Burberry is to turn the brand into a luxury

Burberry is planning to remove their products from certain shops
that are not luxury and renovate their own shops. Companies like Louis Vuitton has
created their label and distinction on expensive leather handbags and
Burberry’s aim is to compete with companies like that. Burberry thinks that by
selling high-priced handbag they will be able to boost their margins. For
comparable products Louis Vuitton charges higher prices. They are also making
alterations in crucial employees. Their designer Christopher Bailey who has
been with the company for 17 years will be replaced and they are looking for
somoneone with extensive expertise in designing handbags. (CNN)

Their aim is to turn the brand into a luxury brand. They will
expand their handbag offering because handbags create higher margins than
trench coats, which is Buberry’s signature item. Louis Vuitton has bigger array
of leather goods. They will reduce the number of the outlet stores. By training
in-store employees on leather goods and styling they want to improve buyer’s
experience and boost their efficieny. Making the most out of digital media
remains one of the goals. The british designer was one of the first who entered
a »see now, buy now« model which allowes custmoers to purchase immediately
after a fashion shows. That was a bold move and a very different way of
shopping and fewer chances for forgery. All this will result in profitability.
They expect revenue and operating margins will be stable over the next two
years and in 2021 they predict growth. (businessoffashion).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Louis Vuitton knows how to differentiate itself. Louis Vuitton
handbags are compared to Burberry’s higher in price. Another thing that differs
Burberry from Louis Vuitton is that Louis Vuitton never has a sale, they never
mark down prices because they believe all customers should pay the same price
for products. NAGASAWA says that Louis Vuitton goes for premium pricing
strategy, which is a symbol of prestige value.

x

Hi!
I'm Clifton!

Would you like to get a custom essay? How about receiving a customized one?

Check it out