Burberry Can The Old British Club Turn Over?

Photo source: thecut

According to the world clothing shoes and hats net,

Chief executive Marco Gobbetti has increased its support for the company.

And promised to carry out the plan of revitalization of Burberry in the long run.

Last summer, Marco Gobbetti, who took office as chief executive of Burberry, was previously in the office.

C line, the group's brand, held the same post, and he bought Burberry shares with two prizes from his former employer.

The first prize is 4 million euros, and the second is 910 thousand euros.

Although Gobbetti has already given up the two prizes while leaving the LVMH group, Burberry's remuneration committee is willing to reclaim bonuses when he joins the brand.

Last November, Gobbetti presented his long-term vision of Burberry. He said his goal was to reverse the trend of slower growth than luxury brand peers, and he hoped to achieve close to 10% revenue growth over the next five years - higher than the medium-term growth of 4% to 5% predicted by Bain consulting company, which would also promote the expansion of operating margins.

Meanwhile, Gobbetti is also looking for the successor of Christopher Bailey, the creative director. Bailey will release his last season in Burberry later this month.

Gobbetti said that the search for new candidates may take some time, and the outside world has speculated that Kim Jones is very likely to take over. Jones just left Louis Vuitton last month.

In addition to Jones, the voice of Phoebe Philo, who worked with Gobbetti and worked with C in line, is also very high. But the industry does not think Phoebe Philo will take the job.

Burberry declined to comment on the progress of the search for the creative director, and refused to disclose the time of the company's formal announcement.

After the Gobbetti took office, the performance significantly rebounded, mainly due to the strong sales results in the Chinese and British markets. The sales in the mainland of China mainly increased by 15% based on the layout of WeChat advertising and distribution network. Meanwhile, the market in Hongkong also had the signal of growth opportunities due to the rebound in the number of tourists in China, while the British market had gained the good result of the decline in the pound.

In addition, one of the tasks that Gobbetti has already completed is to announce the decision to shelve Liz's plan to build a factory after discussing with senior executives.

The establishment of the new project will initially make the knitting and windbreaker production in the same place, and thus create 200 new posts, which is also regarded as an important part of the company's 50 million pound downsizing plan.

After the confirmation of the departure of Christopher Bailey, Gobbetti announced that the brand will undergo a comprehensive reform. The main goal is to refocus the brand positioning on high-end luxury consumers.

Gobbetti has made innovations in the company's development strategy. On the basis of a clearer brand positioning, Burberry will substantially reduce the number of stores, especially those that affect wholesale business. In addition, Burberry will also give up some of the poor shopping malls "shop stores" and close stores that are not close to high-end luxury consumer communities.

The smooth implementation of the new brand strategy will be the primary task of Burberry in the new year, and it is also a potential driving force for share price.

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