Burberry Will Eventually Be Changed, But Will The Later Be Able To Clear Up This Mess?

The first picture is Stauffer Bailey (Christopher Bailey) and Tang Wei on MetGala.

Although the short-term dividend brought by the European Union has been brought to Britain,

Burberry has ushered in a 50% surge in sales, but it does not seem to relieve investors.

Dissatisfaction in recent years.

Burberry obviously needs to do something.

Finally, on Monday, it willfully decided to change its own CEO.

According to reports, Burberry group announced that Marco Gobbetti will succeed Stauffer Bailey (Christopher Bailey) as CEO of Burberry group, while former Christopher Bailey only retained the brand creative director position, which means that the era of Christopher Bailey governing the Burberry group was officially over.

Unlike the CEO upheaval in 2013, the former CEO Angela Ahrendts suddenly announced that it wanted to switch to apple to do retail sales, resulting in a 7.6% drop in share prices, forcing Christopher Bailey to step down, pushing Burberry shares up nearly 5%.

For Mr. Bailey, it was not long before he accepted a 75% pay cut.

As Chinese tourists in Hongkong and Europe declined sharply, Burberry group has said that the turnover will fall by 1% to 2 billion 100 million dollars in the second half of this year. This statement directly led to a 7.9% plunge in stocks, and the stock of the company has dropped 22% since the official succession in May of Burberry.

John Peace, chairman of Burberry, said that today's luxury environment is bad, Burberry is not in a good position, and Marco Gobbetti will take over CEO, allowing Bailey to refocus its focus.

Come up.

"Burberry group initially did not expect that Bailey's dual status would have a negative impact on the brand. In fact, they should let Bailey focus on their best design, and double liability has brought too many constraints to him."

"We hope that a more suitable person will lead Burberry to overcome the difficulties at the moment," he said.

Peace said that in January this year's revitalization strategy assessment has shown that Burberry needs a bigger change.

In the past 6 months at least, Burberry has been looking for new CEO candidates.

So what did the unfortunate former CEO do during his tenure?

Cost cutting

After announcing a bad mid-term performance last year, Bailey announced a series of cost cutting measures, including focusing on promoting sales and productivity, quickly taking measures to supplement free funds, and further strengthening its online and offline product service innovation, redistributing the market budget during the holiday season, and speeding up the cost control of all businesses.

It also said it would cut 30 million pounds, stock incentives and 20 million pounds of travel and travel benefits to deal with falling profits.

Cut off the sub line and integrate the brand.

In November 2015, Bailey announced that all product categories of Burberry will be integrated into a single "Burberry" main brand, cutting off Burberry Prorsum, Burberry London and Burberry Brit by-product line.

In response, he said he was responding to the needs of the market.

In fact, cutting off their own side cards is the most commonly used method of luxury brands recently. After all, when the so-called vice cards that meet the needs of different consumer groups start to win the brand's value, and at the same time create additional cost pressures, the necessity is doubtful.

Bid farewell to T, that is, show to buy.

The annual fashion show, which is reduced four times a year, is to be held in February and September each year for a seasonal mixed fashion show for men and women.

In addition, online shopping mall and physical stores will synchronize the sale of the same products in the show, and the display of shop windows and media advertising will also be put in.

These three things seem to be worth looking at even now, but the main reason for analysts to worry is that those things Bailey should have done, but not done or late, such as:

Failed to grasp the Japanese market in time.

In the past three years, a large number of Chinese consumers poured into Japan, and Japan itself is the second largest luxury market in the world, or even surpassed China. Christopher Bailey failed to grasp this development opportunity well.

It has been reported that Burberry has authorized the SANYO chamber of Commerce to operate the Black Label (black label) and BlueLabel (blue label) products which are cheaper for younger consumers in the Japanese market. However, in 2015, after the recall of the brand name and knight trademark authorization of the Burberry, the company did not act as vigorously and vigorously in the Japanese market as the Chinese market had withdrawn.

In 2010, the British luxury group regaining its authorization from China, then closed almost all 50 authorized stores, and reopened more brand new stores in the core business area of the second tier cities, while Burberry currently has only 6 direct brand stores in the Japanese market.

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While Burberry increasingly caters to young consumer groups in the way of publicity and promotion, it does not really bring the younger generation of young people to the heart of their designs. Look at other people's Gucci.

Of course, some people have to say, and when CEO is CCO, it is too difficult, uh, so now Christopher Bailey can finally concentrate on the design.

Let's get to know the successor.

Marco Gobbetti has worked in the luxury brand Moschino, Givenchy and C line for CEO, and has over 20 years of experience in the industry.

In his 8 years in charge of C line, the French luxury brand has maintained its distance from the Internet and has no intention to test the luxury brand e-commerce. It seems that it sticks to the idea of Christopher Bailey.

Burberry chairman John Peace said in a statement, "I am very glad that Marco is about to join and continue to write a new chapter in our 160 year history with the new position Christopher.

He has an excellent record in the growth of luxury industry. He also has an impressive judgement on the future of the industry.

The board firmly believes that the new senior appointments, together with the brand new initiatives, will greatly enhance the company's strength and achieve sustainable growth in the long run, and take the lead in the industry over time.

However, some analysts say that if you expect to change the CEO to make the current Burberry rally again, it is too fantastic. After all, the size of C line is much smaller than that of Burberry.

It is too early to say whether Marco Gobbetti can make any difference in the face of this huge "mess".

Anyway, a blessing.