Overview
Burberry is a luxury brand founded in Basingstoke, Hampshire, in 1856 by Thomas Burberry as a family business. In 2002, Burberry became a public company led by Angela Ahrendts. The company operates 260 retail stores and in high-end luxury department stores worldwide. The brand has two headquarters locations in London and New York City.
Growth Profile
The Burberry brand is offered in North America, Europe, Asia Pacific, and South America. In 2006, Burberry had sales of $1292.3 million and net income of $185.1 million. The company expanded to 4,651 employees’ leading to a 12.6% employee growth.
Products and Services
The brand offers womenswear, menswear, childrenswear, accessories, footwear and licensing. Womenswear is
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Both brands offer versatility in merchandise as well as in locations. Ralph Lauren obtains various licenses and carries similar lifestyle image as Burberry.
House of Fraser
House of Fraser founded Baugur Group in 1849. The private department store offers home décor, apparel for all ages, accessories and electronics. The brand operates about 60 stores in the United Kingdom. House of Fraser is the second threat for Burberry due to its wide target in the UK. The company offers to the customer quality brand merchandise and prizes. The House of Fraser customer is similar to the Burberry because both are fashion conscious and look for comfort.
Escada
Escada is a German public company founded in the early 1976. The brand designs women’s apparel, accessories, leather goods and footwear. The brand operates about 515 owned and franchise stores worldwide. Escada is a main competitor for Burberry because of the merchandise concept. The brand targets upscale female customer who is in search for quality and individuality in the fashion society. The merchandise is an image of tailored silhouettes and intricate fabrics. Ralph Lauren, House of Fraser and Escada are main competitors of Burberry because of their approach to the customer and merchandise. All four companies suffer from similar threats such as weather. This is an important factor because it affects sales and the traditional outlook towards merchandise rotation throughout the
House of Fraser is ranked high in the market overall with its six major competitors being Marks & Spencer, John Lewis, Harrods, Debenhams, Selfridges and Fenwick. John Lewis is by far the most immediate competitor with House of Fraser.
Macy’s Inc. competes with other major players in the Department Store Retail Industry as well as with discounter, luxury stores, specialty stores, mail order and pure play internet retailers. Key competitors include Sears, J. C. Penny, Kohl’s, Nordstrom,
Competitors include BCF, Ray’s Outdoor, The North Face, and Columbia. The major threats in the industry environment are detailed below:
The Burberry 2011 Annual Report does in general meet the conditions of the Combined Code. Beginning on page 66 is the Director's Report. This section extensively reports on the Board of Directors, including their biographies, the corporate governance statement, information and financial reporting, relations with shareholders and other elements of the Board's function. The Board provides leadership for the company with respect to its internal control. The Audit Committee is responsible for this internal control. There are five members of the audit committee, and they are all independent.
earnings this year at the low end of estimates, sending its stock down the most in six
The competitive pressures from rivalry among the competing sellers of Lululemon is quite strong. In the industry, there are many competitors provides the performance yoga and fitness apparel such as Nike, Adidas, Under Armour, The Gap, Athleta, Nordstrom, Lucy, and bebe. One source of the competitive pressure is the wide product line of performance yoga and fitness apparels from the rivals, which provide wider selection for the buyer. Besides, some rivals provide cheaper products or has popular
Product: This tastefully, trendy shoe's name is derived from the Italian word, “comodita” meaning “relax” or “comfort”. This shoe is meant to be worn by the stylish, everyday woman that is constantly on the go from weekdays, to weekends, special occasions like weddings or even the formal dining experiences.
Burberry Group plc (Burberry) is into the global luxury sector. It works in the designing, marketing and sourcing of outerwear, women’s wear, men’s wear, non-apparel and children’s wear categories. It distributes through a diversified network of retail, wholesale and licensing channels worldwide. The company operates its business in three ways by region, by product and by channel. Burberry distributes its products in Europe, Spain, Americas and Asia Pacific through retail and wholesale channels and with selective license arrangements. In addition, it licenses third parties to manufacture and distribute products using the Burberry trademarks. It categorizes
There are five categories of risks in Ralph Lauren clothing sector, including: geopolitical, environmental, social and cultural, financial, and technological (“Managing risk in the clothing sector - Anthesis,” 2015).Pure risk such as natural hazards, climate change, food, energy and water security, demographic shifts, concentration of production, commodity prices and laws and regulation can pose risks to productivity, efficiency and supply chain resilience (“Managing risk in the clothing sector - Anthesis,” 2015).
Porter’s five model is defined as the framework that evaluate the position of a company in the external environment with focus drawn on the level of competitiveness (Roy 2011). The framework considers factors such as rivalry, substitute goods, the power of suppliers and buyers as well as new entrants. Four forces can influence the success of Michael Kors. The first one is competitive rivalry. Here, the struggle is about maintaining performance despite different tactics used by different companies to increase sales. For instance, Ralph Lauren uses premium prices for quality products to differentiate itself, while Coach uses product variety within the line of handbags to remain competitive (Stewart 2016). Also, when the industry is flooded with similar companies producing similar merchandise, the probability of a company stagnating is high because consumers have a variety to pick from. Hence, the need to establish loyal customers.
Competitive advantage: Another key criterion is that of competitive advantage. Fashion industry is highly competitive and Burberry is facing competition from all brands i.e. from lower end to higher end, and from lifestyle to fashion. Therefore, maintaining competitive edge in this market is very important and hence, we would take this factor into account in reaching the final recommendation.
According to the financial statement, during 2015-2017, Burberry were making profit in the three year however the firm had a drop in the net profit constantly. In 2015, the profit for the year was 341.1m, it was down by 7.77% to 314.6m in 2016 and it
In conclusion Burberry focus’s is not just on its brand name but on the quality and extensive features