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Strategy

In November 2017, we set out our multi-year plan to re-energise our product and our customers‘ experience of our brand to deliver sustainable long-term value. The strategy will be delivered through a combination of superior organic profit growth and continued strong cash generation, as well as through our commitment to our capital allocation framework.

The six pillars of our strategy consist of four revenue drivers – product, communication, distribution and digital, and two enablers – operational excellence and inspired people.

Product

To re‑energise the brand and win with fashion-forward influencers, we are evolving our product offer to signal change and attract the attention of luxury consumers. Transforming leather goods will be a key part of this. We will continue to be unconstrained by the traditional calendar, offering regular newness. We will also focus on creating full outfits for the customer, adding innovation at every price point to recruit new customers to the brand.

COMMUNICATION

We are evolving our communications to be led by product and made for social media. Placing our products at the centre of our communications, we will leverage our digital and social media reach to convey new energy. We will reignite brand heat and change customer perception, using bold consumer engagement, reinventing editorial content and increasing our focus on experiences, using pop-ups and capsules to continually engage consumers with the brand.

DISTRIBUTION

Our aim is to operate a distribution network that is consistent with our luxury positioning. To support this change, we will rationalise our non-luxury wholesale and retail doors, with an initial emphasis on the US and then EMEIA. We will also transform our in-store experience by refurbishing our retail stores and enhancing customer service. Together, these actions will enhance our luxury distribution network, supporting our refined brand positioning.

DIGITAL

We are revolutionising our digital proposition by displaying highly curated product assortments, personalised stories and editorialising our website to enhance consumer engagement. We are also improving the omnichannel experience to allow customers flexibility over payment and delivery options, switching seamlessly between physical and digital. We will also strategically grow and strengthen our digital partnerships with brand-appropriate partners.

OPERATIONAL EXCELLENCE

To deliver sustainable growth, we must increase our agility and efficiency, enabling us to better respond to the rapidly changing environment in which we operate. Our ambition is to adapt our supply chain to deliver true luxury products, power the organisation through technology and to work in a simple and efficient way. Operational exellence is an important foundation as we strengthen our Company and re-position our brand. By working differently and more effectively we can remove significant waste. We have accelerated and extended our cost saving programme to deliver £100m of cumulative cost savings in FY 2018/19, and £120m of cumulative annualised cost savings by FY 2019/20, which in total represents 15% of our addressable cost base.

INSPIRED PEOPLE

Our Inspired People programme is designed to deliver the organisational and people elements of our strategy. Work is underway to deliver on our commitments of fostering a dynamic and inclusive culture to engage employees, empower our leaders, strengthen capabilities, expand our talent plans, simplify how we work and drive positive sustainable change across every part of our footprint.

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