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Burberry Plc Essay

3456 words - 14 pages

The fashion system- MK1006 Submission: WK9, April 8th

Introduction
Burberry PLC, a luxury fashion founded by Thomas Burberry in Basingstoke, England in 1856. Manufacturing clothing, fragrances and fashion accessories, its characteristic tartan pattern has become one of its most widely imitative trademarks. Burberry PLC, renowned for its iconic trench coat, has become a staple in the history of British fashion. (Burberry PLC , N.D), With 131 mainline stores, 262 concessions within department stores and 47 outlets, as well as digital commerce in 27 countries (Burberry PLC, N.D). The company has branded stores and ...view middle of the document...

(ftv.com, 2008). It goes without saying that Christopher Bailey has been the most influential designers Burberry has seen. The majority of Burberry’s products are manufactured in Europe though third party suppliers. It does however hold a strict attitude in regards to their product sourcing. In 2007, when Burberry announced its Global push towards China, and closure of its factory in Treorchy, Wales, there was fears that it would lose it Royal Warrant. (fashion united, 2007). Burberry is a traditionally British company thus the closure of s British factory in favour of a middle easten created much negative press for Burberry. In addition Burberry also closed a plant in Barcelona Spain, (telegraph,2010). Burberry PLC, is extremely confidential in regards to sourcing keeping the information very limited. Burberry did however, join the BLC Leather Working Group in order to have a clearer understanding of the environmental impact of tanneries, investigate the possibility of hide traceability and collaborate with other brands and tanneries to improve environmental standards within the leather industry. Burberry supports the group's efforts to ensure the preservation of the Amazon rainforest.( Burberry PLC, 2011) As a company with a strong outerwear heritage, there has been, and will continue to be, occasions where consumer tastes demand the use of natural hides. Burberry has stated that they will not use natural hides if there is any concern that it has been produced using unacceptable treatment of animals. ‘We source natural hides very carefully, safeguarding the correct ethical standards and traceability. Specifically, we source fur from furriers who are well known for upholding high standards of ethical treatment of animals and share our concerns about animal welfare.’ (Burberry PLC, 2011) Burberry believes in the accurate labelling of all garments containing fur, to clearly inform consumers about the product prior to their purchase. As a result Burberry is a signatory to the US government's Truth In Fur Labelling Act. In addition, following the reports relating to alleged forced child labour in the Uzbekistan cotton industry, Burberry has taken steps to exclude Uzbek cotton from its supply chain. In progress is a cotton traceability project related to Uzbek cotton and other raw materials.
SWOT
Burberry has a very distinctive and niche market that it has to cater for and this could result in many issues. Challenges facing Burberry currently is the increase competition in the luxury goods sector. Brands such as Barbour, who won the best British brand award in 2009. (Barbour, 2009). The Burberry corporate website indicates that due to the economic downturn there could be dramatic drop in consumers’ purchases of luxury goods, with an estimated 9% decline in 2009. (Burberry PLC, 2009). In addition in recent years there has been much unauthorised usage of the Burberry trademark. This was shortly followed by the Burberry trademark becoming widely...

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