The trench coat has been the style statement for decades and is a symbol of British heritage and luxury. Worn by Hollywood stars to fashion enthusiasts, it has won the hearts of many people. Over the years, it has become synonymous with sophistication and style, having a unique design and versatility. But do you know how it came into existence? Burberry, a luxury brand, made this iconic coat and popularised it within the fashion groups. Not only trench coat, it made many other iconic fashion products over the years.
In this case study, we will learn more about the brand, its history, the iconic products it created, its marketing strategies, and current market revenue and stats.
The Origin of Burberry
Located in London, England, Burberry Group plc is a British luxury fashion brand that designs and sells ready-to-wear clothing, including trench coats, leather accessories, and footwear. The company started in 1856 when 21-year-old Thomas Burberry, who had previously worked as a draper’s apprentice, opened his own store in Basingstoke, Hampshire, England. He wanted to create clothing that was functional and durable. His love for the outdoors and his training as a draper inspired him to develop clothing that could withstand the challenging British weather without sacrificing style. By 1870, the business had gained a solid reputation by focusing on outdoor clothing.
In 1879, the company introduced gabardine, a strong and water-resistant fabric that is also breathable. This means that the fabric allows the air to pass through while keeping water out. This fabric is made by waterproofing the yarn before weaving it. It is tightly woven, weatherproof, lightweight, and breathable, making it perfect for outerwear. This fabric protected people from rain and wind while keeping a neat look.
The Iconic Trench Coat
The innovation of gabardine laid the groundwork for the creation of the trench coat as it provided a practical solution for outdoor wear, particularly in inclement weather. This British style-icon was officially designed in 1912, just before the outbreak of World War I. Burberry was commissioned as the official outfitter for the British military, and the coat was tailored to meet the needs of soldiers in the trenches. The name “trench coat” derives from its use in the trenches of the war, where soldiers required durable and functional outerwear.
Designers created key features of the trench coat for military utility. These included epaulettes for displaying rank, a belt with metal D-rings for attaching equipment, and a double-breasted front for added protection against the elements. The coat’s length and design allowed for ease of movement, making it suitable for the rigors of trench warfare.
After the war, the trench coat transitioned from military wear to a fashion staple. It became popular among civilians, particularly in the 1920s and 1930s, as it was adopted by various cultural icons and figures in the arts. The trench coat was also featured in films and worn by celebrities. The brand’s association with the British military, as well as its reputation for quality and innovation, helped the trench coat become a symbol of style and sophistication. Over the decades, the trench coat has remained a timeless and versatile piece of outerwear, worn by both men and women.
The Iconic Check Pattern of Burberry
The check pattern, known for its distinctive beige base with black, red, and white accents, was first introduced in the 1920s. This design was inspired by traditional Scottish tartans and was initially used as a lining for its trench coats. Soon, it became a well-known symbol for the brand’s heritage and timeless style.
As the 20th century progressed, the Burberry Check evolved from a functional lining to a prominent design element in its own right. By the 1960s and 1970s, the check pattern gained immense popularity, becoming a recognizable symbol of luxury and style. Many celebrities and fashion icons embraced it, which helped the brand solidify its status in the fashion world.
The check pattern has transcended its origins as a mere fabric pattern to become a cultural icon. It is often associated with British fashion and has been adopted by various subcultures, including the punk movement in the 1970s and 1980s. The check pattern’s versatility allowed it to be featured in a wide range of products, from outerwear to accessories, making it a staple in both high fashion and streetwear.
Is Burberry Sustainable?
In recent years, the brand has made sustainability an important part of its marketing strategy. It has introduced various initiatives to lower its carbon footprint and encourage eco-friendly practices. In 2019, Burberry decided to stop burning unsold items, a practice that faced criticism from environmental groups.
It also started a program called “ReBurberry,” which is designed to reduce waste by recycling and repairing products. This program allows customers to bring in their old brand items for repair or recycling. It is also committed to using sustainable materials like organic cotton and recycled polyester in its products. Despite these efforts, the brand still uses leather in its products, which creates serious environmental problems.
The brand has received praise for its sustainability efforts, such as being included in the Dow Jones Sustainability Index and setting goals to achieve net zero emissions by 2040. Despite this, some critics believe it needs to do more by completely removing animal products like leather from its collections.
Challenges to Stay Relevant
1. Strategic Misalignment
Under the new CEO Joshua Schulman, the brand has tried to return to its roots with the “Burberry Forward” strategy, which focuses on classic items like its famous trench coat. However, experts are doubtful that this approach will successfully revive the brand after years of mixed strategies that confused consumers about what the brand stands for. Mr. Schulman’s plans include cutting costs and improving the shopping experience in stores, but it’s still unclear how effective these changes will be.
2. Market Pressures
The luxury market is facing challenges, especially with a decline in consumer demand in important markets like China, where the brand experienced a 24% drop in store sales. This weak demand has added to its difficulties, leading to rumors of potential job cuts that could affect up to 400 positions as part of restructuring efforts to stabilize the brand.
Marketing Strategies of Burberry
- The brand partners with famous people like celebrities and musicians to act as brand ambassadors. These influencers showcase the brand’s products, adding glamour to the brand. This helps it increase visibility and attract new customers.
- The brand has entered the world of video games as a way to market digitally. It has collaborated with popular gaming franchises and introduced virtual Burberry items and fashion collections in the games. This helps the brand connect with younger, tech-savvy audiences.
- The brand uses pop-up stores to create exciting and exclusive shopping experiences. These temporary shops, often set up in trendy areas or during special events, generate buzz and urgency. It offers limited-edition products and interactive displays that attract customers and make their experience memorable.
- It excels at engaging with its audience on social media platforms like Instagram, Facebook, and X. The brand shares eye-catching visuals, behind-the-scenes content, and interactive campaigns, which encourage participation, build brand loyalty, and create a sense of community among its followers.
- Burberry was one of the first luxury brands to live stream its fashion shows, allowing people worldwide to watch in real time. By using digital platforms, it reached a broader audience beyond exclusive events, creating excitement and interest around its collections.
- The brand collaborates with well-known artists, mixing fashion with art. By adding unique artistic elements to its designs and campaigns, it grabs attention, sparks conversations, and positions itself as a brand that values creativity and innovation.
- It offers personalized services like monogramming, tailoring, and beauty consultations. By providing these tailored options, the brand makes customers feel special and unique, strengthening the connection between the brand and its consumers.
Current Market Revenue and Stats
Burberry reported a revenue of £3,094 million for the fiscal year 2022/23. However, its adjusted operating profit fell by 25% year-over-year to £657 million, and the adjusted earnings per share (EPS) decreased by 40%, reaching 122.5p. The return on invested capital (ROIC) for the year stood at 15.3%.
Looking ahead, the brand has set sustainability goals, aiming for all key raw materials to be certified or responsibly sourced by the fiscal year 2029/30. It is also working on adopting circular business models and reducing plastic in its packaging. The brand is also committed to community engagement by improving the well-being of workers in its supply chain and pledging at least 1% of its profit before tax each year to charitable causes.
