Burberry’s high prices and unknown popularity made it an unvalued around the world. Fifteen years ago fashion designers would consider the brand a “joke” according to the Globe and Mail. However, Burberry managed to spread its name by making popular celebrities and soccer players started using this high-valued brand, making the checkered Burberry styles a trend.
In 2006 Burberry hired Angela Ahrendts to become chief executive officer and as the article says “the brand ditched it’s checkered past and used the successful—pivot strategy.”
This operational strategy required to keep one foot on the ground while shifting in a new direction. Which meant taking the proper pivot in the correct way. Burberry had to go back to what it was known for, it’s tightly woven trench coats.
Burberry sold license partners and brought back 23 licenses firms, they wanted to make the brand pure and shut down design offices and factories in other parts of the world. Making all products first go to Angela Ahrendt’s office before getting anywhere else in the world.
Burberry realized they could keep their value by focusing in keeping quality and luxury as their main focus.
The company managed to add value by not letting costumers buy their products just anywhere, they simply increased prices on their products and offer a small selection of products. This “image of scarcity” helped Burberry increased from 1.5 billion euros value in 2011 to 2.5 billion euros value in 2014.
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