Burberry being a British brand, continues to operate from the UK, with its global headquarters in London
responsible for product and design development. The leading company facilities are in Yorkshire, where
domestic manufacturing and traditional heritage are maintained through its style classic trench coats
since its first inception. Initially, Burberry supported the notion of outsourcing its manufacturing
operations. Italy was the leading country the company chooses for outsourcing its components and
processes. It later decided to close several of its factories in the UK and shift manufacturing to Asia; this
move wasn't widely accepted by several stakeholders but was later glossed over. The intention for
closing these facilities was to allow the company to concentrate production on specific facilities, thus
aiding in re-emphasizing its heritage image in its products. Burberry also decided to re-shore almost all
of its manufacturing back to the UK; this came after the termination of its licensing contracts in Japan
(Burberry Blue and Burberry Black), with a long-term partner Shokai Sanyo. Such a move was intending
to achieve exclusive control of its foreign businesses. With a reshoring reason in mind, Burberry also
ended the agreement authorizing its French partners' agreement and bringing back kids wear
production to the UK.
Reshoring brought about significant profitability to the company, a record sale for 2014-2015 (2.5bn
euros) being a testament to phenomenon progress.
Burberry
Brand Values and Revenues
7
6
5
4
3
2
1
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues (Billion euros) Brand Value
Much of this success can be attributed to the repositioning of the company brand to its global clients.
Such is both a marketing and commercial achievement that can be traced back to the promotion of the
company's quintessential Britishness, and in part, to the recall of product manufacturing to the UK.
Offshoring help Burberry underpin its value to heritage associated with its brand. Establishing
production operations back in the UK allowed processes to be close to the product design team, thus
enabling the regeneration of brand values that the company's core clientele demands.