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Going digital top priority for brand buling BurberryYou can spot a Burberry scarf, handbag or coat anywhere in the crowd. But even this iconic luxury brand had to dive into unchartered water to weather the financial storm that shook the markets two years back. Angela Ahrendts, CEO, Burberry, like other leading retailers present at the event, stressed on the importance of a digital strategy and the role it should play as part of the brand building effort. And so Burberry, too, boarded the digital tsunami as Ahrendts explained. She touched upon the “soft strategies” — style, structure and value — the fashion retailer focused on during the recession. “Transitioning the business to the digital age was the top priority. We turned our world upside down in every area. But everything we do with the brand at the core, keeping with the ethos of the brand,” she said. At Burberry, they created a Strategic Innovation Council, an interdisciplinary council to transport the brand into the digital age. The company created its own Icon Awards to recognise good work, it’s the luxury retailer’s version of the Oscars. Burberry spoke to customers via Facebook (and has two million fans on the social network) and created live streams of 3D fashion shows simultaneously across all its markets and 3D advertising campaigns. She said Burberry rediscovered its purpose and values. Burberry Group PLC (BRBY.LN) Wednesday said it will continue its push into China after the U.K. luxury fashion house posted a rise in second-quarter sales driven by growth in Asia and rising demand for coats and leather goods. "There is momentum in terms of strategy, sales and profit," Chief Financial Officer Stacey Cartwright told reporters. Cartwright also said the iconic fashion company, famous for its red, black and camel colored check design, expects to remain unaffected by projected drops in consumer spending as governments cut public expenditure and rein in borrowing. "We concentrate on our specific strategies irrespective of what in going on in the global economy. We have got initiatives to gain market share .... We are growing across a number of fronts." Burberry recently completed the acquisition of 50 stores in China and is focusing much of its 20 to 30 new store openings this year in the Americas and Asia Pacific. It expects to increase selling space by 25% in the second half, of which about 15% will be in China. In the past year, the company -- which has 164 retail stores, 171 concessions, 45 outlets and 55 franchise stores -- has reined in costs and continued to strip out unprofitable lines, curb overstocking and minimize the discounting of heritage items like raincoats and scarves to boost margins. It has also clarified its ranges in the last 12 months, launching Burberry London as its wear-to-work label and Burberry Brit as its casualwear offering. As well as upgrading its e-commerce operation, the group launched a social media site 'Art of the Trench' and has produced live global 3D broadcasts to further digitize the brand. The group expects its full-year adjusted pretax profit before exceptional items to be GBP240 million to GBP270 million, which it said was a 5% increase on previous consensus. Cartwright said the company expects to improve its first-half gross margin performance by over 400 basis points. It previously said that capital expenditure will increase to GBP130 million this year from GBP70 million in the last as it invests in new stores, store refurbishments and its supply chain. Burberry reported an 11% rise in second-quarter sales to GBP382 million, from GBP343 million a year earlier, slower than the 27% rise in the first quarter, but on tougher comparables. With currency effects stripped out, second-quarter sales rose 8% compared with 21% growth in the first quarter. For the first half of the year ending Sept. 30, sales jumped 18% to GBP673 million from GBP572 million. Asia sales jumped 50% year-on-year, while sales in the Americas rose 14%. Second-quarter retail sales rose 27% to GBP195 million, led by Hong Kong, the U.K., Italy and France. Outerwear and large leather goods contributed about half of this growth, while Prorsum lines, shoes and childrenswear also posted strong performances. Wholesale revenue increased 6% to GBP139 million, but licensing sales dipped 9% to GBP25 million. At 0922 GMT, Burberry shares fell 21 pence, or 2%, to 1018 pence in a higher London market, as investors took profits after a strong recent run. It expects about a 10% increase in second-half wholesale revenue, excluding China and stripping out currency fluctuations. It also expects a mid single-digit percentage decline in full-year licensing revenue, stripping out currency fluctuations, as growth from global product licences is offset by a broadly flat performance from the Japanese apparel licence and the termination of the company's Japanese leather goods and menswear licences. However, this is better than its previous guidance of a 5% to 10% fall. The group said the upgrade is due to a "stronger than expected" performance from fragrance and watches. Inter Parfums, Inc. has announced that net sales for the third quarter of 2010 reached $120.9 million, a 2.8 percent increase from $117.5 million in the third quarter of 2009. In a release on October 26, the Company noted that at comparable foreign currency exchange rates, net sales for the third quarter were up 12.9 percent. Thus, net sales for the first nine months of 2010 increased 17.3 percent to a record $348.0 million from $296.6 million in the same period last year. At comparable foreign currency exchange rates, net sales for the first nine months of 2010 rose 22.6 percent. Inter Parfums plans to issue final results for the third quarter of 2010 on or about November 9, and conduct a conference call on the following day. Discussing European-based operations, Jean Madar, Chairman & CEO of Inter Parfums said, "The strong performance we achieved in the first half of the year has continued into the second half. Burberry fragrance sales were up 18 percent year-to-date in local currency. The global rollout of Burberry Sport fragrances was an important contributor, as were the growing sales of the enduring classic Burberry scents and the newer ones like Burberry Brit and Burberry The Beat. Through the first nine months of 2010, Lanvin fragrance sales were up 31 percent in local currency thanks to both established fragrances like Eclat d'Arpege and Jeanne Lanvin, as well as to the launch of the Marry Me line. Van Cleef & Arpels brand sales rose 33 percent year-to-date, in great part due to the spring launch of Oriens for women and the fall launch of Midnight in Paris for men. Additionally, third quarter and year-to-date sales included small contributions from the select distribution of the Burberry Beauty make-up collection and the integration of the Montblanc fragrance business." On the subject of U.S.-based operations, Madar pointed out, "Following the 71 percent increase in second quarter sales, we experienced certain inventory shortfalls during the third quarter. As such, certain shipments that were planned for the third quarter are expected to ship in the fourth quarter. We are looking for strong comparable quarter gains in sales by U.S.-based operations in the final quarter of the year." Russell Greenberg, Executive Vice President & CFO, added, "We are once again raising our guidance for 2010, based upon our year-to-date results and expectations for the final quarter of 2010. We expect 2010 results to set a new record with net sales of approximately $455 million and net income attributable to Inter Parfums, Inc. reaching $25.5 million or $0.84 per diluted share. Our 2010 revised guidance assumes the dollar remains at current levels." Inter Parfums, Inc. develops, manufactures and distributes perfumes and cosmetics as the exclusive worldwide licensee for Burberry, Van Cleef & Arpels, Jimmy Choo, Paul Smith, Montblanc and S.T. Dupont. burberry outletlouis vuitton outlet gucci outlet uggs outlet cheap uggs uk ugg boots 2:14 AM - 11/2/2010 - post comment
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