Burberry history Essay

Barberry was founded in 1856 originally focusing on producing ripe functional outwear. over the age Barberry has adapted to changing elans and tastes to suit the consumers wants and needs. additionally the extension of their product portfolio, for example their perfume and accessories range, Is a response to disceptation from leading brands such as Ralph Lauren and others.Barberry set out to create a luxury, premium brand image, however in recent years in Britain especially, the public perception of Barberry products gather in been labeled as chap odd fellow because of their distinctive tartan pattern on clothe. In September 201 2 the high brand luxury wearable company Barberry issued a bring in warning taking El ban off Buyers market evaluate expirationing with a sh are fall of 19%. We are currently In an economic recession which has resulted In less consumer confidence and a trend of trim expense habits.However the types of consumers that purchase brands like Barberr y would usually non be effected by the economic recession. They are likely to name a great deal much expendable income and secure well- paid Jobs. Retail analyst Joana Satyrs stated 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(prenominal) disposable Income to spend on luxury goods such as Barberry, are less confident which Is a major factor resulting In trim down spending habits.If consumers are spending less the company is likely to result in profit losses. If the problem deteriorates it female genitalia result in closure 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 gross revenue not only in the UK but globally. From researching Buyers administer lessening we can see that the 2012 London Olympics has played a major f actor in profit loss.The types of customers buying Barberry products are likely to live in high-priced locations such as London Barberry state that the London Olympics pulled tourists away from obtain and pushed them more towards visiting the Olympic park and stadium and spending their notes on souvenirs. However due to the economic recession and the trend of reduce 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 base 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 hugely giving more individuals and potential customers more disposable income. However now that the Olympics are over, it can shift focus onto spending more on brands such as Barberry. In comparison turn away priced stores such as Tops and H & M are receiving higher(prenominal) likely to buy from stores that have fashionable 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 finishing rather than an IEEE one especially during the economic recession. Taking the above into account, at that place are a number of ways in which Barberry could rectify 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 return further they may have to cut their costs.This could see a decrease in quality of their products resulting to a decline in brand commitment and a future reduction in sales. One way Barberry could improve their spotlight is by re-marketing their product range to appeal to a un like target audience, that of the middle and working class. Evidence suggests that lower priced stores (Tops and H&M) have been benefiting as a result of their lower prices. If Barberry were to adjust their position in the market, closer to that of H&M 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. as well as the lower priced retailers market is dominated by a few great(p) players and is extremely competitive, making it harder for Barberry to establish itself in the lower priced category. We think that Barberry should push back out the storm for the time being. If anything is to be done it should be place more into marketing and branding to appeal to the upper middle-class.Although this would be costly initially, sales should pick up over time improving Buyers share price and profits. Furthermore, in the meantime it would be easy for Barberry to take payoff of the current state of national pride (following the Olympics) and go back to fundamental principle 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 entryway a more economical clothing range with gig highway brands such as H&M.For Barberry to differentiate themselves they can instead raise their clothing range with Ezra rather than H&M. Reason being that they types of raiment they offer are very similar in terms of mundanity and quality. This method was very successful with Versa as their line with H&M sold out within 30 minutes. By introducing a more affordable clothing line, Barberry pull up stakes 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 purc hasing Barberry clothing for a faction of the cost.