This transition, which is expected to take place over the course of next year, will see Burberry unite its Prorsum, London and Brit lines into one. This is provide luxury shoppers with a more consistent experience, simplifying their full product range. Burberry CEO Christopher Bailey says: “The behaviour of the luxury customer is evolving, their style is more fluid and this is reflected in the way they shop. The changes we are making allow us to serve this new behaviour more intuitively. By unifying our three lines under one label we can also offer a much more consistent experience o0f Burberry’s collections.” This new brand, simply known as Burberry, will emphasise the luxury goods maker’s British roots and emphasise that all products are designed and developed in London.
The British brand also revealed plans to build a new manufacturing and weaving facility in Leeds, England. The work is due to be completed by 2019 at an initial cost of £50m. The facility will provide more than a 1,000 jobs.
Burberry has been a strong contender in the luxury market, with sales growing due to its focus as a British heritage brand, on its staple pieces and innovative approach to marketing, particularly through social media. Yesterday they launched their festive ad campaign, which is based around the quintessentially British tale of Billy Elliot and features a line-up of British celebrities. Additionally, Burberry is donating £500,000 to two charities – Place2Be and the County Durham Community Foundation – which support education, training and employment in Easington, County Durham, where the film is set.
However, their sales have slowed recently, with retail revenues in the most recent half-year period up by only 2%. The global market for personal luxury goods is heading for its weakest year since 2009 as a combination of stock market turmoil, a strong dollar and a commodity-price rout curb demand, Bain & Co. said last week.