Title: Embrace Change, Yet Maintain Tradition, Urges Burberry CEO
At the National Retail Federation’s (NRF) annual gathering, Burberry CEO Joshua Shulman underlined the necessity of authenticity in brand renovation.
"We thrive where we're most authentic. In the realm of luxury, there's a constant desire for novelty, but it must be rooted in our core brand values," Shulman stated.
Back on Track
Shulman assumed the reins at Burberry during a time of financial struggle, marked by continuous declines in both sales and profitability. Upon arrival, he recognized the need for an unbiased evaluation of the company's strategies and messaging.
"By the time I joined, it was clear that we needed to scrutinize our approach dispassionately and discern which messages and products to amplify," he shared.
Shulman explained how Burberry had strayed from its roots, losing sight of its core customer and lacked adequate focus on its primary product categories. The luxury giant's brand image became unfamiliar to many customers, leading to negative feedback on social media.
To improve its standing, Burberry unveiled a strategic blueprint named Burberry Forward, aiming to reconnect with its original purpose – an organization founded to safeguard people from harsh British weather.
As Burberry holds significant authority in outerwear and scarves, Shulman highlighted the importance of refocusing efforts on these product categories. By prioritizing core strengths, Burberry has commenced observing an upward shift in brand perception. The company has also identified areas where it fell short and is now strategically correcting missteps to regain customer favor.
Developing a More Diverse Offering
Shulman refuted rumors of cheapening the brand by reducing prices or increasing outlet store locations. Maintaining its luxury image, Burberry seeks to appease a broader clientele base by expanding its luxury pricing categories. The goal is to present diverse offerings appealing to various luxury consumers, ensuring the brand's appeal remains strong.
According to Shulman, the best luxury brands appeal to a universal audience with different entry points, such as lipstick, sunglasses, or leather goods. Top luxury brands must showcase captivating, exciting fashion shows that inspire buyers at the top of the pyramid. Concurrently, they need to offer appealing luxury items in various pricing categories ranging from good to best.
Authenticity and Evolution
Burberry has always balanced "magic and logic." To ensure continuity while updating for relevance, Shulman suggests creating a subtler echo of the brand's initial charm, adapted for contemporary times. He mentions recent instances of ASAP Rocky wearing Burberry scarves, which could have been perceived as paid collaborations but were simply personal choices made by the artist himself.
"When brands attempt to reinvent, they sometimes abandon their roots," Shulman commented. "However, the coolest individuals on the planet love our brand's most genuine aspects."
By focusing on authenticity, Burberry is striving to recoup its standing in the luxury market by honoring its heritage and adapting it to address modern demands.
[1] Source: FutureLearn, 'Brand Analysis: Burberry' by QUT[5] Source: The Broadsheet, 'Loewe x Burberry - Year of The Snake' by Dylan Jones
Enrichment Data:
Overall
Burberry CEO Joshua Shulman has guided brand regeneration by anchoring in authenticity and core values, aiming to rectify financial and image challenges through multiple strategies:
- Identifying Core Customer Segments:
- Burberry has segmented its customers into five archetypes, addressing the opinionated segment, investor segment, conservative segment, hedonist, and aspiring customer. This customer segmentation caters to a wider range of luxury consumers [1].
- Reigniting Desire and Reconnecting with Core Customers:
- Burberry Forward, the strategic turnaround plan, emphasizes restoring desire and reconnecting with the company's core audience. This shift involves refocusing on Burberry's iconic outerwear and scarf categories [1].
- Emphasizing Authenticity:
- Shulman underscores the priority of authenticity, stating, "We have the most opportunity where we have the most authenticity." He believes that the most desirable individuals in society support the most authentic aspects of the brand [1].
- Preserving Traditional Craftsmanship:
- Burberry has maintained its dedication to preserving traditional craftsmanship while upgrading it for contemporary consumers. This commitment is evident in collaborative projects with Harrods and Loewe, which accentuate the brand's cultural authenticity [5].
- Avoiding Down-Market Strategies:
- Burberry will not forsake its luxury status while attempting to captivate a broader audience. The company will not engage in down-market strategies such as massive outlet store expansions or large-scale price reductions [1].
- Heritage and Adaptation:
- Shulman encourages creating an echo of the brand's heritage for today’s consumer. While admitting that you can't repeat the past, he emphasizes adapting this resonating charm for modern times [1].
In line with Burberry's strategy to reconnect with its core audience, Shulman emphasized the importance of refocusing on luxury retail categories, such as outerwear and scarves, where the company has significant authority. By prioritizing these core strengths, Burberry has started observing an upward shift in brand perception.
Furthering its commitment to authenticity, Burberry will not compromise its luxury image by engaging in down-market strategies, like increasing outlet store locations or reducing prices. Instead, the brand aims to expand its luxury pricing categories to appeal to a broader clientele base, ensuring its appeal remains strong across various luxury consumer segments.
