Burberry Group plc

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Burberry-2018-tagline.svg

Burberry Group, a British luxury fashion house with worldwide sales, specialises in the design, manufacturing and marketing of top-of-the-range clothes and accessories. The company's main fashion house focuses on and distributes ready-to-wear outerwear, sneakers, fashion accessories, fragrances, sunglasses, and cosmetics.[1]

Sales break down by activity as follows:

  • 80.30%: Retail distribution: activity conducted, at the end of March 2019, through a network of 475 stores distributed between company-owned stores (233; Burberry name), concession stores (146), franchised stores (44) and other (52);
  • 17.9%: Wholesale distribution;
  • 1.8%: Licensed sales.

Distinctively British: er, no. Burberry has two UK factories, out of a total of 21.[2] Most production takes place in countries with appalling wage levels (and working hours) to keep costs down,[3] meanwhile handing excessive pay levels and stock options to its CEOs.[4]

Environmental Impact: the fashion industry has a disastrous environment impact, and the damage increases as the industry grows. Textile dyeing is the 2nd largest polluter of clean water globally, after agriculture. Polyester fabrics shed plastic microfibres when they are washed. Most cotton is genetically modified, leading to high levels of toxic pesticide use; fertilisers and pesticides heavily pollute runoff and evaporation waters.[5]

Textile waste: clothing retailers want to sell ever more, which is the entire reason for the fashion industry's existence. Clothing has come to be seen as "disposable", and that's not an accident. The amount of clothing purchased worldwide doubled from 50bn items to 100bn items in the last 15 years.[6]

Exclusivity: luxury brands maintain their exclusivity by destroying excess products to prevent them from being discounted,[7] and/or being sold on the grey market.[8] Overproduction is the cause; firms could simply manufacture less.[9][10]
$$s to Destroy: many countries offer a financial incentive for brands to destroy unused products, by refunding up to 99% of import duties.[11]

Good-On-You.svg

Ethical: GoodOnYou has given Burberry an "It's a Start" rating, due to using few eco-friendly materials; sourcing the final stage of production from countries with extreme risk of labour abuse; and the use of leather, exotic animal skin and exotic animal hair.[12]

Company

Shareholders

Total float: 99.2%
Source: MarketScreener.svg, Mar.2020

Timeline

ToDo: Burberry Ltd, Reports.arch (2002-2015), AR-2015.arch, Reports.arch, Reports, Gus.arch
Aug.2018
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New Logo and Monogram, designed by English graphic designer Peter Saville, was rolled out.[13][14]
Mar.2011
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Expansion: Burberry formed a joint venture in Saudi Arabia with Fawaz Abdulaziz Alhokair & Co, transferring 5 stores from franchise operation.
Sept.2010
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Kwok Hang Holdings, a Chinese retail operation, was acquired, giving Burberry control of its brand in the fastest-growing luxury market in the world.[15] Other franchisees, with 50 stores in 30 cities, were also brought in-house.[16]
Jun.2010
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Ethical Trading Initiative: Burberry became a member.[17]
Jan.2010
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India: Burberry formed a joint venture with Genesis Colors Pvt. Ltd (49%).[18][19] Genesis Colors is financed by Sequoia Capital (21.9%), Silicon Valley Bank India Capital (1.59%) and Mayfield (7.23%); they also hold preference shares.[20]
Nov.2008
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Japan: Burberry formed a joint venture in Japan for non-apparel with its long-standing licensing partners, Sanyo Shokai and Mitsui & Co.
Nov.2008
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Burberry Middle East LLC: Burberry formed a 15-year joint venture with long-standing franchisee, family-owned Jashanmal Group, to manage all Burberry retail and wholesale distribution in the UAE markets.[21]
Mar.2008 Burberry Foundation was established as a charity. Burberry makes an annual donation.[22]
Dec.2005
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GUS plc divested its remaining 65% stake in Burberry Group plc, as the change in reputation was having too many accompanying economic challenges.[23][24]
Jun.2002
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Partial IPO: GUS plc confirmed its intention to seek a listing for shares in Burberry Group plc on the London Stock Exchange by way of a global offer to institutions. GUS retained a 77% stake.[25][26]
2001‑2005 Licensing Vehicle: Burberry was selling its trademark to “partners” throughout the world who made their own products and slapped on a Burberry label. The change in the brand's reputation was attributed to lower priced products, the proliferation of counterfeit goods adopting Burberry's trademark check pattern, and adoption by celebrities prominently identified with "chav" culture.[27] Burberry also became associated with football hooligan culture, whose signature accessory was a baseball cap in Burberry check. However, Burberry emerged relatively unscathed, perhaps because the UK market accounted for a small fraction of sales, and chavs were a purely British tribe.
Jul.2000
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Burberry Spain SA, a Spanish franchisee owned by the Mora family,[28] had built a huge business designing casualwear that bore no relationship to what was being designed in London, generating 20% of Burberry's revenues. Nevertheless, the firm was bought out, and its damaging practices stopped.[29][30][31]:4
1999 Equestrian Logo:
Burberry-1999.svg
the classic logo returned, without the extraneous "s".
1997 Rose Marie Bravo: Gus hired a new CEO after the old one retired in 1996. Ms Bravo controversially but effectively turned the company around.
1980s Uncontrolled licensing: Burberry licensed its name, plaid, and knight logo to other manufacturers; with limited control over licensed products, the brand suffered from discrepancies in quality and price as well as from parallel trading, especially in Asia.
1970s‑1980s Expansion: Burberry signed agreements with global manufacturers to produce complementary products to the existing British collection such as suits, trousers, shirts, sportswear, and accessories. The products, designed under the strict control of London HQ, were produced and distributed through independent retail stores worldwide as well as the Burberry stores.
1970
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Japan: Burberry entered into a licensing agreement with Mitsui to manufacture licensed products for the Japanese market with Sanyo Shokai Ltd. Sanyo Shokai New YorkWikipedia-W.svg
1968 Equestrian Logo:
Burberry-1968.svg
the classic logo was subjected to a 1960s-style refurbishment, which included the "s" which so many people tacked onto "Burberry".
1965
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Sanyo Shokai started importing Burberry coats to Japan, and went on to independently develop Burberry products specially for Japanese customers.[32]
1955
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Great Universal Stores acquired 100% of Burberry,[33] delisting the company and taking it private.OpenCorporates-sm.svg
1940s World War II: Burberry supplied the British Army, the Royal Air Force, the Royal Navy, the Royal Pioneer Corps, the Officer Cadet Training Unit, and the Auxiliary Territorial Service with a range of military apparel and accessories, including trench coatsWikipedia-W.svg.
1914 World War I: the War Office commissioned Burberry to design a new uniform for British officers; this was to be the origin of Burberry’s iconic trench coat and the trademark Burberry Check pattern.[34][27]
1924 Burberry Check: the eponymous check made its appearance on the lining of raincoats.
1920
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Thomas Burberry & Sons was floated on the London Stock Exchange.
1915
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Expansion: Burberry commenced exporting to Japan.
1909
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Expansion: a Burberry store was opened in Paris, France.
1901 Equestrian Logo:
Burberry-1901.png
the iconic Burberry Equestrian Knight logo was developed, containing the Latin word "Prorsum", meaning forwards. It was registered as a trademark in 1909.
1891 London store: Burberry opened its first London store in the Haymarket, London. "Burberry" was the original name until it became "Burberrys", due to many customers from around the world calling it "Burberrys of London".
1879
Burberrys-Gabardine.png
Gabardine, as we know it today, was invented by Thomas Burberry.[35] The original fabric was worsted wool or twill (worsted wool combined with cotton), and was waterproofed using lanolin prior to being woven, producing a hardwearing, water-resistant yet breathable fabric. Patented in 1888. GabardineWikipedia-W.svg
1880s Thomas Burberry's sons joined the business, and a 2nd London store was opened in partnerhip with a company called RB Rolls.
1870 The business established itself by focusing on the development of outdoor attire.
1856 T Burberry & Sons: Thomas Burberry, a 21-year old former draper's apprentice, opened an outfitter's business in Basingstoke, Hampshire, England.
Additional Sources: Company History. Burberry. Original archived on Apr.22.2015.Fashion Brands: Branding Style from Armani to Zara., Mark Tungate, Kogan Page Publishers, Sept.2008, ISBN 9780749453053, Preview: Google books.

References

  1. ^ Fragrance and Beauty to be directly operated. Burberry plc, Press Release. Nov.10.2012 Original archived on Feb.13.2013.
  2. ^ Annual Report 2018/19. Burberry plc. Jun.05.2019
  3. ^ Burberry stops handbag production in Chinese factory in ethics row. The Guardian, Agencies. Sept.18.2012
  4. ^ The hypocrisy of Burberry's 'Made in Britain' appeal. The Guardian, Carole Cadwalladr. Jul.16.2012
  5. ^ The Environmental Costs of Fast Fashion. Water pollution, toxic chemical use and textile waste: fast fashion comes at a huge cost to the environment. The Independent, Patsy Perry. Jan.08.2018
  6. ^ FAQs: How ethical are vintage, second hand and rental clothing options? Good On You. Accessed Dec.29.2019.
  7. ^ Burberry burns bags, clothes and perfume worth millions. Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth £28.6m last year to protect its brand. BBC News. Jul.19.2018
  8. ^ Blazing A Trail: What’s Up With Burberry’s Decision to Stop Burning Clothes? Good One You. Sept.07.2018
  9. ^ British fashion house Burberry to stop burning unsold items. CNBC, Lucy Handley. Sept.06.2018
  10. ^ Burberry stops burning unsold goods and using real fur. BBC News. Sept.06.2018
  11. ^ Burned Bags, Destroyed Watches: There is More to the Alleged Destruction of Luxury Goods Than You Think. The Fashion Law. May.29.2018
  12. ^ Burberry. Good On You. Jun.2019
  13. ^ Riccardo Tisci Reveals New Burberry Logo and Monogram. Harper's Bazaar, Lauren Alexis Fisher. Aug.02.2018
  14. ^ Burberry changes logo for first time in two decades. AdAge. Aug.02.2018
  15. ^ Burberry buys Chinese trading partner. Restructuring plan will enable fashion brand to keep tighter rein on global image. The Guardian, Zoe Wood. Jul.16.2010
  16. ^ Burberry terminates agreement with China franchisees. The fashion company Burberry says it has agreed to buy out its franchisees in mainland China. BBC News. Jul.16.2010
  17. ^ Our members. Ethical Trading Initiative. Accessed Dec.29.2019.
  18. ^ Genesis Colors picks 49% in JV with Burberry. Reuters, S Pallavi (VCCircle.com). Nov.20.2009
  19. ^ Burberry to set up joint venture with Genesis Colors. Franchise Mart. Nov.19.2009
  20. ^ Genesis Colors Picks 49% In JV With Burberry. Reuters, S Pallavi (VCCircle.com). Nov.18.2009
  21. ^ Burberry inks Middle East joint venture deal. The Moodie Davitt Report, Mary Jane Pittilla. Nov.18.2008
  22. ^ Burberry Foundation. The Burberry Foundation was set up in 2008 by Burberry Group plc as an independent charity. Charity Commission Burberry plc. Accessed Dec.29.2019.
  23. ^ GUS Annual Report and Financial Statements 2005. Home Retail Group, page 16. Apr.2005 Original archived on Dec.17.2007.
  24. ^ GUS Announces Details Of Its Planned Demerger Of Burberry. Burberry plc. Nov.17.2005 Original archived on Nov.04.2016.
  25. ^ Investor information. GUS plc. Jun.24.2002 Original archived on Apr.26.2003.
  26. ^ Announcement Of Offer Price Of 230p Per Share. Burberry plc. Jul.11.2002 Original archived on Oct.31.2016.
  27. ^ a b The two faces of Burberry. Seven years ago Selfridges did not bother to stock Burberry. Since then it has been transformed from a fusty, fading brand into one of the world's most successful fashion labels, beloved by both football hooligans and aristocrats. The Guardian, Laura Barton, Nils Pratley. Apr.15.2004
  28. ^ Burberry to buy Spanish licensee. The Telegraph, Neil Bennett. Jul.02.2000
  29. ^ The Burberry Story. Stylsh, Kal Di Paola. Jan.31.2014 Original archived on Mar.07.2014.
  30. ^ GUS Milestones. GUS plc. Original archived Accessed Dec.20.2019.
  31. ^ Earning Her Stripes. Wall Street Journal, Nancy Hass. Sept.09.2010 Original archived
  32. ^ Burberry solves its “Japan problem”, at least for now. Burberry goes direct in the world’s most important luxury market: why did Burberry not decide on less disruptive options? Sanyo-Shokai pivots from Burberry to Mackintosh and continues the valuable Black Label and Blue Label lines Japan Strategy, Gerhard Fasol. Aug.18.2015
  33. ^ Timeline: Burberry. Nicola Melhuish, Nicola Melhuish. Nov.02.2010
  34. ^ Burberry biography. Catwalk Yourself, Saxony Dudbridge. Jun.27.2015
  35. ^ The Department Store: 10. Burberry(s) of London. Stories of London. Accessed Dec.30.2019.