Daniel Lee - Designer, Creative Director of Burberry

[rowjellies]

China accounts for more than 33% of global luxury consumption – which is expected to rise to 40% by 2025.
China is the second-largest personal luxury goods market worldwide, it is home to more than 40 percent of the global middle class,this is a large and diverse range of consumers that support many luxury brands.

Knowing this it does not say much about Burberry & Tisci's period was really loved by the Chinese in particular than any other big luxury brand out there, unless someone does the boring homework to check the numbers: since he started till his last year in regards to what regions bought it the most of his collections.

Under Bailey it was doing well in China as well like Gucci and LV i remember etc

Yes agreed with your points, like Gucci and LV Burberry has probably always done well in China, including under Bailey. And the check slides and tote have probably been sold before Tisci.

Ive heard the Riccardo era logo tees and hoodies still sell well. And some of his bags too, like the Freja and Lola.

 

[LadyJunon]

So you're telling me that they:
- fired a designer who actually appealed to their largest markets
- replaced him with a super-niche quirky designer
- became extremely patriotic in their branding
- shot the prices into the stratosphere
And they're surprised that Burberry is failing?!

 

[Deleted member 7575]

So you're telling me that they:
- fired a designer who actually appealed to their largest markets
- replaced him with a super-niche quirky designer
- became extremely patriotic in their branding
- shot the prices into the stratosphere
And they're surprised that Burberry is failing?!

As Francisco Costa once put it, "It takes a lot of talent to create, and even more to destroy."

 

[Lola701]

So you're telling me that they:
- fired a designer who actually appealed to their largest markets
- replaced him with a super-niche quirky designer
- became extremely patriotic in their branding
- shot the prices into the stratosphere
And they're surprised that Burberry is failing?!

In reality, being big in China is not viable if you aren’t big in the most influential markets: Europe and USA.
It makes your position in China and Asia, quite fragile actually.

The super niche quirky designer is still the one behind one of the unexpected big fashion success of those last 5 years. Bottega Veneta saw sales jumping overnight and over odd products we have to say. He had 3 commercial Hits in his first (and wonky) runway show for BV: The pouch, the cassette and the chunky boots.

Bottega Veneta in the last few years of Maier was slowing down and kept growing during Lee’s tenure.

Even the patriotic branding is good. It was very patriotic when Bailey was there so, it’s only fitting for them to continue to sell that identity.

 

[Lola701]

Akeroyd is out! I’m thankful that the board got rid of the suit before the talent!

 

[Frederic01]

He will be replaced by Joshua Schulman, a former chief executive of Coach and Jimmy Choo.

Oh dear! Is Burberry really going to turn into the British Coach now? The brand has so much potential! Really hope they don’t go to much towards the lower end of the market!

 

[Lola701]

Oh dear! Is Burberry really going to turn into the British Coach now? The brand has so much potential! Really hope they don’t go to much towards the lower end of the market!

Essentially, it wouldn’t be bad per say…
What’s the difference between Burberry and Coach? The cachet and the fashion credibility.
The immediate tension resides in the price point. If they fix it, push the marketing but maintain a vision of elevation regarding the distribution, it may work without compromising too much.

 

[tourbillions]

Oh dear! Is Burberry really going to turn into the British Coach now? The brand has so much potential! Really hope they don’t go to much towards the lower end of the market!

british coach is exactly what they need to aim for or british michael kors. they will never be below coach in terms of how people perceive it. and in pricing.

 

[GivenchyAddict]

"Burberry is rowing back on its plan to target high-end customers after a slowdown for the luxury market, and will now target less wealthy consumers." Source BOF

They have bon sens again. Thanks god!

 

[tourbillions]

if they bring back prices to high street level, they will sell a lot specially with their new designs. trying to go for gucci/diors gig was never a good idea. Did they even research which of their diffusion sold the most when they had seperate division for each tier.

 

[Lola701]

"Burberry is rowing back on its plan to target high-end customers after a slowdown for the luxury market, and will now target less wealthy consumers." Source BOF

They have bon sens again. Thanks god!

Très bon sens!
Now we have to pray for them to not kill the distribution. Focus on their retail spaces and only the best department stores worldwide.

 

[donyan]

I wonder if they'll keep Daniel Lee

 

[Thefrenchy]

Curious to see how this will translate in his next collections.

 

[Lola701]

I wonder if they'll keep Daniel Lee

I think he is safe at least to go through the end of his contract. He signed in October 2022 so he got a little bit more than 1 year. It will then depend on the performances and the relationship with the CEO.
Getting rid of Lee would have sent a bad signal to potential future talents IMO.

Good at least for the board to recognize that the first issue was strategic.

Curious to see how this will translate in his next collections.

What I’m curious to see is if they will implement a new strategy with the FW2024. I bet most of the stuff was produced already. I think Prefall will hit the stores next…

They are a bit in a state of emergency now. I can’t imagine them waiting until November, when the resort land in boutiques, to shake things up.

 

[Olaffo]

Wonderful news ! I wish new CEO best of luck in that task, it’s gonna be make or break situation for Burberry. Happy they realised pricing was detrimental to the brand as well as delusional positioning based on wish rather than hard data and brand perception. They need to adjust the pricing first and take it from there.

 

[j02215]

Amazing news, even though I feel like a lot of damages are irreversible at this point.

I hope they will stop the heavy reliance on the check pattern, stop chasing hype beasts, and instead focus more on classic “posh” styles of dressing with modern updates. The British isles have an amazing textile industry that they should also tap into.

 

[PDFSD]

By

• BLOOMBERG via BOF

15 July 2024

Jonathan Akeroyd is departing after less than two-and-a-half years at the British company, and will be replaced by Joshua Schulman, a former CEO of Michael Kors, Coach and Jimmy Choo. The share price, which had nearly halved since Akeroyd took charge in April 2022, fell more than 10 percent in early London trading.

Burberry also suspended its dividend on Monday and said the slowdown in luxury sector sales has persisted into July. It said if the situation continues, it will report a loss for the first six months of the year as well as full-year profit below expectations.
Burberry is rowing back on its plan to target high-end customers after a slowdown for the luxury market, and will now target less wealthy consumers. The company has been trying to reposition itself as a high-end luxury brand but that turnaround has failed to bear fruit.
The fashion house has jumped from one creative director to the next and also switched CEOs in its bid to rejuvenate the brand. The company most recently hired designer Daniel Lee in October 2022, shortly after Akeroyd joined. Akeroyd and Lee’s plan — which fell short — was to remind customers of Burberry’s “Britishness” with a renewed focus on outerwear and rainwear and a new heritage-inspired logo.


Burberry has struggled in the past decade since the departure of Angela Ahrendts, who was credited with reviving the brand.
She was replaced by Christopher Bailey in a move that angered investors as he took on a dual role of CEO and chief creative officer.
The Italian Marco Gobbetti was hired to replace Bailey and he laid out a strategy to “elevate” Burberry with plans to push pricing up and focus more on its handbags and leather accessories unit. Gobbetti hired a fellow countryman Riccardo Tisci, who was renowned for his work at Givenchy, but failed to really reignite demand for Burberry.
Chairman Gerry Murphy said Monday the luxury market was proving more challenging than expected.
“We are taking decisive action to rebalance our offer to be more familiar to Burberry’s core customers whilst delivering relevant newness,” he added, of the change of strategy.
Revenue for the 13 weeks ended June 29 fell 22 percent to £458 million ($594 million). Comparable same-store sales dropped 21 percent.

By Jennifer Creery and Angelina Rascouet
Stay tuned to BoF for updates on this developing story.

 

[PDFSD]

Curious to see how this will translate in his next collections.

Agree curious as well and i feel it should totally show as well in the direction of the new collections because it's not just price for me it's also the direction and the creative approach that is too mismatched and not clear what it stands for as a new Burberry forward since his appointment.

He should have the capabilities to turn it around if he is humble and willing to make it work, who know the next collection could have the total wow factor and making every one wanting to be part of it/buy into at no matter the price:-)

 

[LadyJunon]

I have to commend Burberry's decision to axe the CEO before the CD. As much as I disliked Lee's debut, it actually stood a chance at reigniting the brand. Since Angela Ahrendts left 12 years ago, the brand's management has been extremely spotty with the immediate succession of the "One Brand Strategy", "European Rebrand" and the "Brand Elevation".

I think that they're still able to command a slightly higher price point than Coach, but if they're trying for a more accessible price point, they should move towards a more upscale image direction and gradually whittle down their distribution network to flagships and core department stores should do wonders.

 

[j02215]

My main concern with Daniel Lee at this point is that he seems to have misinterpreted Burberry: in multiple interviews, he stated that he envisioned Burberry as an “outdoors” brand. “Outdoors” may have been the original roots of Burberry, but it is not what ultimately resonated with consumers under Bailey, and not what modern audience wants from Burberry. If I want British outdoorsy wear, I’d go to Barbour, not Burberry. It is also laughable to try to command luxury price for such category/style.