Christopher Bailey's reign over Burberry

Source: Getty / Antonio de Moraes Barros Filho

Christopher Bailey's latest appointment as both Chief Executive officer and Chief Creative director of Burberry has caused a lot of controversy. As the decision was announced, it was reported that Burberry's stocks fell more than 7%. So why is there so much angst surrounding this decision?

Designers/creative directors/Chief Creative Officers have very limited power when it comes to management in the financial and administrative sense. I remember that I once heard Tom Ford say in an interview that when he first was appointed creative director of Gucci, one of the terms in his contract was that he would not be allowed to become the public face behind the brand. In fact, it was stated in his contract that he was not even allowed to make a public appearance at his shows for Gucci. Ford completely disregarded this clause in his contract and successfully transformed Gucci, a once struggling luxury brand, into what it is known as now. Between 1995 and 1996 sales at Gucci increased by 90%. During that period, in October 1995, Gucci went public with an IPO offering $22 per share. Although the label of Creative director implies limited power in regards to administration and management of Finance, Gucci allowed Ford the power to buy shares in other fashion companies (within reason). This enormous power instilled by Gucci into Ford, a rather risky move, proved to be extremely beneficial towards Gucci in the long term. 

With a success story such as Tom Ford at Gucci, coupled with Christopher Bailey's already successful venture at Burberry. It is implied that Bailey should be able to further Burberry as a luxury retail brand into the 21st century. But, how realistic is this?

While Christopher Bailey has been instrumental in building Burberry from a small English brand known for their trench coats into an internationally recognised and highly coveted luxury retail brand, he has only been involved with the visual and creative aspect of this development. To be blunt, Bailey has not been involved with the commercial, financial and administrative aspect of the brand, in short, overseeing and managing the whole company. Until this day, Bailey has merely been involved with introducing new innovative concepts to the brand of Burberry, he has not been involved with the implementation of those concepts.

Furthermore, the two roles of Chief Executive Officer and Chief Creative Officer, have up until now, been viewed as two separate roles by Burberry for a reason. Bailey currently presents 6 collections a year; Resort, Spring  Menswear, Spring RTW, Pre-Fall, Fall and finally Fall Menswear and as Chief Creative Officer, it is no doubt that he also oversees, Burberry's other two lines; Brit and London. It will simply been too much for Bailey to take up the role of Chief Executive Officer, alongside his already demanding duties of Chief Creative Officer.

Perhaps Bailey will prove himself in a role which many doubt he will succeed in. What ever the outcome, Bailey doesn't seem too confident about his new role as Chief Executive Officer in this video-