Source: Business of Fashion
Summary
Burberry has announced its plans to reach £200 million in sales and a 15 percent EBIT margin over the medium term. The British label is focusing on its heritage icons and has partnered with designer Christopher Kane to achieve this goal. The company aims to expand its customer base and increase sales through this new strategy.
Our Reading
The trend returns with a new name. Burberry’s revival of heritage icons is a familiar play, one that has been attempted by other luxury brands in recent years. The tie-up with Christopher Kane is a calculated move to tap into his loyal customer base. The focus on heritage icons is a nod to the brand’s rich history. Burberry is simply rehashing a tried-and-true formula for success.
Heritage Icons Get a New Spin
Burberry’s decision to focus on heritage icons is a strategic move to appeal to a new generation of customers while still maintaining its loyal customer base. The brand is banking on the fact that its iconic designs will continue to be relevant in the ever-changing fashion landscape.
Christopher Kane Brings a New Perspective
The partnership with Christopher Kane is a calculated move to bring a fresh perspective to the brand. Kane’s loyal customer base is likely to follow him to Burberry, bringing in new customers and increasing sales.
A Familiar Strategy
Burberry’s plan to focus on heritage icons and partner with a well-known designer is a familiar strategy in the fashion world. Other luxury brands have attempted similar moves in the past, with varying degrees of success.
Aiming High
Burberry’s goal of reaching £200 million in sales and a 15 percent EBIT margin is ambitious, but achievable. The brand’s focus on heritage icons and its partnership with Christopher Kane are key components of its strategy to reach this goal.
A Well-Trodden Path
Burberry is following a well-trodden path, one that has been traveled by many other luxury brands. The brand’s decision to focus on heritage icons and partner with a well-known designer is a safe bet, but it remains to be seen whether it will pay off in the end.
Author: Evan Null
