Burberry’s strategic thinking
The NRA pointed us to an article in Glossy, explaining Burberry’s strategy of selling directly rather than through their wholesale channel. Direct sales lifted from 75% last year to 80% and Burberry's overall sales went up by 3% to nearly A$5 billion. Part of the strategy includes reduced promotions, which wholesale partnerships overused, undermining the brand. Another driver behind the shift to direct selling was the declining traffic in department stores. The business is revising its approach to all the core areas, including product, employee, operations and customer engagement.