The Future of Burberry

Emma Watson for Burberry, Prorsum.

Burberry continues to succeed in the luxury fashion business due to many factors, including great financial management, successful brand and product positioning, company inovation, smart marketing choices, and overall loyalty to their consumers. The number of successful Burberry stores is still on the rise, which shows that a company who has been around for over a century and a half is still able to reinvent and rejuvenate product lines to coordinate with present and future trends.

And as for the future...

According to CEO Angela Ahrendts, Burberry sees advanced growth in countries such as China, Latin America, and the Middle East. In the next twelve months, the brand plans an increase of 12-13% in average retail selling space, including the addition of up to 25 additional stores. China is predicted to add about 12% to average selling space in the first half of the year. Ahrendts says: “Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world. While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product.”  

• Burberry made an adjusted pre-tax profit of £298m and revenue rose 27% to £1.5 bn for the year ending 31 March 2011.
• The company saw double digit growth in retail and wholesale in all regions and product categories. Retail revenue jumped 36% to account for 64% of sales.

The brand also aims to reinforce its synergy with British landscapes, weather, and emerging talent. Their ad campaigns for Spring 2011 included the aucoustic duo Karen Anne and Johnny Flynn (posted above). With the brand's eye on fresh marketing strategies like this, along with trend research and their flare for luxury, I believe Burberry will be able to maintain their brand identity for years to come and continue to appeal to new generations while sticking to their core values and will inevitably increase sales.