In the luxury fashion world, brand identity and market perception can shift quickly, and recent years have put Burberry, an iconic British brand, through an identity crisis. Known for its classic trench coats and timeless scarves, Burberry’s venture into diverse and sometimes inconsistent design directions has left the brand struggling to define itself in a rapidly changing market.
The financial losses in early 2024 highlighted the need for a strategic turnaround, sparking a new focus led by CEO Joshua Schulman to bring the brand back to its roots while reevaluating its approach to pricing, product range, and brand identity.
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Understanding Burberry’s Identity Crisis
Burberry has been a cornerstone of British fashion since its founding in 1856, building a reputation for high-quality craftsmanship, elegance, and classic style. The brand’s trademark trench coats and signature checked scarves became synonymous with British luxury, embodying the subtle sophistication that appeals to both domestic and international markets. However, in recent years, the brand’s numerous leadership changes — including four CEOs and three creative directors in a decade — have resulted in a fragmented brand image. These leadership transitions each brought new visions, some of which involved drastic shifts in logo designs and experimental product styles that deviated from Burberry’s traditional appeal.
As the brand sought to innovate, it also began pushing the envelope on pricing. High costs became increasingly out of reach for many consumers, resulting in a disconnect between Burberry’s product offerings and its core customer base. Luxury consumers, particularly in China and other major markets, began showing signs of luxury fatigue, pulling back on purchases and impacting brands across the industry. Burberry’s inconsistent brand identity and aggressive pricing strategy left it vulnerable to these market trends, resulting in a significant financial downturn.
Joshua Schulman’s Turnaround Plan: Refocusing on the Classic
Joshua Schulman’s arrival at Burberry marks a potential pivot back to its British roots and a commitment to revitalizing the brand’s original appeal. Schulman’s previous leadership roles at brands like Coach and Michael Kors provide him with a deep understanding of the luxury industry and the complexities of brand management. His approach to Burberry, unveiled in his turnaround strategy, focuses on re-establishing Burberry’s core identity by returning to the brand’s strength in trench coats and scarves — items that remain culturally significant symbols of British heritage and craftsmanship.
The emphasis on these iconic products is a deliberate attempt to tap into Burberry’s timeless brand appeal. Recent campaigns under Schulman’s guidance have showcased quintessentially British elements, featuring high-profile British celebrities such as model Cara Delevingne, rapper Little Simz, and actress Olivia Colman. This renewed focus on national heritage, coupled with an updated pricing strategy, aims to reestablish Burberry as a timeless British luxury brand, appealing to those seeking understated elegance rather than the trend-driven allure of competitors.
The Pricing Shift: Balancing Exclusivity with Accessibility
One of Schulman’s first steps was to address Burberry’s pricing strategy. Over the last couple of years, the brand’s price hikes spanned almost every product category, from outerwear to accessories. This aggressive pricing had limited Burberry’s reach, even among luxury consumers, and deterred potential customers looking for entry points into the brand. Schulman recognized the need for Burberry to be “incredibly disciplined” in its pricing, focusing on segments where the brand’s market power is strongest.
Burberry will now focus more on what Schulman calls “entry-level” luxury products, particularly in the handbag category. Aiming for a “sweet spot” in pricing, he plans to introduce handbags priced between €1,600 and €2,000 ($1,681 – $2,109), making these items more attainable while maintaining a luxurious appeal. This price range aligns with the budgets of many young luxury consumers and helps Burberry retain its exclusive positioning without becoming too inaccessible.
The CEO has clarified that while Burberry’s prices will be adjusted, the brand is not venturing into the realm of accessible luxury like some competitors. Instead, the goal is to refine its pricing so that it better reflects Burberry’s value proposition and heritage, rather than positioning itself as a high-priced brand in every product line.
Challenges in Leather Goods and Footwear
While Burberry has a strong market presence in outerwear, thanks to its iconic trench coats, it has struggled to build similar traction in leather goods and footwear, areas where other luxury brands excel. Burberry’s current creative director, Daniel Lee, previously saw significant success at Bottega Veneta, particularly with shoes and bags, but replicating that success at Burberry has proven challenging. Historically, Burberry has not been as strongly associated with leather goods, and attempting to push into this space may have contributed to the brand’s recent struggles.
Leather goods and footwear underperformed in the first half of 2024, a contrast to the brand’s solid performance in outerwear. This discrepancy underscores Burberry’s need to leverage its strengths rather than compete in areas where it lacks a natural competitive edge. Schulman’s new strategy appears to support this approach by returning the focus to categories Burberry has mastered, like coats and scarves, and adjusting its ambitions in areas where the brand has traditionally been weaker.
