Burberry plans to increase sales in a big way.

The plan is to double sales of leather goods, shoes and women’s clothing and expand outerwear sales by 50 per cent in the next threeor five years.Longer term, the aim is to increase accessories from 36 per cent of sales to over 50 per cent. Leather goods are the profit drivers of the industry, with successful handbags generating gross margins of over 80 per cent so if the company can sell more It bags, that goal looks realistic. However there are obsacles. For one there’s a downturn in luxuryparticularly in the US.

There is less demand for expensive high-end items as more marginal luxury buyers begin to feel the pinch. So the fashion house best known for its black, white, tan and red check has its work cut out. Previous marketing and advertising efforts were disjointed. Focusing on Burberry’s heritage and made-in-Britain status should give the fashion house more of a coherent identity. Also, to ensure Burberry meets its targets, the Chinese market needs to reopen. Burberry is one of the few high-end brands unencumbered by a family shareholding.This British institution is yet to live up to its full potential.