Revitalizing Burberry through Social Profit Orientation
Burberry is undergoing a major transformation under CEO Joshua Schulman, shifting from an exclusive “brand elevation” strategy to a model of accessible, functional luxury that respects the brand’s heritage.
Social Profit Orientation (SPO), a term we coined in our JM article, is a framework that balances profitability with social value. For Burberry, it’s a path to sustainable, purpose-driven growth.
Previously, Burberry had moved towards ultra-luxury positioning, introducing bold, high-priced items to align with brands like Hermès. But this “brand elevation” strategy distanced Burberry from its loyal customer base, who value the brand’s British craftsmanship and timeless, functional products. The outcomes were disappointing: sales declined, unsold inventory piled up, and Burberry’s identity weakened. Schulman’s approach represents a course correction, focusing on quality, practicality, and heritage to restore Burberry’s connection to its core customers.
So, what is Social Profit Orientation, and why is it relevant for Burberry's brand transition? SPO, as defined and described in our Journal of Marketing article(1), is a strategic approach that integrates financial performance with social impact, emphasizing authenticity, inclusivity, and sustainability. It reflects the shifting expectations of today’s consumers, who increasingly prefer brands with purpose.
Studies show that 86% of consumers are drawn to brands they view as “authentic,” while nearly two-thirds want brands aligned with social causes. SPO allows Burberry to meet these expectations by building trust and loyalty through a more grounded, socially conscious approach to luxury.
Four SPO-driven strategies that can guide Burberry’s transformation:
Authenticity in Products: SPO advocates for offerings that genuinely reflect a brand’s heritage and values. For Burberry, this means focusing on the functional yet stylish products that established its reputation—such as trench coats, scarves, and outerwear. By re-emphasizing these core items, Burberry can strengthen its identity as a heritage brand grounded in quality and practicality.
Expanding Luxury Through Accessibility: Rather than targeting only affluent, trend-driven customers, Burberry’s SPO approach involves making luxury accessible. Offering heritage-rich products at more accessible price points aligns with SPO and appeals to a broader audience. This strategy cultivates an inclusive brand that resonates with consumers who value durability, authenticity, and timelessness.
Purpose-Driven Retail Strategy: Instead of focusing solely on high-end, high-street locations, SPO encourages Burberry to invest in flagship stores that reflect its heritage and emphasize craftsmanship. E-commerce, complemented by experiential stores that immerse customers in the Burberry story, allows the brand to reach a wider audience without diluting its identity.
Sustainable Product Expansion: Burberry’s expansion into leather, cashmere, and technical gear can benefit from an SPO approach by using eco-friendly materials and ethical sourcing. Collaborating with artisans and local suppliers can further reinforce Burberry’s commitment to responsible production.
Through Social Profit Orientation, Burberry can reconnect with its roots while meeting contemporary consumer expectations for authenticity and social responsibility. Schulman’s strategy is not just a return to heritage; it’s a forward-looking vision that aligns profit with purpose, positioning Burberry as a leader in purpose-driven luxury.