British brand Burberry is having distribution problems. The company’s supply chain remains weak. The brand’s strategic focus is on igniting brand heat — starting with influencers and key opinion leaders, which will cascade to all consumers. But shifting consumer perception, transitioning product, and transforming the distribution will take time.

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. But while 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. Most discussions to evolve its wholesale distribution are now complete and the required changes to its third-party distribution network are expected to accelerate,

All regions performed in the first half. The UK and Italy grew, with an improvement in the second quarter, while the Middle East remained weak due to macro factors. But Asia Pacific grew by a mid-single-digit percentage. The company has seen the successful launch of its new go-to-market model. The broader luxury industry faces the prospect of slowing economic growth globally and weak demand from Chinese consumers.