1.

Introduction:
This marketing report examines the current position of Burberry Group Plc 1 in the UK retail
market, assessing the internal capabilities and external factors shaping the brand's
performance through comprehensive macro, micro, and competitive analysis. Concurrently,
reinterpret the reasons and provide comments on Burberry's rebranding strategy.

2. Background:
Burberry was founded in 1856 by Thomas Burberry in Basingstoke, England, with the
mission of creating clothing to help people withstand the British weather. As early as 1879,
Thomas Burberry invented gabardine – a lightweight, breathable, water-resistant fabric – and
patented it in 1888. Burberry's famous trench coat was born from wartime needs, when the
company supplied the British army during World Wars I and II. Later, Burberry expanded
from outerwear to many more high-end product lines, and in 2002, it officially listed on the
London Stock Exchange, becoming a global luxury brand. Thanks to gabardine, trench coats,
and its signature check pattern, Burberry has become a fashion icon embodying the "British"
style. However, Burberry is currently facing a global dip in luxury demand and has launched
Burberry Forward, repositioning itself as Modern British Luxury. The strategy refocuses on
core icons like trench coats and accessories, reinforcing heritage while modernising for a new
generation. (Burberry Group Plc, 2025)

1 Public limited company

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3. Marco-environment analysis:
3.1 Political factors:

Source: Katharine Hamnet in one of her Brexit T-shirt

In recent years, particularly 2020, a year of escalating political tensions, especially

surrounding international trade, has posed significant risks to the UK luxury industry, largely
centered on Brexit. Protectionist policies and increased political uncertainty have undermined
consumer confidence and disrupted supply chains for domestic luxury brands (GOV, 2021).
Although the Brexit agreement permits tariff-free and quota-free trade in luxury goods
between the UK and the EU, many businesses had to adapt to new, complex procedures,
creating administrative pressures and costs (GOV, 2021). The UK fashion industry strongly
opposed Brexit, with 90% of designers supporting EU membership and over 400 industry
figures warning of serious business impacts. People in the fashion industry felt they had been
left out throughout the Brexit deal, despite the fact that “fashion contributes more to the UK’s
GDP than fishing, music, film and automotive combined.” Concerns included staff shortages,
wage inflation, and industry figures like Twiggy and Katharine Hamnet said some businesses
had even begun moving their offices to the EU to avoid post-Brexit restrictions. (Fellows,
Georgia, 2021, Birmingham City University)

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3.2 Economic factors:

Contrary to predictions that the damage from Brexit, the UK's departure from the European
Union (EU), would end after five years, official figures show that the UK economy is still
significantly impacted by the split with its largest trading partner. The UK luxury market is
projected to recover more slowly and over a longer period than other segments, while the
overall clothing market is expected to rebound by 2025, reaching an estimated £67.8 billion
after a muted 2024. However, the outlook for the UK luxury industry remains hampered by
the cumulative effects of Brexit on economic growth, trade, and consumer confidence, with
the UK GDP estimated to be 4–6% lower in 2021 and projected to reach a 6–8% loss by
2025. Policymakers, including representatives from the International Monetary Fund, Rachel
Reeves, and the Bank of England, Andrew Bailey, have identified Brexit as a key factor
behind the UK’s economic slowdown. More concerning is the abolition of VAT-free
shopping for international visitors in the UK, which removes a 20% tax refund and weakens
London’s competitiveness relative to European fashion hubs such as Paris and Milan. As
luxury demand in Europe is highly price-sensitive, particularly among Asian tourists, who
account for between half and two-thirds of luxury sales, this policy places UK luxury brands
at a significant disadvantage. “If tourists from Asia can shop in Paris or Milan, where there
are similar luxury brands, and they get a tax refund, why would they choose to shop in
London?” said Kathryn Parker, luxury goods analyst at Jefferies.

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3.3 Social factors:
In recent years, the luxury fashion industry has seen widespread changes in creative direction
at major houses such as Gucci, Versace, Loewe, and Chanel. Moves including Donatella
Versace’s departure from Versace, Demna’s appointment at Gucci, and Matthieu Blazy’s
transition to Chanel signal broader structural shifts rather than isolated creative decisions.
Luxury today is no longer driven solely by traditional creative cycles, but is increasingly
shaped by mergers and acquisitions. As conglomerates such as LVMH and Kering continue
to expand their brand portfolios, changes in creative direction are frequently used to
reposition brands, refresh identities, and explore emerging areas such as digital fashion and
the metaverse. This transformation is strongly driven by younger consumers, particularly Gen
Z, who prioritise self-expression, diversity, creativity, and social responsibility over logo-
based prestige. Jan Rogers Kniffen notes that Gen Z has significantly lowered the age of
luxury consumption, with first-time buyers potentially as young as 15-17. Notably, all global
luxury market growth in 2022 was generated by Gen Y and Gen Z. According to Bain &
Company, Gen Z and Gen Alpha could account for over 30% of the luxury market by 2030,
while Euromonitor International (2025) highlights a shift from product-centred prestige
towards experience, values, and lifestyle.

4. Micro-environment analysis:
4.1 Company:
Burberry Group plc operates in the manufacturing, retail, and distribution of luxury goods,
including clothing, leather goods, footwear, cosmetics, and accessories, and also licenses
third-party partners to manufacture, distribute, and retail Burberry-branded products globally.
The group's business is conducted through two main channels: Retail/Wholesale and
Licensing, with Retail/Wholesale playing the dominant role, generating £2,395 million in the
2025 financial year, equivalent to 97.3% of total revenue. Revenue from this channel is
primarily derived from Accessories (35.1%), followed by Men's Fashion (30.6%), Women's
Fashion (30%), and Children's/Other Fashion (4.3%). Geographically, Burberry operates in
three main regions, with Asia-Pacific the largest market, contributing 43.5% of revenue,
followed by EMEIA (Europe, the Middle East, India, and Africa) with 35.2%, and the
Americas accounting for 21.3% of total revenue. (Marketline, 2025)

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Source: Burberry Group Plc

Burberry experienced a particularly difficult year as its innovative transformation, launched

in 2023, failed to meet expectations and slipped out of the FTSE 2 100 list. This was due to
macroeconomic instability and a weakening luxury market, resulting in losses in the first half
of the year and a suspension of dividend payments from the 2024/25 fiscal year. However,
positive signs have begun to emerge: first-quarter 2025 revenue declined by only 1%, better
than analysts' forecasts of around 3%, and the stock rose 27%; surprisingly, this growth
surpassed that of LVMH or Hermès. To achieve such positive figures amidst a turbulent retail
market, Burberry had to endure significant upheaval in its key personnel and layoffs at its
workshops. The appointment of Joshua Schulman as CEO, replacing Jonathan Akeroyd,
marks a strong restructuring effort through the Burberry Forward strategy, including cost
reductions and the elimination of approximately 1,700 jobs, aimed at bringing the brand back
onto a sustainable growth trajectory.

2 The Financial Times Stock Exchange 100 Index

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Source: Burberry Group Plc

Burberry’s core problem lies not only in its products, but more fundamentally in its identity
positioning confusion. The brand has oscillated between competing ambitions: on the one
hand, seeking rejuvenation and street relevance under Creative Director Riccardo Tisci
(2018), yet lacking the conviction to fully commit to a bold strategic overhaul, resulting in
widespread criticism for diluting the traditional luxury ethos that constitutes the soul of
Burberry. It also aims for quiet luxury with Daniel Lee (2022 - present) but is also ambitious,
seeking to maximize revenue through installment payment options in China and a series of
sample sales to clear inventory in North America, Europe, and on major e-commerce
platforms in 2024. As a consequence, Burberry’s branding has appeared fragmented and
incoherent in the eyes of its target consumers. Its positioning is regal and exclusive, while its
business strategy prioritizes mass market appeal and quick cash flow. To change the
landscape, in 2025, Burberry CEO Joshua Schulman, who took the reins last year and
immediately tore up the playbook, decided to bring the brand, with over 150 years of history,
back to its roots and heritage, focusing on two core product categories: scarves and trench
coats. In July 2025, after a year's absence, Burberry returned to the top of Lyst's shopping
platform's hot brands rankings. In the second quarter of 2025, Burberry ranked 17th,
surpassing Gucci, Birkenstock, and Valentino. It's possible Burberry will return to the FTSE
100 index as early as September thanks to the steady recovery of its share price, which has
risen nearly 70% over the past year.

4.2 Competitors:

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 Based on Marketline's analysis (2025), Burberry Group Plc's competitors are Kering SA
(Gucci), Prada SA (Prada), and LVMH.

Brand Strengths Weaknesses Direction

Burberry Key features include a strong Product sales performance “Burberry Forward” focuses on
British heritage, particularly in has declined in recent reinventing brand appeal,
outerwear and trench coats; a years, requiring the improving retail performance and
powerful brand presence in the restoration of "brand profitability, boosting digital
"heritage-luxury" segment; and desire" in the eyes of experiences, and upholding its
investment in digitalization and customers; its scale and outerwear heritage. (Burberry Plc
the DTC (direct-to-consumer) reputation are mainly Corporate)
channel. (Burberry Plc focused on the domestic
Corporate) market and are relatively
small compared to leading
corporations (LVMH).
(Burberry Plc Corporate)

Louis Large store size and industry- Refreshing and Focus on consolidating its leading
Vuitton leading reputation, extensive revitalizing a brand for position: expanding premium
(LVMH) global retail network, innovation can sometimes experiences, sustainability
marketing/PR capabilities, and be slow for established reporting, investing in "métiers
investment in craftsmanship; a brands due to the large d'excellence" (standards of
diverse brand portfolio allows scale of change; managing excellence), and innovation.
for cross-subsidy. (LVMH) a conglomerate across (LVMH)
multiple brands is
complex and can create
internal competition
between brands. (LVMH)

Gucci High-end fashion brands have Revenue declined in 2024, Restructuring communications,
(Kering) the ability to lead trends facing pressure to improving the in-store experience,
(youth/creative-led) and the optimize costs and optimizing costs (cutting non-core
ability to generate buzz through rejuvenate the brand to segments) — Kering is adjusting

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 creativity and marketing restore customer traffic. its strategy to restore growth.
campaigns. (Kering) (Kering) (WARC)

Prada Strong recent revenue growth; Smaller scale than Focus on strengthening the brand
high brand effectiveness, ability LVMH/Kering; risks image, expanding high-margin
to capitalize on fashion/luxury when expanding through categories, and selectively
accessories; readiness to M&A (history of difficult observing M&A opportunities to
expand M&A (reportedly brand integration).(Prada increase market share. (Prada
considering acquiring Versace). Group) Group)
(Prada Group)

Strategic comparison points: Large corporations (LVMH) leverage their scale and portfolio to
protect profits and invest in craftsmanship, which creates a significant barrier for individual
brands. Creative-led brands like Gucci can quickly regenerate appeal but are also vulnerable
to revenue volatility if their strategies are not synchronized.

Burberry's Competitive Position: Compared to the "big players" (LVMH, Kering), Burberry
has the advantage of heritage and outerwear expertise, but is at a disadvantage in terms of
scale, global distribution capabilities, and younger appeal. Therefore, the safe path for
Burberry is to maintain its heritage values while enhancing product innovation and
experience (Burberry Forward strategy).

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4.3 Perceptual map:

Source: Created by the author

The Perceptual map reveals clear differences in brand positioning: Louis Vuitton is
positioned in the highly trendy and exclusive group, representing trend-setting luxury;
Burberry leans towards classic style with a medium level of exclusivity, emphasizing heritage
values; while Prada and Gucci belong to the trendy but more accessible group, targeting
modern fashion and younger customers.

4.4 Customers:
The strong rise in online shopping, now accounting for almost half of total clothing spending
(48%), although it has eased since the end of the pandemic, reflects a shift in consumption
patterns towards a hybrid of digital and in-person experiences, and increased competitive
pressure from social e-commerce platforms like Shein and TikTok Shop (Mintel, 2025).

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Source: Mintel 2025

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Although women's fashion still holds the largest market share in clothing, cautious spending
has slowed growth. Men's fashion is more resilient as men are more optimistic about their
finances, creating room for more brands to enter this segment.

Traditional brick-and-mortar stores are regaining their importance, driven by a younger

customer base. However, the rise of online shopping since the pandemic has somewhat
impacted the shopping trends of younger generations. The need for a more convenient and
streamlined shopping experience means retailers need to speed up parts of the shopping
journey that cause pain points, while also creating a fun store experience. For example, new
Zara stores, such as the one in Manchester, utilize cutting-edge technology with automated
pickup stations, pick-up areas, and self-service checkout counters.

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Social media is also playing an increasingly important role in fashion purchasing decisions,
as young people use it not only for inspiration but also for buying. Data shows that around
72% of Gen Z prefer shopping with clothing retailers to create a sense of community among
their customers, compared to only about 58% in younger generations and 46% in older
generations. 57% of Alphas follow trending fashion trends on social media, and 46% of
parents with children under 18 agree that their children's style is influenced by social media.
More than half of current conversations on social media related to clothing and fashion are on
Instagram, although TikTok is increasingly expanding its reach, especially among young
people. (Mintel, 2025)

According to Mintel's insights into the luxury market, Burberry's target customer base
focuses on two main groups. Firstly, high- and very high-income customers, aged
approximately 30–55+, living in major cities, who value quality, brand heritage, and are
willing to pay for iconic products such as trench coats, jackets, and leather bags. Secondly,
Millennials and Gen Z, groups playing an increasingly important role in the growth of the
luxury industry: Mintel indicates that approximately 40–45% of global luxury consumers are
under 25–30 years old, with shopping behavior geared towards experiences, trendy fashion,
and digital channels. (Mintel, 2024)

5. SWOT analysis:

Strengths Operational Structured Operating Model: Burberry’s business operations are

divided by channel, region, and product segment, supported by the
company's core functions. Furthermore, the company's functions
are specifically and detailedly.

Extensive distribution network: Operates through its own

distribution network and third-party distribution networks. As of
the end of March 2025, the company had 422 directly operated
stores, including 229 company-owned stores, 139 franchised
stores, and 54 retail stores.

Financial High Liquidity Position: The company recorded a current liquidity

ratio of 1.4 at the end of fiscal year 2025, higher than that of its
main competitors, such as Capri Holdings Ltd and Kering SA,
which had a current liquidity ratio of 1.1 in the same period. This
high current liquidity ratio indicates the company's strong ability
to meet short-term obligations better than its competitors.

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Weaknesses Financial Huge Debt: Despite high liquidity, the company remains
concerned about its enormous long-term debt. At the end of the
2025 financial year, Burberry had long-term debt of £1,304
million compared to £1,258 million in the 2024 financial year, a
4% increase. This suggests Burberry is likely to incur higher
interest costs, which will impact profitability.

Opportunities Strategic Launch of new products: The company has the opportunity to
benefit from the launch of new products linked to innovation and
sustainability. In May 2025, Burberry introduced the Highgrove x
Burberry collection, strengthening its connection to British
heritage. Before that, in October 2024, Burberry launched scarves
made from Brewed Protein fibers, becoming a pioneering luxury
brand in the application of bio-based materials, thereby affirming
its leading position sustainably and attracting environmentally
conscious customers.

Industry Apparel retail market in Europe: The European clothing retail

market is expected to grow thanks to the purchasing power of the
young middle class, technological advancements, and the
increasing popularity of online shopping.

Positive outlook for the online retail market in Europe: The

company will benefit from the strong growth of online retail,
offering consumers the convenience of shopping from home.
Increased internet usage, user-friendly interfaces of online portals,
attractive discounts and promotions, and changes in consumer
behavior and purchasing power are driving the growth of the e-
retail market.

Threats Industry Domestic and international pressures: Burberry faces intense

competition from global and domestic luxury brands, leading to
pressure on pricing, product innovation, and the risk of losing
market share.

Socio-cultural Changes in fashion trends: The fashion industry has short product
environment lifecycles and rapidly changing trends, putting Burberry at risk if
it fails to anticipate and adapt to changing consumer tastes.

Political Stringent regulations: Burberry's operations are governed by

environment numerous legal regulations and policy changes, increasing
compliance costs and legal risks, impacting its image and business
performance.

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6. Strategic priorities:
Focus on core products and innovate selectively in the product portfolio:
Instead of launching too many new product lines, Burberry should prioritize strengthening
and developing its core product categories. Key priorities include: Re-emphasizing iconic
items such as trench coats, scarves, and outerwear, while refreshing designs to suit modern
trends and maintain heritage identity. Developing a select number of new products, for
example: Updating silhouettes and materials in the outerwear line, reinterpreting classic
designs, and limiting overly experimental designs that risk alienating the core customer base.
Burberry already has high global recognition, but purchase consideration has decreased due
to inconsistent creative direction in recent times. Burberry should focus on clarifying its
brand positioning, rather than drastically changing it. Reinforcing Burberry's image as a
modern British luxury brand, associated with craftsmanship, heritage, and timeless design,
ensures image consistency across different markets.

Strengthen distribution:
In recent years, despite high brand recognition, Burberry's accessibility and product
experience have remained limited in promising markets such as Asia and the Middle East.
The necessary steps include upgrading the store network and focusing on selling at full price
rather than offering massive discounts. In this next phase, Burberry should focus on
increasing brand exposure with VIP and potential customers, accelerating the renovation of
physical stores, and presenting a consistent brand image and experience to customers across
all channels and regions. Additionally, it should concentrate on distributing and showcasing
mid-to-high-end retail items, such as handbags and outerwear, maximizing conversion
opportunities with SLG (Small Retailer) items, belts, and small accessories.

7. Conclusion:
Burberry Group Plc, one of the leading luxury fashion groups, is currently undergoing a
global transformation and reshaping its brand identity under the leadership of CEO Joshua
Schulman. To return to the top of the brand race, the company needs more than just direction;
it needs decisive and resolute action. However, recent positive signs suggest the brand is
heading in the right direction, and slowly but surely, Burberry didn't just return; it will roar
back.

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