BURBERRY, RALPH LAUREN AND HUGO BOSS: TO THRIVE OR TO SURVIVE?

Burberry is and established British fashion brand founded in 1856 by 21-year old Thomas Burberry who rapidly became famous thanks to the launch of a new fabric called "gabardine", water-resistant and breathable in which the waterproof is created before weaving the yarn.

In 1914 he created the infamous "Trench Coat" that became the Brand staple and it still represents the Brand iconic product.

In Spring 2014 Christopher Bailey, Burberry Creative Director, was also appointed CEO.

2015 results reported roughly flat revenues at ￡ 2.51 billion and a decline of profits of 8%.

According to the WSJ "the British fashion house said it would work to save at least ￡100 million a year—or 10% of operating expenses—by fiscal 2019" https://city.wsj.com/stories/e169c0b7-5408-4ee1-83d7-de771e9aa76b.html

Ralph Lauren is the most representative Brand of the recent USA fashion and lifestyle history https://www.dhirubhai.net/pulse/patek-philippe-ralph-lauren-steve-jobs-core-business-nicoletti?trk=mp-author-card

Hugo Boss is a German apparel and accessories brand. It was founded in 1924 by Hugo Boss. In June 2013, fashion designer Jason Wu was named as the Art Director of the House of Boss overseeing the entire womenswear range.

Recently its CEO Claus-Dietrich Lars of 8 years resigned due to worsening of the business performance https://www.bloomberg.com/news/articles/2016-02-25/hugo-boss-ceo-resigns-after-abandoning-profit-margin-goal.

A new CEO, Mark Langer has been recently appointed. In fact it is an internal promotion as Mr. Langer was CFO of the Company since 2010 https://www.wsj.com/articles/hugo-boss-names-mark-langer-new-ceo-1463419150

These three very different Brands are suffering and the expected growth has rapidly turned into profit warnings, costs cuts and re-organization.

What are the management mishaps that led these Brands to such a difficult situation?

1. Lack of Brand vision and strategy. Burberry went from "dusty" heritage brand to mass market to a digital avant-garde Brand but they lost control on the collections. Hugo Boss became a "functional" brand losing its key message and Brand unique style, Ralph Lauren is a conglomerate of collection that don't speak loud anymore about the Brand DNA
2. Hunger for growth. They opened way too many stores, too many collections and licenses and they diluted too much the Brand.
3. Short term vision. Was it really necessary to appoint a Creative Director as CEO? A CFO as CEO? A fast fashion guy to a Brand that is willing to re-establish itself a a luxury lifestyle brand? Long term 360° vision AND deep knowledge of the business are a MUST when a big Company is struggling so much and for such a long time.
4. Too much complexity. All these Brands CEOs announced cost cutting, re-organization and streamlining of processes and collections. Unfortunately it might be too late.
5. Diluted Brand appeal and desirability. Too much accessible products, too much flat communication, too much stereotyped image. These Brands DO NOT stand out anymore. Pity. The Dream has gone.
6. Product quality not at the height of the Brand reputation

What should they do INSTEAD?

Again, we cannot escape from Steve Jobs "golden rules".

I will never stop highlighting how every single CEO should deeply study Steve Jobs speeches and projects and ideas.

1. Hire a VISIONNAIRE with a full 360° ability to manage a Brand, not a technician
2. Streamline Collections. "LESS PRODUCT AND BETTER PRODUCT"
3. Plan a SUSTAINABLE GROWTH
4. Re-create THE DREAM. Define what a Brands stands for and go for it 100%
5. Develop the CORE BUSINESS
6. Be INNOVATIVE
7. TRUST YOUR TEAM
8. Don't follow the TRENDS. CREATE them
9. INSPIRE employees and customers EVERY SINGLE DAY
10. PRICING is NOT AN ISSUE when A BRAND IS SPECIAL AND UNIQUE

"Think Different" also means "Be Different".

Stand Out. Inspire. Thrive.

Susanna Nicoletti is a Fashion and Luxury expert and Independent Advisor.