Essay on Burberry Fashion Industry

4212 Words May 6th, 2012 17 Pages
World Leading Fashion Brands
Burberry, Louis Vuitton, Gucci, Prada, Calvin Klein, Christian Dior, Chloe, Emporio Armani, Ferragamo & (Appendix 4) are some of the numerous global luxury brands. They all have experienced abundance in sales growth and margin profits within the last decades, but they almost shutter in between world financial crisis (2008 up to date).
They even see themselves included in several financial products such mutual funds, ETFs or be part of financial Indices (Appendix 2). Economists strongly propose that when it comes to long term investments we all should distribute our investment portfolio in a way that will consist to a certain extent from luxury brands. They claim that since customers’ income has the
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What issues had to deal with?
Positioning selected, means that Burberry’s direct competitors are not Gucci or LV or Prada but rather Calvin Klein, Ralph Lauren/Polo, Chanel, Christian Dior, DKNY, Valentino, YSL, Cavalli or D&G. Not totally relevant but supportive argument to the same direction could be
the total value of the company in prices of 2008 as depicted (Table 6). The distinction between old and new Burberry (Table 7) is the outcome of the multiple brands launched after 2001.

Table 6 Value in Thousands € for Most Luxury Brands in 2008

Source: Hermes (2009)

Table 7 Positioning –Perceptual Maps

Source: Solomon et al. (2009)

Its target market is still wealthy affluent consumers, label conscious shoppers.
However it runs through many socio-economic groups. Burberry is worn not only by royals and aristocrats but also by hip hoppers or hooligans. Due to this reason over the past few years Burberry has encountered a serious issue.
Burberry lost its prestige and prominent qualities as well as its core customers saw the iconic Burberry check have been consumed by a style tribe called the ‘Chavs’. This demographic is young, male and female,…

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