The launch of the Belt Bag in March 2018 coincided with Burberry strategic repositioning. Consumers at the time were "polarizing between luxury and mass-market offerings," such that mid-market brands, which had dominated 20 years ago, were losing share. Thus, Burberry leadership moved to sharpen the brand positioning by placing it firmly in luxury fashion — constituting an elevated positioning from contemporary fashion. Making good on the transformation would require an unprecedented level of coordination across the company's global operations and 10,000+ employees, but emergent consumer and macro trends supported the strategic vision.
"In some respects we’re following a very well-trodden path, so what we’ve laid out as our strategy in the shape of it is very consistent with other retailers and other luxury retailers," said Senior VP, Transformation, Katrina Beechey. She continued: "Obviously as a retailer you have a portion of your strategy that’s dedicated to product, a portion that’s dedicated to stores, a portion that’s dedicated to digital, etc. So I think in the overall framing of what we’re trying to achieve we’re in the pack and working in the way that you would expect.”
The Belt Bag "Experiment"
The Belt Bag constituted what one analyst called "one of the first experiments" in Burberry's new strategy, occupying a premium price point and advancing the way in which Burberry engaged the imagination of a new set of consumers. "Luxury clients are enthusiastic and take their clothes personally," said Chief Merchandising Officer Judy Collinson. "Fashion is part of who they are to the world. By building a relationship with the client, we are entertaining and sometimes challenging them."