Luxury Unfiltered is a weekly column by Daniel Langer, an expert in luxury branding, hospitality and activations who was named a “Global Top 5 Luxury Key Opinion Leader” by Netbase Quid.
It recently announced the replacement of Jonathan Akeroyd with Joshua Schulman as its CEO. The move is accompanied by a failed premiumization strategy, tanking sales and a profit warning.
It will further accelerate the decay in brand equity and make it much harder to bring the brand back to long-term growth. Unless the new management commits to a radical action plan that addresses for the first time the brand's real issues, investors should exercise caution before embracing another promise of a turnaround.
When brands rely just on high prices, a one-size-fits-all product strategy and heritage narratives such as quintessentially British, they have no one but themselves to blame for Chinese clients giving them the cold shoulders. Chinese clients, the youngest of any major luxury market with an average age of 29, crave innovation, cultural capital and compelling brand-specific storytelling.
Effective brand storytelling is essential in the luxury sector, yet Burberry’s efforts have been catastrophic. This systematic mismanagement has not only diluted Burberry’s brand equity but has also sown distrust among consumers and investors alike. For Burberry to recover, Joshua Schulman must address the core issues that have long been neglected.
Burberry might have already passed that point. Additionally, Burberry must become inspiring again, including a focus on enhancing the delivery of extraordinary client experiences and reinforcing the desirability that luxury consumers expect. So, do not misunderstand me: what happened to Burberry can happen to any brand, and after the fact, we are always more clever. The road to hell is paved with good intentions.
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