Question

Should Burberry’s be focused on new brick-and-mortar stores, as new CEO Christopher Bailey did with the opening of Burberry’s largest store, 121 Regent Street in London, or should they focus on more online sales worldwide? Are high-end products (clothing such as Burberry’s) better sold in stores or online, or both?

Answer 1

Burberry is a luxury retailer dealing in the fashion industry, especially the handbags. When Christopher Bailey joined the firm, his main focus was on increasing the sales of the company through the retail shops. However, people question his views and wonder if Burberry should focus on the online sales more or not.

The recent data shows that the market share of the London-based firm has fallen drastically. It is a clear indication that there is something in which the firm is lacking. With the increasing competition and better quality products being offered at cheaper rates by other producers, Burberry faces the risk of losing its identity. Even though the firm opened its largest store recently, the sales have not rocketed as expected by Bailey. It is a clear indication that the retail store is not standing up to the expectations.

Talking about the online sales, it seems like the only ray oh hope for Burberry as the data also shows the e-commerce growth is good of Burberry. With the digital world around us, e-commerce is the best option that Burberry can opt for as customers prefer purchasing goods online but might become quite choosy when it comes to purchasing from the retail stores. Also, customers actually browse more in the online stores and thus, there is a more scope for the products to be seen and sold through the online medium.

In a nutshell, if talked about the personal opinion, I feel that the high-end products are better sold in the online stores and therefore, Burberry should focus more on the e-commerce.