Burberry announced that it will be closing their operations in Spain today.
Beginning 1965, Burberry Spain became a separate business that sold exclusive collections to the Spanish retail market at wholesale. In 2000, the company integrated the Spanish operation under its group label, but announced today that it will be restructuring their troubled Spanish operations by shutting it down altogether. The company will now supply Spain with the European collection from London instead of collections produced in Spain. This translates to about 300 Spanish job losses.
I've always loved Burberry's attempt at being reminiscent of old English etiquette and culture. However, in recent years, Burberry has continued to experience trouble with maintaining its brand image. A case study from my academic years outlined issues with the brand becoming too widespread (and therefore not "exclusive" enough for a luxury brand) and in particular referenced its downfall as being "too popular with the wrong demographic".
Wikipedia mentions, "the brand became popular with the British football casual cult, leading to it to being associated with
chavs, hooligans and members of football firms". I recall anecdotes from the article discussing young club goers being refused admission solely based on their "luxurious" attire (usually the Burberry checkered hat or Prada sneakers -a brand also discussed in the article) out of fear that they may be gang-bangers and troublemakers.
In Japan, the company has a successful branch of
Burberry Blue Label, which caters to the fashion forward Japanese demographic much more than its core English-tea-time collection. Burberry also launched
Burberry Prorsum in attempt to rescue their sinking brand image and re-establish its exclusivity as a luxury fashion house. But.. has it worked?
I personally love
Emma Watson as the new face of Burberry. She is stunning and radiates elegance and class (but perhaps I'm biased since I'm a wizard fan). Picking the right spokesperson is a step in the right direction, but is it enough?
What do you think of when you think of Burberry?