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Burberry Group SWOT and PESTLE Analysis

ID : 52289553| May 2023| 20 pages

COMPANY PROFILE -Burberry Group

Business Sector :Fashion

Operating Geography :United Kingdom, Europe, Global

About Burberry Group :

Burberry Group plc is an elite fashion house that deals in clothing (ready-to-wear and outerwear), accessories, shades, perfumes and cosmetics. Of these, its Gabardine trench coats in a signature checks pattern are the most popular product of the brand. The invention of the Gabardine, weatherproof cotton fabric, revolutionized rainwear. Founded in 1857 by Thomas Burberry, it is now a global luxury brand with an eccentric British touch. The brand holds its own for its unique design, innovation and craftsmanship. It has its headquarter located in London, United Kingdom. There are more than 459 outlets scattered around the world. Burberry was awarded for positive change by the british fashion council for working with the UN framework convention on climate change. Burberry also received the 2021 Board International Digital Leadership Award for Operations and Supply Chain. In honour of the Lola bag, Burberry introduced a new augmented reality (AR) feature on Burberry.com in June 2022. This feature enables users to virtually place a scale-model of the iconic bag within their environment.

The USP of Burberry lies in it being under the ‘Top 10 Most Valuable Luxury Brands’ worldwide. The mission of Burberry is “to delight customers by harnessing creativity to deliver extraordinary products of the highest quality and exceptional shopping experiences”.

Burberry Group Revenue :


£2.8 billion - FY ending 2nd April 2022
£2.3 billion – FY ending 27th March 2021

Competitive Analysis of Burberry Group

SWOT
PESTLE
The SWOT analysis for Burberry Group is presented below:
Strengths
Weaknesses
1. Strong and popular brand with a long history
2. Distinctive products and design
3. Strong brand focus leading to retention
4. Strong geographical presence in around 50 countries
1. Premium price range leads to narrow customer base
2. Dependent on only few products lines
3. Dynamic market conditions in Asian Market
Opportunities
Threats
1. Changes in lifestyle leading to increase in purchasing power
2. Rising popularity of digital channels
3. Elevating the store experience
1. Major competitors in the market
2. High risk of imitation of the products
3. Uncertainty in the outlook for the luxury sector
4. Boycott from Chinese customers over concern on Xinjiang
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Burberry Group

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. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.
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References used in Burberry Group SWOT & PESTLE Analysis Report

1. Annual Report - https://www.burberryplc.com/en/investors/results-reports.html
2. Brand value of the leading 10 most valuable luxury brands worldwide in 2021 - https://www.statista.com/statistics/267948/brand-value-of-the-leading-10-most-valuable-luxury-brands-worldwide/
3. Burberry history - https://www.burberryplc.com/en/company/history.html
4. CBP Foils Attempts to Smuggle Over $53 Million Worth of Fake Designer Products - https://www.cbp.gov/newsroom/local-media-release/cbp-foils-attempts-smuggle-over-53-million-worth-fake-designer
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Burberry Group SWOT and PESTLE analysis has been conducted by Sugam Thakur and reviewed by senior analysts from Barakaat Consulting.

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