Luxury Good and Burberry
BURBERRY
COMPANY BACKGROUND
1856, Burberry was founded, when 21-years old Thomas Burberry opened a draper’s shop in Basingstoke, England. Shortly thereafter he invented gabardine, a waterproof and breathable fabric that quickly become the fabric of choice for anyone venturing out into extreme conditions. Burberry’s trench coat was chosen to be the official coat of the British army in World War I.
1920, The Burberry check pattern-a camel, black, red, and white plaid design-was introduced as a lining to its signature trench coat and became a registered trademark. Over the ensuing years, celebrities, well-known adventurers, and politician were often seen in the Burberry ”check”. Burberry’s original designs and uncompromising quality even made the brand popular with British Royalty. As a result, the brand increasingly became a symbol of both luxury and durability.
1930, marketing campaign declared, “For Safety on land, in the air or afloat, there is nothing to equal the Burberry coat.
1955, Great Universal Stores Plc. (GUS)-a British holding company that ran a home shopping network and other businesses-bought Burberry.
1970, The Japanese had discovered the brand’s iconic check, and GUS management had agreed to license the brand in Japan through Mitsui and Sanyo. Over the next decade, Burberry continued to grow worldwide, primarily through additional licensing and distribution agreements.
1990, Burberry’s product line was being sold in retail environments inconsistent with its quality proposition. The company had become overly reliant on a narrow base of core products (e.g., outerwear and umbrellas), and its customer base had become heavily concentrated among older male and Asian tourists.
PROBLEMS
By the mid-90s, the company was facing a number of strategic and structural issues. Although the business was profitable, earning quality was low. The brand was stodgy looking and conservative, and skewed to an older customer base. The company not only
COMPANY BACKGROUND
1856, Burberry was founded, when 21-years old Thomas Burberry opened a draper’s shop in Basingstoke, England. Shortly thereafter he invented gabardine, a waterproof and breathable fabric that quickly become the fabric of choice for anyone venturing out into extreme conditions. Burberry’s trench coat was chosen to be the official coat of the British army in World War I.
1920, The Burberry check pattern-a camel, black, red, and white plaid design-was introduced as a lining to its signature trench coat and became a registered trademark. Over the ensuing years, celebrities, well-known adventurers, and politician were often seen in the Burberry ”check”. Burberry’s original designs and uncompromising quality even made the brand popular with British Royalty. As a result, the brand increasingly became a symbol of both luxury and durability.
1930, marketing campaign declared, “For Safety on land, in the air or afloat, there is nothing to equal the Burberry coat.
1955, Great Universal Stores Plc. (GUS)-a British holding company that ran a home shopping network and other businesses-bought Burberry.
1970, The Japanese had discovered the brand’s iconic check, and GUS management had agreed to license the brand in Japan through Mitsui and Sanyo. Over the next decade, Burberry continued to grow worldwide, primarily through additional licensing and distribution agreements.
1990, Burberry’s product line was being sold in retail environments inconsistent with its quality proposition. The company had become overly reliant on a narrow base of core products (e.g., outerwear and umbrellas), and its customer base had become heavily concentrated among older male and Asian tourists.
PROBLEMS
By the mid-90s, the company was facing a number of strategic and structural issues. Although the business was profitable, earning quality was low. The brand was stodgy looking and conservative, and skewed to an older customer base. The company not only