Burberry is undergoing a major transformation, with a new designer, a new focus on ultra-luxury, a new logo and a change to the way it drops its product. The company has seen the successful launch of its new go-to-market model with social selling innovation contributing to building brand heat. Most discussions to evolve its wholesale distribution are now complete and the required changes to its third-party distribution network are expected to accelerate in the second half of the year. The brand’s strategic focus is on igniting brand heat — starting with influencers and key opinion leaders, which will cascade to all consumers.

Burberry has been deploying strategies to cut down under-performing retail locations. In the last eight months the British luxury fashion house closed four stores in Shanghai, China’s commercial capital, in its efforts to bring down costs and as part of a global restructuring effort. But while the early signs are encouraging, transitioning the product offer, evolving its distribution, changing wider consumer perception and seeing this translate into positive business performance will take time. The company’s switch to regular monthly drops via its B Series has got off to a good start too.

The broader luxury industry faces the prospect of slowing economic growth globally and weaker demand from Chinese consumers.