Burberry cracks China’s Gen Z luxury code

Burberry’s Greater China sales grew 6% in Q3 FY2026, doubling the previous quarter’s growth rate and significantly outpacing the British luxury brand’s global 3% comparable store sales increase. The acceleration was driven by mainland China, where flagship cities led performance and Gen Z customers grew at double-digit rates. The British luxury brand’s Q3 results, released January 21, 2026, mark a significant acceleration in the Chinese luxury market, where Gen Z consumers increasingly drive purchasing decisions. The momentum reflects CEO Joshua Schulman’s repositioning of the brand around “timeless British luxury” — a strategy that pairs heritage product categories with culturally resonant campaigns and tiered pricing designed to appeal to younger Chinese consumers seeking both authenticity and accessibility. While early results are promising, Burberry faces sustained pressure from reduced tourist spending and broader luxury market headwinds. Gen Z and tiered pricing drive Burberry’s mainland China growth Flagship cities showed the strongest performance. Management attributed the acceleration to improved Gen Z engagement, a strengthened in-store offer, and broader product appeal beyond the brand’s core outerwear and scarf categories. In China specifically, ready-to-wear was driven by knitwear, with strong demand for cashmere items in the “better and best” price tiers, including pieces featuring the Equestrian Knight Design (EKD). The brand’s tiered pricing strategy — spanning entry-level products like the Horseshoe bag to higher-end offerings including the B-clip handbag range and the Cotswolds tote in suede or leather — has resonated particularly well in the Chinese market. Outerwear and scarves remained key drivers, both posting double-digit growth, but the expansion into complementary categories signals a broadening of Burberry’s appeal. Approximately half of scarf purchases were personalized, highlighting demand for products that combine individuality with recognizable brand codes — a trend that has driven sequential improvement in the accessories business overall. The full wardrobe approach — anchoring collections with outerwear authority while using scarves to create differentiation — allows Burberry to offer complete styling solutions rather than relying on single hero products, creating a more balanced sales structure and stronger resilience against trend shifts. Year of the Horse campaign boosts Burberry’s China brand engagement Burberry’s festive season activations in China centered on the Year of the Horse campaign, launched in mid-December across major social media platforms. The campaign featured brand ambassadors Chen Kun, Tang Wei, Wu Lei, and Zhang Jingyi in visuals that blended traditional Chinese New Year elements with Burberry’s British heritage — an approach designed to balance cultural familiarity with the brand’s core identity. The campaign’s creative execution, shot in Shanghai by director AJ Duan and photographer Anton Gottlob, emphasized storytelling over overt product placement. Management noted the content’s shareability and high engagement rates, particularly among younger consumers who responded to the lighthearted tone and visual impact. Beyond digital campaigns, Burberry created a pop-up boutique and themed ice rink at Beijing’s WF Central, extending the festive atmosphere into experiential retail. This immersive approach — blending retail with leisure and entertainment — attracted significant foot traffic and social media sharing, deepening brand recall among young consumers who increasingly value participatory experiences over traditional luxury retail formats. The strategy reflects a broader shift in how luxury brands engage Chinese consumers: moving away from aspirational messaging toward culturally grounded storytelling that allows for personalization and social sharing. For Burberry, the approach appears to be translating digital engagement into in-store visits and purchase behavior, particularly among the Gen Z demographic that showed double-digit growth during the quarter. ‘Burberry Forward’ strategy shows results in Q3 2026 Schulman joined Burberry as CEO in July 2024 and quickly introduced the “Burberry Forward” transformation plan, centered on returning the brand to its core positioning in outerwear and scarves — categories where it holds historical authority — rather than continuing the previous leadership’s push into handbag-led luxury positioning. The strategy emphasizes building consistent brand authority across product categories through in-store merchandising innovations. Scarf bars, which continue to outperform overall store performance, are expanding to 200 locations by year-end. The company plans to replicate this category-focused retail model with dedicated zones for outerwear and polo shirts. Globally, comparable store sales grew 3% in Q3, with all regions delivering flat or positive growth for the second consecutive quarter. Asia-Pacific grew 5%, led by South Korea’s 13% rebound driven by both local demand and returning Chinese tourist spending. The Americas grew 2%, while EMEIA remained flat. Management expects adjusted operating profit for FY26 to align with current market consensus, with continued investment in marketing campaigns and store initiatives despite ongoing pressure from reduced global foot traffic. China luxury market outlook for Burberry Burberry’s China acceleration provides early validation that its cultural positioning and tiered pricing strategy are resonating with a critical consumer segment. However, sustaining double-digit Gen Z growth and sequential improvement will require continued investment in experiential marketing and localized brand building — areas where competition for young Chinese luxury consumers remains intense. The brand’s ability to maintain momentum beyond the festive season will depend on whether its product pipeline can deliver the cultural relevance and accessible luxury positioning that drove Q3 performance. With tourist spending still suppressed and the broader luxury market facing headwinds, Burberry’s China strategy has become central to its broader turnaround — making the next quarter’s results particularly significant for assessing whether this rebound represents a sustainable shift or a seasonal peak.

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Burberry cracks China’s Gen Z luxury code