Burberry was founded in 1856 by an English draper’s apprentice named
Thomas Burberry. Thomas was 21 years old when he founded the
company and his first products were focused around outdoor attire.
Today, the company is extremely successful and a leader in luxury
fashion. Comparable luxury brands and competitors are Louis Vuitton,
Ralph Lauren, and Gucci. Since it’s creation, Burberry’s product lines
have extended beyond men’s and women’s outdoor clothing to children’s
wear and beauty products. There’s now an extensive product line which
includes items such as handbags, shoes, eyewear, makeup, accessories,
and attire.
Burberry mostly targets millennials with high disposable income, but
they have a unique marketing strategy which appeals to everyone
(GlobalData, 2016). The target age range is approximately 25-35, but the
products also appeal to older consumers because the products are
generally classic styles (GlobalData, 2016). The children’s line targets
young families in the upper social class as well. The company used to be
mostly for men, but today, women are the largest group targeted
because they’re more likely to purchase the children’s and beauty
products as well as women’s attire.
Burberry is quite expensive and considered a luxury brand, but they
make some items, specifically fragrances, accessible to the average
consumer (GlobalData, 2016). This is great for marketing because it
allows Burberry to be “exclusive” with their high price products, keeps an
elite brand image, and targets consumers in each price point with certain
products. Burberry’s products range from approximately $30 - $7,000;
their popular trench coat is usually over $1,000. Beauty products and
fragrances are on the lower end, while trench coats and handbags are
the more pricy products.
Burberry is present in several regions which includes the Americas,
Europe, Middle East, Asia Pacific, India, and Africa (GlobalData, 2016).
The Asia Pacific is their largest market which accounts for 37% of their
total retail revenue (GlobalData, 2016). The Americas are responsible for
27% of total retail sales, and everything else combined is responsible for
36% of sales (GlobalData, 2016). Burberry reported £2.5 billion for
2015/2016 revenues (GlobalData, 2016). Accessories are the highest
selling products, followed by women’s wear, men’s wear, then beauty
products. The children’s line accounted for less than 4% of sales
(GlobalData, 2016).
Strengths in the SWOT analysis of Burberry
1. Iconic fashion Brand: Having 156 years of long history, Burberry brand
remains synonymous with British fashion. However, the company’s more
