We have identified significant growth opportunities across our existing channels, products and regions. The plans for growth and simplification are built on five key strategies. Three of these strategies, Product Focus, Productive Space and E-commerce Leadership, are focused on optimising revenue growth and enabled by the other two strategies, Operational Excellence and Inspired People.
Our products sit at the very heart of our business and we are focused on creating the icons of the future. Our “see now, buy now” model means that our customers can purchase our new products as soon as they see them on the runway. We also have a large selection of non-runway products that carry each show’s themes into our wider collections to give our customers more opportunities to buy into the excitement of the show at a wider range of price points and styles.
Burberry has a broad product offer, with strength in both heritage and fashion across genders and categories. Simplifying the product offer will enable the customer to discover new products more easily. It will also provide the opportunity to tailor the assortment more effectively for local customer needs. Burberry aims to implement a new approach to managing product categories.
Our multi-year Retail Excellence programme focuses on making our stores as productive as possible. This means providing our customers with a seamless luxury Burberry experience in every store with impeccable service and a personalized approach. We build strong, ongoing relationships with our customers and we listen closely to their views through our global customer feedback tool which allows us to carefully manage the experiences our customers have in our stores and on our website. The business model has evolved from being a predominantly wholesale to a predominantly retail model. There is a significant opportunity to improve Burberry’s end-to-end retail disciplines and to continue to evolve the omni-channel experience.
E-commerce is the fastest growing channel in the luxury and retail industries. Our customers will continue to move fluidly between the on and offline worlds and expect seamless, personalised experiences. Our strong digital capability means we are well placed to respond to this evolving landscape through both our owned channels and through relationships with digital platforms, social media companies and retailers. We are experimenting with virtual reality, augmented reality and the latest developments in social-commerce to ensure that we stay ahead of evolving shopping behaviours and respond quickly to changing trends. With an estimated 70% of Burberry’s retail sales having involved support from digital technology at some point in the customer journey, the ambition is for digital to remain a clear point of differentiation with scope to be more ambitious commercially.
Operational Excellence is a multi-year programme and involves re-engineering Burberry’s systems and processes to ensure that they are fit for purpose for the Company’s next phase of growth. This means structuring our business in a way that gives greater consistency globally to better meet the needs of our customers locally. We are simplifying our ways of working to allow our teams to focus their time where they can have the most impact and are free to do their best work, feel motivated and be inspired. The key areas of focus include process simplification, procurement effectiveness, inventory management and improving technology.
Our people are the engine of our business and the most important asset that supports the success of Burberry. With employees in 34 countries, representing over 112 different nationalities we are a diverse team, guided by Burberry’s core values of Protect, Explore, Inspire. We are dedicated to fostering a distinctive culture with a global team mind-set and a pioneering spirit.