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Burberry hopes its new logo will add cachet – and boost sales among young Asian shoppers

STORYReuters
The Burberry logo, featuring interlocking ‘Ts’ and ‘Bs’ – which pays homage to the brand’s founder Thomas Burberry – is now being used widely on its different luxury goods. Photo: Reuters

It has a hotshot new designer known for dressing American superstar Beyoncé and is experimenting with monthly product launches on social media.

 
Burberry is banking on the patterned print to improve its performance in high-margin leather goods, which make up 38 per cent of its sales – less than the 60 per cent and 75 per cent at Gucci and Vuitton

Now Burberry is moving past its famed camel check prints with new logo-style branding meant to give its handbags and other wares the kind of covetable cachet that top luxury rivals such as LVMH’s Louis Vuitton have long enjoyed.

It is a gamble as fans of the British label digest the unfamiliar monogram – a motif of interlocking “Ts” and “Bs” in a nod to founder Thomas Burberry – splashed onto everything from hoodies to high heels.

A pair of Burberry’s Triple Stud Monogram Print Leather Point-toe Pumps, featuring the British brand’s new monogram pattern of ‘Ts’ and ‘Bs’, representing founder Thomas Burberry’s initials. Photo: Reuters

Yet the makeover, part of an attempt to revive stagnant sales, also reflects a growing battle among high-end brands to lure young shoppers in markets such as Asia, with instantly recognisable items they can flaunt – leading to a recent proliferation of logo-driven launches by Burberry rivals, too.

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Customers [are] responding well to brands who have started to use logos as a design feature, incorporating them into prints
Celenie Seidel, senior womenswear editor, Farfetch

Burberry’s revamped image is set to get its first real test on Tuesday, with first-quarter sales that should reflect the higher proportion of designs by former Givenchy star Riccardo Tisci gradually making their way into stores.

After the chief creative officer unveiled his first take on the label last September – including twists on Burberry classics, such as trench coats lined with punky rings, more than a third of items available in stores should now carry Tisci’s stamp, analysts estimate.

 

Some are optimistic that comparable revenue growth will improve as a result, from an underwhelming 1 per cent in the previous three months to 3 per cent, according to JP Morgan.

Burberry’s new monogram products, which it began pushing in May in a special collection that included US$690 bum bags and US$400 baseball caps, are likely only account for a tiny part of that.

However, the bet is that heightened buzz around the brand linked to the launch – with campaigns featuring model-of-the-moment Gigi Hadid – should have helped spur demand for other items, too.

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Strong reactions

Burberry stores are now starting to stock designs by former Givenchy star Riccardo Tisci, who unveiled his first creations for the brand last September. Photo: Bloomberg

That is despite a mixed reaction to the design so far, including among Chinese consumers, the luxury industry’s biggest client base, at a time when Burberry’s growth rates in mainland China have been lagging those of some peers.

“It’s a reversal to the trend of designing to appeal to younger people: the [Burberry] monogram looks just old,” said 22-year-old Kexin Fan, from central China’s city of Zhengzhou, who said she tended to buy scarves from Burberry every year.

It’s a reversal to the trend of designing to appeal to younger people: the [Burberry] monogram looks just old
Kexin Fan, 22, Chinese consumer

For others, however, the print – with versions in bolder, orange tones or greens and browns – was younger-looking and jazzier than the traditional camel, black and red check.

“I now go to Burberry more, rather than just going there to shop for parents during Lunar New Year in the old days,” said Shanghai-based Jing Han, 26.

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At one of Burberry’s New York stores, interspersed with monogrammed products, shop assistants said the collection had been selling well.

An advertisement showing a jacket with the new Burberry logo pattern in the window of a Burberry store in London. Photo: Reuters.

“Strong reactions of any kind are usually a good thing,” one said.

Using trademarks is a minefield for luxury labels, with the risk of damaging or cheapening their image by overdoing it.

Burberry, which under CEO Marco Gobbetti is looking to go more upmarket, had only recently managed to rehabilitate its check print, which was so widely copied and worn in the early 2000s that its sales suffered.

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Yet brands have major incentives to follow this route, too, as consumer tastes shift towards more casual clothes – creating a need for trademarks setting apart luxury cotton T-shirts from standard ones.

“There’s great value from a margins standpoint from logos for a brand – the price ratio on a product goes up with a logo on it,” luxury goods consultant Robert Burke said.

There’s great value from a margins standpoint from logos for a brand – the price ratio on a product goes up with a logo on it
Robert Burke, luxury goods consultant

Italy’s Salvatore Ferragamo, which is also looking to reignite sales growth, is using a new monogram of little C-shaped hooks, or “gancini” in Italian, that feature in metal form on its loafers.

Logomania

 

Ferragamo and Burberry may benefit in the short term from a monogram fad, as a revival of shoutier, plain logos over the past three years – sparked by the likes of Kering’s Gucci and Balenciaga as a tongue-in-cheek 1990s throwback – starts to peak.

According to fashion trend forecasting firm WGSN, UK online luxury retailers increased their offer of single-logo items by 15 per cent in the first quarter of 2019, down from 48 per cent growth a year earlier.

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“Customers [are] responding well to brands who have started to use logos as a design feature, incorporating them into prints,” Celenie Seidel, senior womenswear editor at retailer Farfetch, said.

In the long term, Burberry is banking on the patterned print to help improve its performance in high-margin leather goods, which make up 38 per cent of its sales, less than the roughly 60 per cent and 75 per cent at sector champions Gucci and Vuitton. Both have developed recognisable monograms over several decades.

Its bet is that the monogram could be declined into different shades more easily than the camel check, while remaining identifiable.

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Fashion

Brand’s makeover by chief creative officer Riccardo Tisci features monogram design of interlocking ‘Ts’ and ‘Bs’ on everything from hoodies to high heels