As the first luxury brand to launch online retail business, Burberry has been regarded as the most popular representative in the industry. But as other luxury brands have joined the digitized army, and even with the Gucci, which has been playing the most popular later, the pioneer advantage of Burberry has disappeared. That may be why it has recently decided to adjust its brand development strategy. Instead of seeking new changes, Burberry wants to consolidate its luxury brand positioning by increasing commodity types and raising unit price.
Burberry’s chief executive, Marco Gobbetti, announced the new strategy in November 9th, and opened the company’s first half of 2018, its net profit and total sales increased by 4% compared with the same period last year, and the revenue of half a year increased to $1 billion 700 million, about 11 billion 200 million yuan.
Gobbetti said that digital innovation is still the core of the Burberry brand image, but the most urgent problem in the current brand development is how to get brands out of the middle layer of fashion brands and luxury brands. Burberry plans to make the brand closer to the high-end areas of traditional luxury goods through new brand strategy.