Found in Basingstoke England in 1856, Burberry is by far one of the most iconic fashion powerhouses in Europe and also worldwide. Its presence is felt throughout the world with 473 retail stores in the world. Apart from clothing, Burberry Group Plc also deals in accessories and also licensing fragrances. Due to increased competition from other players in the clothing and accessories industry such as Zaramani, Rome’s Gucci, Emporio Armani, Paris’ Louis Vuitton and Ralph Lauren’s Polo was forced to go back on the drawing board and redraw market strategies.
It is beyond doubt that back home in Britain, the brand is largely embraced and mended. This is however not the case when it comes to the global scene. Foreigners often view the brand as second to the most favored labels, often referred to as the august outfit. This problem dates back in the early 2000 where the brand was mostly characterized by the white-working class delinquents known as the ‘chavs’ who were constant trouble makers and hooligans. Many people started shunning the label and even local service operators started developing a habit of turning away youngsters who donned the label. Consequently, there was a reduction in the reduction and popularity of the label. These setbacks were poised to change when Angela Ahrendts assumed the mantle at the helm of the company.
Burberry in China and Hong Kong
In September 2010, Burberry bought out its Chinese partner for a reportedly seventy million sterling pounds deal. This was the first marked big step to the success of the company in the Asian market. It therefore had a greater control in the vast country controlling about 50 stores all over mainland China. These included four stores in Shanghai as well as other nine stores in the capital city Beijing. The stores were distributed out in 30 Chinese cities including Beijing, Changchun, Chengdu, Shenzhen, Shenyang, Shanghai, Jinan, Kunming, Macau, Wenzhou, Wuhan, Tianjin, Taiyuan, Kunming, Nanjing, Ningbo, Qingdao, Guangzhou, Dalian, Chongqing, Hangzhou, Harbin as well as Hong Kong. To date, the company has added seven more retail stores to the initially existing ones to put the tally at 57 stores. By the year 2017, the company is targeting to hit 100 stores and still running.
A lot of bold and expensive market strategies have been put in place to ensure consolidation of the Chinese market. In 2011, the company opened the Principle and showcase branch in Sanlitun District in the City of Beijing with a huge party that enabled it to put its public relation at a high level.
The company has also involved advanced technology in the 57 branches with ipads and touch screens that show a wide range of information about the fashion world. This has helped to attract many customers in their stores as they not only come to purchase commodities but also access information.
According to analysts, China is poised to become the largest market for luxury goods by the year 2020. The strategic move by Burberry to cover this market is to strengthen its grip alongside other fashion powerhouses located in the region like Louis Vuitton and Gucci. This is evident from the financial reports of the company which how that it has recorded a strong 21% in the fourth quarter of their business year to pocket 574 million Euros. A big share of this revenue is attributed to the increased sales in China.
Burberry in South America
Targeting up-and-coming markets in South America, Burberry have unveiled a plan to open 10 stores in Central and South America This is a 200 million Euros investment bid to increase the retail sales of the company to 14%. Already, a flagship company has been launched in Iguatemi, Sao Paolo, Brazil. The strategic location of the 350 square meter retail store is to attract the 1.6 monthly visitors who visit the Brazilian city. The locality is also the official venue Sao Paolo Fashion Week, making it the most suitable place for it to be visited by fashion analysts and enthusiasts. Burberry has another store in Mexico City. Plans are also underway to open a new retail store in Cancun.
Burberry in the United States of America
Even though there is a slump in the brand’s as well as luxury commodities ‘sales in the US, Burberry is still trying to retaliate on this by opening outlets in the country. The brand outlets in a number of states including Florida, California, Indiana, New Jersey, Texas, Georgia, Virginia, Washington, Nevada as well as Massachusetts. Plans are also underway to open additional retail stores in San Diego, Texas and San Antonio, California.
Compared to the other brands, Burberry offers customer friendly prices and easily accessible commodities. This has helped the brand to tilt the competition in the region to its advantage (Rohwedder & Johnson-2008).
Burberry in the Middle East
In the Middle East, the brand has established retail shops in a number of areas. The first retail store was opened in Dubai in 1997. It was run by Jashnmal Group. In the United Arab Emirates, Burberry Group Plc announced a 15 year joint venture with the close ally and a long term franchisee of the brand, Jashanmal Group. His venture has led to the birth of a new company, the Burberry Middle East Limited Liability Company whose headquarters are located in the city of Dubai. This was done in 2008.
The purpose of this company was to manage all the brands interests in the region, including outlets in Qatar (Villagio Mall), Abu Dhabi (Marina Mall), Oman, Kuwait (Arraya Center, Marina Mall) as well as Dubai (Burjuman, City Centre Mall, Mall of the Emirates, Dubai Mall). The principle retail store of the region was opened in the Dubai Mall. There are currently eight stores under the joint venture agreement. Other four outlets are still in the planning phase and it is revealed that one of them will be fully dedicated to selling children’s clothes and accessories.
Currently, there is a 40% increase in the sales of the brand’s products due to the venture and reports are that things are still looking up for the brand.
Burberry in Europe
Apart from the stores in the United Kingdom, the company is ensuring opening of retail stores in Frankfurt and Munich, Germany. It is also planning to add an outlet in Zurich and other pioneer stores in Poland, Athens and Turkey.