Burberry Group SWOT & PESTLE

SWOT

SWOT Matrix for Burberry

Detailed SWOT Analysis of Burberry

The detailed SWOT analysis for Burberry Group is presented below:

Strength

1. Strong and popular brand with a long history: Having 166 years of long history, Burberry mark stays synonymous with British mold. Notwithstanding, the organization's later fortunes have turned out to be more impacted by the tastes and desires of the Chinese market. This British luxury fashion house produces and distributes trench coats, pret, outdoor clothing, perfumes, shades, fashion apparel and accessories and cosmetics. Their pioneering innovation of the gabardine, the innovative weatherproof cotton fabric revolutionized rainwear, has become synonymous with the brand and earned it international reputation. Burberry has dependably been known for giving amazing and enduring articles of clothing for the clients. Their continued excellence which is well reflected in their designs, innovations and craftsmanship is leveraged via compelling social media campaigns, creating experiential events and acing the first spot for multiple years amongst luxury brands globally. Their runway shows with the tagline "see now, buy now", where the collections are available immediately have also proved to be a hit. Burberry has twice gotten a Royal warrant; once by Queen Elizabeth II and once by Prince Charles, which implies that the organization can promote that they are the provider of items to the imperial family (In style, 2012). These notable achievements have increased the value of the brand. Even the newly locked couple of Prince Harry and Meghan Markle are quite fond of the brand and love to sport it.




2. Distinctive products and designs: Burberry's particular check design is a standout amongst the most generally duplicated trademarks on the planet. The brand is likewise outstanding for the formation of the trench coat principally for the First World War, which wound up noticeably prominent after that. Burberry customized the design to meet the needs of the military with every detail, the epaulettes, gun flap, storm shield and D-rings all tailored to cater to the needs of the time. Burberry strengthened the basics of its women's handbag line to further improve its performance in the leather goods market. Burberry delivered a programme of more than 70 pop-ups for the Olympia bag and increased the Lola family with crossbody, tote, and small leather goods versions as part of their winter collection. The Frances tote, an addition to the TB family, was also introduced by Burberry. In terms of outerwear, it reinterpreted its house codes in contemporary shapes, with a dedicated edit showcasing the DK fabric, a new lightweight gabardine featuring unique quilting techniques, cashmere linings, and leather details. When compared to pre-pandemic levels, full-price sales of leather and outerwear both increased by double digits. These products were especially well-liked by potential new customers. Knitwear was the main contributor to the success of ready-to-wear, which had a successful year. Customers in this category were especially drawn to Burberry's new Birch Brown Check products.

Weakness

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Opportunity

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Threat

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POLITICAL

1. Instability due to different policies in different countries: Burberry is currently operating throughout the world but the major regions where it is currently present are Asia Pacific, Europe, Middle East, India, Africa and America. So various policies in these regions have affected Burberry differently. For example, there was a huge drop in sale in Europe due to terrorist attack, as there was reduction in number of tourists. Other example we can look at is, China. Purchasing power fell because of the fight against corruption. But on the other hand, if we look into Brexit, it brought benefits to the company. Due to this, it enhanced the brand image and also brought in idea of British-ness to the company.

ECONOMIC

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SOCIAL

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TECHNOLOGICAL

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LEGAL

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ENVIRONMENTAL

1. Usage of sustainable cotton: Now a day’s firms are becoming more and more concerned about sustainability. As the brands are realizing this more and more, they are becoming more and more socially responsible for their environment. Working with the same thought, Burberry makes it products like inner wears, socks and pants with pure cotton, which are really environmentally friendly, as cotton do not cause any harm to the environment. Burberry formalised its ambition around organic cotton in 2021, with a target to source 100 percent certified organic cotton by 2025. Burberry sources all of its cotton more sustainably using a portfolio approach. In FY 2021/22, their cotton was sourced more sustainably for more than 100 percent of the time. This contrasts with 78 percent the year before. Through the entire supply chain, certified organic cotton can be tracked. It has numerous environmental and social advantages, including enhancing soil health, fostering biodiversity, and protecting farmers. Burberry also supports Cotton 2040, an industry-wide alliance organised by Forum for the Future to address long-term resilience in cotton supply chains.