Burberry plans to increase product types and their prices

As the first luxury brand to launch online retail business, Burberry has been regarded as the most popular representative in the industry. But as other luxury brands joined the army of digitalization, even with Gucci, the pioneer advantage of Burberry vanished. That may also be why it has recently decided to adjust its brand development strategy. Rather than seeking new changes, Burberry wants to strengthen the positioning of its luxury brands by increasing the variety of goods and raising the price of commodities.

Burberry CEO Marco Gobbetti announced the new strategy in November 9th, and released its performance in the first half of 2018. Its net profit and total sales increased by 4% compared with the same period last year. The annual revenue increased to 1 billion 700 million yuan, or 11 billion 200 million yuan.

Gobbetti said that digital innovation is still the core part of Burberry brand image. But the most urgent problem in brand development is how to get rid of the brand and get rid of the middle layer of fashion brand and luxury brand. Burberry plans to use the new brand strategy to make the brand closer to the high-end areas of traditional luxury goods.

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