DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/rs2jps/burberry_case_stud) has announced the addition of the "Burberry Case Study: Retail-led Strategy to Target High Net Worth Individuals in Asia Pacific" company profile to their offering.
Burberry's retail-led growth strategy is focused on digital integration. The company is investing in underpenetrated markets such as Asia Pacific and Latin America as continued growth in luxury goods sales is forecast. The company's targets are 25 of the world's wealthier cities, as these benefit from high levels of tourism and high net worth residents.
Highlights:
- Burberry recorded a 35% revenue increase in 2010/11 compared to the previous year. China contributed 5% to underlying growth. Non-apparel, including handbags, small leather goods, scarves, shoes, belts and jewelry, remain key drivers of the company's growth, contributing 40% of retail/wholesale sales during 2010/11.
- The company increased the number of directly operated stores by 105 in 2010/11. Overall Burberry store productivity increased by 11% in 2010/11. Average unit retail prices rose during the period, while product flow and replenishment capability improved. About half of the new stores were opened in existing high profile markets.
- The company now has 57 shops in China, and this figure is expected to almost double within the next five years. In Latin America, the group now has three stores operating. Through franchise partners, the first Burberry stores were opened in Armenia, Egypt, Israel, and Mongolia during 2010/11.
Your Key Questions Answered:
- How is Burberry delivering such a strong performance during a period when many retail businesses are struggling?
- What are the opportunities of investing in underdeveloped markets? How does a company imprint a brand image in customers' minds?
Key Topics Covered:
Chapter 1 Capturing the new generation of luxury consumers with digital integration
- Mining the past to seize the future
- Burberry will target 25 of the world's wealthier cities
- From a static wholesale concept to a dynamic retail model
- Six languages across 45 countries and digital integration through Burberry World
- Capturing a new generation of luxury consumer by combining PR with social media
- Fashion shows streamed directly to flagship stores globally
Chapter 2 Investment in underpenetrated markets
- 80 directly operated stores opened in 2010/11, of which 57 were in China
- 50% of total revenues from Asia Pacific by the end of 2015
- Brand control in the fastest-growing luxury market in the world
- 73% of China's luxury buyers are under 45 years old
- In order to imprint its brand in the minds of emerging luxury consumers, Burberry is focusing on young, tech-savvy shoppers
- Social media to build recognition and strong relationships with the brand in China
- Extended presence in Latin America, India and new markets
Chapter 3 Measuring strategy outcome
- 105 new stores around the world and a 11% productivity increase
- Total revenue increase of 35% per year
- Non-apparel revenue increase of 32%
- Average retail selling space increased by about 14% in FY 2012
- £180-200 million to be spent on further development of the growth strategy
Conclusions
- Burberry's investment in Asia Pacific has benefited the company
For more information visit http://www.researchandmarkets.com/research/rs2jps/burberry_case_stud