Product details

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Abstract

The principle of building and maintaining a reputation of exclusivity has long been acknowledged as the key to the success of luxury brands. The way these ambitions are realized often remains hidden from the public eye. In June 2018, British luxury brand Burberry faced considerable backlash after news surfaced that the brand had burned excess stock worth GBP28.6m (USD37m) to reportedly safeguard its brand image. Various hashtags circulated, including the viral #Burnberry, publicly calling out the brand for its behavior. The case presents an interesting paradox between a sustainability focus on the one hand, and maintaining exclusivity on the other. Two months after the incident, Burberry gave in to pressure and announced that it would cease its burning practices.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2018-2019.

Geographical setting

Region:
Europe
Country:
United Kingdom

Featured company

Burberry
Employees:
5001-10000
Turnover:
GBP 2720 million
Type:
Public company
Industry:
Luxury fashion

About

Abstract

The principle of building and maintaining a reputation of exclusivity has long been acknowledged as the key to the success of luxury brands. The way these ambitions are realized often remains hidden from the public eye. In June 2018, British luxury brand Burberry faced considerable backlash after news surfaced that the brand had burned excess stock worth GBP28.6m (USD37m) to reportedly safeguard its brand image. Various hashtags circulated, including the viral #Burnberry, publicly calling out the brand for its behavior. The case presents an interesting paradox between a sustainability focus on the one hand, and maintaining exclusivity on the other. Two months after the incident, Burberry gave in to pressure and announced that it would cease its burning practices.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2018-2019.

Geographical setting

Region:
Europe
Country:
United Kingdom

Featured company

Burberry
Employees:
5001-10000
Turnover:
GBP 2720 million
Type:
Public company
Industry:
Luxury fashion

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