Burberry sees backlash from celebrities E-mail
Wednesday, 27 September 2006

Burberry continues to spark controversy in its move to close a Welsh factory with 300 employees expected to lose their jobs. Prince Charles has raised concern and is understood to have contacted government ministers to ask if there is anything his Trust can do. Burberry, in order to meet high profit margins, is considering moving more production to China, where labour costs are significantly lower. Another concerned celebrity is Ioan Gruffudd, the Welsh actor and Hollywood star, as the polo shirt producing factory from Rhondda is close to where he grew up. Gruffud is one of the leading models in the Burberry fragrance campaign, along with Rachel Weisz.

This weekend, however, The Times reported that Gruffudd has pleaded with Burberry's CEO Angela Ahrendts, to salvage the factory and its staff from closure and unemployment. Burberry strikes a discord when its quintessentially British brand is being manufactured abroad. Many products, from Burberry checked jeans to accessories, are being licensed to companies outside of the UK, with markets such as Spain and Japan producing their own products, that are not sold in the UK, and that would dilute brand value considerably. Burberry is keen to advertise its authentic British heritage, however the focus for the company is slowly moving to other markets, where growth opportunities are greater. Burberry was founded in 1856 in Basingstoke, Hampshire. The signature check emerged as a brand signature on various products in the 1960s, although now it is only used on 10% of Burberry products.


 
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