Can Burberry’s Daniel Lee help the brand catch up to Gucci? The former Bottega Venetta icon just replaced Riccardo Tisci as creative director as the British luxury brand’s sales drop below its rivals

Nov 16 , 2022

Can the dream team of Daniel Lee and Jonathan Akeroyd turn around Burberry’s fortunes? Photo: Reuters

As Burberry lags behind competitors Gucci and Prada, the 166-year-old British brand’s new CEO Jonathan Akeroyd hopes to switch things up with new hire Daniel Lee

Louis Vuitton’s parent company LVMH reported a 22 per cent sales increase in the second quarter, and Gucci’s rose 9 per cent – but Burberry’s only saw one per cent

Burberry’s new chief executive Jonathan Akeroyd is due to set out his plan to finish the job started by his predecessor – boosting growth at the British luxury brand to the levels of its European rivals.

Akeroyd, who took over in April, will present his strategy this November alongside first-half results that will show the lingering impact of lockdown restrictions in China, Burberry’s biggest market.

Jonathan Akeroyd was appointed the new CEO of Burberry in April. Photo: Versace

He has already made his key appointment in choosing Daniel Lee to replace Riccardo Tisci as chief designer at the 166-year-old label.

Burberry has lagged behind competitors like Gucci, Prada and Loewe in creating a sharp brand in recent years, and Lee will play an “important part in re-igniting interest”, said Mario Ortelli, managing partner at advisory firm Ortelli&Co.

Lee, who was previously at Kering’s Bottega Veneta, should focus on strengthening its runway, streetwear and menswear collections to appeal to younger consumers, said Ortelli.

Kim Kardashian with her close friend Riccardo Tisci, the former Chief Creative Officer of Burberry, in New York in 2019. Photo: AFP

That group is expected to buoy growth in the sector in the coming years with purchases being made from the age of 15, according to industry forecasts from consultancy Bain.

Burberry should also expand its leather goods and footwear business, Ortelli said. Leather goods account for around 20 per cent of Burberry’s sales versus 70 per cent at Bottega Veneta.

The company’s former chief executive Marco Gobbetti set out a plan in 2018 to reposition the brand, known for its camel, red and black check, firmly in the luxury segment.

Burberry’s store sales increased by only one per cent in its quarter ending July 2. Photo: Bloomberg

He raised prices, limited distribution to its own shops and high-end department stores and cut discounting. Tisci, in turn, changed Burberry’s design language by introducing a TB monogram, that increased the brand’s appeal to younger luxury consumers.