Burberry history Essay Example for Free

Burberry history EssayBarberry was founded in 1856 originally focusing on producing innovative functional outwear. over the years Barberry has adapted to changing trends and tastes to movement the consumers wants and needs. Additionally the extension of their product portfolio, for example their perfume and accessories range, Is a response to competition from leading brands such(prenominal) as Ralph Lauren and others.Barberry set out to create a luxury, premium brand image, however in fresh years in Britain especially, the public perception of Barberry products have been labeled as chap kook because of their classifiable tartan pattern on tog. In September 201 2 the high brand luxury fit out company Barberry issued a profit warning taking El ban off Buyers mart abide by resulting with a sh atomic tot up 18 fall of 19%. We argon currently In an economic quoin which has resulted In less consumer confidence and a trend of reduced fleeting habits.However the types of consu mers that purchase brands like Barberry would usually not be effected by the economic recession. They are likely to have much more(prenominal) disposable income and secure well- paid Jobs. Retail analyst Joana Satyrs disk operating systemd that The global economic crawls Is dragging on and the longer It drags on the less confident even wealthier Individuals become. Meaning that even those with more disposable Income to spend on luxury goods such as Barberry, are less confident which Is a major reckon resulting In reduced spending habits.If consumers are spending less the company is likely to result in profit losses. If the problem deteriorates it groundwork result in closing of stores and making staff redundant adding to the already high unemployment figures Barberry s a luxury brand is not immune from the economic instability which has seen weaker gross sales not only in the UK but globally. From researching Buyers share decrease we can see that the 2012 London Olympics has vie a major factor in profit loss.The types of customers buying Barberry products are likely to live in expensive locations such as London Barberry state that the London Olympics pulled tourists away from shopping and pushed them more towards tour the Olympic park and stadium and spending their money on souvenirs. However due to the economic recession and the trend of reduced pending habits, Buyers luxury high priced goods were Increasingly likely to see reduced sales. Although wealthier Individuals are likely to be unaffected by the economic recession, the Auks high unemployment rate has made Buyers customer animal even more restricted than before.In contrast to Buyers view that the Olympics contributed to their profit loss, we believe that the Olympics helped the Auks unemployment rate tremendously giving more individuals and potential customers more disposable income. However now that the Olympics are over, it can trade focus onto spending more on brands such as Barberry. In comparison lower priced stores such as Tops and H M are receiving higher likely to buy from stores that have dapper styles and a wider variety of clothing at much lower prices.BBC business news (twitter) stated that UK retail sales rise as shoppers buy winter clothing and that sales volumes were up 0. 6% in the last month. Individuals are much more likely to spend EYE OHIO on a finish rather than an IEEE one especially during the economic recession. Taking the above into account, there are a number of ways in which Barberry could advance their economic position in the retail market. While Barberry are not in a state of danger as it stands, if their profit and share prices were to decrease further they may have to cut their costs.This could see a decrease in quality of their products resulting to a dec birth in brand loyalty and a future reduction in sales. One way Barberry could improve their particular is by re-marketing their product range to appeal to a different target au dience, that of the middle and working class. inference suggests that lower priced stores (Tops and HM) have been benefiting as a result of their lower prices. If Barberry were to adjust their position in the market, side by side(predicate) to that of HM they may wreak the rewards.However, we think that Barberry may tarnish their entire business reputation if they do so. It takes many years to achieve a high brand reputation like that of Barberry and it would be a massive risk to put it all on the line. Also the lower priced retailers market is dominated by a few big players and is extremely competitive, making it harder for Barberry to establish itself in the lower priced category. We think that Barberry should call down out the storm for the time being. If anything is to be done it should be investing more into marketing and mark to appeal to the upper middle-class.Although this would be costly initially, sales should pick up over time up(p) Buyers share price and profits. Fu rthermore, in the meantime it would be easy for Barberry to take advantage of the current state of national pride (following the Olympics) and go back to basics promoting the Brutishness of their brand. Another way in which Barberry can improve their current situation is by taking a similar approach to Versa by launching a more economical clothing range with gig street brands such as HM.For Barberry to differentiate themselves they can instead launch their clothing range with Ezra rather than HM. Reason being that they types of clothes they offer are very similar in terms of sophistication and quality. This method was very successful with Versa as their line with HM sold out within 30 minutes. By introducing a more affordable clothing line, Barberry will advantage from an increase in sales and profits as demand from consumers will increase. The cheaper they market their new clothing range the more people would want to buy it s they will be purchasing Barberry clothing for a faction of the cost.