One of the biggest fashion houses in UK offering clothes, perfumes, beauty products. Burberry is Interbrand’s top 100 global Brands this year and has been heralded as one of the most innovative brands in recent times, taking deep strides in the digital world. Its record sales are further testament to its strong branding. *
Burberry distributes its products through retail, wholesale, e-commerce and licensing distribution channels. This balanced mix diversifies distribution and reduces risk. Burberry sells its products to the end consumer through both retail (including digital) and wholesale channels. For 2011/12, retail accounted for 68% of revenue and wholesale 26%.
Wide geographical presence
As of 2012 Burberry has 444 stores around the world. Currently Burberry operates in four regions as for 2011/2012. America represented 25% of retail/wholesale revenue, Europe counts for 32%, rest of the world is 6% and Asia Pacific counts as 37%. Distinctive check－instantly recognizable
Classic plaid as the main feature
Since 1998, Burberry has used its trademark plaid in a more subtle manner, incorporating it with solids or using different plaids altogether.
Burberry is experiencing weak efficiency as company's turnover ratio is much lower than the industry average. And for the fashion brand it is very important to have high turnover in order to be able to turn over fashion styles in order to meet constantly changing trends. Moreover, low turnover causes low efficiency.
low resonance in certain countries like Spain.
In 2012, the company had to discontinue its presence and operation in Spain causing the £2.5m operating profit loss. Total restructuring cash spend was £8.6m.
Growth in Emerging Markets
As seen from above, emerging markets give people new wealth, disposable incomes and fuel the growth of luxury goods.
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