It is called doing a Gucci after Domenico De Sole and Tom Fords stunning success atturning nearly bankrupt Gucci Group into a £7 billion (market capitalization) fashion powerhouse. Since 1997 when she took over, Rose Marie Bravos makeover of the 143-year-old Burberry fool has followed the same path.The Burberry story began in 1856 when Thomas Burberry exposed his firstgentlemens outfitters. By the First World War, business was sound as Burberry wonthe contract to supply trenchcoats to the British army. Its reputation grew when it provedits voice to the national cause. The Burberry check was introduced in the 1920sand became fashionable among the British spirit to upper classes. Later, when it wasworn by Humphrey Bogart in
Casablanca
and Audrey Hepburn in
Breakfast at Tiffanys
,the Burberry trenchcoat gained widespread appeal.Bought by Great Universal Stores in 1955, the brands Brobdingnagian popularity from the1940s to the 1970s had waned by the 1980s. A less deferential cabaret no longer yearnedto dress analogous the upper classes and the Burberry brands cachet fell in the UK. This was partially start-off by a surge in sales to the newly rich Japanese and other Asians after theydiscovered its famous (and trademarked) tan, dark/red and white check pattern.
By themid-1990s, the Far east accounted for an unbalanced 75 per cent of Burberry sales.British and American consumers began to regard it as an Asian brand and rather staid.Furthermore, distribution was focused on small shops with few big fashion chains andupmarket stores like Harrods stocking the brand. In the USA, stores like Barneys, Neiman Marcus and Saks only sold Burberry raincoats, not the higher(prenominal) profit marginaccessories (e.g. handbags, belts, scarves and wraps).
Change of strategy
These problems resulted in profit falls in the 1990s culminating in a £37 million waste in profits to £25 million in 1997. This prompted roughly serious managerial rethinking and therecruitment of...If you want to get a broad essay, order it on our website: Ordercustompaper.com
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