Burberry's New Challenges

In 2014, Burberry’s new chief executive officer was facing a changing environment and digital disruption in the luxury fashion industry. The Burberry brand image had improved considerably over the past decade. However, several changes within the fashion world had had a significant impact on the overall luxury fashion industry. Fast fashion, digital technology, and new communication channels had changed the way the world’s leading luxury brands operated. The industry experienced financial growth year-over-year, and Burberry and other luxury brands continued to be the industry trendsetters. However, the luxury companies were slowly losing some of their power and control over their brand image, both artistically and financially. Burberry’s business strategy needed to adapt to this changing environment, respond to the latest global fashion trends, and improve the communication of its brand. Should Burberry lead or follow with regard to making changes to its stores and fashion shows, dealing with fast fashion, and integrating a clear digital strategy as part of the company’s marketing strategy?

This case is suitable for courses dealing with strategic challenges affecting firms in the luxury fashion industry. After completion of this case, students will be able to<ul><li>discuss a luxury firm’s brand image;</li><li>discuss brand positioning in the luxury fashion industry; and</li><li>discuss the threat of digital disruption.</i><ul>

• fashion, luxury, digital disruption,