Is Burberry’s Instabuzz enough to sustain growth?

Ricardo Tisci is bringing a new buzz to Burberry, and investors are hoping
his flair for social media will translate into sustained sales.

According to Bloomberg, Burberry saw an increase in wholesale orders from
Tisci’s debut collection, called “Kingdom.” Order value doubled from the
previous year in Europe, the Middle East and Africa, Chief Financial
Officer Julie Brown said Thursday after the company reported progress on a
drive to boost its exclusivity and bolster its financial results. The
shares rose as much as 2.4 percent in early London trading.

Burberry is keen its generated buzz will keep momentum. Earlier this summer
Tisci unveiled a new logo, freshly styled ad campaigns and focus on
merchandise drops, including a collaboration with Vivienne Westwood and
flash sales via Instagram and WeChat.

Burberry’s turnaround plan will take time

Burberry’s CEO Marco Gobbetti said the turnaround plan is starting to have
effect, but will take time to put the company on par with brands like LVMH.

The full collection designed by Tisci and his team will not be in stores
until February 2019, neither will the renovation of 400 boutiques be done
imminently.

Burberry also plans to reduce its number of outlets and exit mid level
department stores who predominantly sell volumes of checked scarves, but
not its higher priced goods, in an effort to boost its image as a luxury
player.

“The initial response from influencers, press, buyers and customers to our
new creative vision and Riccardo’s debut collection ‘Kingdom’ has been
exceptional,” Chief Executive Marco Gobbetti said on Thursday.

But despite all the buzz, translating it into sustained sales growth is not
guaranteed. Burberry’s investors will hope the brand will see a similar
trajectory to Gucci after it instated Alessandro Michele.

For now investors will have to wait to see how customers respond to Tisci’s
vision.

Photo credit: Burberry website