Britain can’t do luxury fashion anymore – Burberry is the proof

Everyone is so preoccupied with Gareth Southgate’s departure, that another similar departure of a leader from a British institution has slipped this week unnoticed.

On Monday, Burberry’s board announced that Jonathan Akeroyd, its CEO for two years, was stepping down.

The similarities are almost too painful to contemplate. But we have to think about them. England’s elite football squad has great components, but a problem with goals – it can’t score enough.

Burberry is also full of promise – an unrivaled history, a royal warrant, a reputation, still, for the ultimate trench coat. But its a sales issue. There aren’t many of those either.

In the first quarter of this year, they dived 21 percent. That was after 2020, 2021, 2022 sad, etc. The two brands – the Lions and the Burberry Knights – may look the part, but when it comes down to the wire, both, and their fans, suffer from a chronic lack of self. -religion.

Take Burberry’s quick announcement that Akeroyd will be replaced by Joshua Schulman who led Michael Kors and Coach.

Joshua Schulman

In a ‘material’ move, Joshua Schulman (formerly of Michael Kors and Coach) has been appointed as Burberry’s new CEO – Getty

Appointing a successor quickly is usually enough to ensure a jittery stock market. But Burberry shares fell even more – more than 15 percent. Because woah… Burberry is meant to be classy. While the Coach is … well, a coach.

And Kors was mainly moving mountains of £300 bags. Schulman did well with both. But this is Championship, not Premier League.

That is a concern. Like M&S and Colin the Caterpillar, Burberry is one of those British icons that helps set the mood of music for the economy. Currently, Götterdämmerung is the soundtrack at Burberry.

Granted, its current valuation of $4.07 billion is pretty impressive, given all the slings and arrows it’s endured in recent years. But Italy has Prada ($17.7 billion), Armani (£5 billion), Moncler ($17 billion), Dolce & Gabbana ($6 billion) and Max Mara – all still proudly owned by Italians.

France has Chanel ($25.2 billion), Louis Vuitton ($36.4 billion), Hermes ($22.1 billion)… You get the idea. In a global context, Burberry is a minnow.

But it’s our minnow, and we need it to thrive because it’s hugely important to the British fashion industry. The rise of Burberry during the 1990s and 2000s changed the perception of Britain as a style powerhouse.

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Burberry may be a minnow in the global fashion landscape, but it represents Britain in the style stakes

From fusty tourist tat to flagships on Bond Street and Madison Avenue and Mario Testino campaigns with Kate Moss, Stella Tennant, Eddie Redmayne and Rachel Weisz, he changed the way international players thought of Britain as a place where luxury could thrive. be on them.

Under the creative direction of Christopher Bailey and CEO Angela Ahrendts, Burberry rediscovered its British heritage and became desirable around the globe.

Yes, there were difficulties – the early 2000s revealed that the famous Burberry check was synonymous with tacky celebrity culture.

But Bailey kept his cool, moved away from the check for a while, and focused instead on creating the world’s leading trench coats. “Doing a Burberry” became shorthand for sexing up dusty old brands and making them culturally relevant and hugely profitable.

Its success, in part, influenced the Gucci Group, co-owned by Tom Ford at the time, to set up its headquarters in London rather than Paris or New York.

Kate Moss, Christopher Bailey and Stella Tennant backstage at the Burberry Prorsum Fall 2006 runway showKate Moss, Christopher Bailey and Stella Tennant backstage at the Burberry Prorsum Fall 2006 runway show

‘Wildly desirable’: Kate Moss, Christopher Bailey and Stella Tennant backstage at the Burberry Prorsum Fall 2006 runway show – Penske Media

It meant that London Fashion Week, which had always had a bad relationship with Milan and Paris, was suddenly a hot property advertised in the main world markets. Thus, he attracted major editors and celebrities to his shows here. Other designers far less basked in the glow of the show, attracting attention like they never had before.

Arguably, Burberry could be better off bringing more manufacturing in-house. But at least the numbers showed on and on that we could think big and ambitious on a luxury level.

But after Christopher Bailey – and his relentless vision – landed in 2018, Burberry, like our national football team, seemed to lose faith in its worth as a truly elite player.

Bailey’s successor, the Italian Riccardo Tisci, did not have a clear mind or understanding of what the brand should stand for (mainly functional yet stylish outerwear).

His successor, Yorkshire-born Daniel Lee, has been appointed creative director in 2022, yet to convince fans.

There is a dispiriting pattern here. Despite its exquisite craftsmanship and the support of the Princess of Wales and Anna Wintour, the commercial potential that its owner, Kering (formerly the Gucci Group), hoped for when it acquired a majority stake back in 2000, has not been realized. still at Alexander McQueen.

Mulberry, another British success, also ran into trouble in 2012 when chief executive Bruno Guillon decided he should move from the British idea of ​​luxury (extraordinary, practical bags that topped around £1,000) to a French one. (more valuable bags at £2,000).

Models in London in 1974 wearing the classic 'functional and stylish' Burberry raincoatsModels in London in 1974 wearing the classic 'functional and stylish' Burberry raincoats

Models in London in 1974 wearing the classic ‘functional and stylish’ raincoats the brand is best known for – Corbis via Getty Images

Part of the problem may be that British luxury is at odds with the rest of the world – lower key, more pragmatically rooted in our love of outdoor sports and military tailoring. In short, less flashy.

The brash logos that even a brand like Prada now feels obliged to splatter all over its accessories and clothing, are still seen as gauche by some Brits. As for the soft vicuna yarns and clotted cream leathers at Loro Piana and Brunello Cuccinelli – please give us some rain and windbreakers and scratch-resistant duffle bags.

Another problem is that when we splurge on something really expensive and deluxe, we want it to be from Chanel or Dior rather than a less glitzy brand from Blighty.

That’s not to say that we don’t have amazing designers who use premium fabrics, make in small batches and quietly provide custom and couture services to well-paid clients.

Anya Hindmarch, Erdem, Emilia Wickstead, Roksanda, Anna Valentine, Métier London, Suzannah London (who designed the Duchess of Edinburgh’s exquisitely embroidered Coronation dress) do it all.

Then there are the lesser known designers such as Claire Mischevani and Fiona Clare who dress the royals.

But apart from Manolo Blahnik, who is a genius, most of these firms generate between £3-20 million a year, some much less. If they don’t launch perfume, sunglasses and make-up – which is very difficult to do without the infrastructure of a shadow conglomerate like Kering or LVMH – that’s unlikely to ever change.

Joanna Lumley Burberry Harrods takeoverJoanna Lumley Burberry Harrods takeover

Joanna Lumley poses with a Harrods doorman at the opening of Burberry’s takeover of Harrods in February this year – Dave Bennett/Getty

Making Burberry more mid-level luxury, as some industry experts now believe Schulman will do, could be a sensible path to a sales turnaround.

But it also means that the UK’s dream of becoming a hotbed for a high-end leviathan that can take on the French or the Italians is on indefinite hold.

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