Nuno Moreira da Cruz
Luxury Brands at a Cross Road?
Burberry's has recently decided (link below) to stop burning their unsold clothes - practice commonly used by luxury brands to prevent them being stolen or sold at a significant discount.
Bold move, since it is likely to affect the "brand value" that their specific customer base attributes to wearing "exclusive" models.
It will be interesting to see whether competition will follow the same path. And if they don't, to see whether Burberry's, in the name of Sustainability, will resist stepping back.
For a Company like Burberry’s where “brand is everything”, it seems to me that the big strategic long term question is: are their customers likely to replace the “brand value” lost on “less exclusivity” for “more sustainability”?