ABSTRACT
Gobbetti, who had been CEO of Burberry for just over a year, was relatively unphased by the news as he was the one to disclose the practice in Burberry's Annual Report. Burberry's diligent efforts to be transparent, however, turned out to be a source of major public disapproval, beginning July 19, 2018. Burberry began to increase its brand reputation during World War I. The luxury market is composed of a small number of retailers targeting a relatively low number of high-end consumers. Traditionally, the personal luxury goods market has been price-limited to the wealthiest percentage of people but, thanks to rising affluence, the growth of social media, and the impact of online shopping, brands are lowering the price of entry into the market and now target a new kind of customer. Burberry still faces challenges with respect to how the company will maintain its brand value, exclusivity, and scarcity without engaging in the practice of destroying excess inventory.
