- Burberry is a heritage brand(1856) .
- Luxury fashion industry is largely demand inelastic.
- The upper income echelons buy luxury fashion wear. They attach less significance to price tags and more to brand.
- Aspirant classes and the wealthy are less price sensitive.
- The brand represents what is 'imperially modern'.
- It has a good presence in the US where the currency is now in an appreciation mode.
Price editing to off set currency changes may be a good tactic but not a strategic move for a premium brand. (The premium person buys a premium brand at a premium price!) Burberry needs to rethink its marketing, pricing and (currency) risk strategies.
May be the great fall following the downbeat is a good time to buy.
The sale may be a good time to buy!
This academic advice is without any risk or responsibility.
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