After the exit of chief executive Marco Gobbetti, Burberry’s plan to regain their position in the luxury market was slowed.
Gobbetti’s addition brought in a ray of hope by helping increase the company’s capitalisation by approximately by a third. As the fear of other executives – especially creative director Ricardo Tisci -departing remains, the British brand’s sales have seen a downfall of 10 percent over the last year to March.
Some of Gobbetti’s executive decisions included raising prices and increasing control over distribution resulting in an elevation of the brand’s luxury market position. The Tisci and Gobbetti duo focused on the drop culture of streetwear for product releases.
Rebranding the logo was one of their biggest plays in their time together at Burberry. The move didn’t prove to be a great payoff in terms of pulling in sales but it helped grab the ever-fleeting attention of Gen-Z buyers.
The brand’s early leap into the digital space proved successful by bringing in a double digital growth in sales during the pandemic. Even with past controversies in the region, China brought in promising sales in every quarter last year.
The luxury giant has stated that Marco will remain with them until the end of this year. He will be taking up an executive position at the independent luxury brand Ferragamo and move to Italy. This has bought Burberry enough time to screen through the industry looking for a new chief executive.
It is surely a challenge for the company to appoint someone who will bring nothing but growth and revival. Another downfall will not only affect their sales but also their position in the luxury market. The industry is looking forward to Burberry’s announcement in the upcoming months.