Burberry

Burberry Group

Type	Public company
Traded as	LSE: BRBY FTSE 100 Component
Industry	Fashion
Founded	1856 (1856) (Basingstoke, England)
Founder	Thomas Burberry
Headquarters	London, England
Number of locations	498 (May 2016)
Area served	Worldwide
Key people	Sir John Peace (Chairman) Marco Gobbetti (CEO) Christopher Bailey (fashion designer) Christopher Paul Bailey (CEO and Chief Creative Officer)
Products	Clothing Accessories Perfumes Cosmetics
Revenue	£2,514.7 million (2016)[1]
Operating income	£402.9 million (2016)[1]
Net income	£314.6 million (2016)[1]
Website	uk.burberry.com

Burberry Group plc, is a British luxury fashion house headquartered in London, England. Its main fashion house focuses on and distributes trench coats, ready-to-wear outerwear, fashion accessories, fragrances, sunglasses, and cosmetics.

Established in 1856 by Thomas Burberry, originally focusing on the development of outdoor attire, the fashion house has moved on to the high fashion market developing and creation of the first of its kind fabric called Gabardine, which is completely breathable and waterproof, exclusively made for the brand. Developing 45 degrees unique pattern-based scarves, trench coats, and other fashion accessories. The first shop opened up in the Haymarket, London, in 1891. Burberry was an independent family-controlled company until 1955, when it was reincorporated. The fashion house has dressed notable actors, world leaders, musicians, and athletes.

Its distinctive check pattern has become one of its most widely copied trademarks. Burberry is most famous for its trench coat. Burberry has branded stores and franchises around the world and sells through concessions in third-party stores. Its coats were worn in the trenches of World War I by British soldiers, and for decades thereafter Burberry became so much a part of British culture that Queen Elizabeth II and the Prince of Wales have granted the company Royal Warrants.

Christopher Bailey has been the CEO and Chief Creative Officer since 2014. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. In 2015, Burberry ranked 73rd in Interbrand's Best Global Brands report, ahead of Ralph Lauren and Hugo Boss.^[2][3] Burberry has more than 500 stores in over 50 countries.^[4]

It took over 100 years for the Burberry trench coats to be made in more than two different colours: khaki (dust-coloured) and black. Since 2015 trench coats for men as well as women have started to become available in new colours red, white and honey worldwide.

History

Early years, 19th century

Burberry was founded in 1856 when 21-year-old Thomas Burberry, a former draper's apprentice, opened his own store in Basingstoke, Hampshire, England.^[5] By 1870, the business had established itself by focusing on the development of outdoors attire.^[5] In 1879, Burberry introduced in his brand the gabardine, a hardwearing, water-resistant yet breathable fabric, in which the yarn is waterproofed before weaving.^[6] "Burberry" was the original name, but then the company soon switched to using the name "Burberrys", after many customers from around the world began calling it "Burberrys of London". In 1999, it reverted to its old name, "Burberry". The name "Burberrys of London" is still visible on many older Burberry products. In 1891, Burberry opened a shop in the Haymarket, London.^[5] Before being termed as trench, it was known as the Tielocken worn by the british officers which featured a belt with no buttons, double- breasted, and protected the body from neck to knees the word "Trench coat" was coined because britisher officers wore them at the trenches.

20th century

Former Burberry headquarters on the Haymarket, built 1913

In 1901, the Burberry Equestrian Knight Logo was developed containing the Latin word "Prorsum", meaning forwards, and later registered it as a trademark in 1909.^[5] In 1911 they became the outfitters for Roald Amundsen,^[5] the first man to reach the South Pole, and Ernest Shackleton, who led a 1914 expedition to cross Antarctica. A Burberry gabardine jacket was worn by George Mallory on his attempt on Mount Everest in 1924.^[7]

Adapted to meet the needs of military personnel, the "trench coat"^[5] was born during the First World War. After the war, the trench coat became popular with civilians. The iconic Burberry check has been in use since at least the 1920s, primarily as a lining in its trench coats.^[5] Burberry also specially designed aviation garments. in 1937, A.E. Clouston and Betty Kirby-Green broke the world record for the fastest return flight from London to Cape Town in "The Burberry" plane – which was sponsored by the brand.^[8] Burberry was an independent family controlled company until 1955, when it was taken over by Great Universal Stores (GUS).^[9]

Influences and rise to prominence

Stars of the modern world began wearing the Burberrys brand. During the 1970s and 1980s, Burberrys signed agreements with worldwide manufacturers to produce complementary products to the existing British collection such as suits, trousers, shirts, sportswear, accessories, for men, ladies and children. These products, designed under the strict control of headquarters in London, were produced and distributed through independent retail stores worldwide as well as the Burberry stores, and contributed to the growth of the brand in sales and profits through to the late 90s, although the full extent of sales was not apparent in the parent company accounts since much was done through licensed agreements. The company had signed Lord Litchfield as photographer, Lord (Leonard) Wolfson was Chairman and Stanley Peacock OBE Managing Director. In 1998, Burberrys changed their marketing name to Burberry following the retirement of the aforementioned.

21st century

Burberry Chicago flagship store on the Magnificent Mile, built in 2012.

In May 2001, Christopher Bailey joined Burberry as creative director.^[10][11]

However, between 2001 and 2005, Burberry became associated with "chav" and football hooligan culture. This change in the brand reputation was attributed to lower priced products, the proliferation of counterfeit goods adopting Burberry's trademark check pattern, as well as adoption by celebrities prominently identified with "chav" culture. The association with football hooliganism led to the wearing of Burberry check garments being banned at some venues.^[12][13] GUS divested its remaining interest in Burberry in December 2005.^[14][15] Burberry Group plc was initially floated on the London Stock Exchange in July 2002. In 2005, Sanyo-shokai was the Burberry ready-to-wear licence holder in Japan with retail value of €435 million.^[16]

In 2006, Rose Marie Bravo, who as Chief Executive had led Burberry to mass market success through licensing, decided to retire.^[17] She was replaced by another American, Angela Ahrendts,^[18] who joined from Liz Claiborne in January 2006, and took up the position of CEO on 1 July 2006. Ahrendts and Bailey successfully turned around the then Chav-like reputation that the brand had acquired at the end of Bravo's tenure, by removing the brand's check-pattern from all but 10% of the company's products and buying out the Spanish franchise that was worth 20% of group revenues.^[10][19][20]

Burberry first began selling online in the US, followed by the UK in October 2006, and the rest of the EU in 2007.^[21] Bailey became Chief Creative Officer in November 2009, whilst it was reported that during 2012 Ahrendts was the highest paid CEO in the UK, making £16.9m,^[22] the first time an English woman has held that title.^[23]

A Burberry store in Tsim Sha Tsui, Hong Kong

In October 2013, it was announced that Ahrendts would take up the position of Senior Vice President of retail and online at Apple, Inc. from April 2014, and be replaced as CEO by Bailey.^[24] During her tenure, sales increased to over £2 billion, and shares gained more than threefold to £7 billion.^[25] Although Burberry promotes its British connection, according to The Guardian, a British national daily newspaper, as of July 2012, Burberry maintains two production facilities in Great Britain, one in Castleford producing raincoats, and one in Keighley.^[26] In spring 2014, fashion designer Christopher Bailey became CEO of Burberry and retained the role as chief creative officer.^[24] His basic salary was £1.1m, with total compensation of up to £10m a year depending on sales targets being met.^[27]

In July 2016, it was announced that Céline boss Marco Gobbetti will takeover as CEO of the FTSE 100 Company, while Christopher Bailey will become Creative Director and President.^[28] In 2016, the label launched its "Mr Burberry" fragrance.^[29] In 2016, Burberry had an increase in reported profits, with 77 percent of sales coming from Burberry's stores. The increase was in part attributed to strong sales in Asia. In early May 2017, the store announced it was moving 300 employees from London to Leeds. In July 2017, Gobbetti will replace Bailey as CEO.^[29]

Stores

The number of Burberry stores on 1 May 2016

Brand designs

Burberry operates under 3 sub-brands (2014):^[1][30]

• Burberry Prorsum – The most fashion forward collection centered around runway shows, providing the design inspiration for the brand.
• Burberry London – The tailored collection, typically what a customer wears on weekdays for work.
• Burberry Brit – The most casual collection, typically worn on the weekend.

Products

The company's main fashion house focuses on and distributes ready-to-wear outerwear, fashion accessories, fragrances, sunglasses, and cosmetics.^[30]

Selected gallery

• 
  Burberry London Store on Bond Street
• 
  Burberry scarf with check pattern
• 
  The Burberry check
• 
  A Burberry store in Recife, Brazil

References

External links

Wikimedia Commons has media related to Burberry.

• Official website
• Official Burberry Group plc corporate website

Selected Royal Warrant holders of the British Royal Family
By Appointment to HM The Queen	Abels Moving Services Ainsworths Angostura Limited AkzoNobel Autoglym Axminster Carpets Bendicks Bentley Motors Bollinger Britvic BT Burberry Cadbury Carphone Warehouse Castrol Charbonnel et Walker DAKS DHL Express Dorma Ede & Ravenscroft Fortnum & Mason Frank Smythson Gieves & Hawkes H. P. Bulmer Henry Poole & Co J. Barbour and Sons James Purdey and Sons Jaguar Cars John Lewis John Lobb Land Rover Louis Roederer Mappin & Webb Martini & Rossi Minky Molton Brown Moët & Chandon Nestlé Procter & Gamble UK Richer Sounds Roberts Radio Ryvita Schweppes Spode Steinway & Sons Tanqueray Twinings Unilever UK Vauxhall Motors Veuve Clicquot Ponsardin Waitrose Weetabix Wilkin & Sons William Drake Wolsey Worcestershire Medal Service
By Appointment to HRH The Duke of Edinburgh	Boots Opticians DAKS Ede & Ravenscroft Frank Smythson Gieves & Hawkes Hatchards Holland & Holland J. Barbour and Sons James Purdey and Sons John Lobb Land Rover Lyle & Scott Penhaligon's Truefitt & Hill
By Appointment to HRH The Prince of Wales	Ainsworths Aston Martin Autoglym Bentley Motors Burberry Crabtree & Evelyn DAKS Ede & Ravenscroft Frank Smythson Gieves & Hawkes Holland & Holland J. Barbour and Sons Jaguar Cars James Purdey and Sons John Lobb Land Rover Laphroaig Linn Products Minky Penhaligon's Peter Jones Ritz Hotel Roberts Radio Shepherd Neame Taylors of Harrogate Turnbull & Asser Vauxhall Motors Waitrose Weetabix Winsor & Newton
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