The principle of building and maintaining a reputation of exclusivity has long been acknowledged as the key to the success of luxury brands. The way these ambitions are realized often remains hidden from the public eye. In June 2018, British luxury brand Burberry faced considerable backlash after news surfaced that the brand had burned excess stock worth £28.6m (USD 37m) to reportedly safeguard its brand image. Various hashtags circulated, including the viral #Burnberry, publicly calling out the brand for its behavior. The case presents an interesting paradox between a sustainability focus on the one hand, and maintaining exclusivity on the other. Two months after the incident, Burberry gave in to pressure and announced that it would cease its burning practices.
Based on published sources; 19 pages.
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1. Explain the paradox between luxury and sustainability. 2. Illustrate the role of the consumer when it comes to influencing business practice. 3. Analyze the criticism and backlash that can ensue in the digital age following a reported context, in terms of timing/immediacy and the proliferation of opinion. 4. Evaluate the limits of transparency. 5. Illustrate the trade-off for luxury companies between going with the flow or adopting thought leadership with regards to corporate social responsibility.
