Like so many luxury labels, Burberry has felt the sting of the economic crisis, posting a £6 million loss for the last financial year. The loss stemmed from the cost of writing down the value of its Spanish stores, and charges for staff layoffs.
But it’s not all bad news for the British brand. Its sales are up 21%, as fashion fans flock to its iconic accessories.
“An accessory – a bag or shoe – is a more spontaneous purchase than apparel,” explained Christopher Bailey, Burberry’s creative director. “It’s not as big of a commitment.”
The company’s signature plaid pattern has been subtly revamped in its latest fashion items that are contemporary, yet timeless.
In the 1990s the plaid print was splashed over so many products it risked over exposure. The brand shied away from the design for a while, but now it’s back in creative ways, such as a suede purse where the plaid pattern peeks through a mesh exterior.
“It’s very intentional,” Burberry chief executive Angela Ahrendts explained. “Now we’re coming back with a renewed strategic use of the branding platform.”
“In this market, people want the reassurance of a familiar brand,” added Mr. Bailey.
By returning to its iconic plaid prints, Burberry’s giving its loyal customers just that. The brand now hopes to further boost its accessory sales and expand into growth markets, including the United States. These efforts will receive a boost next week when Burberry opens its new headquarters in New York.
“America is still one of the toughest markets,” said Ms. Ahrendts. “But it’s not getting worse, and we are not seeing the volatility and strong declines anymore. The business opportunities are probably better than they have ever been.”
[Source: The Wall Street Journal]
[Image Source: Wearitdotcom/Flickr]
