Burberry’s Q1 sales in China grew 15 per cent from previous same year’s quarter. China is the only market that recorded double-digit growth for the brand. The importance of Burberry’s handbag and accessory category is also rising, which is very important for a luxury brand to win in the Chinese market, as consumers are very into It bags. Aside from product innovation, Burberry also devotes a significant amount of resources to communicate its transformation. In China, the brand is experimenting with the drop retail model on WeChat to stir excitement and desirability. Burberry has also relocated and renovated some retail stores in major Chinese cities to ensure its store offerings are in line with the brand’s new DNA.

Burberry is rebranding itself with a new graphic identity, logo-rich products, and heavy investments in retail distribution and marketing and communications. Burberry seems to be on the right track to having a business turnaround. But the question is whether the current upward trend can be sustained in a tough business environment in which Brexit, the trade war, and the slowing Chinese economy are adding various level of uncertainties. The cycle is becoming tougher and turnarounds have never succeeded in adverse cycles.