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    Burberry Growth Double Engine Break 1 Billion

    2013/11/25 13:25:00 30

    MarketingLuxurySales Channels

    < p > sales increased by 16.8% compared to the same period last year. For the first time in history, sales in the first half of the year exceeded 1 billion pounds, which should be the last beautiful answer of Angela Ahrendts for Burberry.

    As we all know, her identity will be Apple's senior vice president next year.

    And her position will be replaced by the original chief creative officer, Christopher Bailey.

    < /p >


    < p > in the digitalization of a href= "http://www.91se91.com/" > marketing < /a > for many years, Ahrendts has finally hoped to blossom and bear fruit. The electricity supplier still contributes to Burberry, and online revenue growth exceeds all areas under the line.

    And whether the "profit cow" will add more bright colors to Burberry's beautiful report card is still to be observed after converting beauty products into direct battalion.

    < /p >


    < p > recycling the right of distribution in the Chinese market < /p >


    < p > according to the latest semi annual report released by Burberry, as of September 30, 2013, the income of Burberry in the first half of the year was 1 billion 31 million pounds, an increase of 17% over the same period last year. The group's pre tax profit in the first half of the year was 159 million pounds, up 41.95% from 112 million in the same period last year.

    < /p >


    < p > in which Burberry retail business revenue grew by 17% to 694 million pounds, accounting for 67% of the group's total business, a slight increase compared to 65% in the same period last year.

    Comparable sales also showed a two digit increase to 13%.

    < /p >


    < p > in fact, Burberry has been carrying out shop optimization according to the plan. In the first half of fiscal year 2013, the brand opened 14 main stores and closed 8, while opening 7 new stores and closing 6 outlets in high potential markets including China, the Middle East, India, Brazil and Mexico.

    < /p >


    < p > as of November 2013, Burberry has 70 direct outlets in mainland China covering 36 cities.

    There are 9 new stores (including Burberry children's wear shops) in mainland China this year.

    Emphasizing that Burberry is a wise choice for Chinese market to buy management rights from distributors. The continuous development of shop reintegration also meets the changing luxury consumption behavior in China.

    Men's clothing, children, tourism retail products and digital business are still attractive growth opportunities.

    < /p >


    < p > relative to the growth of the retail market, the revenue in the first half of the wholesale channel decreased by 7% to 244 million pounds.

    But the Asia Pacific region and the Middle East, Europe, South Africa and India all have double-digit growth while the North American market has high single digit growth.

    < /p >


    According to the regional sales division, the United States achieved a year-on-year growth of 20%, becoming the fastest growing country, exceeding 15% in the Asia Pacific region and 14% in Europe. < p >

    < /p >


    < p > US < a href= "http://www.91se91.com/news/index_q.asp" > luxury goods < /a > industry research organization The Luxury Institute conducts an investigation of over 500 people who earn more than 5 million people with annual income of 200 thousand US dollars and assets over 5 million yuan. The data show that Burberry has a 18.3% share of the women's fashion and accessories market in the United States.

    Slightly lower than Prada's 21.1%, but higher than Louis Vuitton's 17.4%, Gucci's 16.6%.

    At the same time, it ranked 21 in the total market value of the 9 billion 233 million luxury listed companies, and Burberry ranked thirteenth in the valuation of US $9 billion 233 million.

    < /p >


    < p > growth engine: outbound travel and online sales < /p >


    < p > the growth of luxury tourism shopping promotion line, Burberry continues to invest more in the global flagship market, hoping to better serve consumers.

    For example, Burberry is equipped with private customer teams in key markets to ensure seamless service to key customers, carry out cultural training in potential consumer markets and Putonghua training.

    < /p >


    < p > according to the rebate sales data of nine top quality shopping villages in the first three quarters of 2013, the total sales rebate of non EU countries increased 43% from January 2013 to September. China is still the top of the largest non EU countries.

    From January 2013 to September, sales rebates for Chinese tourists increased by 54% over the same period last year, with an average consumption of 283 euros per year, an increase of 2.11% over the first half of the year.

    < /p >


    < p > however, sales growth on Burberry line is still growing rapidly under offline sales.

    Now, the important function of Burberry official website is to carry out online trading products, and this part of sales has a breakthrough growth every year.

    In addition, Burberry's exclusive "custom service for walking show" is unique.

    The most tempting thing for consumers is to buy the next season's products in advance, and it takes only 8 weeks.

    These innovations in digital marketing have increased the surge in Burberry online sales.

    < /p >


    < p > make-up start < /p >.


    < p > in terms of category, Burberry's men's wear and children's wear grew fastest, with a year-on-year growth rate of 11%.

    It is worth mentioning that the Burberry beauty make-up will take on a new look in 2014.

    < /p >


    < p > in fact, in 2010, under the control of chief design officer Christopher Bailey, Burberry launched its brand's first cosmetics series Burberry Beauty.

    < /p >


    < p > this year, the brand announced that Burberry's make-up and perfume will all be self operated, and this year is the first year pition period of beauty products from franchising to direct operation. The brand side says that it is currently pferring between dealers and self run businesses, but it has not yet been fully recovered.

    < /p >


    There is a series of complex problems between P, such as supply chain, < a href= "http://www.91se91.com/news/index_s.asp", "sales channel < /a", dealer network, inventory, advertising and marketing expenses will inevitably rise, which has a negative impact on Burberry's profitability.

    < /p >


    In the first half of the year, the sale of beauty products was 51 million pounds, operating profit was 6 million 100 thousand, and the operating profit rate was 12%, lower than other product lines. The annual sale of beauty products was around 140 million pounds, with a profit of 10 million P.

    < /p >


    < p > the addition of beauty product line has a negative impact on gross profit margin and operating profit margin. However, the increase in the proportion of direct sales and the increase in average selling price help to maintain the gross margin of the company at 69.2%.

    And Christopher Bailey has long indicated the importance of Burberry make-up in fashion show, and also believes that make-up should match the overall feeling and personality.

    < /p >

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