Burberry Under Fire: Are Luxury Prices Out of Control?

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  • Опубліковано 15 гру 2024

КОМЕНТАРІ • 71

  • @gauloise6442
    @gauloise6442 6 днів тому +77

    The truth is the tailor down the road can make me a bespoke piece custom-fit to my body measurements with materials of my choosing with better tailoring skills at a tiny fraction of the price of any these of brands

    • @thejasminelee
      @thejasminelee 6 днів тому +8

      I would LOVE to have a tailor I could work with but unfortunately two local ones I’ve approached said they dont do custom items even if I give them an item I’d like them to make and the materials. Looks like I’ve gotta learn to be my own tailor😅

    • @thisorthat629
      @thisorthat629 6 днів тому +6

      ​@@thejasminelee that, even IF (big if) you find tailors skilled at sewing, they likely don't do custom work
      cobblers same problem, we have lots cobblers, but none skilled at resoling...

    • @pureounce.9184
      @pureounce.9184 6 днів тому +5

      Sure, but the job of a skilled designer (not a tailor) is to make objects you desire before you even knew you desired them. You pay for their imagination and artistry. You pay a tailor for their craftmanship. In short designers are the brains, tailors are the hands. At luxury prices you should get both no doubt. But let's not forget that both components are equally as important.

    • @mignotmaxime2409
      @mignotmaxime2409 6 днів тому +2

      @@pureounce.9184 There is too much déjà vu in this cyclic industry where everyone copy everyone and where every single designer goes everywhere.

    • @jmsj3881
      @jmsj3881 5 днів тому +1

      I wish I agreed but literally in Australia…. If u get custom to fit bespoke suits I mean CUSTOM, not them fake-sizing then altering suit places, it’s pre much Tom Ford pricing.

  • @etcot8220
    @etcot8220 6 днів тому +16

    The problem I had with Burberry is like you said, unreasonable profit margin. I have 1 dress shirt from them and it is made in china. The quality is not bad but it is subpar to Lacoste who cost half the price while being made in Morocco.

  • @ArdanaV
    @ArdanaV 6 днів тому +34

    Prices have been way too high for all the fashion victims that love standing in a line. Bought my hubby a lv item in their Berlin store 2022, it was a bloody joke....quality has left the stage and marketing has entered around 2004. Au revoir, I rather keep adoring my now vintage pieces

  • @ghv91
    @ghv91 6 днів тому +19

    Even the ultra wealthy no longer care to spend on “quality” or namesake at this point.
    I used to be a personal shopper for many luxury ecomm sites and even the top 10% VIP do not care “because it’s XX brand” they only care about exclusivity/bespoke pieces vs available product due the amount of access the average consumer have to brands.
    Nothing is worth its market value.
    Very good reporting, btw!

    • @rlkinnard
      @rlkinnard 2 години тому

      The quality is not there so you are paying for the brand and not a high quality item with a reasonable markup.

  • @davenetto
    @davenetto 4 дні тому +3

    I completely agree with you on what you say at minute 3:40… Prices can be changed with the push of a button at the headquarters office of these fashion houses or any other goods according to what consumers are willing to pay. I enjoy your channel and your reviews very much. Great work !

  • @camiq1245
    @camiq1245 4 дні тому +10

    I think some who are priced out have already moved onto middle tier modern luxury brands. I think it will be challenging to tempt them back by changing the product offering to more affordable alternatives, when it is not the same product level they could afford 2/3 years ago with the same brand.

  • @Wm.Lidgett
    @Wm.Lidgett 2 дні тому +2

    Not only are the prices overpriced, the topper is the overall quality of the clothing is pitiful like so many products

  • @DesireeGonza
    @DesireeGonza 2 дні тому +2

    I used to be a Burberry shopper. I loved the price point for quality. After 2022 the prices became extremely high and the quality was not the same. Now I am into Barbour. I have bought some great pieces at a wonderful price point. No longer interested in Burberry.

  • @samyueldanyo8679
    @samyueldanyo8679 6 днів тому +6

    The margins are not high. Burberry's financials are public. They are literally loosing money. One can argue they are uneffcient but the end margin is negative. This is a fact.

    • @FashionRoadman
      @FashionRoadman  5 днів тому +5

      I'm talking about the margins on the garments themselves (cost of production Vs end price) - If they decide to waste money on marketing and not keep their spending budget in check that's on them. A lot of luxury brands have unnecessary overheads embedded into their marketing budget and the high income employees expense like there is no tomorrow.

    • @tuttuttut7758
      @tuttuttut7758 5 днів тому +1

      Also, some brands are better of selling volumes instead of a few pieces. Burberry doesn’t have a lot to offer. Their signature piece is really the trenchcoat. That’s why people shop there. They don’t need expensive marketing for that.
      When you outprice a lot of your previous shoppers, down you go

  • @Intervain
    @Intervain 6 днів тому +8

    lol they are lost in the souce... I'm sorry but a $2000 dollar canvas bag ain't aspirational..

  • @pureounce.9184
    @pureounce.9184 6 днів тому +16

    Daniel Lee’s vision at Burberry is genuinely good-his transformation of Bottega wasn’t luck. I visited the Regent St flagship recently, and many designs stood out: clever tailoring and minimalist details like asymmetric buttons, slanted belt loops, and subtle hardware touches. But the execution doesn’t always meet the ambition. These flourishes work best when paired with top-tier craftsmanship, yet many pieces rely on blends or mid-range materials instead of pure wools, cashmeres, or leathers. It’s not bad quality, but it doesn’t quite scream luxury either. Pricing this at BV level or close was never going to work.
    Burberry is clearly set up as a mass luxury brand, like LV or Gucci, needing broad appeal to drive volume. This makes Lee’s background with niche, esoteric brands like Bottega and Celine a risky choice. I picked up a wool (unexpected material) trench with exaggerated proportions-cool design but unlined, and made in Poland. It’s great for the price I paid, but I wouldn’t justify the full retail cost, and this was microcosmic of the whole collection.
    For now, there are some exciting pieces for fashion-heads to explore especially at the revised price-point, and it’s refreshing to see a British designer adding his ideas at this scale. But I wonder if Lee will have to water down his vision to balance Burberry’s commercial ambitions. Definitely worth checking out while it’s still in this phase.

  • @lostgleammedia
    @lostgleammedia 6 днів тому +9

    The brands that actually make proper quality, can up their prices right now

    • @FashionRoadman
      @FashionRoadman  6 днів тому +5

      100% and we will support it!

    • @lostgleammedia
      @lostgleammedia 6 днів тому

      @FashionRoadman yes, tho i meant more of a marketing strategy, if you know your product is quality, then take advantage of the brands that have put prices up, but have lowered the quality

    • @susiex6669
      @susiex6669 4 дні тому +1

      I disagree. Much of the western world is still facing a cost of living crisis and since the pandemic, celebrities just dont register with the public like they used to and they were the number one marketing tool for these brands. When you cant afford rent, you arent buying designer sunglasses made in China by slave labour even if Jennie from BP is brand ambassador. I was going to buy Chanel nail polish as a birthday gift for a friend recently....until I saw the current price. $45 a bottle? For nail polish? And add 14% tax to that? No. Instead, I went to a nice bakery and bought all the cake and cupcakes to serve after her restaurant birthday meal. These companies are living on another planet.

    • @lostgleammedia
      @lostgleammedia 4 дні тому

      @susiex6669 my point is that the companies that actually produce quality things that are expensive to produce, as opposed to Chinese made cheaply.. these companies should be capitalising on the true designer quality

    • @susiex6669
      @susiex6669 3 дні тому

      ​@@lostgleammediaYes but people nowadays, especially the younger generations dealing with precarious employment, are turning towards minimalism and spending more on experiences than on material things. If I had to choose between a handbag and a vacation, Id pick the vacation. And the higher the price, the more ridiculous it all seems.

  • @t.e.8084
    @t.e.8084 5 днів тому +3

    My neighbor bought a Burberry dog coat for her Chihuahua.

    • @tredjesongen
      @tredjesongen 5 днів тому

      I bought a Chanel coatdress for my boston.😅

  • @MelissaMelissa-ge6jx
    @MelissaMelissa-ge6jx 3 дні тому +1

    I had a Burberry trench coat years ago. The store is always dead nowadays. I walked around it just to see what was out and it was all so ugly.

  • @mbelieve9919
    @mbelieve9919 2 дні тому

    So insightful about how big the margins are with the price drops.

  • @nataliet4293
    @nataliet4293 5 днів тому +3

    I guess all the under the table money to manufacture with plastic couldn't outweigh how cheap plastic feels.

  • @markcassels8654
    @markcassels8654 4 дні тому +1

    A Veblen good is a good for which demand increases as the price increases. They took it too far.

  • @Wardroberari
    @Wardroberari День тому

    Yes they are! I think it’s very common to associate expected sales on Burberry these days! That was not the expectation or the brand direction anticipated but hey, we’re here now! Can they change it? That is the question but they have to “clean the slate” and create a refreshing campaign! Nothing is impossible to turn around! Much love to Roadman & Burberry! ♥️

  • @pieterwolt1245
    @pieterwolt1245 2 дні тому

    love your work

  • @Aventerra01
    @Aventerra01 6 днів тому +3

    They had that weird urban design a few year recently that was just ugly. I don't think I'm the only one who missed the old classic patterns.

  • @FF-hd3ux
    @FF-hd3ux 4 дні тому +1

    Thier classic polo with the check neck design I use to buy those for 129 and now they were 300?? I stopped buying burberry years ago.. no worth it.

  • @davetavacol3925
    @davetavacol3925 6 днів тому +1

    When they drop price, they could very well decost at the same time to protect margins….dust bags could go away, cheaper materials, fewer amenities…the idea of lower price points in general makes sense based on the current climate…

    • @susiex6669
      @susiex6669 4 дні тому

      Even mid range brands like Lacoste give you a dustbag when you buy a handbag. Id be annoyed if one wasnt included with my handbag. Lets just talk about the elephant in the room, private equity firms and large conglomerat corporations have ruined many industries by focusing only on corporate greed/profits to the detriment of quality. And consumers are just not having it. Theyre fed up.

  • @ThatMuslimDoctor
    @ThatMuslimDoctor День тому +1

    Designer companies just arent delivering the quality. Theyre trying to convince us theyre high end whikst aggressively cutting down their production costs and quality.

  • @hhueter
    @hhueter 5 днів тому +2

    like how is releasing a worse version of their entry level bags going to help? they already have the entry level bags, they've outpriced them. people want to start with their speedy or neverfull, not some mini bag.

  • @Stylebywale
    @Stylebywale 6 днів тому +6

    The problem is never ever price, it is always a lack of understanding of proper brand positioning . No one goes into Hermès asking for a discount. No one goes into Chanel asking for a discount. No one goes into a Porsche dealership asking for a discount.
    Reducing your prices will affect your bottom line more because the difference in spend that your top clients will bring will just even out first time shoppers by reducing prices.
    The true problem is that a Burberry lost Its brand positioning during the pandemic. They should be leading the quiet luxury charge, and that is where their brand always belonged.

    • @xx-----------xx873
      @xx-----------xx873 6 днів тому +3

      Not me at Porsche Reading last month trying to get £5k off a Boxster...
      Burberry has three things going on, the trenches, the high end clients and the scarves. Scarves are all nova check, which was killed when Succession came on. Trenches are dirt cheap used, and the high end clients can't be scaled. Bags suck, a single good bag and shoe in the zeitgeist would turn the brand around.
      When I think burberry I think plaid shirts, I don't think it's ever been quiet luxury. Meanwhile lemaire is so quiet you'd think its asleep

    • @mignotmaxime2409
      @mignotmaxime2409 6 днів тому

      ​@@xx-----------xx873 Just what I was thinking about Porsche. Burberry definitely could have taken the quiet luxury route-they used to have some very very high-quality items. Interestingly, most of today’s young Burberry salespeople probably wouldn’t even recognize those past high-quality pieces as being made by Burberry even for some of the loudest ones if there is no check pattern.

    • @birilol
      @birilol 6 днів тому +2

      You think rich people like to be ripped off then?

    • @mignotmaxime2409
      @mignotmaxime2409 6 днів тому

      @@xx-----------xx873 Just what I was thinking about Porsche. Burberry definitely could have taken the quiet luxury route-they used to have some very high-quality items. Interestingly, most of today’s young Burberry salespeople probably wouldn’t even recognize those past high-quality pieces as being made by Burberry, even the loudest ones if there is no visible check.

    • @mignotmaxime2409
      @mignotmaxime2409 5 днів тому +1

      @FashionRoadman Was there a problem with my comment? Why was it deleted?

  • @dre.x3
    @dre.x3 6 днів тому +2

    Burberry is too much of a staple and apart of fashion history to ever die out I just hope someone is able to come in and save it how Tom Ford saved Gucci, they just need a fresh perspective who knows what people want their point of view is just outdated

  • @karlenglewood8940
    @karlenglewood8940 6 днів тому +1

    This is investment speak for: "Please don't punish us too hard if the next couple of quarters sucks."

  • @sgo7142
    @sgo7142 6 днів тому

    I appreciate the transparency and opening up to their faults. Personally it won’t deter me from buying into the dream of luxury at Burberry in the future, assuming they have a great CD & products on board!

  • @grandmotif1
    @grandmotif1 3 дні тому

    Price increase started during Ricardo Tisci's and Marco Gobetti's time. Jonathan just carried on with the same strategy. The board pushed for this for many years

  • @giovanni2585
    @giovanni2585 4 дні тому +2

    Nahh as a fashion designer i can tell you that quality is not that important at all, not even product is important. Fashion today is a vibes based business like it or not.
    We leave in a post material world, there is a market of highly informed consumers but the reality is right now, our society is focused in transactional symbolic value. Just look at crypto...
    The thing is Daniel was not capable of creating a good vision for the brand. He is just not that talented, sorry but he was supposed to be a strong accessories designer but all this seasons have passed and Burberry doesn't have a single good bag, bv was mostly luck and a good team.

    • @susiex6669
      @susiex6669 4 дні тому

      I completely disagree. I came of age in the supermodel era, loved fashion, the trinity could literally sell me anything, and even I dont care about fashion any more because the quality to justify the price isnt there in many cases. Younger generations are even worse. They really dont care about labels.

    • @giovanni2585
      @giovanni2585 4 дні тому +1

      @susiex6669 then why does a Chanel poorly made bag charge the same as Hermès and people are buying it?
      Or jacquemus and his hot glue bags are some of the most coveted accessories by my generation?
      Is because of vibes, I don't like it but is true

    • @susiex6669
      @susiex6669 3 дні тому

      ​​​@@giovanni2585Because some people are label whxres, have low self esteem and think that flexing a high end label while having zero in their bank account, makes them look important. Its the nouveau riche or wanna be nouveau riche mentality. We all know people like this. Those who have money and class dont squander it on poorly made schlock.

  • @iusedtolovecheesecake2205
    @iusedtolovecheesecake2205 3 дні тому

    Spending thousands on canvas is insane. To be honest, I forgot Burberry existed as I haven't purchased from them since the 90's. Quality was a ok back then. Raising prices in this economy is a set up for failure as the rich isn't even purchasing those items anymore. And yes, it's the middle class that's purchasing these subpar quality items.

  • @agnessunyer4834
    @agnessunyer4834 4 дні тому

    Luxury is not about the price. Is about paying the price for something that has and/or ads value. Indeed most of the time it has a higher cost but it doesn’t mean that this cost is always equated to the product itself.

  • @kinj5422
    @kinj5422 3 дні тому +1

    I have liked the knight bag since it’s launched in 2023 … not worth 1.8k£. Now over Black Friday all knight bags went on sale 50%. And so I thought: under a grand for designer is a far deal. Once Black Friday sale has ended the knight bag went completely off the website, only to appear on farfetch. It made me realised they most likely decided to discontinue this model only a year since it’s first launched! That’s crazy. Designer bags are the new money grab (alongside with premium perfume line), and they know that if the bag goes viral it will bring huge profit. It seems they’re testing new models, use marketing to hype it up on social media and see if it catches momentum… if it doesn’t, the model gets discarded. That’s how I see it. Nevertheless, I’m happy to get the bag I liked for half the price (if it wasn’t for that I would have never gotten it). Also, since it’s being discontinued I will soon own unusual rare bag, that doesn’t scream designer, though it will be. It won’t catch much attention, and I will feel safe carrying it. Since it’s not mainstream, it won’t turn kitsch.

  • @atoznum1
    @atoznum1 3 дні тому

    Their new creative director SUCKS. He tried to take the brand back to catering to the stylings and “taste” of an old rich white women aesthetic, and it isn’t working. That sh*t is ugly. Their departure to casual high-end streetwear years ago is when they were most successful!

  • @vontebrown1284
    @vontebrown1284 6 днів тому +1

    A lot of these brands are crazy, like I keep saying more people are learning about fabrics and tailoring like the old generation, and only buying good quality pieces from quality high fashion brands that can be worn for years, people who know fashion never try to be apart of corny trends, Burberry was one of the brands that made quality with a high and reasonable price point, they went crazy thinking they can charge Kiton, Bottega prices, when they specialize in leather and suits, and they even need to bring their prices down as well before they start losing Business as well

    • @vontebrown1284
      @vontebrown1284 6 днів тому

      Plus before their 1999 name change from "Burberrys", they have pieces from the 90s that's quality and made better on line for a cheap or great price, so why would someone pay 5000 for a trench jacket if you can buy another brand top quality leather, fur or alpaca coat for that

  • @NotMyGumDropButtons.444
    @NotMyGumDropButtons.444 3 дні тому

    Were there any brands that did it right? Or at least better than others

  • @mignotmaxime2409
    @mignotmaxime2409 6 днів тому

    I guess margins vary from item to item. On average, what is the margin ratio for Nike (which isn’t even a luxury brand)? The idea of "luxury" as a dream feels childish to me. For me, it's all about good design, good quality, and good ethics. So, I’d say that admitting prices are stupid high is a step in the right direction. However, I wouldn’t go so far as to say it’s building customer trust just yet.

  • @tuttuttut7758
    @tuttuttut7758 5 днів тому

    Gee, who’d have thunk..

  • @Ma-cn7yn
    @Ma-cn7yn День тому

    Even if you play this at 2x speed it's still slow, SPEAK FASTER