The global financial crisis hit the luxury industry the hardest leading some of the brands to their financial ruin. The brands who responded quickly to the changing environment have survived and are bouncing back. The luxury brand which emerged the strongest after the crisis is Burberry. This is evident from the fact that in November 2008, Burberry’s stock price was £175 and by January 2010, the share price has risen to £1,116. There is no simple answer for this phenomenon but it is a case study that will help luxury and designer brands to survive and flourish in the competitive retail sector.
Burberry has been consciously working towards rejuvenating the image of the brand. Christopher Bailey is credited with giving the brand that much needed edge. Angela Ahrendts’ joining Burberry as CEO in certain ways put the company on the right track. She worked towards streamlining the supply chain and today they have perhaps the most responsive supply chain in the industry.
Their move to expand into emerging markets was dubbed risky at the time but has paid off and given them the first mover advantage to cash in on the rapid growth of those markets, especially China. Burberry also took very bold decisions in reformulating its retail strategy. They adapted the online wholeheartedly and increased their focus on e commerce which has resulted in dramatic growths for the company. They have been the most innovative, amongst the luxury brands to use the social media effectively. It is no surprise that Burberry is the most liked brand on Facebook.
Via: huffingtonpost
