Leverage the Franchise

Leverage The Franchise

Enhance consumer resonance and operate more effectively through exacting use of brand assets and co-ordinated action across the global organisation. One brand, one company.

Burberry continued to strengthen and extend the brand through product and marketing excellence. The Company advanced its menswear offering and newly integrated fragrance and beauty operations. The strength of the Burberry brand contributed to the 17% revenue growth.

Key 2013/14 highlights include:

Product excellence

As a global luxury brand, product excellence – craftsmanship, innovation, design – remains central to the business.

Outerwear
  • Accounting for approximately half of Burberry’s mainline apparel sales, outerwear is at the core of Burberry’s business. The brand’s oldest product was among the fastest-growing categories in the year.
Menswear
  • Menswear, among the fastest-growing product categories in the luxury sector, remained a key focus area for the Group, accounting for over 20% of retail and wholesale revenue.
    • Burberry continued to optimise men’s assortments through product elevation – increased fabrics quality and detailing – sub-categories expansion and improved product flow.
    • In tailoring, to better meet the lifestyle needs of Burberry’s core luxury customer, travel tailoring was introduced. This new collection uses innovative natural memory fabrics to better maintain the suit structure against the demands of travel. Retail sales of men’s tailoring grew by about 40%.
    • Reasserting its British roots, Burberry’s S/S14 Mens Show returned to London after over ten years in Milan.
    • Accounting for over 20% of retail and wholesale revenue, menswear was the fastest-growing product division in the year.
Beauty
  • Burberry’s decision to integrate Beauty – the most widely encountered expression of the brand – in October 2012 led to direct operation commencing April 2013. Following a complex and challenging transition, Beauty is now the Group’s fifth product division. Through the integration of luxury and fashion with beauty, Burberry seeks a clear point of differentiation in the category.
  • Brit Rhythm for Men, the first fragrance following integration was introduced in September. The digitally led launch, was accompanied by a Brit Rhythm inspired ready-to-wear collection.
  • Beauty played an integral part of the womenswear fashion shows, with full runway exposure, next season’s nail collections immediately available for order and personalised greetings from a backstage Beauty Booth linked to Twitter followers globally.
  • The Group opened the first Burberry Beauty Box in London’s Covent Garden in December. This original concept allows customers to explore the connections between make-up, fragrance and luxury accessories in a dedicated retail space.
  • The female counterpart to the Brit Rhythm for Men, the Brit Rhythm for Women fragrance, was launched in January 2014.

Global brand engagement

Burberry seeks to extend the brand’s reach and engagement through marketing excellence and innovation.

Social media
  • 2013/14 saw new partnerships and strategies in the social media sphere.
  • In collaboration with Google, Burberry launched ‘Burberry Kisses’, an internet-based platform enabling users to capture and send virtual kisses. In a digital first, through contact with a touch screen or desktop camera, participants captured their ‘kiss’ in Burberry Beauty lip colour, recorded a personalised message and sent their ‘kiss’ via email.
  • As part of the highly anticipated iPhone 5s launch, Apple teamed with Burberry on the womenswear S/S14 show, capturing runway imagery through the camera feature of the device, prior to its release. Images were posted dynamically live to 13 outdoor screens across London, New York and Hong Kong. This collaboration achieved record levels of social media engagement.
  • Burberry announced an innovative partnership with the mobile messaging platform WeChat at the Burberry Prorsum Womenswear Autumn/Winter 2014 (A/W14) Show. WeChat facilitated the delivery of Burberry’s most personalised show experience, and in addition, the A/W14 show generated the most social media buzz in Burberry brand history, measured across all social platforms.
  • Art of the Trench, launched in 2009, continued to be an important social platform to celebrate the iconic trench coat. Since inception, Art of the Trench has recorded almost 24 million page views from over 200 countries. In 2013/14, the platform was integral to key brand events in Shanghai and Paris.
  • Burberry again finished the year as the most followed luxury brand on Facebook with over 17 million fans. Its Twitter following grew to nearly three million and Instagram to almost 1.4 million.
Marketing innovation
  • In creating more holistic experiences to better connect consumers with the brand, our teams compose Burberry stories to be expressed across consumer touchpoints – product, events, traditional and social media and PR – in a range of conceptual variation. The ‘Burberry Love’ theme, which developed throughout the year, provides a good illustration.
    • The story began early in 2013 with the mens and womenswear A/W13 fashion shows in which heart-patterned prints and the Crush handbag were featured on the runways.
    • The women’s show included a live performance of ‘Hold Me’ by Tom Odell, an artist featured on the Burberry Acoustic website.
    • Burberry Kisses then launched in June.
    • The A/W13 ad campaign was centred around intimate portraits of real-life couple Sienna Miller and Tom Sturridge.
    • The initiative concluded with the festive period ‘With Love’ message and product offering.
    • Such themes integrate the commercial and artistic dimensions of the Burberry brand.
    • Runway Made to Order, Burberry’s online platform allowing customers worldwide to be the first to own pieces from next season’s collection, further evolved with ‘smart personalisation’ for ready-to-wear and accessories.
    • Key partnerships also strengthened the brand’s presence in flagship markets. As part of iconic Parisian Printemps department store’s ‘London Mania’ campaign, Burberry led the celebration with entertaining installations across the store – window animations, a pop-up store, a Paris Art of the Trench initiative and a limited edition collection.

Transforming Japan

  • Burberry strengthened its presence in this important luxury market through the continued roll-out of the global collection and the Roppongi store opening. This is an important step in aligning the local brand perception with the global positioning and away from its premium status under the current licensees. Burberry has four stores and ten concessions in Japan selling the global collection, which, combined with a small wholesale business, generated revenue of about £25m and was break even.

External Recognition

Burberry was also recognised externally during the year.

  • Listed in Interbrand ‘Top 100 Global Brands’ for the fifth consecutive year.
  • Recognised by Fast Company as the seventh most innovative brand in retail.
  • Led media think tank L2’s ‘Fashion Digital IQ index’ for the third consecutive year.
  • Awarded ‘Best Brand’ and Christopher Bailey named ‘Menswear Designer of the Year’ at the British Fashion Awards.

KPI: Total revenue growth (Year to 31 March)

Measures the appeal of the brand to consumers, be it through Burberry stores or those of its department store or specialty retail customers.Growth rate is year-on-year underlying change i.e. at constant exchange rates.

kpi-total-revenue-growth

Growth rate is year-on-year underlying change i.e. at constant exchange rates.
2010* has been re-presented to exclude the discontinued Spanish operations.

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