According to their official website, Burberry is an “Iconic British Luxury Brand.”
Are they? What is it about Burberry that qualifies them as a luxury brand?
In this article we will discuss these questions, hoping to understand more about this famous brand and if it is considered one among other famous luxury brands like Gucci, Louis Vuitton, and Prada.
However, before we start, we’d like to give you a little understanding of what qualifies as a luxury good/brand, and how we will determine if Burberry is a luxury brand.
Now, by definition, a luxury brand sells branded products or services that consumers believe to be of high quality.
A luxury brand will provide its consumers with an authentic value while also having a reputable image in the market for its craftsmanship and service quality.
Let us see if Burberry fulfils these expectations!
Burberry is a famous luxury fashion house based in London, that produces a wide range of products like makeup, outwear, clothing, accessories, shoes, scarves, fragrances, etc.
It was established in 1856 by Thomas Burberry and it mostly focused on outdoor clothing- such as trench coats for which it is most famous today- and then diversified its product selection to everyday attire for men, women, and children.
This gave it a position in the high fashion market which began its ascent in the luxury fashion world. Burberry has also made a great name for itself in the makeup world and is known as a luxury cosmetics brand.
The name Burberry is well known around the world, as well as in Great Britain where, in 2019, there were over 330,000 women who purchased the Burberry Body products.
Burberry is also listed on the London Stock Exchange and is also a constituent of the FTSE 100 index, making it one of the most successful companies with the highest market capitalization.
Moreover, it ranked 73rd in the Interbrand’s Best Global Brands report, making it a rival to Louis Vuitton and Prada.
These facts certainly speak of this brand’s prestigious image in the market!
The luxury goods industry has been on a rise.
Various contenders in the market are in constant competition to make the best of the best, be it in the luxury fashion industry or the jewelry market.
A luxury brand is always recognized for its ability to produce good quality products with high price tags that are considered to be at the highest end of the market.
Burberry does just that with its aesthetics, brand, high-quality materials, pricing, and superior craftsmanship.
According to Statista, in the year 2021, Burberry placed ninth among the 10 most valuable luxury brands!
However, according to Marco Gobetti, the CEO of Burberry, the brand aims to establish itself firmly as a luxury brand which will allow it to partake in the rewarding, enduring segment of the market.
Gobetti took the position as CEO in 2017, which means that even till that time, Burberry wasn’t wholly considered a luxury brand nor did it have the image.
This sentiment can be shared by Fashion United, a fashion blog that discussed Burberry and whether it was a super-luxury brand.
According to them, this association is questionable as when one enters the Burberry stores, they will most certainly not experience the same level of luxury as one would at brand stores such as Celine or Hermes.
That leaves us to wonder how Burberry is viewed now- luxury or premium?
When we talk about a brand’s prestige, it is always important to look at how they are viewed in the fashion world, and how different models, actors, or critics view it.
Moreover, their popularity among the masses and their impact.
Celebrities like Cara Delevingne, Adam Driver, Emma Watson, and many others have been the face of Burberry!
Burberry’s annual sales amount to 2.34 billion GBP for the year 2021. Burberry’s most profitable product line is the accessories, which generated 948 million GBP in the year 2020 alone.
Burberry’s iconic trench coats with the signature plaids and heritage prints still fly off the hangers to this day despite being extremely pricey.
One Burberry trench coat will cost you $1700 and if it is a cashmere version, you will have to pay $2,600!
However, due to their great quality, timelessness, and functionality, the one-time investment doesn’t sound too bad for some customers.
Former Stock Analyst turned Fashion Blogger, Maria of Mia Mia Mine claims that she loves how polished she feels with her coat.
She also talks about the versatility of this coat and how she can match it with every outfit.
According to Maria, if you want to invest in a hefty-priced trench coat, the Burberry trench coat should be your number one option.
According to Statista, Burberry has a brand value of 3.9 billion euros in comparison to Gucci’s brand value which is 33.84 billion USD.
Both Gucci and Burberry sell similar product lines but with their individual twist to it.
Gucci sells a Prince of Wales wool cotton coat with a similar design to the trench coats that Burberry sells. This cotton coat costs 3,300 USD, whereas one Burberry trench coat will cost you 1,700 USD.
This comparison alone shows that Gucci is more expensive than Burberry, with greater quality products and higher revenue generated.