global recession in luxury spending . The ramification unveils as a 11% sink in the Brand’s shares. The Brand is struggling to meet it’s annual revenue forecast, impacting the profits made.
The Brand claims , if the sales don’t accelerate , the earning for 2023-2024 will be towards the lower side of the market’s anticipated range of £552 million to £668 million. The profit after tax falls 18% to £158 million in the six months to the end of September.
The slowdown in luxury expenditure globally is having a brutal impact on the Brand’s financial report. Wealthier sectors are cutting their spendings owing to economic recession in the wake of pandemic. The Brand claims Chinese consumers to be vital for the luxury sector
Chief Executive of Burberry claims that it’s owing to the macroeconomic environment that the Brand is facing luxury slowdown . He expressed his confidence in their strategy and the Brand’s potential in Modern British Luxury Clothing. The Brand is keen on achieving their long term targets.
Burberry , launched it’s first collection by designer Daniel Lee in September 2023. It faced a sharp drop in store sales growth from 18% to 1% in the first and second quarter respectively.
The Summer Collection 2023 was unveiled on 26 September ,2022. Daniel Lee has revealed his first fall collection ,2023 with Burberry
The Brand is trying to retrieve and upmarket by adopting better marketing strategies, improving the product’s quality , refurbishment of stores . The operating profit has fell 6% in the first half and from 552 million to 668 million pounds in the full year analysis report.
LVMH AND KERING
LVMH, the world’s largest luxury group including brands like Louis Vuitton , Dior , Tiffany & Co , Celine , Fendi , Givenchy and more also experienced a slowdown in quarterly sales in October . Similarly, Kering a French Based Multinational Corporation specialising in Luxury goods including brands like Bottega Veneta, Gucci , Creed , Alexander McQueen and more faced a similar backlash and encountered luxury spending slowdown
Kering has faced strong competition from other luxury brands . Weak earning has worsened the rivalry . It is getting it’s way back through Altering Gucci’s management , which makes up more than half of Kering’s annual sale
The conglomerate is still recovering from the backlash and criticism the controversial ad campaign for Balenciaga faced , affecting the U.S. and Europe sales
