What makes Burberry a legendary name in fashion? Burberry, a British luxury fashion house, has been a symbol of timeless elegance and innovation for over 160 years. Founded by Thomas Burberry in 1856, the brand started as a small draper's shop in Basingstoke, England. It quickly gained fame for its groundbreaking gabardine fabric and the iconic trench coat. Burberry's journey from creating functional outdoor clothing to becoming a global fashion powerhouse is marked by its distinctive check pattern, celebrity endorsements, and commitment to sustainability. Today, Burberry continues to blend tradition with modernity, making it a revered name in the fashion world.
Key Takeaways:
- Burberry's journey began in 1856, specializing in outdoor clothing and inventing the iconic gabardine fabric. The brand's timeless trench coat and equestrian knight logo have become symbols of elegance and functionality.
- Burberry's commitment to sustainability, digital innovation, and market presence has shaped its legacy. From celebrity endorsements to virtual reality experiments, the brand continues to evolve while staying true to its iconic heritage.
The Origins of Burberry
Burberry's journey began over 160 years ago. Let's explore the early days and how it all started.
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Founding
Burberry was founded by Thomas Burberry in 1856 in Basingstoke, England. At the time, Burberry was just 21 years old and had previously worked as a draper's apprentice. -
Early Specialization
The early years of Burberry saw the company specialize in outdoor clothing, particularly umbrellas and coats. This focus on functional yet stylish attire set the stage for the brand's future success.
Innovations and Iconic Designs
Burberry has always been at the forefront of fashion innovation. Here are some key developments that shaped the brand.
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Gabardine Fabric
In 1879, Thomas Burberry invented gabardine, a waterproof and breathable fabric that revolutionized rainwear. This innovative material was a key element in Burberry's designs and became synonymous with the brand. -
First Shop in London
By 1891, Burberry had opened its first shop in London's Haymarket. This marked the beginning of the brand's expansion into the heart of British fashion. -
Equestrian Knight Logo
In 1901, Burberry introduced its Equestrian Knight logo, which included the Latin word "Prorsum," meaning "forwards." This logo was registered as a trademark in 1909. -
Trench Coat Origins
During World War I, Burberry adapted its gabardine fabric to create the iconic trench coat. Originally designed for British soldiers, the trench coat quickly became a symbol of elegance and functionality. -
Patented Trench Coat
In 1924, the Burberry Trench Coat was patented. This design has remained largely unchanged and is still one of the most recognized classics in fashion. -
Burberry Check Pattern
Thomas Burberry also created the iconic tartan check pattern known as the Burberry Check in the 1920s. This pattern became a symbol of luxury and elegance, used on scarves, ties, and later on Burberry handbags and clothing.
Celebrity Endorsements and Cultural Impact
Burberry's influence extends beyond fashion into pop culture and celebrity endorsements.
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Celebrity Endorsements
In the 1920s, celebrity motorcycling sisters Betty and Nancy Debenham wore Burberry trench coats for traveling and racing. They recommended the garment in their 1928 book "Motor-Cycling for Women". -
Aviation Garments
Burberry also designed aviation garments. For example, Mrs. Victor Bruce wore a reversible coat with waterproof gabardine outside for flying and a tweed inner side for a smart look when disembarking. -
Record-Breaking Flight
In 1937, A. E. Clouston and Betty Kirby-Green broke the world record for the fastest return flight from London to Cape Town in a Burberry-sponsored airplane.
Ownership and Leadership Changes
Burberry has seen several changes in ownership and leadership over the years, each bringing new directions and innovations.
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Independent Family-Controlled
Burberry remained an independent family-controlled company until 1955, when Great Universal Stores (GUS) assumed ownership. -
Great Universal Stores Acquisition
In 1955, GUS acquired Burberry, leading to extensive licensing across various countries. However, this also resulted in significant disparities between markets in terms of design, pricing, and quality. -
Christopher Bailey’s Era
In May 2001, Christopher Bailey joined Burberry as creative director. Bailey played a crucial role in transforming the brand's image and was appointed CEO in 2014 until November 2017. -
Chav Culture Association
Between 2001 and 2005, Burberry became associated with "chav" and football hooligan culture due to lower-priced products and the proliferation of counterfeit goods adopting the Burberry check pattern. -
Brand Rebranding
Under the leadership of Angela Ahrendts and Christopher Bailey, Burberry successfully rebranded itself by removing the check pattern from most products, taking fragrance and beauty product licenses back in-house, and buying out the Spanish franchise.
Digital Transformation and Modern Strategies
Burberry has embraced the digital age with innovative strategies and a focus on sustainability.
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Online Sales
Burberry first sold online in the US in 2006, followed by the UK in October 2006, and the rest of the EU in 2007. -
Digital Transformation
Burberry has been at the forefront of digital transformation. The brand has invested heavily in digital infrastructure, including a redesigned website for desktop and mobile, and the soft-launch of its customer app in the UK. -
Customer Engagement
The Art of the Trench is a Burberry-owned website that celebrates the iconic trench coat and invites people to submit portraits of themselves wearing their trench coats from around the world. -
Sustainable Fashion
Burberry has been involved in sustainable and responsible fashion initiatives. The brand aims to reduce its environmental footprint and contribute to the fight against climate change. -
RE100 Commitment
Burberry is the only global luxury brand to join the RE100 initiative, committing to procure 100% of its energy from renewable resources by 2022. -
Facebook Messenger Chatbot
In 2016, Burberry launched a Facebook Messenger chatbot, combining artificial intelligence and human assistance in customer service. This strategy has since been rolled out across other international messaging platforms. -
Virtual Reality and Augmented Reality
Burberry is experimenting with virtual reality (VR) and augmented reality (AR) to stay ahead of evolving shopping behaviors and respond quickly to changing trends. -
Marketing Strategies
Burberry aims to increase investment around specific categories and attract more local customers to the brand. For example, its signature DK88 bag was accompanied by a standalone marketing campaign and dedicated store windows. -
Mobile Commerce
Burberry is testing mobile commerce with WeChat in China, aiming to be a ‘first mover’ in digital.
Financial Performance and Market Presence
Burberry's financial strategies and market presence have evolved significantly over the years.
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Revenue Streams
For 2016/17, retail accounted for 77% of Burberry's revenue, while wholesale accounted for 22%. Licensing agreements contributed 1% to the revenue. -
Regional Operations
Burberry operates in three regions: Asia Pacific (39% of retail/wholesale revenue), Europe, Middle East, India, and Africa (EMEIA) (36%), and the Americas (25%). -
Product Categories
Accessories represented 38% of retail/wholesale revenue, followed by women's products (29%), men's products (22%), children's products (4%), and beauty products (7%). -
Employee Base
Burberry employs over 10,000 people worldwide, making it a significant employer in the fashion industry. -
Burberry Business Services
In October 2017, Burberry opened Burberry Business Services in Leeds, which serves as the center for HR, Finance, and Procurement functions.
The Iconic Trench Coat
The trench coat is perhaps Burberry's most iconic piece. Let's delve into its significance and craftsmanship.
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Iconic Trench Coat
The trench coat remains Burberry's most iconic piece. It takes almost a year for specialist tailors to master the stitching on the collar, the most intricate part of the coat’s construction. -
Cross-Selling Opportunities
The trench coat serves as an anchor for the brand, enabling continuous cross-selling opportunities whenever a customer enters a store to purchase a coat. -
Global Phenomenon
The trench coat has become a global phenomenon, symbolizing both style and substance. It has been worn by numerous celebrities and featured in various films and TV shows.
Expansion and Pop Culture Influence
Burberry's influence extends far beyond fashion into various product categories and pop culture.
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Brand Expansion
Throughout the 20th century, Burberry expanded into various product categories including perfumes, cosmetics, footwear, and other fashion accessories. -
Luxury Stores
Burberry now has branches and boutiques worldwide, including luxury stores on prestigious addresses like London's Bond Street and New York's Fifth Avenue. -
Pop Culture Influence
The Burberry brand has become a household name in cinema and pop culture. Its clothing and accessories have been featured in many famous films and TV shows and are worn by numerous celebrities.
Commitment to Sustainability
Burberry is dedicated to sustainability and responsible fashion practices.
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Sustainable Materials
The Burberry Foundation has awarded £3 million to the Royal College of Art to establish the Burberry Material Futures Research Group. This initiative aims to invent more sustainable materials and transform consumer experience. -
Responsibility Agenda
Burberry’s five-year responsibility agenda includes three ambitious goals: support 1 million people in the communities that sustain Burberry’s business and the wider luxury industry; ensure 100% of Burberry’s products have at least one element that drives positive change; and invent new approaches to revaluing waste created in the production of luxury goods, while becoming carbon neutral in its own operations.
Challenges and Market Value
Burberry has faced challenges but continues to thrive in the luxury market.
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COVID-19 Impact
In February 2020, Burberry was forced to close 24 of its 64 Chinese mainland stores due to the COVID-19 pandemic. -
Market Value
As of 2024, Burberry’s market value is approximately £3.5 billion, with shares having gained about 33% this year.
Strategic Moves and Financial Performance
Burberry's strategic acquisitions and financial performance have played a crucial role in its growth.
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Strategic Acquisitions
In 2010, Burberry acquired 50 of its Chinese franchised stores in a deal worth £70 million. This move aimed to gain control over its franchising operations and potentially add £20 million to operating profit by March 2012. -
Financial Performance
Under Angela Ahrendts’ leadership, Burberry delivered a strong first half in 2010, with adjusted revenue up 21% and profit before tax up nearly 50%. However, this announcement led to a loss of 10.5 points in the stock market. -
Luxury Market Growth
Luxury companies are seeking to tap growth potential in China, where the number of millionaires soared 31% last year. The country’s luxury goods market is expected to be worth $14.6 billion in five years, making it the world’s largest.
Brand Recognition and Employee Training
Burberry's brand recognition and commitment to employee training are key to its success.
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Brand Recognition
Burberry’s plaid pattern is one of its most widely copied trademarks. The brand has branded stores and franchises globally and sells through concessions in third-party stores. -
Employee Training
Burberry has invested in training sales staff, emphasizing service quality. The brand has also increased its private client team by more than 50% to enhance customer experience.
Digital Growth and Show Format
Burberry continues to innovate with digital growth and new show formats.
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Digital Growth
Digital growth has been a significant focus for Burberry. The brand’s digital strategy reflects its strategic focus and investment in digital, with 70% of customers’ buying decisions influenced online. -
Show Format
In February 2016, Burberry unveiled plans for the “see now, buy now” show format, which replaced its previous four-show calendar with two mixed-gender shows. Since the September 2016 show, collections are available to purchase immediately after the show. -
Virtual Reality Experiments
Burberry is experimenting with virtual reality and augmented reality to ensure it stays ahead of evolving shopping behaviors and can respond quickly to changing trends.
Marketing Campaigns and Legacy
Burberry's marketing campaigns and legacy continue to shape its future.
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Marketing Campaigns
Burberry aims to put more marketing power behind product launches as it looks to increase investment around specific categories and attract more local customers to the brand. For example, its signature DK88 bag was accompanied by a standalone marketing campaign and dedicated store windows. -
Legacy and Innovation
Burberry’s legacy is deeply rooted in innovation. From the invention of gabardine to its current digital transformation, the brand continues to evolve while maintaining its commitment to quality and style. Burberry is more than just a brand; it is a legendary name in the fashion world.
Burberry's Legacy and Future
Burberry's journey from a small draper's shop to a global luxury brand is nothing short of remarkable. Founded by Thomas Burberry in 1856, the brand has consistently pushed the boundaries of fashion with innovations like the gabardine fabric and the iconic trench coat. The Burberry Check pattern and the Equestrian Knight logo have become symbols of elegance and quality. Despite challenges like the association with "chav" culture, Burberry has successfully rebranded itself, focusing on digital transformation and sustainability. With a commitment to reducing its environmental footprint and embracing new technologies like virtual reality, Burberry continues to evolve. The brand's dedication to quality, style, and innovation ensures it remains a significant player in the fashion world. Burberry's legacy is a testament to its resilience and ability to adapt while staying true to its roots.
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