Burberry Investigative Report and Competitors Essay Example
In 1856, Thomas Burberry founded Burberry as a family business in Basingstoke, Hampshire. The brand became publicly traded under the leadership of Angela Ahrendts in 2002. With its headquarters in London and New York City, the company operates 260 retail stores globally, including high-end luxury department stores. Its sales surpassed $1292 million in 2006 and it has a strong presence across North America, Europe, Asia Pacific and South America.
The workforce of the brand has grown by 12.5% and currently stands at 4,651 employees. This expansion has led to revenue generation worth $3 million and a net income of $185.1 million. The brand offers a diverse range of products and services including clothing for women, men, and children, accessories, footwear, and licensing. Among these offerings, the largest sales contributor is the department for women's clothing which accounts for 36%.
Burberry offers its iconic trench
...coat to both men and women, along with a variety of customer services such as online brand viewing, access to catalogs, gift cards, gift sending options, product warranties, and a returns policy. The brand's distribution channels include retail, wholesale, and licensing avenues; however retail is the primary mode of distribution for this globally-popular brand.
The wholesale business focuses on important clients and the expansion of Burberry's brand hinges on licensing in Japan. Burberry's target audience is broad and appeals to both men and women aged 18-55+ with an income of $55,000+. The brand caters to traditional individuals as well as those interested in contemporary fashion and British style featuring classic, polished apparel.
Competitive Profile - Competitive Comparison Burberry
Burberry competes fiercely with Ralph Lauren due to their similar broad range of products and services as wel
as widespread locations. Based in London, Burberry specializes in selling apparel, accessories, fragrances, and home furnishings. The brand operates almost 290 retail and outlet stores across the US and licenses over 100 others globally. Founded in 1967 by Ralph Lauren who currently holds a 90% stake in the company, Polo Ralph Lauren is also based in New York City.
Ralph Lauren and Burberry share a comparable lifestyle image, as Ralph Lauren holds multiple licenses. Founded in 1849, House of Fraser is a private department store that provides home decor, electronic products, clothing and accessories for all ages. With approximately 60 stores all over the United Kingdom, it poses as a second major competitor to Burberry since it reaches out to a wider target audience within the UK.
House of Fraser and Burberry have the same type of customer, fashion-conscious and seeking comfort. Escada is a German public company that was established in the early 1976 and specializes in creating women's apparel, leather goods, footwear, and accessories. The company operates around 515 stores that are both owned and franchised globally, offering high-quality branded merchandise and prizes to customers.
Burberry's competition comes from companies like Escada, Ralph Lauren, and House of Fraser. These competitors all focus on providing high-quality and unique fashion options for upscale female customers. They showcase expertly-tailored silhouettes and use intricate fabrics in their merchandise. Additionally, all of these companies face common threats, such as changes in weather patterns.
The impact on sales and traditional merchandise rotation is a critical factor for fashion companies, while the country's economic status, particularly during a recession, poses another major threat. Burberry Group remains competitive through its diverse range of merchandise
categories and ability to provide product versatility.
Source: Burberry Group. (2008).
Accessed on February 1, 2008, from http://premium.hoovers.com/subscribe/co/factsheet/xhtml?ID=rftsryhyjhtxsyx, the Hoovers website provides information on Burberry Limited through their Burberry USA page in 2008.
The website for Burberry, which can be found at http://www.burberryusaonline.com/home/index.jsp, was accessed on February 4, 2008. Furthermore, there is another brand known as Escada.
(2008). The Escada Home website was accessed on March 7, 2008 from http://www.escada.com.
The House of Fraser website provides a company profile of Escada: http://www.escada.com/home/? st=eg. The information was retrieved on March 3, 2008.The link to Ralph Lauren's page on the House of Fraser website is:
houseoffraser.co.uk/on/demandware.store/Sites-hof-Site/default/Link-Page?cid=HoF_9.0_ABOUT_HOF Ralph Lauren.The "About Us" section of Ralph Lauren's website provided knowledge on the establishment date and background information about the company on March 7, 2008. A hyperlink to their website was also included, and the source link can be found at http://about.ralphlauren.com/default with all and contents intact.The HTML tag
contains the link "asp?ab=footer_aboutus".
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